Mining On Top: Stockholm 2013 26-27 Nov 2013 Agnico Eagle update – Ingmar Haga, Agnico Eagle; Vice President, Europe

1. Agnico Eagle
Update
Mining on Top: Stockholm
November 27, 2013
Ingmar Haga

2. FORWARD LOOKING STATEMENTS
The information in this document has been prepared as at November 21, 2013. Certain statements contained in this document constitute
“forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking
information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”,
“estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information.
Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates
of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of
return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, and
expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates
of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and
production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and
information regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statements
and information regarding the sufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as at
the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such
statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or
implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other
metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production,
capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development
programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility
of the Company’s stock price; and risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion of
such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements
contained in this document, see the Company’s Annual Report on Form 20-F for the year ended December 31, 2012, as well as the Company’s
other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend,
and does not assume any obligation, to update these forward-looking statements and information. Alain Blackburn, a Qualified Person and the
Company’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s
reserve and resource position see the February 13, 2013 press release on the Company’s website. That press release also lists the Qualified
Persons for each project.
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3. NOTES TO INVESTORS
Note Regarding the Use of Non-GAAP Financial Measures
This document presents estimates of future “total cash cost per ounce”, “minesite cost per tonne”, and “all-in sustaining cost per ounce of gold
produced” that are not recognized measures under United States generally accepted accounting principles (“US GAAP”). This data may not be
comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite
costs per tonne that the Company expects to incur to mine gold at the applicable sites and do not include production costs attributable to
accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not
practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of the
Company’s total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in
accordance with US GAAP for the Company’s historical results of operations is set forth in the notes to the financial statements included in the
Company’s Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2012, as well as the Company’s other
filings with the Canadian Securities Administrators and the SEC.
Note Regarding Production Guidance
The gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices and foreign
exchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidance
presented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves.
agnicoeagle.com
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4. Agnico Eagle Mines Limited
Milestones
• 56 years of operating history, dating back to
1957 - Agnico Mines
• 1972, Agnico Mines merged with gold
exploration company Eagle Gold Mines Limited
to form today’s AEM
• 1994, AEM listed on the New York Stock
Exchange
• 2000, LaRonde’s Penna Shaft, the deepest
single-lift shaft in the Western Hemisphere
• 2005-2006, acquires the Suurikuusikko gold
deposit in Finland and the Pinos Altos property
in Mexico
For many years, we have
adhered to a consistent,
low-risk strategy for
strengthening our gold
mining business and
creating shareholder
value.
• 2009 -10 Meadowbank mine and Meliadine
project in Nunavut
• 2012 La India property in Mexico
4

5. Agnico Eagle Strategy
Deliver meaningful per share growth in operating and financial metrics
Grow gold reserves and production in mining friendly
regions
Be a low-cost leader
• Goal is to move back into the industry’s lowest cost quartile
Acquire small, think big
• Buy early, add value through exploration and mine building
Maintain a solid financial position
• $1.05 B of available bank lines
• Only 173 M shares outstanding after 56 years of operating history
5

6. Agnico Eagle Today
>Million ounce gold producer
Focused on delivering total shareholder return
Lower risk
•
•
•
•
Mature operations
Low political risk jurisdictions
Measured production growth
Free cash flow generator
Committed to dividends - 30 consecutive years
6

7. Agnico Eagle Today
• Seven mines in three countries
• Mineral exploration in Canada, USA, Mexico and Scandinavia
LaRonde (Canada) 1988–2023
Goldex (Canada) 2008–(2017)
Kittilä (Finland) 2009–2037
Lapa (Canada) 2009–2015
Pinos Altos (Mexico) 2009–2028
La India 2013 Meadowbank (Canada) 2010–2019

8. AGNICO EAGLE – DELIVERING RESULTS IN A CHALLENGING
ENVIRONMENT
► Record quarterly gold production (Q3’13) of 315,828 oz at a total cash cost of
$591/oz
► 2013 Production guidance increased to approximately 1,060,000 oz of gold
► 2013 Total cash cost guidance reduced to approximately $690/oz
► 2013 all-in sustaining cost estimate is reduced to $1,025/oz (from $1,100/oz)
► Goldex and La India contributing to ~20% production growth through 2015
8

