Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Q2 2024 Earnings Presentation
29 slides from Agnico Eagle Mines's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 1, 2024 How to Build a High-Quality, How to Build a High Quality, Low-Risk Low Senior Risk Senior GoldGold Producer Producer
Slide 2: Notes to Investors
Notes to Investors Forward-Looking Statements The information in this presentation has been prepared as at July 31, 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
Slide 3: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Consistent and Reliable Operational and Cost Performance Upper Beaver project Barnat open pit at the Canadian Malartic complex LaRonde environmental work Mine safety excellence award ceremony Well positioned to achieve ➤ Continued strong operational performance while d
Slide 4: Financial Highlights
Financial Highlights Third Consecutive Quarter of Record Free Cash Flow Q2 2024 Q2 2023 Q2 2024 Q2 2023 Per Share Results YTD YTD $2.50 Realized Gold Price1 ($/oz) $ 2,342 $ 1,975 $ 2,202 $ 1,935 $2.00 Gold Sales (koz) 874 859 1,753 1,646 $1.50 $1.07 (in millions) $1.00 $0.76 $0.44 $0.57 Revenues $
Slide 5: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility Returned ~49% of Free Cash Flow1,2 to Shareholders through the Dividend and NCIB in H1 2024 Free Cash Flow1 Strengthening Financial Position $557 Strong liquidity – $922M cash and $2B undrawn credit facility $396 Current debt of $740M and long-ter
Slide 6: Maintaining Capital Discipline with Incremental Cash Generated
Maintaining Capital Discipline with Incremental Cash Generated Over $1B1 in Estimated Incremental After-tax Cash could be Generated in FY2024 H1 2024 Actual • $583M increase in cash balance • $70M common shares repurchased under NCIB Share • $41M in equity investments Buybacks Strengthen Potential U
Slide 7: Operational Highlights
Operational Highlights Strong Operational Performance through H1 2024 Q2 2024 Q2 2024 YTD Gold Production Total Cash Operating Gold Production Total Cash Operating Production Costs Costs1 Margin1 Production Costs Costs1 Margin1 (koz) ($/oz) ($/oz) ($ millions) (koz) ($/oz) ($/oz) ($ millions) Total
Slide 8: Odyssey Mine – Building a World-Class Asset in a Premier Mining Jurisdiction
Odyssey Mine – Building a World-Class Asset in a Premier Mining Jurisdiction Odyssey South Record quarterly mining rates and gold production achieved Portal at ~3.8k tpd and 22koz of gold, respectively Internal zones continue to provide upside Return air raise Fresh air raise Shaft Ramp developm
Slide 9: 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 2024 PEA results demonstrate strong risk-adjusted return on capital1 ~1Moz annually for 14 years beginning 2030 NPV of $886M2 with an IRR of 18% Enhances production profile, increase
Slide 10: Upper Beaver – Opportunity to Grow Lower-risk, Profitable Production
Upper Beaver – Opportunity to Grow Lower-risk, Profitable Production Upper Beaver Project Overview 1 Mineable Mineral Resource 23M mt @ 4.01 g/t Au and 0.26% Cu Total Production 2.8Moz Au / 46kt Cu Average Annual Production 210koz Au / 3.6kt Cu Mine Life 13 years Total Cash Costs $592/oz AISC $733/o
Slide 11: Upper Beaver – Open at Depth with Potential Parallel Zones
Upper Beaver – Open at Depth with Potential Parallel Zones Indicated mineral resources of 3.4Moz1 and inferred mineral resources of 0.4Moz1 as at June 30, 2024 Strong exploration upside – open at depth with potential parallel zones Unlocks significant camp potential – potential to develop sate
Slide 12: Odyssey Mine – Potential to Expand a World-Class Asset
Odyssey Mine – Potential to Expand a World-Class Asset East Gouldie deposit at the Odyssey mine: Highlight Intercepts: Recent exploration drilling continues to return good results in the ➤ 4.5 g/t gold over 6.5m at 1,571m depth and 800m east of current mineral reserves eastern and western extensions
Slide 13: Detour Lake – Potential to Expand Underground Mineralization
Detour Lake – Potential to Expand Underground Mineralization Highlight Intercepts: Detour Lake Underground: ➤ 4.0 g/t gold over 22.3m at 413m depth Infill drilling into the high-grade corridor at underground depths in the West Pit zone ➤ 4.4 g/t gold over 30.1m at 550m depth and West Pit Extension c
Slide 14: Hope Bay – Continued Exploration Success at Madrid
