Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — FY2022 Earnings Presentation
42 slides from Agnico Eagle Mines's earnings presentation, Feb 17, 2023
Slide 1: Fourth Quarter and Full Year 2022 Results
Fourth Quarter and Full Year 2022 Results February 17, 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this presentation has been prepared as at February 16, 2023. Certain statements contained in this presentation constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-l
Slide 3: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This presentation discloses certain financial performance measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite costs per tonne", "net debt", "adjusted net income", "adjusted net incom
Slide 4: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for inventory production costs, operational care and maintenance costs due to COVID-19, and other
Slide 5: 2022 – Solid Operational Performance; Important Strategic Consolidations
2022 – Solid Operational Performance; Important Strategic Consolidations Solid operating performance in a challenging cost and workforce environment in Q4 and 2022 Capital and gold production in line with 2022 guidance with costs slightly above the top end of the guidance range Continued advan
Slide 6: Abitibi Gold Belt – Region with low political risk and high geological potential
Abitibi Gold Belt – Region with low political risk and high geological potential Transactions in 2022 solidify Agnico’s presence in the Abitibi Gold Belt: Strong competitive advantage from having operated in the region for over 50 years Gold production between 1.9Moz and 2.1Moz per year in the
Slide 7: 2023 Focus – Optimize the Abitibi Gold Belt Platform
2023 Focus – Optimize the Abitibi Gold Belt Platform Opportunities with the potential to increase capital returns with reduced execution and operating risk: Detour Lake • Continued exploration at depth and to the west to further evaluate underground mining potential • Assess potential mill expan
Slide 8: 2022 Q4 and Full Year Highlights
2022 Q4 and Full Year Highlights Solid quarterly gold production and operating cash flow despite inflationary and operating challenges – Payable gold production was 799koz at production costs of $834/oz, total cash costs of $863/oz and AISC of $1,231/oz Higher costs from inflationary pressures f
Slide 9: Operating and Financial Results
Operating and Financial Results Strong Quarterly Production and Costs Q4 2022 Full Year 2022 Production Total Cash Costs Operating Margin Production Total Cash Costs Operating Margin* (Gold oz) ($/oz) ($000’s) (Gold oz) ($/oz) ($000’s) LaRonde Complex 80,169 $832 $81,731 356,337 $703 $398,011 Canadi
Slide 10: 2022 Gold Mineral Reserves and Mineral Resources
2022 Gold Mineral Reserves and Mineral Resources Gold Mineral Reserves Increase to Record Level Reserves M&I Resources Inferred Resources 120 Gold mineral reserves (based on a $1,300/oz gold price 26 assumption) increased by 9% to a record 48.7Moz driven 100 31 by drilling success at Detour Lake,
Slide 11: Detour Lake – Optimization Targeting 1 Moz of Gold Per Year
Detour Lake – Optimization Targeting 1 Moz of Gold Per Year Mill Optimization Initiatives to get to 28Mtpa by 2025 Completed planned projects to increase mill throughput up to 27.5Mtpa • 2022 secondary crushers pre-screen fully commissioned in Q4 2022 Shifting focus to improve maintenance prac
Slide 12: Detour Lake – Q4 2022 Exploration Highlights
Detour Lake – Q4 2022 Exploration Highlights Infill drilling results below and proximal to the West Pit Zone continue to define wide zones of gold mineralization containing high grade gold inclusions. Highlights include: 4.2g/t gold over 23.8m at 623m depth (hole DLM22- 558A) Expansion drilling
Slide 13: Canadian Malartic Complex Optimization
Canadian Malartic Complex Optimization Odyssey project continued to advance on schedule Production stope design and drilling initiated in Q4 2022 and the first development ore processed at the mill Production from the Odyssey South orebody is expected to begin in March 2023 Structural steel
