Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Gold Forum Americas 2023
44 slides from Agnico Eagle Mines's conference presentation, Sep 19, 2023
Slide 1: Gold Forum Americas
Gold Forum Americas September 17-20, 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The information in this presentation has been prepared as at September 14, 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-
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: 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 – $890 /oz2 (2023E) Strong Mineral Reserve Base3 P&P: 50 Moz M&I: 47 Moz Inferred: 31 Moz Note
Slide 6: Track Record of Value Creation
Track Record of Value Creation Building a Portfolio of High-Quality Assets in Premier Mining Jurisdictions that Offer Superior Geological Potential 2005 - 2007 2008 - 2012 2013 - 2016 2017 - 2020 Acquisitions in Early-Stage Construction of 5 Mines and Acquisition of 50% of Strengthening and Explorat
Slide 7: Consistent Strategy to Value Creation
Consistent Strategy to Value Creation Disciplined Investments for Multi-Decade Production in Low-Risk Jurisdictions 2021-2022 Next 5 Years Regional Consolidation Optimization of existing assets and regional mining platforms • Merger with Kirkland Lake Gold • Detour Lake mill optimization • Acquisiti
Slide 8: Consolidated Operating and Financial Performance
Consolidated Operating and Financial Performance Production Results Q3 Q4 Q1 Q2 2022 2022 2023 2023 Realized Gold Price ($/oz) $1,726 $1,728 $1,892 $1,975 Gold Production (000 oz) 816.8 799.4 812.8 873.2 Gold Sales (000 oz) 830.2 788.9 787.6 858.8 Total Cash Costs ($/oz)* $779 $863 $832 $840 All-in
Slide 9: Strong Growth in Operating Margin
Strong Growth in Operating Margin Significant operating margin resulting from production growth and good cost control $100/oz increase in gold price assumption adds ~$330 million in Operating Margin Potential uses of cash: Target Total Capex Range Reducing net debt Advance exploration prog
Slide 10: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility Focus on Capital Discipline and Returns to Shareholders Strong liquidity with $433M in cash and cash equivalents and Strong Available Liquidity - $1.53B* $1,100M (excluding $600M accordion) in undrawn credit lines available, as at June 30, 2023 $433
Slide 11: 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 12: Creating Value Through the Drill Bit
Creating Value Through the Drill Bit Two world-class mines with discovery costs below $10/oz 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 20.7 4.4
Slide 13: Abitibi Gold Belt – Focus on Optimizing the Portfolio
Abitibi Gold Belt – Focus on Optimizing the Portfolio Detour Lake Systematically increased mill capacity towards 28 Mtpa Evaluating pathway to 30 Mtpa Underground study to be completed in H1 2024 Canadian Malartic Complex Transition from Open Pit to Underground production June 2022 technic
Slide 14: Detour Lake Mill Optimization
Detour Lake Mill Optimization – Potential to Grow Beyond 28 Million Tonnes per Year Realized YoY Milled tonnage growth of 5 - 6% Growth potential yet to be captured includes: Completed planned projects to increase mill throughput up to Evaluate a pathway to reach 30 Mtpa while minimizing cap
Slide 15: 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 16: 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 17: 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 GoldGold Forum For
Slide 18: 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 19: 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 20: Positive Minesite Exploration Expected to Drive Future Mineral Resource Growth
Positive Minesite Exploration Expected to Drive Future Mineral Resource Growth H1 2023 Exploration Spend Hope Bay Expanding Doris deposit Significant progress at Madrid through step out drilling $141 M Macassa Exploration focused on extending and infilling the South Mine Complex and Main Break
Slide 21: Hope Bay – Exploration Drilling at Madrid in 2023
Hope Bay – Exploration Drilling at Madrid in 2023 Wide step-out at previously untested gap between Suluk and Patch 7 Zones confirming potential of Madrid/Suluk/Patch 7 as it extends the high-grade Patch 7 Zone by 500m vertically and by 900m laterally at depth Additional budget of $14.5 million a
Slide 22: 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 23: Operations Update
OPERATIONS UPDATE
Slide 24: First Half 2023 Highlights
First Half 2023 Highlights Record production and strong cost performance with solid safety Advancing Key Value drivers and pipeline projects performance underscore a strong first half of the year Canadian Malartic complex – Updated internal study for Odyssey; Payable gold production of 1,686 koz
Slide 25: Operating Highlights – Quebec
Operating Highlights – Quebec LaRonde complex – Strong underground productivity drives solid operational performance Canadian Malartic complex – Consolidation to 100% ownership as at March 31, 2023; Canadian Malartic pit completed; Increased productivity from Barnat pit; Ramping-up production fr
Slide 26: Operating Highlights – Nunavut
Operating Highlights – Nunavut Nunavut operations affected by extended caribou migration in June 2023 Meliadine – Record quarterly mill throughput achieved in Q1 2023 and record monthly mill throughput in May 2023; Phase 2 mill expansion on track to ramp-up to 6,000tpd in H2 2024 Meadowbank co
Slide 27: Operating Highlights – Ontario
Operating Highlights – Ontario Detour Lake – Record quarterly mill performance achieved in Q2 2023; Continued focus on mill optimization to achieve 25.0Mtpa by 2025 Macassa – Sixth millionth gold ounce poured; Shaft #4 commissioned; Strong operational and cost performance in H1 2023, including r
Slide 28: Operating Highlights – Australia, Finland and Mexico
Operating Highlights – Australia, Finland and Mexico Fosterville – Fourth millionth gold ounce poured; Restrictions related to low frequency noise lifted, with a return to normal operations in June Kittila – Strong operational performance from underground mine; Permit decision by SAC expected in
Slide 29: ESG
ESG
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com