Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Scotiabank Mining Conference 2023
47 slides from Agnico Eagle Mines's conference presentation, Nov 28, 2023
Slide 1: Scotiabank Mining Conference
Scotiabank Mining Conference November 28-29, 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this presentation has been prepared as at November 24, 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“, "net debt", "adjusted net income", "adjusted net income per share”, "adjusted net
Slide 4: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures Net debt is calculated by adjusting the total of the current portion of long-term debt and non-current long-term debt as recorded on the consolidated balance sheet for deferred financing costs and cash and cash equivalents. Man
Slide 5: Agnico Eagle: A High-Quality, Low-Risk Senior Gold Producer
Agnico Eagle: A High-Quality, Low-Risk Senior Gold Producer Simple, Consistent Strategy Proven geological potential in premier jurisdictions Third Largest Global Gold Producer1 3.24 – 3.44 Moz (2023E) $840 – $890 /oz2 (2023E) Strong Mineral Reserve Base3 P&P: 50 Moz M&I: 47 Moz Inferred: 31 Moz Note
Slide 6: Track Record of Value Creation
Track Record of Value Creation Building a Portfolio of High-Quality Assets in Premier Mining Jurisdictions that Offer Superior Geological Potential 2005 - 2007 2008 - 2012 2013 - 2016 2017 - 2020 Acquisitions in early-stage Construction of 5 mines and Acquisition of 50% of Strengthening and explorat
Slide 7: Consistent Strategy to Value Creation
Consistent Strategy to Value Creation Disciplined Investments for Multi-Decade Production in Low-Risk Jurisdictions 2021-2023 Next 5 Years Regional Consolidation Optimization of existing assets and regional mining • Merger with Kirkland Lake Gold platforms • Acquisition of Canadian assets of Yamana
Slide 8: Financial Highlights
Financial Highlights Solid operating performance drives financial results Q3 Q3 YTD YTD 2023 2022 Q3 2023 Q3 2022 Gold Production (000 oz) 850.4 816.8 2,536.4 2,335.6 Gold Sales (000 oz) 843.1 830.2 2,489.5 2,359.7 Total Cash Costs1 (US$/oz) $898 $779 $857 $769 All-in Sustaining Costs1 (US$/oz) $1,2
Slide 9: Abitibi Gold Belt – Decades of Gold Production Anchored in Core Operating Region
Abitibi Gold Belt – Decades of Gold Production Anchored in Core Operating Region Agnico Eagle’s Presence in the Abitibi Gold Belt 5 Operating Gold Mines 150,000 tonnes of daily mill capacity 1.9Moz – 2.1Moz through 2025E ~$800/oz total cash costs 2023E 2 of the 10 Largest Gold Mines in the Wor
Slide 10: Creating Value Through the Drill Bit
Creating Value Through the Drill Bit Two world-class mines with discovery costs below $10/oz Estimated total cash costs per ounce below $800/oz Odyssey Detour Lake Mineral Reserves and Mineral Resources (Moz) Mineral Reserves and Mineral Resources (Moz) 1.3 1.3 9.2 18.5 1.6 15.3 1.3 13.6 5.2 4.4
Slide 11: Abitibi Gold Belt – Focus on Optimizing the Portfolio
Abitibi Gold Belt – Focus on Optimizing the Portfolio Detour Lake Systematically increasing mill capacity towards 28 Mtpa Evaluating pathway to 30 Mtpa Underground study expected to be completed in H1 2024 Canadian Malartic Complex Transition from Open Pit to Underground production June 20
Slide 12: Detour Lake – A Growing World Class Mine
Detour Lake – A Growing World Class Mine Realized mill tonnage annual growth of 5 - 6% since 2019 Growing throughput to 28Mtpa by 2025 2024+ Continue to improve maintenance practices for higher milling rate Optimize secondary crusher re-feed system, the ball mill discharge, the SAG discharge
Slide 13: Detour Lake – Advancing Underground Study and Ongoing Drilling at Depth
Detour Lake – Advancing Underground Study and Ongoing Drilling at Depth Continued exploration at depth and to the west to further evaluate underground mining potential 10 drill rigs active to investigate the deposit below the West Pit mineral reserve and the western plunge extension mineralizati
Slide 14: Canadian Malartic Complex – Mine Life Extended, Production Profile Improved
