Slide 1: Detour Lake Mine: Pathway to 1 million ounce producer
Detour Lake Mine Pathway to 1 million ounce producer
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The information in this presentation has been prepared as at June 19, 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-looki
Slide 3: Agenda
AGENDA Introduction Ontario Platform Detour Lake Overview Preliminary Economic Assessment Operating and Financial Metrics Underground Study Mill Optimization Exploration and Expansion Potential Conclusion
Slide 4: Detour Lake – A Growing World Class Mine in a Premier Mining Jurisdiction
DETOUR LAKE – A GROWING WORLD CLASS MINE IN A PREMIER MINING JURISDICTION Pathway to 1 million ounce producer • Enhancing production profile, increasing profitability and extending mine life • Replace lower grade open pit production with higher grade underground production • Accelerate access to hig
Slide 5: Detour Lake – Longitudinal view
DETOUR LAKE – A GROWING WORLD CLASS MINE IN A PREMIER MINING JURISDICTION Longitudinal view 5 1 2 3 High-grade corridor 4 1• Open-pit mineral reserve 2• Open-pit mineral resource Future exploration, conversion drilling, bulk sampling and geological and structural studies to improve the 3• High-grade
Slide 6: Ontario Platform
Ontario Platform
Slide 7: Abitibi Ontario – Agnico's Largest Production Platform with Room to Grow
ABITIBI ONTARIO – AGNICO’S LARGEST PRODUCTION PLATFORM WITH ROOM TO GROW 2 Operating Gold Mines – Detour & Macassa • ~78k tonnes of daily mill capacity • 2024E production: ~965koz • 2024E total cash costs: ~$769/oz1 1 of the 10 Largest Gold Mines in the World • Multi-decade production at Detour Lake
Slide 8: Competitive Advantage in Ontario
COMPETITIVE ADVANTAGE IN ONTARIO Partner of Choice ~4,100 C$94 million • Solid relationships with Indigenous communities INVESTED EMPLOYEES AND • Working closely with governments to shape IN EXPLORATION* CONTRACTORS broader programs in Ontario • Secured C$10M funding from Skills Development Fund to
Slide 9: Detour Lake Overview – A World Class Asset
DETOUR LAKE OVERVIEW – A WORLD CLASS ASSET Mineral reserves 2023 Production 2023 Total Cash 2024 Production 2024 Total cash Open pit operation Operations (Moz)1 (koz) Costs2 guidance (koz) costs2 guidance • Historical underground 19.7 677 $668/oz gold 690 $734/oz gold mining from 1985-1999 totaling
Slide 10: 2024 Preliminary Economic Assessment
2024 Preliminary Economic Assessment (“2024 PEA”) Underground Project and Mill Optimization to 29 Mtpa
Slide 11: A Team with a Strong Track Record
A TEAM WITH A STRONG TRACK RECORD NATASHA VAZ EVP, COO Operations and Project Development – Ontario, Australia and Mexico Ms. Vaz is Executive Vice President and Chief Operating Officer leading the Operations and Project Development teams for Ontario, Australia and Mexico. Prior to her appointment,
Slide 12: Leveraging an Experienced Team in Building Mines
LEVERAGING AN EXPERIENCED TEAM IN BUILDING MINES ALAIN COSSETTE Senior Director, Project Development – Canada and Europe Mr. Cossette is Senior Director, Project Development, leading the Project Development teams for Canada and Europe. He started his career with Agnico Eagle at the LaRonde mine in 2
Slide 13: 2024 PEA – High Return, Low Execution Risk Expansion
2024 PEA – HIGH RETURN, LOW EXECUTION RISK EXPANSION • Building on the unique potential of this world class Underground + Mill Optimization1 asset Total Gold Production Moz 4.0 • Transforming it into one of the top five gold mines in Mill Throughput Mtpa 29 the world NPV $M 886 • Low-risk from an ex
Slide 14: 2024 PEA – Pathway to One Million Ounce Producer
2024 PEA – PATHWAY TO ONE MILLION OUNCE PRODUCER Open Pit Open Pit + Underground Processing Stockpiles Average Annual Gold Average Annual Gold Production: 1,011koz Average Annual Gold Production: 314koz Production: 708koz Cash Cost1: $743/oz Cash Cost1: $563/oz Cash Cost1: $1,407/oz Free Cash Flow1:
Slide 15: 2024 PEA – Increasing Production at Lower Costs
2024 PEA – INCREASING PRODUCTION AT LOWER COSTS Payable Gold Production (Moz) Total Cash Cost per Ounce 8% Lower Total Cash Cost vs. Open Pit 752 741 690 Open Pit Cash Cost (US$/oz) Underground + Mill Optimization Total Underground Continues Detour’s DNA of High-Volume, Low-Cost Production Detour La
