Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Scotiabank Latin American Mining Conference 2013
26 slides from Agnico Eagle Mines's conference presentation, June 2013
Slide 1: Scotiabank Latin American Mining Conference
Scotiabank Latin American Mining Conference June 2013
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this document has been prepared as at June 3, 2013. Certain statements contained in this document constitute “forward- looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking inform
Slide 3: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This document presents estimates of future “total cash cost per ounce” and “minesite cost per tonne” that are not recognized measures under United States generally accepted accounting principles (“US GAAP”). This data may not b
Slide 4: Key Operating Highlights – Q1 2013
KEY OPERATING HIGHLIGHTS – Q1 2013 Production and costs on track Quarterly cash flows from operations of $146 million ($0.80 per share) Goldex expected to produce ahead of schedule – startup in Q4, 2013 La India expected to begin commissioning ahead of schedule - late Q4, 2013 Kittila mill
Slide 5: Operating Results
OPERATING RESULTS First quarter production and costs in line with expectations Q1 2013 2013 Forecast2 Total Cash Operating Midpoint of Production Production Cost Margin Estimate (Gold oz) ($/oz) ($, 000’s) (Gold oz) LaRonde 39,073 $718 $33,295 177,000 Kittila 43,145 $624 $44,956 150,000 Lapa 26,868
Slide 6: Financial Position
FINANCIAL POSITION ALL AMOUNTS ARE IN US$, unless otherwise indicated Mar. 31, 2013 CASH AND CASH EQUIVALENTS (millions) $264 LONG TERM DEBT (millions) $800 AVAILABLE CREDIT FACILITIES $1.2 Billion COMMON SHARES OUTSTANDING, BASIC (Q1’13 Weighted average, millions) 172.3 COMMON SHARES OUTSTANDING, F
Slide 7: Moderate, Achievable Production Growth
MODERATE, ACHIEVABLE PRODUCTION GROWTH Low political risk, mining-friendly jurisdictions Payable Gold Production Profile (oz) 1,300,000 1,100,000 900,000 700,000 500,000 300,000 100,000 2008A 2009A 2010A 2011A 2012A 2013E 2014E 2015E Actual Estimate agnicoeagle.com 7
Slide 8: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Well positioned to fund growth plans and dividends Capital Expenditures (US$ 000’s) $1,200,000 $1,000,000 $800,000 Illustrative Ongoing $600,000 Re-Investment $400,000 * Estimate for projects not yet approved ~ $350M $200,000 Sustaining Capital and Capitalized Explorat
Slide 9: Adding Value Through Exploration and Acquisitions
ADDING VALUE THROUGH EXPLORATION AND ACQUISISTIONS Significant exploration results at acquired properties 9,000 +5644 koz +3085 koz Mined Proven & Probable 6,000 +3161 koz Measured & +1105 koz Indicated Inferred 3,000 +1097 koz 0 Altos '06 Altos '12 La India La India Meliadine Meliadine Kittila '05
Slide 10: AEM in Mexico
AEM IN MEXICO agnicoeagle.com 10
Slide 11: Mexico: World Class Mining Jurisdiction
MEXICO World class mining jurisdiction Agnico Eagle has established a successful operating platform at Pinos Altos with organic growth and exploration opportunities at Pinos Altos and La India Skilled workforce, excellent mineral potential, and well established mining history Transparent permi
Slide 12: Agnico Eagle in Mexico: High Margin Business
AGNICO EAGLE IN MEXICO High margin business Acquired Pinos Altos in 2006 and Grayd Resources in 2011 Pinos Altos was the 3rd largest gold mine in Mexico in 2012, producing approximately 234,000 ounces of gold Total AEM Mexico investment more than $550M and growing 1100 Employees with annual
Slide 13: Agnico Eagle in Mexico: Solid Platform for Future Growth
