1. CFA Society Toronto
Gold Mining: Big Discoveries and Senior Gold Players
April 9, 2014
CORPORATE
UPDATE
2. AGNICO EAGLE | CORPORATE UPDATE | 2
FORWARD LOOKING STATEMENTS
The information in this document has been prepared as at April 7, 2014. Certain statements contained in this document constitute “forward-looking statements”
within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial
securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify
forward-looking statements or information.
Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves,
resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, total cash costs,
minesite costs, all-in sustaining costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding
thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and
other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and
production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with
respect to the Company’s mine sites and statements and information regarding the sufficiency of the Company’s cash resources. Such statements and information
reflect the Company’s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be
placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or
implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs;
currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated
with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s byproduct
metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth
in the forward-looking statements contained in this document, see the Company’s Annual Information Form for the year ended December 31, 2013 filed on SEDAR
at www.sedar.com and included in the Company’s Form 40-F for the year ended December 31, 2013 filed on EDGAR at www.sec.gov, as well as the Company’s
other filings with the Canadian securities regulators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements and information. Alain Blackburn, a Qualified Person and the Company’s Senior Vice-President, Exploration,
reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the Company’s Annual
Information Form or Form 40-F.
3. AGNICO EAGLE | CORPORATE UPDATE | 3
NOTES TO INVESTORS
Note Regarding the Use of Non-GAAP Financial Measures
This document presents estimates of future “total cash cost per ounce”, “minesite cost per tonne”, and “all-in sustaining cost” that are not recognized measures
under United States generally accepted accounting principles (“US GAAP”). This data may not be comparable to data presented by other gold producers. These
future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at the applicable sites
and do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and
mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of
the Company’s total cash cost per ounce, all-in sustaining cost per ounce, and minesite cost per tonne to the most comparable financial measures calculated and
presented in accordance with US GAAP for the Company’s historical results of operations is set forth in the Company’s annual management’s discussion and
analysis (“MD&A”) for the year ended December 31, 2013 available on SEDAR at www.sedar.com and included in the Company’s Form 40-F (the “Form 40-F”)
available on EDGAR at www.sec.gov, as well as the Company’s other filings with the Canadian securities regulators and the SEC.
Note Regarding Production Guidance
The gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices and foreign exchange rates that
are different from those used in the reserve estimates. These factors and others mean that the gold production guidance presented in this disclosure does not
reconcile exactly with the production models used to support these mineral reserves.
4. AGNICO EAGLE | CORPORATE UPDATE | 4
GOLD – THE INVESTMENT THESIS REMAINS INTACT
Geopolitical
Instability
Central
Bank
Buying
Inflation
Hedge
Safe Haven
Asset Class
Strong
Physical
Demand in
China and
India
Flat Mine
Supply
Continued
Debasement
of International
Currencies
5. AGNICO EAGLE | CORPORATE UPDATE | 5
AGNICO EAGLE – A PREMIUM GOLD EQUITY
RUNNING A
MANAGEABLE
BUSINESS
Delivering
on
Production
Guidance 16%
Production
Growth
Through 2016
2014 AISC
below $1000
per ounce
Highest
Reserve
Grade
amongst
North
American
Peers
Balance
Sheet
Flexibility
Low Share
Count after
57 Years
32 years
of
Consecutive
Dividend
Payments
Low Political
Risk
Long term
Experienced
Management
Diversified
Technical
Expertise
6. AGNICO EAGLE | CORPORATE UPDATE | 6
2013 HIGHLIGHTS
Record annual gold production of 1.10M oz, vs. guidance of 1.06M oz
– Total cash costs at $672/oz, below $690/oz guidance
– All-in sustaining cost at $952/oz, below guidance of $1,025/oz
Record annual gold production at Meadowbank – 430,613 oz at a total
cash cost of $774/oz
Commercial production declared at Goldex
and commissioning on track at La India
Lower gold price environment leads to :
– Non-cash after-tax impairment charge of
$436M at Meadowbank, Meliadine and Lapa
– Quarterly dividend reduced to $0.08 per share
to ensure financial flexibility
– Average reserve grade increased by 11% to
3.5 g/t and 0.7 M oz reduction in reserves
at year end 2013 (before production)
Meadowbank
Kittila
Pinos Altos
La India
LaRonde
Lapa
Goldex
NORTHERN
BUSINESS
SOUTHERN
BUSINESS
7. AGNICO EAGLE | CORPORATE UPDATE | 7
2013 OPERATING RESULTS
RECORD PRODUCTION AND IMPROVED COST PERFORMANCE
2013
Production (oz) Total Cash Cost ($/oz) Operating Margin ($, 000’s)
Northern Business
LaRonde 181,781 $763 $99,989
Lapa 100,730 $678 $71,635
Goldex 20,810 $782 $8,246
Kittila 146,421 $601 $111,277
Meadowbank 430,613 $774 $227,579
880,355 $732 $518,726
Southern Business
Pinos Altos 181,773 $412 $173,074
Creston Mascota 34,027 $485 $21,679
La India 3,180 n.a. n.a.