Slide 16: 2024 PEA – Proactive Stakeholder Engagement and Permitting
2024 PEA – PROACTIVE STAKEHOLDER ENGAGEMENT AND PERMITTING • Proactive communication and consultation approach – engagement with First Nations on underground project started in late 2022 • Permitting process started in 2023 following a phased strategy • First phase: work planned for 2024 – 2026 • Se
Slide 17: Underground Project – Minimal Surface Infrastructure Required
UNDERGROUND PROJECT – MINIMAL SURFACE INFRASTRUCTURE REQUIRED • A brownfield project N requiring minimal new surface infrastructure Service ramp portal laydown area • Paste Plant • Conveyor ramp portal and • Admin/dry • Maintenance shop underground ore stockpile located close to processing 2 Mill
Slide 18: Underground Project – Simple Underground Mine Design
UNDERGROUND PROJECT – SIMPLE UNDERGROUND MINE DESIGN Infrastructure design based on successful AEM projects 1• Mobile shop and maintenance bay for the large equipment of the UG fleet 2• Rock hammers and jaw crusher 3• Conveyor for material handling RAR FAR RAR 3 1 1 2 3 1 RAR: Return air raise FAR:
Slide 19: Underground Project – Reflecting a View as of Oct 2023 Drill Data
UNDERGROUND PROJECT – REFLECTING A VIEW AS OF OCT 2023 DRILL DATA PEA Stopes PEA Devel opment Ol d Worki ngs Res erve pi t s hel l Detour Lake Mine Technical Presentation – June 19, 2024 19
Slide 20: Underground Project – A Bulk Mining Operation
UNDERGROUND PROJECT – A BULK MINING OPERATION Detour UG to leverage AEM expertise from Goldex and Odyssey – high tonnage mines Detour UG – bulk mining operation • 11,200 tpd of feed by 2033 at 2.46g/t • 40M sub-level, transverse mining • Stope size averaging 30kt • 21 tonnes scoop with automation •
Slide 21: Underground Project – Development Strategy Accelerates Ramp-Up
UNDERGROUND PROJECT – DEVELOPMENT STRATEGY ACCELERATES RAMP-UP 4.5 350 4.0 300 Underground Feed (tonnes) 3.5 Gold Production (koz) 250 3.0 2.5 200 2.0 150 1.5 100 1.0 50 0.5 0.0 0 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Underground Feed Tonnes Underground Productio
Slide 22: Underground Project – Mine Development Sequence
UNDERGROUND PROJECT – MINE DEVELOPMENT SEQUENCE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Exploration ramp Construction phase Phase 1 - Production start Phase 2- Steady state production Phase 3 - West expansion Phase 2: Steady state prod
Slide 23: Underground Project – Mineral Resource Base
UNDERGROUND PROJECT – MINERAL RESOURCE BASE Mineral resources amenable to underground mining: Underground Project PEA: • Based on block model Oct 2023 • Based on Block model Oct 2023 • Indicated mineral resources of 55% • 53M tonnes 1.2Moz and inferred mineral • ~4.6Moz gold in-situ resources of 7.1
Slide 24: Detour Lake – Continuous Improvement Philosophy
DETOUR LAKE – CONTINUOUS IMPROVEMENT PHILOSOPHY • Contracted work internalization • Rebuilds of large component, tire service and truck repair and maintenance, increased tailings construction self performed work • Optimized equipment replacement strategy • Increased reliability, reduced downtime and
Slide 25: Mill Optimization Journey
MILL OPTIMIZATION JOURNEY Historical Tonnes per Operating Hour (TPOH) with Target to 2028 Multiple initiatives to increase capacity to 29 Mtpa by 2028 (permit limit: 32.8 Mtpa) • Secondary Crusher Improvements • Increase Retention time in SAG mill • Ball Mill Optimization • Advanced Process Control
Slide 26: 2024 PEA – High Return, Low Execution Risk Expansion; Approving Next Steps
2024 PEA – HIGH RETURN, LOW EXECUTION RISK EXPANSION; APPROVING NEXT STEPS Underground + Mill Optimization1 Total Gold Production Moz 4.0 • 2024 PEA generates strong economic returns Mill Throughput Mtpa 29 • Low-risk from an execution perspective NPV $M 886 • Maintains capital discipline IRR % 18%
Slide 27: Next Steps – Exploration Ramp and Bulk Sample Strategy
NEXT STEPS – EXPLORATION RAMP AND BULK SAMPLE STRATEGY Exploration ramp – 2km long, reaching a depth of 270m Expected to reach first ore in H2 2026 • The exploration ramp facilitates: • Collection of a bulk sample in the shallow mineralized zone extension in the west • Infill and expansion drilling
