Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Merger or Acquisition (February 2007)
22 slides from Agnico Eagle Mines's merger presentation, Feb 14, 2007
Slide 1: Acquisition of Cumberland Resources Ltd.
Agnico-Eagle Mines Limited Acquisition of Cumberland Resources Ltd. February 2007
Slide 2: Forward Looking Statement
Forward Looking Statement The information in this presentation has been prepared as at February 14, 2007. 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 loo
Slide 3: No Offer
No Offer This presentation does not constitute an offer to purchase or sell or a solicitation of an offer to sell or purchase shares of Cumberland or Agnico-Eagle. The Offer will be made to any person in the United States of America, its possessions and other areas subject to its jurisdiction or to,
Slide 4: Acquisition of Cumberland Resources Ltd.
Acquisition of Cumberland Resources Ltd. Agnico-Eagle intends to acquire all the outstanding shares of Cumberland via a take-over bid Cumberland’s main asset is the construction-stage Meadowbank gold project in Nunavut Agnico-Eagle currently owns approximately 2.6% of Cumberland, fully diluted
Slide 5: Transaction Summary
Transaction Summary Friendly take-over bid with Cumberland board support Share exchange 0.185 Agnico-Eagle shares per Cumberland share C$8.87 per share based on February 13 closing prices Premium of 23.7% to the 20 day VWAP (TSX) for both companies C$710 million transaction based on February 13 clos
Slide 6: Transaction approved by the Boards; timeline
Transaction approved by the Boards of Cumberland and Agnico-Eagle Fairness opinions received by Cumberland Transaction Summary Announcement (February 14, 2007) Circular to be mailed (March 2007) Bid expiry (April 2007)
Slide 7: Strategic Rationale
Enhances already significant gold production and reserve growth Transaction consistent with successful acquisition strategy used over long term Accretive to NAV, CFPS, per share gold leverage metrics Strong balance sheet with proforma cash balance of $550 million, available bank lines of $300 millio
Slide 8: Why Cumberland?
Why Cumberland? Consistent with strategy of gold growth – Meadowbank’s average production expected to be 350,000 oz/yr 100% owned, large and growing proven and probable reserves – 2.9 million oz to date Further exploration upside – potential to develop into a multi-decade mining camp Agnico-Eagle ha
Slide 9: Growth in Gold
Growth in Gold Meaningful increase in Agnico-Eagle’s gold reserves with minimal shareholder dilution Proven and Probable Reserves (oz, millions) 10.4 13.3 28% Fully Diluted Shares Outstanding (millions) 131 146 11% 0 2 4 6 8 10 12 14 Agnico-Eagle PF Agnico-Eagle 0 20 40 60 80 100 120 140 160 Agnico-
Slide 10: Growth in Gold: 2007E–2010E Gold Production Profile
Growth in Gold 2007E – 2010E Gold Production Profile Production LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2007E 2008E 2009E 2010E
Slide 11: Meadowbank Project - Nunavut
Meadowbank Project - Nunavut LaRonde Nunavut Territory Toronto Baker Lake Meadowbank Project Raglan
Slide 12: Meadowbank Project - Highlights
Meadowbank Project - Highlights Three, closely-spaced open pits in proposed mine design Shallow pits planned to be mined to a depth of 170 metres Vault pit located 5 kilometres north of the Portage pit Technically straightforward mining and processing Source: Cumberland Resources Ltd. N Airstrip Goo
Slide 13: Meadowbank Project Potential Upside is Substantial
Meadowbank Project Potential Upside is Substantial Significant resource potential at depth below in-pit reserves at Goose South/Island Pit Higher grades at depth suggest underground mining potential 2007 exploration to focus on drilling at depth and near resource boundaries Over 40 known gold occurr
Slide 14: Benefits to Cumberland Shareholders
Benefits to Cumberland Shareholders Immediate 24% premium to Cumberland shareholders based on 20 trading day VWAP Agnico-Eagle provides financial capacity, exploration and mining expertise to increase value for all shareholders Cumberland shareholders will gain enhanced liquidity Agnico-Eagle listed
Slide 15: Agnico-Eagle Going Forward
Agnico-Eagle Going Forward Significant gold production and reserve growth Continue to deliver value through operational excellence and strategic acquisitions Meaningful exploration upside from large land position in four active gold camps Strong balance sheet enhanced via LaRonde’s significant cash
Slide 16: Appendix: Cautionary Note to United States Investors
Appendix CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES The terms “measured”, “indicated” and “inferred” mineral resources are terms recognized and required under the securities legislation of certain countries, United States investors a
Slide 17: About The Meadowbank Project
About The Meadowbank Project Agnico-Eagle Preliminary Estimates Open Pit Mining Method: C$375 million Initial Capital Cost: C$65 million 8,500 tpd Mine Throughput: 93% Metallurgical Recovery: Eight Years Mine Life: Mill Site Airstrip Goose Island Pit Portage Pit Cannu Zone Average annual production:
Slide 18: Meadowbank Project: Growing Gold Reserve and Resource
Meadowbank Project – Nunavut Growing Gold Reserve and Resource +10 Years of Gold Growth (Millions of Ounces) Inferred Measured & Indicated Proven & Probable Reserves 3.8 3.9 4.0 3.5 3.2 3.0 2.0 1.7 1.5 1.1 0.8 0.2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 19: Meadowbank Project Reserves and Resources
Meadowbank Project - Nunavut Project Reserves and Resources Proven & Probable 21,320,000 18,300,000 3,020,000 Tonnes 2,890,000 4.2 Note: 95% mining recovery and contact dilution applied. Reserves are a subset of Measured and Indicated Resources. 470,000 4.8 2,420,000 4.1 Ounces Grade (g/t) Category
Slide 20: Meadowbank Project History
Meadowbank Project - Nunavut Meadowbank Project History Date Event 1987 Prospectors first discover gold occurrences at Meadowbank 1995 Cumberland purchases 60% interest in the project, becomes operator of JV with Comaplex 1997 Cumberland acquires remaining 40% from Comaplex. Increased resources from
Slide 21: Agnico-Eagle Current Project Reserves and Resources – December 2005
Agnico-Eagle Current Project Reserves and Resources – December 2005 Proven & Probable 75,960,000 69,156,000 6,804,000 Tonnes 10,443,000 4.3 637,000 2.9 9,806,000 4.4 Ounces Grade (g/t) Category Agnico-Eagle Mineral Reserves Probable Proven
Slide 22: Executive and Registered Office
Executive and Registered Office: 145 King Street East, Suite 500 Toronto, Ontario, Canada, M5C 2Y7 Tel: 416-947-1212 Toll-Free: 888-822-6714 Fax: 416-367-4681 Email: info@agnico-eagle.com Web: www.agnico-eagle.com Trading Symbols: AEM / TSX & NYSE Warrants: TSX: AEM.WT.U / NASDAQ: AEMLW Sean Boyd Vi
Agnico-Eagle Mines — Merger or Acquisition (February 2007) on 6ix