Slide 14: Canadian Malartic – Q4 2022 Exploration Highlights
Canadian Malartic – Q4 2022 Exploration Highlights Infill drilling into the East Gouldie deposit continued to return large high-grade intercepts, such as hole MEX22-248 intersecting 7.6g/t gold over 43.0m at 1,053m depth and hole MEX22-241Z intersecting 4.2g/t gold over 60.8m at 1,372m depth. Ho
Slide 15: Canadian Malartic Complex – Near-Mine Opportunities to Fill the Mill
Canadian Malartic Complex – Near-Mine Opportunities to Fill the Mill Exploration program to target past producing mines (Camflo and LTA, located on Canadian Malartic property), which appear to have considerable exploration potential Other opportunities on the Canadian Malartic property include:
Slide 16: Consolidating and Optimizing the Abitibi Gold Belt
Consolidating and Optimizing the Abitibi Gold Belt Excess mill capacity in the Abitibi region: Potential future regional sources of ore include: LZ5 mill circuit at the LaRonde Macassa Near Surface deposits and AK Zone (500-700tpd) Complex (~2,000tpd) Upper Beaver and other Kirkland Lake s
Slide 17: 2023-2025 Production Outlook – Moderate Growth Through 2025
2023-2025 Production Outlook – Moderate Growth Through 2025 Exploration Current Guidance Total Cash Costs AISC Capital Expenditures Year (Expensed / (Moz) ($/oz) ($/oz) ($000s) Capitalized) 2023 3.24 – 3.44 $840 - $890 $1,140 - $1,190 $1.41B $205M / $123M 2024 3.35 – 3.55 Expected to decline Expecte
Slide 18: Business Built on Industry Leading ESG Practices
Business Built on Industry Leading ESG Practices 30% REDUCTION ESG Stewardship Absolute GHG Emissions by 2030 (Scope 1 and Scope 2) Partner of choice within the mining industry and the regions in which we operate Focused on maintaining strong community and indigenous relationships Supporting l
Slide 19: Strong Financial Position
Strong Financial Position Focus on Capital Discipline and Returns to Shareholders As of December 31, 2022, the Company had strong liquidity Strong Available Liquidity - $1.86B* with $658M in cash and cash equivalents and $1,200M (excluding $600M accordion) in undrawn credit lines available $658
Slide 20: Agnico Eagle's Long History of Returning Value To Shareholders
Agnico Eagle’s Long History of Returning Value To Shareholders 39 years of consecutive dividend payments Competitive An Attractive Sustainable Dividend Dividend Yield $800 $2,000 2 5% 4.8% $700 $1,800 Agnico Eagle has consistently $600 4% paid a dividend since 1983 $500 $1,600 3.3% Long history
Slide 21: Agnico Eagle's Vision
Agnico Eagle’s Vision Agnico Eagle has a simple, consistent, disciplined and proven approach to value creation Robust production profile from assets in premier jurisdictions Strong margins and cashflows Proven leadership with a track record of building per share value Maintain a strong fin
Slide 22: OoZ20-HAPAMVO
OoZ20-HAPAMVO
Slide 23: LaRonde Complex
LARONDE COMPLEX Dry Stack Tailings Commissioned in the Fourth Quarter of 2022; Underground Ramp Completed to Unlock Mining Sequence in the East Mine; Mining Sequence Adjusted Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves
Slide 24: Canadian Malartic (50% Interest)
CANADIAN MALARTIC (50% Interest) Strong Q4 Performance Results in Better Than Forecast Gold Production and Costs; Underground Development and Surface Construction Activities at Odyssey Remain on Schedule for Initial Production in March 2023 Proven & probable gold Measured & indicated gold Inferred g
Slide 25: Goldex
GOLDEX Record Annual Ore Hoisting and Tonnes Milled Sets New Record for Annual Gold Production Since Re-start in 2013 Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz)* resources (million oz)* (million oz)* (koz)
Slide 26: Detour Lake
DETOUR LAKE Record Annual Gold Production; Commissioning of Secondary Crusher Screen on Line One Completed; Additional Mill Optimization Initiatives Ongoing Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz) resou