9. AGNICO EAGLE – MANAGEABLE, SOLID BUSINESS
Full year 2013 production revised higher to 1,060,000 moz gold
EXPECTED
PRODUCTION1
YTD 2013
Total
Production Cash Cost
(Gold oz)
($/oz)
LaRonde
2014
(Gold oz)
2015
(Gold oz)
130,445
$801
215,000
250,000
1,505
N/A
49,000
85,000
Kittila
104,711
$564
165,000
160,000
Lapa
74,407
$687
96,000
65,000
Meadowbank
307,180
$828
367,000
350,000
Northern Business
618,248
$760
892,000
910,000
Pinos Altos
135,283
$402
136,000
161,000
23,361
$511
52,000
55,000
40,000
81,000
228,000
297,000
$692 1,120,000
Agnico Eagle 2015E Production
Profile By Country
1,207,000
Goldex
Creston Mascota
La India
Southern Business
AEM Total
55,043
776,892
$428
FINLAND
13%
CANADA
62%
MEXICO
25%
1.As per Feb 14, 2013 press release.
9

10. IMPROVEMENTS IN CASH FLOW GENERATION
Adjusting the business to the current gold price environment
2013
Reduction in capital and operating costs (announced Q2/13)
Reduction in exploration spending (announced Q2/13)
$50 million
$20 million
Estimated positive net impact on cash flow
$70 million
2014
Reduction in capital costs (announced Q2/13)
Reduction in exploration spending (announced Q2/13)
Reduction in Labour and G&A costs (announced October 23, 2013)
$200 million
$50 million
$40 million
Estimated positive net impact on cash flow
$290 million
10

11. PROJECTED CAPITAL SPENDING
Capital Expenditures (US$ 000’s)
$1 200 000
$1 000 000
$800 000
$600 000
$400 000
$200 000
$0
2008A
2009A
2010A
Actual
2011A
2012A
2013E
2014E
Estimate
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12. FINANCIAL POSITION
Adequate cash balance with financial flexibility
Sep. 30, 2013
ALL AMOUNTS ARE IN US$, (unless otherwise indicated)
CASH AND CASH EQUIVALENTS (millions)
$142
LONG TERM DEBT (millions)
$950
AVAILABLE CREDIT FACILITIES
$1.05 Billion
COMMON SHARES OUTSTANDING, BASIC (Q3’13 Weighted average, millions)
173.1
COMMON SHARES OUTSTANDING, FULLY DILUTED (Q3’13 Weighted average, millions)
173.5
Long-Term Debt Maturities
2017
Notes Outstanding (millions)
Coupon
2020
2022
2024
$115
$360
$225
$100
6.13%
6.67%
5.93%
5.02%
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13. KITTILÄ MINE
FINLAND

14. KITTILÄ MINE – Finland
Production positively impacted by high-grade pit pillar
 Record quarterly gold production on
increased throughput, and
recoveries
 Good SAG mill performance and
simplified autoclave operation
following the Q2 2013 relining
 750 tpd mill expansion remains on
budget and schedule
 Remains Agnico Eagle’s largest
reserve asset, with significant
exploration and expansion potential
P&P GOLD RESERVES (million oz)
4.8
AVERAGE GOLD RESERVE GRADE (g/t)
4.5
Indicated resource (million oz)
(7.8 M tonnes @ 2.65 g/t)
0.7
Inferred resource (million oz)
(19.0 M tonnes @ 3.88 g/t)
2.4
Estimated LOM (years)
25
See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.
14

15. Kittilä Mine
Agnico Eagle Finland
All amounts are in Euros,
unless otherwise indicated
Full year
2012
Full year
2011
Revenues (millions)
184
163
Operating profit (millions)
96
57
Gold production (ounces)
176,000
144,000
Ore production (tons)
1,220,000
1,030,000
Exploration drilling (kilometers)
66
76
Other drilling (kilometers)
33
46
Key numbers

16. Kittilä Mine Location - Infrastrucure
•
•
•
•
55 km north of Kittilä
900 km north of Helsinki
Excellent infrastructure: roads, airports, communication
Mining license 857 ha

