Scotiabank Latin American Mining Conference

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Scotiabank Latin American Mining Conference


<ul><li> Scotiabank Latin American Mining Conference June 2013 </li> <li> FORWARD LOOKING STATEMENTS The information in this document has been prepared as at June 3, 2013. Certain statements contained in this document constitute forwardlooking 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, cash costs, minesite 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 Companys mine sites and statements and information regarding the sufficiency of the Companys cash resources. Such statements and information reflect the Companys 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 Companys stock price; and risks associated with the Companys byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Companys ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the Companys Annual Report on Form 20-F for the year ended December 31, 2012, as well as the Companys other filings with the Canadian Securities Administrators 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 Companys Senior Vice-President, Exploration, reviewed the technical information disclosed herein. For a detailed breakdown of the Companys reserve and resource position see the February 13, 2013 press release on the Companys website. That press release also lists the Qualified Persons for each project. 2 </li> <li> NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This document presents estimates of future total cash cost per ounce and minesite cost per tonne 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 projects 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 nonGAAP financial measures to the most comparable GAAP measure. A reconciliation of the Companys total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Companys historical results of operations is set forth in the notes to the financial statements included in the Companys Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2012, as well as the Companys other filings with the Canadian Securities Administrators and the SEC. Note Regarding Production Guidance The gold production guidance is based on the Companys 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. 3 </li> <li> KEY OPERATING HIGHLIGHTS Q1 2013 Production and costs on track Quarterly cash flows from operations of $146 million ($0.80 per share) Goldex expected to produce ahead of schedule startup in Q4, 2013 La India expected to begin commissioning ahead of schedule - late Q4, 2013 Kittila mill maintenance to take longer than expected production anticipated to resume in late June 2013 Production guidance unchanged at 990,000 oz 4 </li> <li> OPERATING RESULTS First quarter production and costs in line with expectations 2013 Forecast2 Q1 2013 Production (Gold oz) Total Cash Cost ($/oz) Operating Margin ($, 000s) Midpoint of Production Estimate (Gold oz) LaRonde 39,073 $718 $33,295 177,000 Kittila 43,145 $624 $44,956 150,000 Lapa 26,868 $680 $21,788 97,000 Pinos Altos1 46,071 $300 $53,827 191,000 Meadowbank 81,818 $1,069 $36,503 360,000 Goldex 15,000 236,975 Total Q1 2013 Revenue by Metal $740 $190,369 990,000 Q1 2013 Total Operating Margin $190M Pinos Altos 28% Base Metals 3% Gold 89% Silver 8% Kittila 24% Meadowbank 19% Lapa 11% 1. Pinos Altos figures include Creston Mascota. 2. Forecast as of February 13, 2013 press release. LaRonde 17% 5 </li> <li> FINANCIAL POSITION ALL AMOUNTS ARE IN US$, Mar. 31, 2013 unless otherwise indicated CASH AND CASH EQUIVALENTS (millions) $264 LONG TERM DEBT (millions) $800 AVAILABLE CREDIT FACILITIES $1.2 Billion COMMON SHARES OUTSTANDING, BASIC (Q113 Weighted average, millions) 172.3 COMMON SHARES OUTSTANDING, FULLY DILUTED (Q113 Weighted average, millions) 172.6 Long-Term Debt Maturities 2017 Notes Outstanding (millions) Coupon 2020 2022 2024 $115 $360 $225 $100 6.13% 6.67% 5.93% 5.02% 6 </li> <li> MODERATE, ACHIEVABLE PRODUCTION GROWTH Low political risk, mining-friendly jurisdictions Payable Gold Production Profile (oz) 1,300,000 1,100,000 900,000 700,000 500,000 300,000 100,000 2008A 2009A 2010A Actual 2011A 2012A 2013E 2014E 2015E Estimate 7 </li> <li> DISCIPLINED CAPITAL ALLOCATION Well positioned to fund growth plans and dividends Capital Expenditures (US$ 000s) $1,200,000 $1,000,000 $800,000 Illustrative Ongoing Re-Investment $600,000 * $400,000 Estimate for projects not yet approved ~ $350M Sustaining Capital and Capitalized Exploration ~ $250M $200,000 $0 2008A 2009A 2010A Actual 2011A 2012A 2013E 2014 2015 Estimate * 2013E Development capital includes approximately $180M on Goldex and La India 8 </li> <li> ADDING VALUE THROUGH EXPLORATION AND ACQUISISTIONS Significant exploration results at acquired properties 9,000 +5644 koz 6,000 +3085 koz +3161 koz Mined Proven &amp; Probable Measured &amp; Indicated Inferred +1105 koz 3,000 +1097 koz $200 $150 $100 $50 $18 La India '12 La India '11 Meliadine '12 Meliadine '10 Meadow bank '12 $186 $173 Purchase Cost per Oz Discovery Cost per Oz $54 Meadow bank '07 Pinos Altos '12 Pinos Altos '06 Kittila '12 Kittila '05 0 $121 $43 $27 $48 $26 $10 $0 Kittila Pinos Altos Meadowbank Meliadine La India Note: The terms measured resources, indicated resources and inferred resources are not recognized under the SEC guidelines. Detailed information can be found in the February 13, 2013 press release. 