Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — TD Securities Mining Conference 2020
44 slides from Agnico Eagle Mines's conference presentation, Jan 22, 2020
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference January 22, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements The information in this presentation has been prepared as at January 13, 2020. 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-lo
Slide 3: Notes to Investors
Notes to Investors Note Regarding the Use of Non-GAAP Financial Measures This presentation discloses certain measures, including "total cash costs per ounce”, "all-in sustaining costs per ounce”, “minesite costs per tonne” and “free cash flow”. that are not standardized measures under IFRS. These da
Slide 4: Building A Long Term, Sustainable, Self Funding Business
Building A Long Term, Sustainable, Self Funding Business ➢ Track record of strong operational performance – have exceeded production and cost guidance for seven consecutive years ➢ Record gold production expected in 2019 with up to 2.0Moz anticipated in 2020 • Two new Nunavut gold mines completed in
Slide 5: Committed to Continuous Improvement in Sustainable Development
Committed to Continuous Improvement in Sustainable Development Environment Social Governance W e focus on limiting our W e act in a socially responsible W e act in an ethically responsible environmental impacts by: manner and contribute to the manner and uphold our core values • using natural resour
Slide 6: Strong Operating Platform Drives Outperformance
Strong Operating Platform Drives Outperformance Guidance Exceeded for Seven Consecutive Years Production Guidance Versus Actual Total Cash Cost Per Ounce Guidance (in Millions) Versus Actual $800 1.71 1.67 1.68 1.65 1.66 1.63 $750 1.60 1.53 $700 1.43 1.40 $650 $600 1.10 1.06 1.04 1.03 $550 $500 2012
Slide 7: Focused on Maintaining Quality Gold Reserves
Focused on Maintaining Quality Gold Reserves Successfully Replaced Gold Reserves in 2018 with Higher Grades Gold Mineral Reserve Grade (g/t) 5-Year Difference Between Production and Mineral Reserve Grade 2.70 44% 45% 1.56 23% 1.17 1.08 1.08 10% 0.45 AUY AEM IAG AVERAGE NEM** ABX* -17% -20% IAG AEM N
Slide 8: Nunavut Assets Provide Production and Reserve Growth in 2019 and Beyond
Nunavut Assets Provide Production and Reserve Growth in 2019 and Beyond ➢ Gold production set for significant increase ➢ Large land package has exploration upside ➢ Operating base benefits from cost synergies with Quebec operations ➢ Opportunities to lower costs with cheaper, renewable energy option
Slide 9: Nunavut Production Platform Supports Continued Growth
Nunavut Production Platform Supports Continued Growth Pipeline Expected to Drive Future Production Growth Beyond 2021 2.50 Pipeline Projects 2.05 1.95 2.00 Near-Term Pipeline 1.775 Projects (2021-2023) 1.63 Gold Ounces (in Millions) • LaRonde Complex 1.50 • Goldex Deep 2 & South Zone • Amaruq U/G •
Slide 10: Agnico Eagle's Growing Business Positioned to Generate Rising Free Cash Flow
Agnico Eagle’s Growing Business Positioned to Generate Rising Free Cash Flow $2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000 $1,400,000 $1,300,000 $1,200,000 Potential uses of rising cash flow: (In Thousands) $1,100,000 • Funding pipeline projects • Re-pay debt $1,000,000 • Increas
Slide 11: Focused on Growing Value on a per Share Basis
Focused on Growing Value on a per Share Basis Consistent Strategy that Works ➢ 9% NAVPS CAGR* from 2005 to 2018 ➢ Production per 1000 Shares CAGR from versus 2% NAVPS CAGR of peers 2005 to 2021E of 8% 15% NAVPS Compound Annual Growth Rate 10.0 Production per 1000 shares (2005 – 2018) 9.0 9% 8.0 10%
Slide 12: Agnico Eagle's Long History of Returning Value to Shareholders
Agnico Eagle’s Long History of Returning Value to Shareholders Business Positioned to Potentially Grow Dividends ~$1.1B $200,000 $1,800 in cumulative $180,000 dividends over $1,600 the last 37 years $160,000 $1,400 $140,000 $1,200 $120,000 (In Thousands) $1,000 $100,000 $800 $80,000 $600 $60,000 $40
Slide 13: Superior Share Performance Since 1998
Superior Share Performance Since 1998 Agnico Eagle has consistently outperformed gold and gold equities AEM US Equity Gold Spot S&P 500 Index XAU Index 10000% AEM US Equity CAGR 1000% 13.15% Gold Spot CAGR 8.29% 100% S&P 500 Index CAGR 5.15% XAU Index CAGR 10% 2.39% Source: Bloomberg – August 3, 199
