Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Gold Forum Americas 2022
44 slides from Agnico Eagle Mines's conference presentation, Sep 20, 2022
Slide 1: Gold Forum Americas
Gold Forum Americas September 18-21, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this presentation has been prepared as at September 15, 2022. 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: Strong Track Record of Value Creation
STRONG TRACK RECORD OF VALUE CREATION Building a Portfolio of High-Quality Assets in Premier Mining Regions that Offer Superior Geological Potential 2005 - 2007 2008 - 2012 2013 - 2016 2017 - 2021 2022 - 2024 Acquisitions in Early- Construction of 5 Mines Consolidating the Abitibi Strengthening the
Slide 4: Superior Leverage to the Gold Price on a Risk-Adjusted Basis
SUPERIOR LEVERAGE TO THE GOLD PRICE ON A RISK-ADJUSTED BASIS Continuing to build a profitable, high-quality, low-risk business based on: Leading position in some of the world’s best gold mining jurisdictions as measured by: • Multi-mine, multi-decade geologic potential • Multi-decade political s
Slide 5: Low-Risk Geographic Exposure
LOW-RISK GEOGRAPHIC EXPOSURE Focused on Premier Mining Jurisdictions in North America, Europe and Australia 50.0 Moz Gold Reserves1 Quebec Mexico 13% Finland 2% 8% Australia 4% Ontario Nunavut 54% 19% 3.3 Moz Gold Production in 2022 (Guidance) 2 Mexico Finland 7% 7% Quebec 25% Australia 12% Nunavut
Slide 6: Business Built on Industry Leading ESG Practices
BUSINESS BUILT ON INDUSTRY LEADING ESG PRACTICES Essential to Deliver on our Regional Strategy and our Vision to Build a Growing, High-Quality, Low Risk, Sustainable Business ESG Stewardship Rating Agency Ranking Scale Partner of choice within the mining industry and the MSCI Rating Leader (AAA, A
Slide 7: Near Term Focus on Optimizing the Portfolio
NEAR TERM FOCUS ON OPTIMIZING THE PORTFOLIO Detour Lake Technical evaluation brings mineral reserves to 20.4Moz*, improves production profile and increases mine life by 10 years Assessing potential to increase production to 1.0Moz or more per year based on strong exploration upside to the west
Slide 8: Assessing the Full Potential of the Portfolio Through Exploration
ASSESSING THE FULL POTENTIAL OF THE PORTFOLIO THROUGH EXPLORATION Focus on Growing Mineral Reserves & Mineral Resources, Near Mine Opportunities and Pipeline Projects Targeting growth of the Company's mineral reserves and mineral resources at year-end 2022 to a record level Based on positive exp
Slide 9: Detour Lake Mine – New Evaluation Shows a Longer Life and Improved Mine Plan
DETOUR LAKE MINE – NEW EVALUATION SHOWS A LONGER LIFE AND IMPROVED MINE PLAN Technical Evaluation Highlights: Added 38% in gold reserves (+5.6Moz to 20.4Moz ), which increases the mine life by 10 years (until 2052) Recovered gold increased by 38%: + 0.4Moz added in 2028-2031 (reduces a produ
Slide 10: Improved Production Profile with Opportunities for Additional Growth
IMPROVED PRODUCTION PROFILE WITH OPPORTUNITIES FOR ADDITIONAL GROWTH Improved Improved Production Profile 1,000 Stockpile Reclaim Period Production Profile 2032-2042: +1.8Moz 2043-2052: +3.0Moz 2028-2031: +0.4Moz 800 Gold Production (koz) 600 400 200 0 2022 2024 2026 2028 2030 2032 2034 2036 2038 20
Slide 11: Ongoing Exploration Expected to Drive Future Mineral Resource Growth
ONGOING EXPLORATION EXPECTED TO DRIVE FUTURE MINERAL RESOURCE GROWTH Potential to Continue Growing "Out-pit" Mineralization Two Kilometres West of the Current Resource Pit Drilling extends Detour Lake deposit 2.0 km west of the current pit outline – Drilling has continued to intersect a key gold-b
Slide 12: Odyssey Project
ODYSSEY PROJECT Initial pre-commercial production expected in March 2023 Construction activities progressing on schedule and on budget. Key milestones include: Initiate shaft sinking – Q4 2022 Odyssey South production start-up – March 2023 Completion of Shaft sinking – 2026 Start of produc
Slide 13: Odyssey Project
ODYSSEY PROJECT Focus on Infill Drilling and Expanding East Gouldie Zone to the East and West Infill drilling progressing in the Odyssey South Zone with expectations of initial mineral reserves to be declared at year-end 2022 Recent drilling has extended East Gouldie to the west by ~225m and to
Slide 14: Kirkland Lake Regional Mining Hub