218,980 $424 $194,753
Total 1,099,335 $672 $713,479
2013 Total Operating Margin – $713 M2013 Revenue by Metal
Gold
92%
Silver
6%
Base Metals
2%
Creston
Mascota, 3%
Meadowbank
32%
LaRonde,
14%
Lapa, 10%
Goldex, 1%
Kittila, 16% Pinos Altos,
24%
9. AGNICO EAGLE | CORPORATE UPDATE | 9
MODERATE, ACHIEVABLE PRODUCTION GROWTH
16% FUNDED PRODUCTION GROWTH THROUGH 2016
204,380
234,837 218,980 235,000
295,000 300,000781,080
808,974 880,355 955,000
955,000 975,000
$580
$640
$672
$678
2011A 2012A 2013A 2014E 2015E 2016E
Payable Gold Production Profile
985,460
1,043,811
1,099,335
1,190,000
1,250,000 1,275,000
Northern Business (oz) Southern Business (oz) Cash Costs ($)
10. AGNICO EAGLE | CORPORATE UPDATE | 10
NORTHERN BUSINESS – FINLAND AND CANADA
HIGHER CAPITAL REQUIREMENTS, BUT GENERALLY LONGER LIFE
PRODUCTION ASSETS
2014 FORECAST HIGHLIGHTS
LARONDE
215,000 ozs
at a total cash cost of
$671/oz
Cooling plant now operational
– provides additional flexibility to mining plan
Production from deeper, higher grade area of the mine
expected to ramp up substantially through 2016
MEADOWBANK
430,000 ozs
at a total cash cost of
$629/oz
Record low minesite costs per tonne in the fourth
quarter 2013 expected to continue in 2014
Higher grades at Goose expected to persist into 2014,
leading to strong first half production
KITTILA
150,000 ozs
at a total cash cost of
$759/oz
750 tpd mill expansion remains on budget with start-up
expected in mid-2015
Production shaft and Rimpi zone development under
consideration
GOLDEX
80,000 ozs
at a total cash cost of
$799/oz
Throughput expected to increase to 6,000 tpd in 2015
Continuing evaluation of satellite deposits
– potential to enhance production and cost profile
LAPA
80,000 ozs
at a total cash cost of
$850/oz
Improved minesite costs due to ongoing cost saving
measures
Positive exploration at Zulapa 8 zone could extend
mine life
11. AGNICO EAGLE | CORPORATE UPDATE | 11
SOUTHERN BUSINESS – MEXICO
LOWER CAPITAL COST ASSETS WITH POTENTIAL FOR SIGNIFICANT
CASH FLOW GENERATION
2014 FORECAST HIGHLIGHTS
PINOS ALTOS
145,000 ozs
at a total cash cost of
$532/oz
Strong mill performance continued in 2013
Shaft sinking project at Pinos Altos on schedule
for 2015 startup which should allow for better
matching of mill and mining capacity
CRESTON
MASCOTA
40,000 ozs
at a total cash cost of
$754/oz
Phase 3 leach pad construction at Creston Mascota
expected to be completed by late March 2014
Stronger production expected in 2H 2014 with
commissioning of a new agglomerator
LA INDIA
50,000 ozs
at a total cash cost of
$743/oz
Commercial production expected in Q1 2014
Throughput continues to ramp up - stacking rates
currently averaging approx. 12,000 tpd
12. AGNICO EAGLE | CORPORATE UPDATE | 12
CAPITAL SPENDING
CONTINUED FOCUS ON REDUCING CAPITAL SPENDING
TO GENERATE MORE FREE CASH FLOW
Actual Estimate
$908
$655
$511
$482
$445
$577
$416
