Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — FY2023 Earnings Presentation
35 slides from Agnico Eagle Mines's earnings presentation, Feb 16, 2024
Slide 1: Fourth Quarter and Full Year 2023 Results
Fourth Quarter and Full Year 2023 Results February 16, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The information in this presentation has been prepared as at February 15, 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-l
Slide 3: 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 4: 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 (loss) income as recorded in the consolidated statements of (loss) income for the effects of certain non-recurrin
Slide 5: 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 6: Fourth Quarter and Full Year 2023 Highlights
Fourth Quarter and Full Year 2023 Highlights Record Performance Demonstrates Strength of Business; Positioned to Create Long-Term Value Record quarterly gold production and record free cash flow Record annual safety performance, annual gold production and free cash flow driven by solid operation
Slide 7: Record Safety and Operational Performance Led by Our People
Record Safety and Operational Performance Led by Our People Best safety performance in the Company’s history All operations achieved safety targets or better Global Injury Frequency – 2.15 for FY2023 (approximately 35% improvement from 2022 performance) Employee engagement and retention In
Slide 8: 2024 – 2026 Production Outlook
2024 – 2026 Production Outlook 2024 Guidance 2024 production guidance unchanged at 3.35Moz to 3.55Moz Production Guidance (Moz) 3.35 – 3.55 2025 and 2026 production expected to be Total Cash Costs1 ($/oz) $875 – $925 between 3.4 to 3.6Moz annually with costs and AISC1 ($/oz) $1,200 – $1,250 capi
Slide 9: Key Projects – Abitibi Gold Belt
Key Projects – Abitibi Gold Belt 1 Detour Lake mine 1 Mill optimization and potential underground mining scenarios under evaluation Canadian Malartic complex 2 Focus on expanding and building the Odyssey underground mine Assessing opportunities to enhance production profile 3 Optimization
Slide 10: Key Projects – Nunavut
Key Projects – Nunavut 1 Meadowbank Extension of the Amaruq mine life to 2028 (previously 2026) 2 Hope Bay 2 Potential to expand gold mineralization in the Madrid deposit at depth and along strike to the south 1 Internal evaluation of larger production scenario expected in 2025 Fourth Quarte
Slide 11: Financial Highlights
Financial Highlights Record Financial Results with Record Quarterly and Annual Production Q4 2023 Full Year 2023 Gold production (koz) 903 3,440 Production Costs ($/oz) $861 $853 Total Cash Costs1 ($/oz) $888 $865 All-in Sustaining Costs1 ($/oz) $1,227 $1,179 Operating Margin1 ($ millions) $979 $3,6
Slide 12: Financial Highlights
Financial Highlights Record Operating Performance Drives Record Cash Flows Q4 Q4 Full Year Full Year Per Share Results 2023 2022 2023 2022 Realized Gold Price1 ($/oz) $1,982 $1,728 $1,946 $1,797 1.60 Gold Sales (koz) 875 789 3,364 3,149 1.20 $ per share (in millions) Revenues $1,757 $1,385 $6,627 $5
Slide 13: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility Investment Grade Balance Sheet Remains Strong Strong Available Liquidity - $1.54B* Strong liquidity with $339M in cash and cash equivalents and $1.2B (excluding $600M accordion) in undrawn credit $339 lines available, as at December 31, 2023 Debt
Slide 14: Operating Highlights – Quebec
Operating Highlights – Quebec Surfacing New Potential in Prolific Camp Advancing the Odyssey project South zone sustained production rate at 3.5k tpd. Main ramp development is a focus and expect to reach top of East Gouldie deposit in Q1 2024 Leveraging regional infrastructure LZ5 mill to pr
Slide 15: Odyssey Mine – Building a World-Class Asset
Odyssey Mine – Building a World-Class Asset Odyssey South Achieved design mining rate of 3.5k tpd Internal zones continue to provide upside, with addition of 150koz to mineral reserves at year end 2023 Ramp development ahead of schedule Expect to reach top of East Gouldie deposit in Q1 202
Slide 16: Canadian Malartic Camp – Near Mine Potential