17. KITTILÄ MINE History
1986 First gold finding by the Geological Survey
of Finland (GTK)
1998 Exploration by Swedish Riddarhyttan
Recources AB
2002 Environmental permit for mining
2003 Mining license
2005 Agnico-Eagle Mines Limited became the
sole owner of Riddarhyttan
2006 Completion of final feasibility study and
decision to build the Mine
2008 Ore production started in May, milling in
September
2009 The first gold pour in January
2010 Stable production
2012 Open pit mining ended, solely underground mining >

18. Areal view of the Kittilä mine

19. From exploration to gold bullion

20. Kittilä – Focused Exploration Builds Long Term Value
Ore reserves and resources
As December 31, 2012
Au (g/t)
Tonnage (000’s t)
Au (000’s oz)
Proven/Probable Reserve
4.49
33,123
4,782
Indicated Reserve
2.65
7,854
700
Inferred Resource
3.88
18,966
2,366

21. KITTILÄ MINING

22. Mine Development

23. Underground Mine Design

24. Underground Development
5.5 m
5,268 m in 2006–2008
4,232 m in 2009
5,045 m in 2010
6,439 m in 2011
7,518 m in 2012
Gradient 1:7
5.3 m
Typical ramp profile

25. Underground Main Level 350 M
Ventilation
Raise (Intake)
Fuel Bay
Maintenance
Shop
Warehouse
Washing Bay
Cafeteria
Emergency Exit
Electrical
Station

26. Underground Main Level 350 M

27. KITTILÄ ORE PROCESSING

28. Milling
Crushing – Grinding – Flotation – Pressure oxidation – Leaching – Electrowinning

29. Mill Process Flow Sheet
Cyclones
Crushing
Carbon
Flotation
Sulphur
Flotation
Grinding
Surge
Bin
Sulphur
Carbon Concentrate
Concentrat
e
SAG
Mill
Flotation Tailings
Thickener
Concentrate
Thickener
Column
Mill
Water
Tank
Sulphur Flotation Tailings
Process Water
Oxygen Plant
Storage
Tank
Acid Water
Autoclave
Teed Tank
UNDERGROUND
MINE
Paste
Paste
Backfill
Plant
Autoclave
Flash
Tank
Neutralization
Process
Water Tank
CCD Circuit
CCD
Feed Tank
(CIL)
Leaching
Acid Wash &
Carbon
Stripping
Smelting
Flotation Tailings Disposal
Cyanide
Destruction
Electrowinning
Cell
Doré
Bars
Carbon Reactivation Kiln
CIL Tailings Disposal
INFILTRATION FIELD

30. KITTILÄ ENVIRONMENT

31. Kittilä Mine – Leader in Environmental Protection
• Human and financial resources
• Good cooperation with Municipality,
tourist industry, authorities, local people
and associations - “Social License” to
operate
• In full compliance with environmental
legislation and permits
• Water treatment – maintaining the
ecological state of the Seurujoki river
• Process water - closed circuit - cyanide
destruction
31

32. TAILINGS FACILITY
Tailings Area
• Total area ~110 ha
• All ponds are lined with waterproof
bitumen liners.

33. KITTILÄ MINE DEVELOPMENT

34. Kittilä Mine Expansion
Expansion project
• Expanding production from current rate of 3,000 ore tons
per day to 3,750 ore tons per day
• Construction in 2013–2014
• Increased production start-up 2015
• Investment approximately EUR 80 million over three years
Feasibility study underway on underground ore
hoisting via shaft
• Objective: ore hoisting start-up in 2017-18

35. KITTILÄ 2013

36. Kittilä Mine – Workforce
The Mine employs directly close to 600
professionals
•
420 are Agnico Eagle own employees
•
•
over 55% from Kittilä and 90% from Finnish Lapland
Construction; 160 contractor employees
•
15% from Kittilä and 41% from Lapland
•
Average age 39.3 years
•
11.7% of the workforce are women
36

37. KITTILÄ MINE - SUMMARY
• Kittilä Mine steady state operations
• Running at, or above designed capacity
• Recoveries above planned
• Dilution better than planned
• Cost control measures successful
• Aggressive Regional and Mine Site
exploration programs
• Mine Expansion is ongoing
• FS on shaft for ore hoisting
agnicoeagle.com
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38. Kittilä Mine Development
Cash Flows 2006 - 2012
Gold Sales AEM Financing
239
M€
516 M€
Foreign Suppliers
98 M€
AGNICO-EAGLE
FINLAND
755 M€
101 M€
Taxes
32 M€
526 M€
63 M€
State/Society
Employees
Taxes ?
Domestic Suppliers

