Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — CIBC Whistler Conference 2014
33 slides from Agnico Eagle Mines's conference presentation, Jan 22, 2014
Slide 1: Building and Managing a Quality Gold Business in a Challenging Price Environment
Building and Managing a Quality Gold Business in a Challenging Price Environment David Smith, SVP Finance CIBC Whistler Conference and CFO January 2014 agnicoeagle.com
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this document has been prepared as at January 15, 2014. 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 inf
Slide 3: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This document presents estimates of future “total cash cost per ounce”, and “all-in sustaining cost per ounce of gold produced” that are not recognized measures under United States generally accepted accounting principles (“US
Slide 4: Gold Price Environment
GOLD PRICE ENVIRONMENT 2013 was a volatile year for gold prices The gold price averaged $1425/oz in 2013 (with a high of $1694/oz in January and a low of $1192/oz in June) Investors sold ETF positions and gold shares in favor of US equity investments Physical demand has remained strong, especi
Slide 5: Defining a High Quality Gold Equity
DEFINING A HIGH QUALITY GOLD EQUITY Investor Requirements: Producers with solid, Low political risk achievable growth Experienced management Ability to deliver on guidance with consistent, focused strategy Low Cost Structure with ability to deliver margin expansion Return of capital (Yie
Slide 6: AEM Stock Performance
AEM Stock Performance in 2014 A challenging year, but strong Q3 results lifted the stock through year-end Q4 Performance 1 Year Performance Agnico 5% -38% Goldcorp Barrick -2% -38% Randgold Centerra -4% -43% Osisko Osisko -6% -46% Yamana Kinross -8% -47% Agnico Average -9% -49% Average Eldorado -11%
Slide 7: AEM – Delivering Results in a Challenging Environment
AEM – DELIVERING RESULTS IN A CHALLENGING ENVIRONMENT ► Record Q3’13 gold production 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 $690/oz ► 2013 all-in sustaining cost
Slide 8: AEM – Manageable, Solid Business
AEM – MANAGEABLE, SOLID BUSINESS Full year 2013 production revised higher to 1,060,000 moz gold EXPECTED YTD 2013 PRODUCTION1 Total Production Cash Cost 2014 2015 Agnico Eagle 2015E Production (Gold oz) ($/oz) (Gold oz) (Gold oz) Profile By Country LaRonde 130,445 $801 215,000 250,000 FINLAND Goldex
Slide 9: Low Political Risk, Mining Friendly Jurisdictions
LOW POLITICAL RISK, MINING FRIENDLY JURISDICTIONS Operating in low political risk theatres helps create a manageable business Production weighted Fraser institute Policy Potential Index scores by company (2012-2015) Source: Fraser Institute, Barclays, Absa and company data agnicoeagle.com 9
Slide 10: Financial Position
FINANCIAL POSITION Adequate cash balance with financial flexibility ALL AMOUNTS ARE IN US$, (unless otherwise indicated) Sep. 30, 2013 CASH AND CASH EQUIVALENTS (millions) $142 LONG TERM DEBT (millions) $950 AVAILABLE CREDIT FACILITIES $1.05 Billion COMMON SHARES OUTSTANDING, BASIC (Q3’13 Weighted a
Slide 11: Moderate, Achievable Production Growth
MODERATE, ACHIEVABLE PRODUCTION GROWTH Low political risk, mining-friendly jurisdictions Payable Gold Production Profile (oz) 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 1,000,000 950,000 900,000 2010A 2011A 2012A 2013E 2014E 2015E Actual Estimate agnicoeagle.com 11
Slide 12: Projected Capital Spending
PROJECTED CAPITAL SPENDING Capital Expenditures (US$ 000’s) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2008A 2009A 2010A 2011A 2012A 2013E 2014E Actual Estimate agnicoeagle.com 12
Slide 13: Southern Business
SOUTHERN BUSINESS agnicoeagle.com
Slide 14: Mexico – World Class Mining Jurisdiction
MEXICO – WORLD CLASS MINING JURISDICTION Skilled workforce, excellent mineral potential, and a well respected mining industry Mining is the fourth largest sector in the Mexico economy AEM operations are in two of the top gold producing northern states of Chihuahua and Sonora Capital Investment
Slide 15: Agnico Eagle Mexico - Large Land Positions
AGNICO EAGLE MEXICO - LARGE LAND POSITIONS agnicoeagle.com 15
Slide 16: AEM Success in Mexico
AEM SUCCESS IN MEXICO Solid operations, Steady growth and Exploration upside Pinos Altos was acquired in 2006 for $80 million; Began operations in Q4 2009 Creston Mascota was developed as a satellite project to Pinos Altos in 2011 Pinos Altos is now the 3rd largest gold producer in Mexico and
Slide 17: Pinos Altos & Creston Mascota