Slide 14: Agnico Eagle – A Growing, High Quality Business
Agnico Eagle – A Growing, High Quality Business ➢ Strategy is simple, consistent and effective – no need to change ➢ Business is performing and well positioned – delivering on promises and growing at a steady, measured pace ➢ Gold production increasing – drives rising cash flow per share ➢ Capital i
Slide 15: Appendix
Click to edit Master title style Appendix 2020 TD Securities Mining Conference
Slide 16: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights ➢ Record quarterly gold production – Payable gold production in Q3 2019 was 476,937 ozs (including pre-commercial production ounces of 33,134 ozs at Amaruq) at production costs per ounce of $713, total cash costs per ounce of $653 and all-in sustaining costs per ounce o
Slide 17: Exploration Continues to Enhance Minesite and Pipeline Projects
Exploration Continues to Enhance Minesite and Pipeline Projects ➢ Discovery of the East Gouldie Zone at Canadian Malartic reported – Deep exploration drilling has discovered the East Gouldie zone (south of the East Malartic and Odyssey zones). The new zone has a strike length of 1,300m in an east-we
Slide 18: Q3 2019 Operating Results
Q3 2019 Operating Results Record Quarterly Gold Production Q3 2019 Q3 YTD 2019 Production* Total Cash Costs** Operating Margin Production* Total Cash Costs** (Gold oz) ($/oz) ($000’s) (Gold oz) ($/oz) Northern Business LaRonde 91,664 $ 454 $ 93,223 245,684 $ 481 LaRonde Zone 5 15,438 $ 653 $ 12,238
Slide 19: Financial Position
Financial Position Cash Position Growing, Resulting in Improved Financial Flexibility Strong Available Liquidity - $1.47B* ➢ As at September 30, 2019 the $265 Company had strong liquidity with $265M in cash and cash equivalents and $1.2B (excluding $300M $1,200 accordion) in undrawn credit lines ava
Slide 20: Successful M&A and Exploration Strategy
Successful M&A and Exploration Strategy Significant Value Added, Key Deposits Still Open and Positioned to Deliver More Value Mined through 2018 (koz) Proven & Probable (koz) Measured & Indicated (koz) Inferred (koz) Cost per Oz ($) Kittila Meadowbank Meliadine Pinos Altos La India 8,884 koz (Includ
Slide 21: Near-Term Potential to Increase Life of Mine Production – 2021 to 2023
Near-Term Potential to Increase Life of Mine Production – 2021 to 2023 Evaluating several potential opportunities (none of which has yet been approved for construction, with the exception of the construction of the new Kittila shaft) at a number of existing operations to build further value and enha
Slide 22: Project Pipeline Expected to Provide Further Production Growth Beyond 2023
Project Pipeline Expected to Provide Further Production Growth Beyond 2023 Agnico Eagle has a strong pipeline of development projects that could provide further production growth beyond 2023. These opportunities are typically at an earlier stage than those outlined in the previous slide Minesite/Reg
Slide 23: Northern Business
Click to edit Master titleNorthern style Business 2020 TD Securities Mining Conference
Slide 24: Abitibi Region
Abitibi Region Production Q3 YTD 2019 Highlights Production and Costs LaRonde • During Q3 2019, drilling continued at LaRonde 3 with a focus on conversion drilling between 3.4 and 3.5 km depth. Infill definition drilling 245,684 ozs was also carried out in the area where 2018 drilling successfully c
Slide 25: Finland Nunavut
Finland Production Q3 YTD 2019 Highlights Production and Costs Kittila • Gold production in Q3 2019 increased when compared to the prior-year period due to higher throughput with an all-time high for mill 130,756 ozs feed tonnes, higher grades from the Rimpi Zone and higher recoveries at a productio
Slide 26: Amaruq Project – Commercial Production Achieved; Drilling Continues
Amaruq Project – Commercial Production Achieved; Drilling Continues to Enhance U/G Potential ➢ Achieved commercial production on September 30, 2019 ➢ Mining activities in Q3 2019 continued to be affected by slower than expected dewatering activities (largely due to heavier than expected rainfall). D
Slide 27: Southern Business
Southern Click to edit Master title style Business 2020 TD Securities Mining Conference
Slide 28: Mexico Operations
Mexico Operations Production Q3 YTD 2019 Highlights Production and Costs Pinos Altos • Gold production in Q3 2019 decreased when compared to the prior-year period due to the processing of lower grades 119,302 ozs • At the Cerro Colorado underground operation, recent mining activities encountered an