39. AGNICO EAGLE
SUSTAINABLE DEVELOPMENT

40. AGNICO EAGLE – Sustainable Development Policy
Our Commitment
Four fundamental values of our Sustainable Development Policy: operate safely, protect the
environment, and treat our employees and communities with respect.
 Respect for our Employees
We aim to maintain a safe and healthy workplace that is based on mutual respect,
fairness and integrity.
 Protect the Environment
We aim to minimize the effects of our operations on the environment and maintain its
viability and its diversity
 Operate Safely
We believe that all loss due to accidents/incidents is preventable. We aim to operate
a safe and healthy work place that is injury and fatality free. We believe that if we all
work together, we can achieve zero accidents in the work place and enhance the
well-being of employees, contractors and communities.
 Respect for our Communities
We aim to contribute to the social and economic development of sustainable
communities associated with our operations
40

41. AGNICO EAGLE – Responsible Mining
PROMOTING A CULTURE OF ACCOUNTABILITY AND LEADERSHIP
 Implementing a formal Health, Safety, Environment and Social
Acceptability Management System – a fully integrated management
system, the Responsible Mining Management System (RMMS).
 Aim to further promote a culture of accountability and leadership
encouraging our employees to continuously improve their skills as well as
our sustainability performance.
 System to be consistent with the ISO 14001 Environmental Management
System and the OHSAS 18001 Health and Safety Management System.
 Will also integrate other industry standards such as the Mining
Association of Canada TSM Initiative and the Cyanide Management
Code. Application of the E3Plus Principles for Responsible Exploration
41

42. AGNICO EAGLE – 2012 Making a Different with our Employees
81% OF OUR EMPLOYEES COME FROM THE REGION SURROUNDING THE
MINE
Training and development Opportunities
• Ensure employees have the tools and skills they need to perform their jobs
efficiently and safely and to achieve their full potential by providing training that
enhances employees’ personal and career development opportunities.
• Place a particular emphasis on health and safety training
Maximizing local employment
Goal to hire 100% of the workforce, including our management teams, directly from
the local region in which the operation is located.
• Mexico, 99.9% of the Pinos Altos workforce is from Mexico.
• Finland, 99.9% from Finland
• Northern Canada, focus on creation of sustainable jobs and careers in mining for
the Inuit population. Ongoing IIBA (Inuit Impact and Benefit Agreement)
negotiations for the Meliadine project. Approximately 32% of the local mine
workforce is from Inuit of the Kivalliq region of Nunavut.
42

43. AGNICO EAGLE – 2012 Making a Different in Our Communities
PAID $243 MILLION IN TAXES TO ALL LEVELS OF GOVERNMENT, INVESTED $4.9 MILLION IN THE
COMMUNITIES IN WHICH WE OPERATE AND PROVIDED OVER $363 MILLION IN WAGES AND
BENEFITS TO OUR GLOBAL WORKFORCE
Generating Employment and Economic Benefits
$363 million in global employee compensation, up from $308.8 million in 2011.
Through wages and benefits contributed:
 $162 million to the economy of the Abitibi region of Quebec, Canada
 $33 million to the economy of Finland
 $91 million to the economy of Nunavut, Canada
 $31 million to the economy of Chihuahua State in Mexico.
Taxes and royalty payments
Direct and indirect economic impact of employee wage spending on local goods and services is an
important factor in overall contribution to host economies. Various payments in taxes and royalties to
governments at all levels totaling US$243 million:
 $87 million was paid in taxes and royalties in Quebec, Canada
 $44 million in taxes and royalties to the economy of Nunavut, Canada
 $42 million in taxes and royalties to the economy of Finland
 $70 in taxes and royalties to the economy of Mexico.
Tax contributions 13% of total revenue .
Buying locally to support communities, stimulating the local economy and minimizing environmental
impact of transporting materials from distant locations to sites. Continue to increase overall level of local
spending at minesites.
Making a difference in our communities
Goal is to provide both Agnico Eagle and host communities with maximum returns on our investments in
strategic health, education and capacity-building initiatives.
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