PINOS ALTOS & CRESTON MASCOTA Future development potential at various satellite zones Cubiro Creston Mascota Bravo Sinter Reyna de Plata Cerro Colorado San Eligio Oberon de Weber Santo Nino El Apache 2.5 km agnicoeagle.com 17
Slide 18: Pinos Altos & Creston Mascota - Gold & Silver Production Trends
PINOS ALTOS & CRESTON MASCOTA - Gold & Silver Production Trends Quarterly Payable Au Oz Production 63,356 61,973 57,530 57,016 55,043 70,000 52,739 52,574 52,492 51,066 46,071 60,000 43,440 39,955 35,248 50,000 26,228 25,619 40,000 30,000 10,823 20,000 10,000 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2
Slide 19: Pinos Altos & Creston Mascota Production Expenses
PINOS ALTOS & CRESTON MASCOTA Stable Production Expenses Over the Past 2.5 Years Production Expenses by Quarter- Pinos Altos and Creston Mascota 45.0 40.1 40.8 40.0 40.0 39.0 38.9 36.5 36.9 35.1 34.7 35.4 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1
Slide 20: La India
LA INDIA Commercial production expected in Q1 2014 • Leaching commenced in Q4 2013, with the first gold pour in November • Gold production expected to average approximately 90 koz/yr @ average total cash costs of approximately $500/oz • Project ahead of schedule and on budget -$157.6 million • Commi
Slide 21: Northern Business
NORTHERN BUSINESS agnicoeagle.com
Slide 22: Canada - Quebec
CANADA - QUEBEC Established, experienced business with upside potential LaRonde – Agnico Eagle’s flagship mine, operating for 25 years with 14 years of remaining mine life Commissioning of cooling plant underway Gold production expected to expand to over 300,000 oz in 2015-2018; Driven by sign
Slide 23: Canada - Nunavut
CANADA - NUNAVUT Record quarterly gold production at Meadowbank Meadowbank - Record quarterly production – 133 koz at $623 cash costs Excellent cost control due to improved productivity and cost reduction initiatives Grades forecast to remain strong through the first half of 2014 Meliadine -
Slide 24: Finland – Kittila
FINLAND – KITTILA Production positively impacted by high-grade pit pillar Better SAG mill performance and P&P GOLD RESERVES (million oz) 4.8 simplified autoclave operation following the Q2 2013 relining AVERAGE GOLD RESERVE GRADE (g/t) 4.5 Record 3Q’13 gold production on Indicated resource (mill
Slide 25: Why Agnico Eagle?
Why Agnico Eagle? ► Delivering on production - strong operating performance expected to continue into 2014 ► Funded production growth - expecting ~20% growth from 2013 to 2015 ► Experienced management team with historical perspective – CEO Sean Boyd has been with the company for 28 years ► Diversifi
Slide 26: Appendix
APPENDIX agnicoeagle.com
Slide 27: 15-Year Indexed Share Performance
15-Year Indexed Share Performance AEM - US XAU Index Gold Spot Start Date 2/6/1998 Start Date 2/6/1998 Start Date 2/6/1998 2000% End Date 12/31/2013 End Date 12/31/2013 End Date 12/31/2013 Start Price $6.19 Start Price $76.18 Start Price $298.15 Final Price $26.79 Final Price $85.77 Final Price $1,2
Slide 28: Cost Effective Exploration Reflects Successful M&A Strategy
COST EFFECTIVE EXPLORATION REFLECTS SUCCESSFUL M&A STRATEGY Significant exploration results at acquired properties 9,000 +5644 koz +3085 koz Mined Proven & Probable 6,000 +3161 koz Measured & +1105 koz Indicated Inferred 3,000 +1097 koz 0 La India La India Meliadine Meliadine Kittila '05 Kittila '12
Slide 29: Gold and Silver Reserves and Resources
GOLD AND SILVER RESERVES AND RESOURCES December 31, 2012 Gold Silver Tonnes Gold (ounces) Tonnes Silver (ounces) Gold (000’s) (g/t) (000’s) Silver (000’s) (g/t) (000’s) Proven 13,836 3.13 1,394 Proven 9,390 47.30 14,281 Probable 170,300 3.16 17,286 Probable 57,536 43.93 81,256 Total Total 184,136 3.
Slide 30: Copper, Zinc and Lead Reserves and Resources
COPPER, ZINC AND LEAD RESERVES AND RESOURCES December 31, 2012 Tonnes Copper Copper Tonnes Zinc Zinc Tonnes Lead Lead Copper Zinc Lead (000’s) (%) (tonnes) (000’s) (%) (tonnes) (000’s) (%) (tonnes) Proven 6,323 0.30 18,744 Proven 6,323 1.06 67,211 Proven 6,323 0.12 7,738 Probable 22,462 0.24 53,835
Slide 31: Notes to Investors Regarding the Use of Resources
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This document uses the terms “measured resources” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regu
Slide 32: Notes to Investors Regarding the Use of Resources
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and
Slide 33: Trading Symbol and Investor Relations
agnicoeagle.com Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-847-8665 [email protected] agnicoeagle.com