"Agnico-Eagle will write off its investment in Goldex. It is expected that this will
total approximately $260 million (or approximately $170 million after
tax, or $1.00 per share) and will occur in the third quarter 2011
financial results, scheduled for release on October 26. "

Thanks for that, Rocklicker.

The first part sounds like AEM is a good bargain at this price in that $1/share is to be written off on this quarter's earnings while the stock has already gotten whacked down by about $10.

But this next part i don't quite understand. Does it suggest that the mine will get hit with greater losses or writedowns than that $1/share? Does reclassifying ore as mineral resources have that effect?

"Additionally, the Company expects to make an accounting provision for a portion of the anticipated costs of remediation in the third quarter of 2011. All
of the remaining 1.6 million ounces of proven and probable gold
reserves1 at Goldex (approximately 10 years of mine life), other than the ore
stockpiled on surface, will be reclassified as mineral resources."