Agnico-Eagle Mines Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Agnico-Eagle Mines (NYSE: AEM  ) fell 19% today after the company shut down one of its mines.

So what: The Goldex mine in Val d'Or, Quebec, had issues with water inflow and ground instability, causing the company to suspend the project indefinitely. The shutdown will result in a $260 million charge in the third quarter to write off the investment.

Now what: 17% of the company's output was expected to come from the mine, and this was one of Agnico-Eagle's lowest-cost operations so the news couldn't be much worse. Considering the impact on operations, this is a big blow, and I'm not sure we've hit bottom here. At the least we know the shine has worn off shares of Agnico-Eagle; I think buying here would be like throwing money into a wishing well.

Interested in more info on Agnico-Eagle Mines? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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