2008A 2009A 2010A 2011A 2012A 2013A 2014E
Capital Expenditures (US$ millions)
13. AGNICO EAGLE | CORPORATE UPDATE | 13
CASH AND ALL-IN SUSTAINING COSTS
EXPECTED TO TREND LOWER GOING FORWARD
Cash and All-in Sustaining Costs (AISC) Per Ounce
Cash Costs and AISC
for 2014 expected to be
approximately
$678and
$990*
$672
$952
$690
$1,025
2013 Cash Costs 2013 AISC
Actual Guidance
*AISC per ounce are calculated as total cash
costs + sustaining capital (including capitalized
exploration) + general and administrative
expenses (including stock option expenses) +
reclamation remediation expense
14. AGNICO EAGLE | CORPORATE UPDATE | 14
3.64
3.51
1.17 1.14
1.02 1.01 0.98
0.88
0.74
GOLD AEM EGO IAG NEM OSK GG AUY KGC
HIGHEST RESERVE GRADE AMONGST NORTH AMERICAN PEERS
Reserve Grade (g/t)
Source: company reports
AVERAGE 1.18
Approximately
of Agnico’s gold reserves have
forecast total cash costs below
$950/oz and
have forecast total cash costs
below $700/oz
89%
64%
Note: Estimates not based on detailed mining plans
15. AGNICO EAGLE | CORPORATE UPDATE | 15
FINANCIAL POSITION
CASH, EXPECTED CASH FLOWS, AND AVAILABLE CREDIT PROVIDE FLEXIBILITY
Long-term Debt Maturities
2017 2020 2022 2024
Notes Outstanding (millions) $115 $360 $225 $100
Coupon 6.13% 6.67% 5.93% 5.02%
All Amounts Are In US$, (Unless Otherwise Indicated) Dec 31, 2013
Cash And Cash Equivalents (millions) $170
Outstanding Debt (billion) $1.0
Available Credit Facilities (billion) $1.0
Common Shares Outstanding, Basic (FY 2013 Weighted Average, millions) 172.9
Common Shares Outstanding, Fully Diluted (FY 2013 Weighted Average, millions) 172.9
16. AGNICO EAGLE | CORPORATE UPDATE | 16
32 YEARS OF CONTINUOUS DIVIDEND PAYMENTS
2.22%
1.48%
0.89% 0.87%
0.64% 0.62%
0.44%
0.00% 0.00%
GG AUY AEM ABX NEM GOLD EGO IAG KGC
Annualized 2014E Dividend Yield
Source: Bloomberg, company reports
17. AGNICO EAGLE | CORPORATE UPDATE | 17
LOW POLITICAL RISK, MINING FRIENDLY JURISDICTIONS
HELPS CREATE A MANAGEABLE BUSINESS
72%
68%
64%
60% 59%
54%
52%
40% 40%
AEM NEM ABX NGD GG AUY KGC IAG EGO
NA Gold Producers Political Risk Ranking
Production weighted Fraser Institute Policy Potential Index scores by company (2012-2015)
Source: Fraser Institute, Barclays Research
18. AGNICO EAGLE | CORPORATE UPDATE | 18
PROJECT PIPELINE EXPECTED TO PROVIDE FURTHER GROWTH
ExpansionEXPANSIONS FEASIBILITY EXPLORATION
Kittila Plant Expansion
Potential Kittila Shaft
Hanhimaa
IVR
Goldex Satellites
Meliadine
NORTHERNBUSINESS
Pinos Altos Shaft
Pinos Altos Satellites
Tarachi and La India
SOUTHERNBUSINESS
19. AGNICO EAGLE | CORPORATE UPDATE | 19
COST EFFECTIVE EXPLORATION
REFLECTS SUCCESSFUL M&A STRATEGY
SIGNIFICANT EXPLORATION RESULTS AT ACQUIRED PROPERTIES
Note: The terms “measured resources”, “indicated resources” and “inferred resources” are not recognized under the SEC
guidelines. Detailed information can be found in the February 13, 2013 press release.