KIRKLAND LAKE REGIONAL MINING HUB Macassa – The Company is assessing opportunities to incorporate the AK Zone into the mine plan starting in 2024 Upper Beaver – The Company believes that Upper Beaver has the potential to be a low-cost mine with annual production in the range of 150 – 250 koz of
Slide 15: Macassa – Potential to Create a Regional Mining Complex
MACASSA – POTENTIAL TO CREATE A REGIONAL MINING COMPLEX Exploration focused on extending and infilling the South Mine Complex and Main Break along strike and at depth Underground Drilling at Macassa Intersects High Grade Gold Mineralization on Four Mine Levels Drilling on the 5300 level focused
Slide 16: Hope Bay – Mineralization at Doris Remains Open in All Directions
HOPE BAY – MINERALIZATION AT DORIS REMAINS OPEN IN ALL DIRECTIONS Expanding Doris deposit; Mineralization remains open in all directions Excellent potential to increase mineral reserves and mineral resources in all deposit areas and regionally Near term focus on exploration drilling and evalua
Slide 17: Synergy and Optimization Benefits Ahead of Estimates
SYNERGY AND OPTIMIZATION BENEFITS AHEAD OF ESTIMATES Merger-Related Synergies are Expected to Help Mitigate Inflationary Cost Pressures Opportunities Synergy Value 10 Year Synergy Targets Streamlining personnel costs and ~$40M achieved to date service contracts Corporate $40-$50M annually Syne
Slide 18: High-Quality, Low-Risk Senior Gold Producer
HIGH-QUALITY, LOW-RISK SENIOR GOLD PRODUCER Generating Superior Long- Term Returns to Shareholders Strong Growth in Operating Margin H1 2022 Total Operating Margin $1.6B Strong Financial Position, with liquidity of $2.2B+ and net debt of $0.4B+ Investment grade balance sheet – credit ratings:
Slide 19: Key Takeaways
Key Takeaways Delivering strong operational performance Excellent operating results in H1 2022 – Record gold production and good cost control result-in strong earnings and cashflow Gold production is underpinned by six cornerstone assets with production rates in excess of 300,000oz/yr – Detour
Slide 20: Agnico Eagle's Vision
Agnico Eagle’s Vision Agnico Eagle is the choice for investors looking for superior leverage to the gold price, on a risk-adjusted basis Agnico Eagle has a simple, consistent, disciplined and proven approach to value creation Low costs, strong margins and cashflows Robust production profile
Slide 21: Operation Appendix
OPERATION APPENDIX
Slide 22: Abitibi Quebec – A Long Term Operating Platform
ABITIBI QUEBEC – A LONG TERM OPERATING PLATFORM MINESITES & PIPELINE PROJECTS LaRonde Complex Proven & probable Measured & indicated Inferred gold resource • Production start-up in 1988 gold reserves (million gold resources (million (million oz) • UG Operation: ~7.8ktpd oz) oz) • Expanded 5 times •
Slide 23: Abitibi Region – Quebec
ABITIBI REGION – QUEBEC Freshwater withdrawn Tonnes (CO2 equivalent) Total area physically for use intensity per oz of GHG Scope 1&2 disturbed by mine of gold** emissions produced per activity** oz of gold** 7.12 m3/oz AU 0.09 1,090 ha Total GHG Emissions (Scope 1 GHG Reduction Initiatives and 2) an
Slide 24: Abitibi Ontario – Company's Largest Production Platform with Room to Grow
ABITIBI ONTARIO – COMPANY’S LARGEST PRODUCTION PLATFORM WITH ROOM TO GROW MINESITES & PIPELINE PROJECTS Detour Lake Proven & probable Measured & indicated Inferred gold resource • Produced 5.0Moz to date gold reserves (million gold resources (million (million oz) • OP operation with target to increa
Slide 25: Abitibi Region – Ontario
ABITIBI REGION – ONTARIO Freshwater withdrawn Tonnes (CO2 equivalent) Total area physically for use intensity per oz of GHG Scope 1&2 disturbed by mine AU emissions produced per actvity oz of gold 1.04 m3/oz AU 0.36 3,899 ha Total GHG Emissions (Scope 1 GHG Reduction Initiatives and 2) and Emission
Slide 26: Nunavut – Largest Gold Producer in the Canadian Arctic
NUNAVUT – LARGEST GOLD PRODUCER IN THE CANADIAN ARCTIC MINESITES & PIPELINE PROJECTS Meadowbank Complex Proven & probable Measured & indicated Inferred gold resource • Acquisition in 2007 gold reserves (million gold resources (million (million oz) • Meadowbank mine produced 3Moz (2010- oz) oz) 2019)
Slide 27: Nunavut
NUNAVUT Freshwater withdrawn Tonnes (CO2 equivalent) Total area physically for use intensity per oz of GHG Scope 1&2 disturbed by mine AU emissions produced per activity oz of gold 2.19 m3/oz AU 0.54 4,311 ha Total GHG Emissions (Scope 1 and 2) and Emission Intensity GHG Reduction Initiatives 500 K