Hope Bay – Continued Exploration Success at Madrid Highlight Intercepts: Madrid deposit in the Patch 7 zone at Hope Bay Exploration drilling continued to return excellent results, further confirming ➤ 17.0 g/t gold over 25.8m at 419m depth the larger thicknesses and higher gold grades in this area c
Slide 15: High-Quality Business Positioned to Generate Strong Returns
High-Quality Business Positioned to Generate Strong Returns Low-Risk Mining Highest Quality Senior Uniquely Positioned Strong Financial Returns Jurisdictions Gold Producer Robust land package in core Emphasis on per share metrics Multi-mine, multi-decade High ESG standards with multi- mining jurisdi
Slide 16: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources
Slide 17: Upper Beaver – June 30, 2024 Gold Mineral Reserves and Mineral Resources
Upper Beaver – June 30, 2024 Gold Mineral Reserves and Mineral Resources1 MINERAL MINERAL RESOURCES RESERVES PROVEN & As at June 30, 2024 INDICATED INFERRED PROBABLE Mining 000 000 oz 000 t 000 000 oz 000 t MINERALIZED ZONE 000 oz Au g/t Cu % g/t Cu % Method2 Tonnes Au Cu Tonnes Au Cu Upper Beaver O
Slide 18: Detour Lake – March 31, 2024 Gold Mineral Reserves and Mineral Resources
Detour Lake – March 31, 2024 Gold Mineral Reserves and Mineral Resources1 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 Method2 Tonnes Au Tonnes Au Tonnes Au %3 Detour Lake (above 0.5 g/t) O/
Slide 19: Detour Lake – Notes to Investors Regarding the Use of Mineral Resources
Detour Lake – Notes to Investors Regarding the Use of Mineral Resources Mineral reserves were estimated using a gold price of US$1,400/oz and a CAD/USD exchange rate of 1.30. The mineral reserves for Detour Lake are based on a high cut-off grade of 0.50 g/t gold and a low cut-off grade of 0.30 g/t g
Slide 20: 2023 Mineral Reserves and Mineral Resources
2023 Mineral Reserves and Mineral Resources* MINERAL RESERVES AS OF DECEMBER 31, 2023 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE Metallurgical GOLD Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au Recovery (%) LaRonde mine1 U/G 100% 2,342
Slide 21: 2023 Mineral Reserves and Mineral Resources
2023 Mineral Reserves and Mineral Resources MINERAL RESERVES AS OF DECEMBER 31, 2023 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE SILVER Mining Method* AEM Share 000 Tonnes g/t 000 Oz Ag 000 Tonnes g/t 000 Oz Ag 000 Tonnes g/t 000 Oz Ag Metallurgical Recovery (%) LaRonde U/G 100% 2,342 14.3
Slide 22: 2023 Mineral Reserves and Mineral Resources
2023 Mineral Reserves and Mineral Resources MINERAL RESOURCES AS OF DECEMBER 31, 2023 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED GOLD Mining Method\ AEM 000 g/t 000 Oz Au 000 g/t 000 000 g/t 000 000 g/t 000 Share Tonnes Tonnes Oz Au Tonnes Oz Au Tonnes Oz Au LaRonde U/G 100
Slide 23: 2023 Mineral Reserves and Mineral Resources
2023 Mineral Reserves and Mineral Resources MINERAL RESOURCES AS OF DECEMBER 31, 2023 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED GOLD Mining Method* AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au Pinos Altos O/P
Slide 24: 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 25: Notes to Investors Regarding the Use of Mineral Resources (continued)
Notes to Investors Regarding the Use of Mineral 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 26: Notes to Investors Regarding Certain Measures of Performance
Notes to Investors Regarding Certain Measures of Performance This presentation discloses certain financial performance measures and ratios, including "total cash costs per ounce", "minesite costs per tonne", "all-in sustaining costs per ounce", "adjusted net income", "adjusted net income per share",
Slide 27: Notes to Investors Regarding Certain Measures of Performance (continued)
Notes to Investors Regarding Certain Measures of Performance (continued) All-in sustaining costs per ounce All-in sustaining costs per ounce (also referred to as "AISC per ounce") on a by-product basis is calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expen
Slide 28: Notes to Investors Regarding Certain Measures of Performance (continued)
Notes to Investors Regarding Certain Measures of Performance (continued) Free cash flow and free cash flow before changes in non-cash working capital balances Free cash flow is calculated by deducting additions to property, plant and mine development from the cash provided by operating activities li
Slide 29: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com