Kittila
2005 2013
Mined through 2013 (koz) Proven & Probable (koz) Measured & Indicated (koz) Inferred (koz) Cost per Oz ($)
$54
$23
Purchase Discovery
2,800 koz
7,517 koz
+4,717 koz
Meadowbank
2007 2013
$173
$107
Purchase Discovery
3,830 koz
4,357 koz
+527 koz
Meliadine
2010 2013
$121
$28
Purchase Discovery
5,020 koz
8,635 koz+3,615 koz
Pinos Altos
2006 2013
$43
$35
Purchase Discovery
2,100 koz
4,648 koz
+2,548 koz
La India
2011 2013
$186
$16
Purchase Discovery
1,266 koz
2,423 koz
+1,157 koz
21. AGNICO EAGLE | CORPORATE UPDATE | 21
Strong H1 2014 production expected at Meadowbank due to increased grades and
accelerated stripping at Goose deposit
Commercial production expected at La India in Q1 2014
Continuing evaluation of satellite deposits at Pinos Altos and Goldex, which could enhance
production and cost profiles
Updated Meliadine technical study in Q4 2014
Update on a production shaft and Rimpi Zone development at Kittila in late 2014
Completion of 750 tpd mill expansion at Kittilla by mid-2015
Installation of new ore conveyor at LaRonde Deep in 2015 – should help reduce costs and
congestion
FUTURE CATALYSTS
27. AGNICO EAGLE | CORPORATE UPDATE | 27
MEADOWBANK
RECORD PRODUCTION IN 2013
In 2013, reserve grade at Meadowbank improved
16% to 3.24 g/t gold due to reinterpretation of
Goose and Portage block models
Record low minesite costs per tonne in the fourth
quarter expected to continue in 2014
With increased grades and accelerated stripping at
Goose, Meadowbank expected to have strong first
half production in 2014
P&P Gold Reserves (million oz) 1.8
Average Gold Reserve Grade (g/t) 3.2
Indicated gold resource (million oz)
(7.3 M tonnes @ 3.28 g/t)
0.8
Inferred gold resource (million oz)
(3.3 M tonnes @ 3.96 g/t)
0.4
Estimated LOM (years) 4
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
270,801
366,030
430,613
$1,000 $913
$774
2011 2012 2013
Production (oz) Cash Costs
28. AGNICO EAGLE | CORPORATE UPDATE | 28
LARONDE
IN 2014, 80% OF ORE EXPECTED TO BE SOURCED FROM DEEPER
HIGHER GRADE ZONES
Cooling plant now operational – provides
additional flexibility to mining plan
Production from deeper, higher grade area of mine
expected to ramp up substantially through 2016
In 2015, new ore conveyor system expected to be
installed in the deeper portion of the mine
– should help further reduce costs and congestion
Reserve grade increased from 4.5 to 5.0 g/t gold
P&P Gold Reserves (million oz) 3.9
Average Gold Reserve Grade (g/t) 5.0
Indicated resource (million oz)
(4.2 M tonnes @ 2.12 g/t)
0.3
Inferred resource (million oz)
(10.5 M tonnes @ 4.61 g/t)
1.6
Estimated LOM (years) 14
See AEM Feb 13, 2014 press release for detailed breakdown of reserves and resources.
