Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — BofA Global Metals, Mining and Steel Conference 2024
43 slides from Agnico Eagle Mines's conference presentation, May 15, 2024
Slide 1: BofA Global Metals, Mining and Steel Conference
BofA Global Metals, Mining and Steel Conference May 14-15, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information in this presentation has been prepared as at May 7, 2024. 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-looking
Slide 3: 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 3.35 – 3.55 Moz (2024E) $875 – $925 /oz2 (2024E) Strong Mineral Reserve Base3 P&P: 54 Moz M&I: 44 Moz Inferred: 33 Moz 1 Se
Slide 4: 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 Systematically built a low risk, manageable business Focused on growing profitable gold production and building per share value Long history of de
Slide 5: Strong Operational and Cost Performance Continues
Strong Operational and Cost Performance Continues to Demonstrate Strength of Business Barnat open pit at the Canadian Malartic complex Amaruq open pit mine Detour Lake mill Kittila headframe 2023 2024E Q1 2024 Actual Guidance Actual 2023 – Record annual safety performance, annual Gold Production (
Slide 6: Abitibi Gold Belt
Abitibi Gold Belt – Decades of Production Anchored in Core Operating Region 5 Operating Gold Mines 1 ~150,000 tonnes of daily mill capacity 2024E production: ~2M oz 2024E total cash costs: ~$848/oz 2 of the 10 Largest Gold Mines in the World With Multi-Decade Production Robust Pipeline and Lan
Slide 7: Creating Value Through the Drill Bit
Creating Value Through the Drill Bit Two world-class mines with discovery costs below $10/oz Odyssey Detour Lake Mineral Reserves and Mineral Resources (Moz) Mineral Reserves and Mineral Resources (Moz) 1.3 2.9 1.3 9.3 18.5 18.5 1.6 15.3 13.6 5.2 1.1 20.7 19.9 4.4 5.5 15.8 15.8 0 0.9 0.9 2014 2018
Slide 8: Detour Lake
Detour Lake Top 10 Largest Gold Mine Globally Largest gold producing mine in Canada Open pit mine with 19.9M oz of mineral reserves1 and mine life until 2052 2024E: gold production 690k oz; total cash costs $734/oz Pathway to 1M oz annual production Evaluation of results expected in Q2 2024:
Slide 9: Detour Lake Underground Drilling
Detour Lake – Advancing Underground Study and Ongoing Drilling at Depth Highlight Intercepts: Detour Lake: Exploration during Q1 2024 focused on infill drilling in the shallow portion of the West Pit Extension, at shallow underground ➤ 5.4 g/t gold over 16.6m at 307m depth, ~350m west of the West Pi
Slide 10: Canadian Malartic Complex
Canadian Malartic Complex Top 10 Largest Gold Mine Globally Second largest producing gold mine in Canada with 7.9M oz of mineral reserves1 Canadian Malartic open pit mine life until 2029, Odyssey underground mine life until 2042 2024E: gold production 630k oz; total cash costs $926/oz Transiti
Slide 11: Canadian Malartic Production Profile
Canadian Malartic Complex – Production Profile over Life of Mine 700,000 70,000 CANADIAN MALARTIC MILL THROUGHPUT (TPD) 600,000 60,000 ESTIMATED GOLD OUNCES PRODUCED 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 2032 2033
Slide 12: Odyssey – Building a World-Class Asset
Odyssey – Building a World-Class Asset Odyssey shaft 1 Odyssey mine at the Canadian Malartic Highlight Intercepts: complex: Recent exploration drilling continues ➤ 4.5 g/t gold over 30.0m at 1,162m depth and 300m east of current mineral resources to return good results towards the east of the ➤ 3.1
Slide 13: Canadian Malartic Fill the Mill Strategy
Canadian Malartic Complex – Fill the Mill Strategy Mill Expected to have ~40k tpd of Excess Capacity Starting in 2028 Potential sources of ore to feed the mill: CANADIAN MALARTIC MILL THROUGHPUT 1 Expansion of East Gouldie to the east and west 70,000 5.2Moz at 3.4g/t in mineral reserves and 3.3Mo
Slide 14: Nunavut – Operating in the North with a First-Mover Competitive Advantage
Nunvaut – Operating in the North with a First-Mover Competitive Advantage A Strategic Production Platform Agnico represents ~25% of total GDP, with mining activities ~47% of total GDP 20% of Canada’s land mass (~2M km2) 323 Indigenous employees 3 $571M local procurement spend Two Operating G