Slide 28: Next Steps – Timeline
NEXT STEPS – TIMELINE 2024 – H2 2025 2026 2027 Exploration ramp Exploration ramp and Surface work ($90M) Grade continuity validation High Intensity Drilling and Bulk Sample ($10M) Production related activities Ramp and Infrastructures for operation Exploration/ Strategy of Conversion (143km)/Explora
Slide 29: Exploration and Expansion Potential
Exploration and Expansion Potential
Slide 30: Underground Potential Along Western Extension
UNDERGROUND POTENTIAL ALONG WESTERN EXTENSION • Recent positive exploration results along the west-plunge of the deposit not included in MRMR estimate at March 31, 2024 • Same drill database used as December 31, 2023 MRMR (database cut-off October 16, 2023) Detour Lake Mine Technical Presentation –
Slide 31: Mineral Reserve & Mineral Resource Growth at Low Discovery Costs
MINERAL RESERVE & MINERAL RESOURCE GROWTH AT LOW DISCOVERY COSTS Growth and Evolution of MRMR 1.3 2.9 7.7 • Average discovery cost below $10/oz 1.3 18.5 • Growth in MRMR since year-end 2019 18.5 Ounces of Gold (millions) 13.8 • Significant spending on exploration since year- 1.6 15.3 end 2019 totall
Slide 32: Detour Lake – District Scale Potential
DETOUR LAKE – DISTRICT SCALE POTENTIAL Detour Lake Mine Technical Presentation – June 19, 2024 32
Slide 33: Conclusion
Conclusion
Slide 34: World-Class Asset with Unique Potential in a Premier Mining Jurisdiction
WORLD-CLASS ASSET WITH UNIQUE POTENTIAL IN A PREMIER MINING JURISDICTION Potential to become one of the top five gold mines in the world • Pathway to 1Moz of annual gold production in 2030 • Strong risk-adjusted return on capital • Recent positive exploration results demonstrate upside potential • L
Slide 35: Appendix – Mineral Reserve and Mineral Resource (MRMR)
Appendix – Mineral Reserve and Mineral Resource (MRMR)
Slide 36: Potential Underground Mineral Resource Below the Mineral Reserve Pit
POTENTIAL UNDERGROUND MINERAL RESOURCE BELOW THE MINERAL RESERVE PIT Included in 2024 PEA As at March 31, 20242 Production Profile3 Mt g/t MOz Au Mt g/t MOz Au Indicated High Grade Mineral Resources1 Inside March 2024 Resource Pit 9.0 1.83 0.5 4.5 2.34 0.3 Outside March 2024 Resource Pit 10.0 2.02 0
Slide 37: MRMR
MRMR As at March 31, 2024 MINERAL RESERVES As at March 31, 2024 MINERALIZED ZONE PROVEN PROBABLE PROVEN & PROBABLE Mining 000 000 oz 000 000 oz 000 000 oz Recovery GOLD g/t g/t g/t Method1 Tonnes Au Tonnes Au Tonnes Au %2 Detour Lake (Above 0.5 g/t) O/P 71,477 1.13 2,593 467,151 0.90 13,563 538,629
Slide 38: MRMR: March 31, 2024 Compared to December 31, 2023
MRMR March 31, 2024 Compared to December 31, 2023 As at March 31, 2024 As at December 31, 2023 Variance Tonnes Gold Contained Gold Tonnes Gold Contained Gold Tonnes Contained Gold Category (000s) Grade (g/t) (000 oz) (000s) Grade (g/t) (000 oz) (000s) (000 oz) Mineral Reserves Proven 121,651 0.84 3,
Slide 39: MRMR: Open Pit Mineral Reserves Since March 31, 2022
MRMR Open Pit Mineral Reserves Since March 31, 2022 Detour Lake Mine Technical Presentation – June 19, 2024 39
Slide 40: MRMR: Measured & Indicated, and Inferred Mineral Resources Since March 31, 2022
MRMR Measured & Indicated, and Inferred Mineral Resources Since March 31, 2022 Detour Lake Mine Technical Presentation – June 19, 2024 40
Slide 41: 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 42: 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 43: 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", "free cash flow", "sustaining capital expenditures", "development capital expe
Slide 44: Notes to Investors (continued)
Notes to Investors (continued) Note Regarding Certain Measures of Performance Free cash flow and free cash flow before changes in non-cash working capital balances Free cash flow is calculated by deducting operating expenditures and capital expenditures from the revenue. The Company believes that fr
Slide 45: Thank you
Thank you Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-847-8665 info@agnicoeagle.com agnicoeagle.com