Slide 29: Mexico Exploration and Development Projects
Mexico Exploration and Development Projects Exploration and Highlights Development El Barqueno • Agnico Eagle acquired its 100% interest in the El Barqueno project in November 2014. The 79,746-hectare property is in the Guachinango gold-silver mining district of Jalisco State in west-central, Mexico
Slide 30: ESG Initiatives
Click to edit Master title style ESG Initiatives 2020 TD Securities Mining Conference
Slide 31: 2018 ESG Performance Highlights
2018 ESG Performance Highlights Health and Safety • Perfect score at Lapa (0 combined accident frequency); awarded Safest Mine in Canada 2018 • Zero lost-time accidents from our exploration group • La India earned the “Casco de Plata” Award (Silver Helmet Award for safety performance) in 2017 and 20
Slide 32: Committed to Continuous Improvement in Sustainable Development
Committed to Continuous Improvement in Sustainable Development Environment Social Governance GLOBAL AVERAGE GHG COMBINED LOST-TIME ACCIDENTS EMISSION INTENSITY* AND RESTRICTED WORK CASES (tonnes of CO2 eq. per tonne of ore processed) FREQUENCY* OVERSIGHT (per 200,000 person hours worked) • HSE/SD Co
Slide 33: ESG Risk Management Approach and Tools
ESG Risk Management Approach and Tools Risk Management The foundation upon which we have built our capacity to manage the commitments and Monitoring made in our Sustainable Development Policy. System (RMMS) Toward The Mining Association of Canada’s (MAC) TSM initiative promotes best practices Sustai
Slide 34: ESG Risk Management Approach and Tools
ESG Risk Management Approach and Tools Filtered tailings –Oberon Weber Canadian Malartic LaRonde Mine Tailings Management • Tailings storage facilities at all of our operating and closed sites meet or exceed regulatory requirements, and we are continually improving the management of our facilities b
Slide 35: Responsible Gold Mining Principles
Responsible Gold Mining Principles Agnico Eagle is an active participant in this initiative ➢ An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining. ➢ Designed to provide confidence to investors, supply chain participants and investors that gold ha
Slide 36: Innovation
Click to edit Master title style Innovation 2020 TD Securities Mining Conference
Slide 37: Innovation Is an Area of Long Term Strategic Focus at Agnico Eagle
Innovation Is an Area of Long Term Strategic Focus at Agnico Eagle ➢ Collaborating with industry to advance innovative solutions ➢ Examining and implementing multiple new (for Agnico Eagle) technologies ➢ LTE (Long Term Evolution) network: Improved wireless communication • Currently deployed at LZ5
Slide 38: Agnico Eagle's Global Approach to Energy Management
Agnico Eagle’s Global Approach to Energy Management Developing a global approach for energy management across Agnico Eagle’s operations to reduce energy costs at select regions by up to 30% and lower greenhouse gas emissions Areas of Study ➢ Nunavut ‒ Wind/Solar ‒ Liquefied Natural Gas (LNG) ‒ Hydro
Slide 39: Mineral Reserves and Resources
Click to Reserves Mineral edit Master title and style Resources Mineral 2020 TD Securities Mining Conference
Slide 40: Mineral Reserves - December 31, 2018
Mineral Reserves - December 31, 2018 2020 TD Securities Mining Conference 40
Slide 41: Mineral Resources - December 31, 2018
Mineral Resources - December 31, 2018 MINERAL RES OURCES As of December 31, 2018 OP ERAT ION MEAS URED INDICAT ED MEAS URED & INDICAT ED INFERRED GOL D Mining Method Owners hip 000 T onnes g/t 000 Oz Au 000 T onnes g/t 000 Oz Au 000 T onnes g/t 000 Oz Au 000 T onnes g/t 000 Oz Au LaR onde Undergroun
Slide 42: Notes to Investors Regarding The Use of Mineral Resources
Notes to Investors Regarding The Use of Mineral Resources Cautionary Note to Investors Concerning Estimates of Measured and Indicated Mineral Resources This presentation uses the terms "measured mineral resources" and "indicated mineral resources". Investors are advised that while those terms are re
Slide 43: Notes to Investors Regarding The Use of Mineral Resources
Notes to Investors Regarding The Use of Mineral Resources A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies a
Slide 44: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com
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