Slide 15: Hope Bay – Continued Exploration Success at Madrid
Hope Bay – Continued Exploration Success at Madrid Hope Bay: Exploration drilling during Q1 2024 totalled 30,600m and Highlight Intercepts: returned strong results in the Patch 7 area of the Madrid deposit in a ➤ 20.8 g/t gold over 17.7m at 401m depth cluster of high-grade intersections approximatel
Slide 16: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility Strong Cash Flow Generation Enhances Investment Grade Balance Sheet ➤ Strong liquidity with $525M in cash and cash equivalents Strong Available Liquidity - $2.5B* and $2B (excluding $1B accordion) in undrawn credit lines available as at March 31, 2024
Slide 17: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy $100/oz Change in Gold Price = ~$250M Change in Free Cash Flow (After-Tax) Dividends paid since 1983 An Attractive Sustainable Dividend Dividend Over $3B in cumulative dividends paid to date $900 Distribution Quarterly dividend currently $0.40 per share
Slide 18: High-Quality Business Positioned to Generate Strong Returns
High-Quality Business Positioned to Generate Strong Returns Low-Risk Mining Highest Quality Senior Uniquely Positioned Strong Financial Returns Jurisdictions Gold Producer Robust land packages in core Emphasis on per share metrics Multi-mine, multi-decade High ESG standards with multi- mining jurisd
Slide 19: Financial and Operations Update
FINANCIAL AND OPERATIONS UPDATE
Slide 20: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Strong Operating and Cost Performance Drives Record Cash Flows Q1 2024 Q1 2023 Realized Gold Price1 ($/oz) $ 2,062 $ 1,892 Gold Sales (koz) 879 788 (in millions) Revenues $ 1,830 $ 1,510 Net Income $ 347 $ 1,817 1 Adjusted Net Income1 $ 377 $ 271 EBITDA1 $ 883 $ 2,273 Ad
Slide 21: Q1 2024 Operating Highlights – Quebec
Q1 2024 Operating Highlights – Quebec Surfacing New Potential in Prolific Camp ➤ LaRonde Complex – Automation initiatives at LZ5 continue to yield higher productivity; gold production affected by lower grades ➤ Canadian Malartic Complex – Record quarterly gold production ▪ Advancing the Odyssey proj
Slide 22: Q1 2024 Operating Highlights – Nunavut
Q1 2024 Operating Highlights – Nunavut Capitalizing on Our Nunavut Expertise to Sustain ~800koz Annual Platform ➤ Meliadine ▪ Record monthly throughput and ore haulage performance in January 2024 ▪ Phase 2 mill expansion work ongoing and expected to be completed mid-2024; processing rate expected to
Slide 23: Q1 2024 Operating Highlights – Ontario
Q1 2024 Operating Highlights – Ontario Optimization Through Continuous Improvement ➤ Detour ▪ Record quarterly tonnes mined; continued mill improvements ▪ Solid operating performance despite challenges with the grinding media in the SAG mill affecting throughput and mill recovery ▪ Mill expected to
Slide 24: Q1 2024 Operating Highlights – Europe, Australia & Mexico
Q1 2024 Operating Highlights – Europe, Australia & Mexico Recognizing Potential to Improve and Sustain Operations ➤ Kittila ▪ Gold production on target with planned mill shutdown in Q1 2024; positive exploration results continue to demonstrate expansion potential of Main Zone and Sisar Zone ➤ Foster
Slide 25: ESG
ESG
Slide 26: Global Approach, Regional Focus
Global Approach, Regional Focus 2023 Sustainability Report Highlights: Record safety performance – 34% improvement year-over-year Addressing climate change and working towards net-zero by 2050 – Decarbonization approach defined, focusing on energy efficiency, technology transition and increased
Slide 27: Continued Focus on ESG and Optimization Initiatives
Continued Focus on ESG and Optimization Initiatives Innovation and Environment People & Safety Communities Electrification LTE-4G & LTE-5 networks Filtered tailings deposition Towards zero accidents Community relations and Mine rescue satisfaction Automated mucking In-pit tailings disp
Slide 28: Making a Positive Impact on the Environment and Society