Canadian Malartic Complex – Mine Life Extended, Production Profile Improved 700,000 70,000 CANADIAN MALARTIC MILL THROUGHPUT (TPD) ESTIMATED GOLD OUNCES PRODUCED 600,000 60,000 500,000 50,000 400,000 40,000 300,000 30,000 200,000 20,000 100,000 10,000 0 0 2023 2024 2025 2026 2027 2028 2029 2030 2031
Slide 15: Odyssey Mine – Development Progressing as Planned
Odyssey Mine – Development Progressing as Planned Ramping-up production from Odyssey South Odyssey Mine, Development Progress in 2023 Pastefill plant commissioned in July 2023 Production reached 3.3 ktpd in September, approaching the planned mining rate of 3.5 ktpd for 2024 Portal With a pos
Slide 16: Canadian Malartic Complex – Multi-Decade Potential from a World-Class Asset
Canadian Malartic Complex – Multi-Decade Potential from a World-Class Asset Opportunity to Continue to Build Upon the Recent Study Current exploration focus: Expanding East Gouldie zone to the east and west Mineral resource conversion and continued drilling of internal zones Gold Forum Scotiab
Slide 17: Canadian Malartic Complex – Near-Mine Exploration Targets
Canadian Malartic Complex – Near-Mine Exploration Targets 16.5 km along the Cadillac Larder Lake Break. Land position increased Map from Serge to show permit boundaries (what is less than 5 50% since 2014 to 13,500 ha years) Exploration targeting past producing mines: Camflo and LTA ~5km hau
Slide 18: Abitibi Gold Belt – Regional Pipeline Projects & Infrastructure
Abitibi Gold Belt – Regional Pipeline Projects & Infrastructure Exploration Projects Development Projects Operating Projects › Camflo: Initial exploration results › Akasaba West at Goldex: (Expected production Q1 › Canadian Malartic: Transition to Odyssey › LTA: Compilation of historical data 2024)
Slide 19: Positive Minesite Exploration Expected to Drive Future Mineral Resource Growth
Positive Minesite Exploration Expected to Drive Future Mineral Resource Growth Hope Bay Expanding Doris deposit Significant progress at Madrid through step out drilling Meliadine Drilling has targeted the vertical extensions of the mineralized zones in the central part of the Tiriganiaq and We
Slide 20: Hope Bay – Exploration Drilling at Madrid in 2023
Hope Bay – Exploration Drilling at Madrid in 2023 Madrid – Remained focused on drilling wide step-out holes spaced 200m apart into 2-km gap between the Suluk and Patch 7 deposits at depths between 400m and 700m. Highlight intercept of 15.9 g/t gold over 4.6m at 609m depth (~300m below Patch 7 mine
Slide 21: Meliadine – Extending the Tiriganiaq and Wesmeg Deposits at Depth
Meliadine – Extending the Tiriganiaq and Wesmeg Deposits at Depth At Tiriganiaq, drilling demonstrated continuity of mineralization at depth below the deepest drill holes to date and will continue to investigate this new plunging mineralization from the exploration ramp extension At Wesmeg North
Slide 22: Fosterville – Drilling Focused on the Lower Phoenix Deep Extension
Fosterville – Drilling Focused on the Lower Phoenix Deep Extension In the Lower Phoenix, a key target is the Cardinal fault, which is a hanging wall splay from the Swan structure. Highlight hole intersected 10.8 g/t gold over 10.0m in the Cardinal splay at 1,828m depth, including 96.4 g/t gold ove
Slide 23: Kittila – Shallow Drill Intersection in Parallel Mineralized Structure
Kittila – Shallow Drill Intersection in Parallel Mineralized Structure Shallow intersection in an underexplored, parallel mineralized structure named the East Zone located approximately 140m east of the Main Zone and outside current mineral resources. Highlight hole intersected 9.9m grading 11.8 g
Slide 24: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility Investment Grade Balance Sheet Remains Strong Strong Available Liquidity - $1.46B* Strong liquidity with $355M in cash and cash equivalents and $1.1B (excluding $600M accordion) in undrawn credit lines available, as at $355 September 30, 2023 Debt
Slide 25: Superior Leverage to the Gold Price on a Risk-Adjusted Basis
Superior Leverage to the Gold Price on a Risk-Adjusted Basis Low-Risk Mining Highest Quality Senior Uniquely Positioned Strong Financial Returns Jurisdictions Gold Producer Robust land package in core Emphasis on per share metrics Multi-mine, multi-decade High ESG standards with multi- mining jurisd
Slide 26: Operations Update