Slide 28: Finland – Kittila – Largest Primary Gold Producing Mine in Europe
FINLAND – KITTILA – LARGEST PRIMARY GOLD PRODUCING MINE IN EUROPE MINESITES & PROJECTS ESG Proven & probable Measured & indicated Inferred gold resource Freshwater withdrawn Tonnes (CO2 equivalent) Total area physically gold reserves (million gold resources (million (million oz) for use intensity pe
Slide 29: Australia – High Grade, Low Cost Underground Operation
AUSTRALIA – HIGH GRADE, LOW COST UNDERGROUND OPERATION MINESITE & PROJECTS ESG Proven & probable Measured & indicated Inferred gold resource Freshwater withdrawn Tonnes (CO2 equivalent) Total area physically gold reserves (million gold resources (million (million oz) for use intensity per oz of GHG
Slide 30: Mexico – A Significant Source of Precious Metals Production Since 2009
MEXICO – A SIGNIFICANT SOURCE OF PRECIOUS METALS PRODUCTION SINCE 2009 MINESITES & PIPELINE PROJECTS ESG Proven & probable Measured & indicated Inferred gold resource Freshwater withdrawn Tonnes (CO2 equivalent) Total area physically gold reserves (million gold resources (million (million oz) for us
Slide 31: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 32: Notes to Investors Regarding the Use of Mineral Resources
NOTES TO INVESTORS REGARDING THE USE OF MINERAL RESOURCES 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" and "inferre
Slide 33: 2021 Gold Mineral Reserves and Mineral Resources
2021 GOLD MINERAL RESERVES AND MINERAL RESOURCES Gold Mineral Reserves Increase to Record Level AGNICO EAGLE As of December 31, 2020 As of December 31, 2021 Category Tonnes Grade Contained Gold Tonnes Grade Contained Gold (000s) (g/t Au) (000 oz) (000s) (g/t Au) (000 oz) Mineral Reserves Proven 44,0
Slide 34: Mineral Reserves as at December 31, 2021 for Properties Held by Agnico Eagle Prior to the Merger
MINERAL RESERVES AS AT DECEMBER 31, 2021 FOR PROPERTIES HELD BY AGNICO EAGLE PRIOR TO THE MERGER Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may differ from
Slide 35: Mineral Resources as at December 31, 2021 for Properties Held by Agnico Eagle Prior to the Merger
MINERAL RESOURCES AS AT DECEMBER 31, 2021 FOR PROPERTIES HELD BY AGNICO EAGLE PRIOR TO THE MERGER Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may differ fro
Slide 36: Mineral Resources as at December 31, 2021 for Properties Held by Agnico Eagle Prior to the Merger
MINERAL RESOURCES AS AT DECEMBER 31, 2021 FOR PROPERTIES HELD BY AGNICO EAGLE PRIOR TO THE MERGER Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may differ fro
Slide 37: Mineral Reserves as at December 31, 2021 for Properties Held by Kirkland Lake Gold Prior to the Merger
MINERAL RESERVES AS AT DECEMBER 31, 2021 FOR PROPERTIES HELD BY KIRKLAND LAKE GOLD PRIOR TO THE MERGER Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may diffe
Slide 38: Mineral Resources as at December 31, 2021 for Properties Held by Kirkland Lake Gold Prior to the Merger
MINERAL RESOURCES AS AT DECEMBER 31, 2021 FOR PROPERTIES HELD BY KIRKLAND LAKE GOLD PRIOR TO THE MERGER Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may diff
Slide 39: Notes to Investors Regarding the Use of Mineral Resources
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' NI 43-101. These standar
Slide 40: Mineral Reserves and Mineral Resources as at March 31, 2022 for Detour Lake Property
MINERAL RESERVES AND MINERAL RESOURCES AS AT MARCH 31, 2022 FOR DETOUR LAKE PROPERTY Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may differ from column tota
Slide 41: Notes to Investors Regarding the Use of Mineral Resources
NOTES TO INVESTORS REGARDING THE USE OF MINERAL RESOURCES CIM definitions (2014) were followed in the estimation of mineral reserves and mineral resources. Mineral reserves are exclusive of mineral resources. Tonnes and gold ounce information is rounded to the nearest thousand. Discrepancies in tota
Slide 42: 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 43: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures Management also performs sensitivity analyses in order to quantify the effects of fluctuating foreign exchange rates and metal prices. This presentation also contains information as to estimated future total cash costs per ounc
Slide 44: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com