Making a Positive Impact on the Environment and Society Strengthening Community Resilience and Emergency Community Investment Response Highlights Meliadine mine and the Rankin Inlet Fire Department forge a mutual aid partnership Fosterville’s Bushfire Readiness Grants programs supports local Fir
Slide 29: A History of Transparency and Leadership in ESG
A History of Transparency and Leadership in ESG 2009-2011 2015-2016 2019-2020 2023 Began reporting accordance with SASB standards Provide additional nature and First Sustainability Report published Developed detailed biodiversity related disclosures Indigenous Peoples Early adopters of the Responsi
Slide 30: 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 2024/2023 2022 2021 MSCI Rating Leader (AAA,
Slide 31: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 32: Positive Minesite Exploration Drives Mineral Reserve Growth
Positive Minesite Exploration Drives Mineral Reserve Growth Gold Mineral Reserves Increase to Record Level for Third Consecutive Year Reserves M&I Resources Inferred Resources Gold mineral reserves and mineral resources (MRMR) 26 33 Mineral reserves increased by 10.5% to 54Moz driven by initial
Slide 33: 2023 Gold Mineral Reserves And Mineral Resources
2023 Gold Mineral Reserves And Mineral Resources Gold Mineral Reserves Increased 10.5% to Record Levels AGNICO EAGLE As of December 31, 2022 As of December 31, 2023 Category Tonnes Grade Contained Gold Tonnes Grade Contained Gold (000s) (g/t Au) (000s oz) (000s) (g/t Au) (000s oz) Mineral Reserves P
Slide 34: 2023 Gold Mineral Reserves And Mineral Resources
2023 Gold Mineral Reserves And Mineral Resources MINERAL RESERVES AS OF DECEMBER 31, 2023 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE Metallurgical 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 Recovery (%) LaRonde mine1 U/G 100% 2
Slide 35: 2023 Silver and Copper Mineral Reserves
2023 Gold Mineral Reserves And Mineral Resources MINERAL RESERVES AS OF DECEMBER 31, 2023 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE SILVER Mining Method* AEM Share 000 Tonnes g/t 000 Oz Ag 000 Tonnes g/t 000 Oz Ag 000 Tonnes g/t 000 Oz Ag Metallurgical Recovery (%) LaRonde U/G 100% 2,342
Slide 36: 2023 Gold Mineral Resources
2023 Gold Mineral Reserves And Mineral Resources MINERAL RESOURCES AS OF DECEMBER 31, 2023 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED GOLD Mining Method* AEM 000 g/t 000 Oz Au 000 g/t 000 000 g/t 000 000 g/t 000 Share Tonnes Tonnes Oz Au Tonnes Oz Au Tonnes Oz Au LaRonde U/
Slide 37: 2023 Gold Mineral Resources
2023 Gold Mineral Reserves And Mineral Resources MINERAL RESOURCES AS OF DECEMBER 31, 2023 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED 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 000 Tonnes g/t 000 Oz Au Pinos Alto
Slide 38: Notes to Investors Regarding the Use of Mineral Resources
Notes to Investors 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 Proje
Slide 39: Notes to Investors Regarding the Use of Material Resources (continued)
Notes to Investors Regarding the Use of Material 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"
Slide 40: Notes to Investors
Notes to Investors Note Regarding Certain Measures of Performance This presentation discloses certain financial performance measures and ratios, including "total cash costs per ounce", "all-in sustaining costs per ounce", "adjusted net income", "adjusted net income per share", "cash provided by oper
Slide 41: Notes to Investors (continued)
Notes to Investors (continued) Note Regarding Certain Measures of Performance Adjusted net income and adjusted net income per share Adjusted net income is calculated by adjusting the net income as recorded in the consolidated statements of income for the effects of certain items that the Company bel
Slide 42: Notes to Investors (continued)
Notes to Investors (continued) Note Regarding Certain Measures of Performance Operating margin Operating margin is calculated by deducting production costs from revenue from mining operations. In order to reconcile operating margin to net income as recorded in the consolidated financial statements,
Slide 43: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com
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