9 </li> <li> AEM IN MEXICO 10 </li> <li> MEXICO World class mining jurisdiction Agnico Eagle has established a successful operating platform at Pinos Altos with organic growth and exploration opportunities at Pinos Altos and La India Skilled workforce, excellent mineral potential, and well established mining history Transparent permitting process, stable business environment 2011 Gold Production by State (koz) Capital Investment in Mexican Mining Industry (US$M) $6,000 $5,563 Sonora $5,000 Chihuahua $4,000 Zacatecas Durango $2,858 $3,000 Guerrero $2,156 $2,000 $1,000 San Luis Potosi $912 $380 $348 2001 2003 Mexico Others $0 2005 2007 2009 2011 0 300 600 900 Source: Camimex Annual Report 2011, Natl Institute of Statistics and Geography (Mexico) 11 </li> <li> AGNICO EAGLE IN MEXICO High margin business Acquired Pinos Altos in 2006 and Grayd Resources in 2011 Pinos Altos was the 3rd largest gold mine in Mexico in 2012, producing approximately 234,000 ounces of gold Total AEM Mexico investment more than $550M and growing 1100 Employees with annual payroll of approximately $20 Million 12 </li> <li> AGNICO EAGLE IN MEXICO Solid platform for future growth Agnico Eagle is looking to build and expand its business in Mexico and Latin America. Recent 2013 transactions include: Acquisition of Urastar Gold Corp. ongoing land consolidation in Sonora State, Mexico A 9.96% equity interest in Kootenay Silver Inc., which is advancing the Promontorio Ag-Au-Pb-Zn project in Mexico A 9.96% equity interest in Sulliden Gold Corporation Ltd., which is developing the Shahuindo gold project in Peru 13 </li> <li> MEXICO PINOS ALTOS &amp; CRESTON MASCOTA Large cash flow generator Q1 2013 production of 46,071 oz gold at total cash cost of US$300/oz* Leaching resumed on the Phase 2 pad at Creston Mascota in March 2013, one month ahead of schedule. Shaft sinking proceeding on time and on budget P&amp;P GOLD RESERVES (million oz) 2.7 AVERAGE GOLD RESERVE GRADE (g/t) 2.2 Indicated resource (million oz) (17.9 M tonnes @ 1.52 g/t) Inferred resource (million oz) (24.6 M tonnes @ 1.19 g/t) Estimated LOM (years) $320M 2013 exploration budget Cash Operating Margin 0.9 0.9 16 $9M See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. $240M * Operating costs from the Creston Mascota deposit at Pinos Altos are excluded from total cash costs per ounce calculations in Q1 2013 due to suspension of heap leach operations effective October 1, 2012. $160M $80M $0M 2010 2011 2012 14 </li> <li> MEXICO - LA INDIA Commissioning expected to start by year-end 2013 Construction proceeding well and on budget Commercial production expected in 1Q 2014, one quarter ahead of schedule Estimated annual gold production of approx. 90 koz @ average total cash costs of approx. $500/oz Open pit, heap leach mine, with stripping ratio of 1:1 PROBABLE GOLD RESERVES (million oz) 0.8 AVERAGE GOLD RESERVE GRADE (g/t) 0.7 Indicated gold resource (million oz) (43.2 M tonnes @ 0.4 g/t) Inferred gold resource (million oz) (81 M tonnes @ 0.4 g/t) Estimated LOM (years) 0.6 1.0 8 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. 15 </li> <li> MEXICO INTERNAL GROWTH OPPORTUNITIES Potential to develop other satellite zones at Pinos Altos. Exploration activities are underway at Cerro Colorado and Reyna de Plata. 16 </li> <li> MEXICO INTERNAL GROWTH OPPORTUNITIES Evaluation of underlying sulfide mineralization at La India metallurgical results expected by year end Drill testing of other regional targets at La India Potential starter pit at Tarachi further drilling and metallurgical work pending 17 </li> <li> SOUND BUSINESS CONTINUES TO DELIVER No change in strategy or focus AEM among industry leaders in per share reserves, production, cash flows and dividends Production growth expected to be driven by LaRonde, La India and Goldex, with manageable, fully funded capex Solid, achievable production and cost guidance 22% production growth 20132015 at stable costs Strong cash flow generation in regions of low political risk Allocated to dividends, exploration and investing in strategic assets 18 </li> <li> APPENDIX </li> <li> OPERATING METRICS LaRonde - Ore milled ('000 tonnes) LaRonde LaRonde - Minesite costs per tonne (C$) 7,500tpd $140/t 7,000tpd $120/t 6,500tpd $100/t 6,000tpd $80/t 5,500tpd $60/t 5,000tpd $40/t 4,500tpd $20/t 4,000tpd $0/t Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Lapa Q3 12 Q4 12 Q1 13 Lapa - Ore milled ('000 tonnes) Lapa - Minesite costs per tonne (C$) 1,900tpd $170/t 1,850tpd $150/t 1,800tpd 1,750tpd $130/t 1,700tpd $110/t 1,650tpd 1,600tpd $90/t 1,550tpd 1,500tpd $70/t 1,450tpd 1,400tpd $50/t Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 20 </li> <li> OPERATING METRICS Kittila - Ore milled('000 tonnes) Kittila - Minesite costs per tonne (EUR) Kittila 4,000tpd 3,500tpd...</li></ul>