124,173
160,875
181,781
$77
$569
$763
2011 2012 2013
Production (oz) Cash Costs
29. AGNICO EAGLE | CORPORATE UPDATE | 29
Record annual mill recovery of 90.2% in 2013
750 tpd mill expansion remains on budget with
start-up expected in mid-2015
Production shaft and Rimpi Zone development
under consideration – shaft could provide
operational savings and sustain long-term
production at higher throughput levels
P&P Gold Reserves (million oz) 4.7
Average Gold Reserve Grade (g/t) 4.6
Measured & Indicated gold resource (million oz)
(11.0 M tonnes @ 2.79 g/t)
1.0
Inferred gold resource (million oz)
(7.5 M tonnes @ 4.12 g/t)
1.0
Estimated LOM (years) 25
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
KITTILA
LONG LIFE ASSET WITH FURTHER EXPANSION POTENTIAL
143,560
175,878
146,421
$739
$565 $601
2011 2012 2013
Production (oz) Cash Costs
30. AGNICO EAGLE | CORPORATE UPDATE | 30
19,305 oz gold produced during fourth quarter
2013, exceeding 15,000 oz guidance
Throughput expected to increase to 6,000 tpd
in 2015 from 5,500 tpd in 2014
Development activities will begin on the MX and
E2 satellite zones in 2014 with exploration
activities to continue on other zones
Newly acquired Akasaba West deposit could
provide future mill feed to Agnico’s Abitibi facilities
P&P Gold Reserves (million oz) 0.4
Average Gold Reserve Grade (g/t) 1.5
Measured & Indicated gold resource (million oz)
(30.1 M tonnes @ 1.96 g/t)
1.9
Inferred gold resource (million oz)
(26.1 M tonnes @ 1.64 g/t)
1.4
Estimated LOM (years) 4
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
GOLDEX
COMMERCIAL PRODUCTION DECLARED ON THE M AND E ZONES IN Q4 2013
135,478
20,810
$401
$782
2011 2013
Production (oz) Cash Costs
Note: Goldex did not operate in 2012
31. AGNICO EAGLE | CORPORATE UPDATE | 31
Improved minesite costs due to ongoing cost
saving measures
Steady state operation
Positive exploration results in the Zulapa area
could extend the mine life
P&P Gold Reserves (million oz) 0.3
Average Gold Reserve Grade (g/t) 6.0
Indicated gold resource (million oz)
(1.6 M tonnes @ 4.28 g/t)
0.2
Inferred gold resource (million oz)
(1.0 M tonnes @ 5.49 g/t)
0.2
Estimated LOM (years) 3
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
LAPA
STRONG COST CONTAINMENT AND STEADY PRODUCTION IN 2013
107,068 106,191
100,730
$650 $697 $678
2011 2012 2013
Production (oz) Cash Costs
32. AGNICO EAGLE | CORPORATE UPDATE | 32
2014 capital expenditures forecast to be $47 million
Main focus on ramp development
Program also includes in-fill drilling on Tiriganiaq and Wesmeg/ Normeg zones
Reserve grade increased from 7.0 g/t to 7.4 g/t gold
Encouraging exploration results from Tiriganiaq, Normeg, Pump South, and F Zones in 2013
Updated technical study on track for Q4 2014
MELIADINE
RAMP EXTENSION IN 2014 PROVIDES DEVELOPMENT FLEXIBILITY
P&P Gold Reserves (million oz) 2.8
Average Gold Reserve Grade (g/t) 7.4
Indicated gold resource (million oz)
(19.0 M tonnes @ 5.05 g/t)
3.1
Inferred gold resource (million oz)
(11.7 M tonnes @ 7.20 g/t)
2.7
Estimated LOM (years)
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
34. AGNICO EAGLE | CORPORATE UPDATE | 34
PINOS ALTOS
Strong mill performance continued in 2013
Shaft sinking project at Pinos Altos on schedule for
2015 startup which should allow for better
matching of mill and mining capacity
At Pinos Altos, evaluation continues on a number
of potential satellite deposits that could enhance
production and cost profile
P&P Gold Reserves (million oz)* 2.3
Average Gold Reserve Grade (g/t) 2.5
Indicated gold resource (million oz)*
(13.9 M tonnes @ 1.54 g/t)
0.7
Inferred gold resource (million oz)*
(17.7 M tonnes @ 1.28 g/t)
0.7
Estimated LOM (years) 17
166,158
183,662 181,773
$284 $276
$412
2011 2012 2013
Production (oz) Cash Costs
*Pinos Altos reserves and resources include the Creston Mascota mine
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
35. AGNICO EAGLE | CORPORATE UPDATE | 35
CRESTON MASCOTA
Phase 3 leach pad construction at Creston
Mascota expected to be completed by late
March 2014
Stronger production expected in 2H 2014 with
commissioning of a new agglomerator
P&P Gold Reserves (million oz)* 2.3
Average Gold Reserve Grade (g/t) 2.5
Indicated gold resource (million oz)*
(13.9 M tonnes @ 1.54 g/t)
0.7
Inferred gold resource (million oz)*
(17.7 M tonnes @ 1.28 g/t)
0.7
Estimated LOM (years) 17
*Pinos Altos reserves and resources include the Creston Mascota mine
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
38,222
51,175
34,027
$366 $326
$485
2011 2012 2013
Production (oz) Cash Costs
36. AGNICO EAGLE | CORPORATE UPDATE | 36
LA INDIA
COMMERCIAL PRODUCTION EXPECTED IN Q1 2014
In 2013 mine reported 3,180 oz pre-commercial gold production
Throughput continues to ramp up - stacking rates currently averaging approx. 12,000 tpd
Further work planned in 2014 to better define mineral domains of known sulfide mineralization
See AEM Feb 12, 2014 press release for detailed breakdown of reserves and resources.