OPERATIONS UPDATE
Slide 27: First Nine Months 2023 Highlights
First Nine Months 2023 Highlights Gold production and cost performance remained solid Solid quarterly financial results Payable gold production of 2,536 koz Net income of $4.78 per share Production costs of $850/oz, total cash costs1 of $857/oz, Adjusted net income1 of $1.67 per share AISC1
Slide 28: Operating Highlights – Quebec
Operating Highlights – Quebec LaRonde complex – LaRonde complex celebrated 35th anniversary; quarterly gold production affected by planned mill shutdown and maintenance of ore handling system; mining at the 11-3 Zone commences Canadian Malartic complex – Strong quarterly gold production driven b
Slide 29: Operating Highlights – Ontario
Operating Highlights – Ontario Detour Lake – Lower mill production in Q3 2023 due to temporary transformer issue; continued focus on mill optimization to achieve 28.0 mtpa by 2025 Macassa – Sustained productivity gains result in robust operational performance and lowest minesite costs per tonne
Slide 30: Operating Highlights – Nunavut
Operating Highlights – Nunavut Meliadine – Strong mill performance continued; phase 2 expansion project on schedule; exploration at depth continues to yield positive results Meadowbank complex – Robust overall operational performance; record haulage of underground ore tonnes in Q3 2023; work ong
Slide 31: Operating Highlights – Europe, Australia & Mexico
Operating Highlights – Europe, Australia & Mexico Kittila - Record monthly mill throughout set in July 2023; production shaft commissioned in September 2023 Fosterville – Solid mine development performance; gold production affected by prioritization of development headings for primary ventilatio
Slide 32: ESG
ESG
Slide 33: We Make Mining Work
We Make Mining Work Delivering strong ESG performance – In 2022, we achieved our best safety frequency performance in the Company’s 65-year history, zero significant 2022 Key Highlights environmental incidents and increased Indigenous employment Addressing climate change and working towards net-
Slide 34: Net-Zero
Adapting to New Realities and Evolving Responsibility 30% Committed to contributing to global climate initiatives Energy Efficiency - Energy reduction initiatives at every site Net-Zero Goal of achieving Net-Zero Scope 1 & 2 Agnico Eagle has set an interim target to reduce absolute Scope 1 & 2 car
Slide 35: Continued Focus on ESG and Optimization Initiatives
Continued Focus on ESG and Optimization Initiatives Innovation and Water & Tailings People & Safety Communities Electrification Management • LTE-4G network (LaRonde • Filtered tailings deposition • Towards zero accidents • Community relations and complex) • Mine rescue satisfaction • Water consumpti
Slide 36: Contributing to the UN Sustainable Development Goals
Contributing to the UN Sustainable Development Goals Composting Programs Scholarship and Development Environmental Research and These programs have a variety of benefits Program in Memory of Dr. Leanne Development depending on the location such as reducing waste, Baker Agnico Eagle supports various
Slide 37: A History of Transparency and Leadership in ESG
A History of Transparency and Leadership in ESG 2009-2011 2015-2016 2019-2020 Began reporting accordance with SASB standards First Sustainability Report published Developed detailed Indigenous Peoples Engagement Policy Early adopters of the Responsible Gold Mining Principles Began assessments under
Slide 38: ESG: A Core Building Block of Agnico Eagle's Strategy
ESG: A Core Building Block of Agnico Eagle’s Strategy Deliver on our Vision to Build a Growing, High-Quality, Low Risk, Sustainable Business Recognized for our leading industry practices in ESG by independent research agencies Rating Agency Ranking Scale 2022/2023 2021 2020 MSCI Rating Leader (AAA,
Slide 39: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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") National Instrument 43-101 – Standards of Disclosure for Mineral Projec
Slide 46: 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 47: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com
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