Slide 27: Macassa Complex
MACASSA COMPLEX Strong Operational and Cost Performance from Continued Productivity Improvements; Ventilation Upgrade on Schedule and Commissioning Underway on Shaft #4 Project Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserve
Slide 28: Meliadine
MELIADINE Record Quarterly Gold Production and Mill Throughput; Record Annual Mill Throughput Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 3.8 1.6 2.3 103
Slide 29: Meadowbank Complex
MEADOWBANK COMPLEX Higher Open Pit Grades and Contribution from Amaruq Underground Drives Record Annual Production at Amaruq Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (
Slide 30: Fosterville
FOSTERVILLE Strong Gold Production; Exploration Drifts at Robbins Hill and Lower Phoenix Complete Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 1.7 1.7 1.2
Slide 31: Kittila
KITTILA Underground Mine Activities Affected by Permit Limitation and Electricity Price Volatility; Nitrogen Removal Plant Commissioning Started and Performing Ahead of Expectations Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs re
Slide 32: Pinos Altos
PINOS ALTOS Production Affected by Underground Rehabilitation Activities; New Ore Shoot Discovered in the Eastern Projection of the North Cubiro Deposit Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz) resources
Slide 33: La India
LA INDIA Solid Safety & Operating Performance; Potential for Additional Oxidized Mineral Resources Near Main Zone Pit Boundary Proven & probable gold Measured & indicated gold Inferred gold resource Q4 2022 Production Q4 2022 Total Cash Costs reserves (million oz) resources (million oz) (million oz)
Slide 34: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 35: 2022 Gold Mineral Reserves and Mineral Resources
2022 GOLD MINERAL RESERVES AND MINERAL RESOURCES Gold Mineral Reserves Increase 9% to Record Levels; Measured and Indicated Resources Increase 12% Despite Successful Conversion of 6.0 Moz to Mineral Reserves AGNICO EAGLE As of December 31, 2021* As of December 31, 2022 Category Tonnes Grade Containe
Slide 36: Gold Mineral Reserves as at December 31, 2022
GOLD MINERAL RESERVES AS AT DECEMBER 31, 2022 MINERAL RESERVES AS OF DECEMBER 31, 2022 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE GOLD Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au LaRonde¹ UG 100% 2,809 5.23 473 9,497 6.69 2,042 12,306
Slide 37: Silver, Copper and Zinc Mineral Reserves as at December 31, 2022
SILVER, COPPER AND ZINC MINERAL RESERVES AS AT DECEMBER 31, 2022 MINERAL RESERVES AS OF DECEMBER 31, 2022 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE SILVER Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au LaRonde UG 100% 2,809 16.45 1,485
Slide 38: Mineral Resources as at December 31, 2022
MINERAL RESOURCES AS AT DECEMBER 31, 2022 MINERAL RESOURCES AS OF DECEMBER 31, 2022 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED AEM 000 000 000 000 000 000 000 GOLD Mining Method Share Tonnes g/t 000 Oz Au Tonnes g/t Oz Au Tonnes g/t Oz Au Tonnes g/t Oz Au LaRonde UG 100% —
Slide 39: Mineral Resources as at December 31, 2022
MINERAL RESOURCES AS AT DECEMBER 31, 2022 MINERAL RESOURCES AS OF DECEMBER 31, 2022 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED 000 000 000 000 000 GOLD Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t Oz Au Tonnes g/t Oz Au Tonnes g/t Oz Au Pinos Altos OP 100
Slide 40: Notes to Investor Regarding the Use of Mineral Resources
NOTES TO INVESTOR REGARDING THE USE OF MINERAL RESOURCES The mineral reserve and mineral resource estimates contained in this presentation have been prepared in accordance with the Canadian securities administrators' (the "CSA") NI 43-101. For United States reporting purposes, the SEC has adopted am
Slide 41: Notes to Investor Regarding the Use of Mineral Resources (Continued)
NOTES TO INVESTOR REGARDING THE USE OF MINERAL RESOURCES (CONTINUED) NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" a
Slide 42: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com