P&P Gold Reserves (million oz) 0.8
Average Gold Reserve Grade (g/t) 0.9
Measured & Indicated gold resource (million oz)
(56.2 M tonnes @ 0.38 g/t)
0.7
Inferred gold resource (million oz)
(82.1 M tonnes @ 0.36 g/t)
1.0
Estimated LOM (years) 8
37. AGNICO EAGLE | CORPORATE UPDATE | 37
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources
This document uses the terms “measured resources” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regulations, the
SEC does not recognize them. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Cautionary Note to Investors Concerning Estimates of Inferred Resources
This document also uses the term “inferred resources”. We advise investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it.
“Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-
feasibility studies, except in rare cases. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Scientific and Technical Data
Agnico Eagle Mines Limited is reporting mineral resource and reserve estimates in accordance with the CIM guidelines for the estimation, classification and reporting of resources and
reserves.
Cautionary Note To U.S. Investors – The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. Agnico Eagle uses certain terms in this press release, such as “measured”, “indicated”, and “inferred”, and “resources” that the SEC guidelines strictly
prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 40-F and other U.S. filings, which
may be obtained from us, or from the SEC’s website at: http://sec.gov/edgar.shtml.
In prior periods, reserves for all properties were typically estimated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC guidelines.
These guidelines require the use of prices that reflect current economic conditions at the time of reserve determination, which the Staff of the SEC has interpreted to mean historic
three-year average prices. Given the current lower commodity price environment, Agnico Eagle has decided to use price assumptions that are below the three-year averages. The
assumptions used for the mineral reserves estimates at all mines and advanced projects as of December 31, 2013, reported by the Company on February 12, 2014, are $1,200 per
ounce gold, $18.00 per ounce silver, $0.82 per pound zinc, $3.00 per pound copper, $0.91 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.03, 1.32 and
12.75, respectively.
The Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) requires mining companies to disclose reserves and resources using the subcategories of “proven”
reserves, “probable” reserves, “measured” resources, “indicated” resources and “inferred” resources. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
38. AGNICO EAGLE | CORPORATE UPDATE | 38
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES
A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include
adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A
mineral reserve includes diluting materials and allows for losses that may occur when the material is mined. A proven mineral reserve is the economically mineable part of a measured
mineral resource demonstrated by at least a preliminary feasibility study. A probable mineral reserve is the economically mineable part of an indicated, and in some circumstances, a
measured mineral resource demonstrated by at least a preliminary feasibility study.
A mineral resource is a concentration or occurrence of natural, solid, inorganic material, or natural solid fossilized organic material including base and precious metals in or on the
Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics
and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed
and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough to confirm both geological and grade continuity. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine
planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. An
inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
A Feasibility Study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of
realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmental considerations together with any other relevant operational
factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study
may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the
study will be higher than that of a Pre-Feasibility Study.
The effective date for all of the Company’s mineral resource and reserve estimates in this presentation is December 31, 2013. Additional information about each of the mineral projects
that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in the Technical Reports referred to above, which may be found at www.sedar.com.
Other important operating information can be found in the Company’s annual information form dated March 21, 2014 available on SEDAR at www.sedar.com and incorporated in the
Form 40-F available on EDGAR at www.sec.gov.
The mineral reserve and resource information has been reviewed and approved by Daniel Doucet, Corporate Director, Reserve Development, under the supervision of Alain Blackburn,
Senior Vice-President, Exploration. Both Mr. Doucet and Mr. Blackburn are designated P.Eng. with the Ordre ingenieurs du Quebec and qualified persons as defined by NI 43-101.