AGNICO EAGLE IN MEXICO Solid platform for future growth Agnico Eagle is looking to build and expand its business in Mexico and Latin America. Recent 2013 transactions include: Acquisition of Urastar Gold Corp. – ongoing land consolidation in Sonora State, Mexico A 9.96% equity interest in Koot
Slide 14: Mexico – Pinos Altos & Creston Mascota
MEXICO – PINOS ALTOS & CRESTON MASCOTA Large cash flow generator Q1 2013 production of 46,071 oz gold at P&P GOLD RESERVES (million oz) 2.7 total cash cost of US$300/oz* Leaching resumed on the Phase 2 pad at AVERAGE GOLD RESERVE GRADE (g/t) 2.2 Creston Mascota in March 2013, one month ahead of
Slide 15: Mexico – La India
MEXICO - LA INDIA Commissioning expected to start by year-end 2013 Construction proceeding well and on PROBABLE GOLD RESERVES (million oz) 0.8 budget AVERAGE GOLD RESERVE GRADE (g/t) 0.7 Commercial production expected in 1Q 2014, one quarter ahead of schedule Indicated gold resource (million oz)
Slide 16: Mexico – Internal Growth Opportunities
MEXICO – INTERNAL GROWTH OPPORTUNITIES Potential to develop other satellite zones at Pinos Altos. Exploration activities are underway at Cerro Colorado and Reyna de Plata. agnicoeagle.com 16
Slide 17: Mexico – Internal Growth Opportunities
MEXICO – INTERNAL GROWTH OPPORTUNITIES Evaluation of underlying sulfide mineralization at La India – metallurgical results expected by year end Drill testing of other regional targets at La India Potential starter pit at Tarachi – further drilling and metallurgical work pending agnicoeagle.com
Slide 18: Sound Business Continues to Deliver
SOUND BUSINESS CONTINUES TO DELIVER No change in strategy or focus AEM among industry leaders in per share reserves, production, cash flows and dividends Production growth expected to be driven by LaRonde, La India and Goldex, with manageable, fully funded capex Solid, achievable production an
Slide 19: Appendix
APPENDIX
Slide 20: Operating Metrics: LaRonde, Lapa
OPERATING METRICS LaRonde - Ore milled ('000 tonnes) LaRonde LaRonde - Minesite costs per tonne (C$) 7,500tpd $140/t 7,000tpd $120/t 6,500tpd $100/t 6,000tpd $80/t 5,500tpd $60/t 5,000tpd $40/t 4,500tpd $20/t 4,000tpd $0/t Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Lapa Lapa - Ore milled
Slide 21: Operating Metrics: Kittila, Pinos Altos, Meadowbank
OPERATING METRICS Kittila - Ore milled('000 tonnes) Kittila Kittila - Minesite costs per tonne (EUR) 4,000tpd 3,500tpd €90/t 3,000tpd €80/t 2,500tpd €70/t 2,000tpd 1,500tpd €60/t 1,000tpd €50/t 500tpd 0tpd €40/t Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Pinos Altos Meadowbank 5,400tpd $6
Slide 22: Gold and Silver Reserves and Resources
GOLD AND SILVER RESERVES AND RESOURCES December 31, 2012 Gold Silver Tonnes Gold (ounces) Tonnes Silver (ounces) Gold (000’s) (g/t) (000’s) Silver (000’s) (g/t) (000’s) Proven 13,836 3.13 1,394 Proven 9,390 47.30 14,281 Probable 170,300 3.16 17,286 Probable 57,536 43.93 81,256 Total Total 184,136 3.
Slide 23: Copper, Zinc and Lead Reserves and Resources
COPPER, ZINC AND LEAD RESERVES AND RESOURCES December 31, 2012 Tonnes Copper Copper Tonnes Zinc Zinc Tonnes Lead Lead Copper Zinc Lead (000’s) (%) (tonnes) (000’s) (%) (tonnes) (000’s) (%) (tonnes) Proven 6,323 0.30 18,744 Proven 6,323 1.06 67,211 Proven 6,323 0.12 7,738 Probable 22,462 0.24 53,835
Slide 24: Notes to Investors Regarding the Use of Resources
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This document uses the terms “measured resources” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regu
Slide 25: Notes to Investors Regarding the Use of Resources
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and
Slide 26: agnicoeagle.com
agnicoeagle.com Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-847-8665 info@agnicoeagle.com
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