Canadian Malartic Camp – Near Mine Potential Strike Length of 16.5km along Cadillac Larder Lake Break 16.5km strike length Declaration of initial mineral reserves of 5.2 Moz Continuing to extend the limits of the East Gouldie inferred mineral resource to the east and to the west Expanding expl
Slide 17: Operating Highlights – Nunavut
Operating Highlights – Nunavut Capitalizing on Our Nunavut Expertise to Sustain a ~800koz Annual Platform Executing on potential Completion of Phase 2 mill expansion at Meliadine expected mid- 2024. Mill throughput expected to increase to 6k tpd in late 2024 and to 6.25k tpd in 2026 Amaruq at
Slide 18: Operating Highlights – Ontario
Operating Highlights – Ontario Optimization Through Continuous Improvement Continued focus on productivity gains Detour mill optimization to 29 mtpa and beyond Ramping up underground at Macassa with completion of #4 shaft project in 2023 Value creation opportunities AK/NSUR to LaRonde mill
Slide 19: Detour Lake – Advancing Underground Study and Ongoing Drilling at Depth
Detour Lake – Advancing Underground Study and Ongoing Drilling at Depth An initial underground inferred mineral resource declared below and to the west of the mineral resources pit totalling 1.56 Moz of gold Continued exploration success outside of the mineral resources open pit with results up
Slide 20: Operating Highlights – Europe, Australia & Mexico
Operating Highlights – Europe, Australia & Mexico Recognizing Potential to Improve and Sustain Operations Kittila Realizing potential with major projects completed, 2 mpta throughput rate restored, improving costs and record cash flow in Q4/23 Fosterville Targeting to be 175k to 200koz annua
Slide 21: 2023 Gold Mineral Reserves and Mineral Resources
2023 Gold Mineral Reserves and Mineral Resources Gold Mineral Reserves Increase to Record Level for Third Consecutive Year Reserves M&I Resources Inferred Resources 33 26 31 Gold mineral reserves increased by 10.5% to 53.8Moz of gold driven by Gold (Moz) 44 44 40 Initial declaration of mineral r
Slide 22: Macassa – Continuing to Extend Life of an Asset
Macassa – Continuing to Extend Life of an Asset with + 100 Year of Mining Continued success in exploration in the Main Break and the SMC zones contributed to a growth of proven and probable mineral reserves at the Macassa mine to 2.0 Moz gold Positive drilling results at AK, with highlight inter
Slide 23: Amaruq – Mine Life Extension to 2028
Amaruq – Mine Life Extension to 2028 Costs improvements and positive production reconciliation reduced expected mineral reserve depletion Mine life extension in the open pit and underground portion of the deposit adding approximately 500koz to mining profile Fourth Quarter and Full Year 2023 Res
Slide 24: Hope Bay – Continued Exploration Success at Madrid
Hope Bay – Continued Exploration Success at Madrid At Madrid, the target area in the gap between the Suluk and Patch 7 deposits delivered strong drill results with recent highlights of 16.3 g/t gold over 28.6 metres at 385 metres depth and 12.7 g/t gold over 4.6 metres at 677 metres depth. Resul
Slide 25: Fosterville – Drilling Focused on the Lower Phoenix Deep Extension
Fosterville – Drilling Focused on the Lower Phoenix Deep Extension Continued exploration success in the Robbins Hill and Lower Phoenix areas and improved mining parameters led to full replacement of the 2023 production Fourth Quarter and Full Year 2023 Results 25
Slide 26: 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 package in core Emphasis on per share metrics Multi-mine, multi-decade High ESG standards with multi- mining jurisdi
Slide 27: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 28: 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 29: 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 30: 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 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 31: 2023 Gold Mineral Reserves and 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 32: 2023 Gold Mineral Reserves and 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 33: 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 34: 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 35: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com