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AEM Q4 & Full Year 2011 Results
 

AEM Q4 & Full Year 2011 Results

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    AEM Q4 & Full Year 2011 Results AEM Q4 & Full Year 2011 Results Presentation Transcript

    • Agnico-Eagle Mines LimitedFourth Quarter and Full Year 2011 ResultsFebruary 2012
    • Forward Looking StatementsThe information in this document has been prepared as at February 15, 2012. Certain statements contained in this documentconstitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 andforward 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-lookingstatements 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 futureinternal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures andother cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certainore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing ofsuch exploration, development and production or decisions with respect to such exploration, development and production; estimatesof reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of eventswith respect to the Companys minesites 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, knownand unknown could cause the actual results to be materially different from those expressed or implied by such forward lookingstatements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty ofmineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capitalexpenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and developmentprograms; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; thevolatility of the Companys stock price; and risks associated with the Companys byproduct metal derivative strategies. For a moredetailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in theforward-looking statements contained in this document, see the Companys Annual Report on Form 20-F for the year endedDecember 31, 2010, as well as the Companys other filings with the Canadian Securities Administrators and the U.S. Securities andExchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-lookingstatements and information. Marc Legault, a Qualified Person and the Company’s Vice-President, Project Development, reviewed thetechnical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February15, 2012 press release on the Company’s website. That press release also lists the Qualified Persons for each project. 2
    • Notes To InvestorsNote Regarding The Use Of Non-GAAP Financial MeasuresThis document presents estimates of future "total cash cost per ounce" and "minesite cost per tonne" that are not recognizedmeasures under United States generally accepted accounting principles ("US GAAP"). This data may not be comparable to datapresented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs pertonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs attributable toaccretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is thereforenot practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. Areconciliation of the Companys total cash cost per ounce and minesite cost per tonne to the most comparable financial measurescalculated and presented in accordance with US GAAP for the Companys historical results of operations is set forth in the notes tothe financial statements included in the Companys Annual Information Form and Annual Report on Form 20-F, for the year endedDecember 31, 2010, as well as the Companys other filings with the Canadian Securities Administrators and the SECNote Regarding Production GuidanceThe gold production guidance is based on the Company’s mineral reserves but includes contingencies, assumes metal prices andforeign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the goldproduction guidance presented in this disclosure does not reconcile exactly with the production models used to support these mineralreserves.LaRonde Meadowbank Kittila Lapa Pinos Altos Meliadine 3
    • Record Revenues and Cash Flows in 2011 Earnings impacted by Goldex & Meadowbank writedownsAll amounts are in US$, Q4 Q4 Full Year Full Yearunless otherwise indicated 2011 2010 2011 2010Revenues (millions) $455.5 $439.0 $1,821.8 $1,422.5Earnings (millions) ($601.4) $88.0 ($568.9) $332.1Earnings per share (basic) ($3.53) $0.53 ($3.36) $2.05Cash provided by operating $132.0 $90.6 $663.5 $483.5activities (millions)Payable ProductionGold (ounces) 227,792 256,471 985,460 987,609Silver (ounces in thousands) 1,311 1,207 5,080 4,812Zinc (tonnes) 12,591 14,939 54,894 62,544Copper (tonnes) 1,002 935 3,216 4,224Total cash costs ($/oz) $671 $462 $580 $451 4
    • Financial PositionAll amounts are in US$, Dec. 31unless otherwise indicated 2011Cash and cash equivalents $221(millions)Long term debt $920(millions)Available credit facilities $880($US millions)Common shares outstanding 170.3(Weighted average, millions)Common shares, fully diluted 170.3(Weighted average, millions) 5
    • Operating Results 2012 Focus Remains on Optimization Total 2011 Total Gross Mine Profit (Total $946M)2011 Cash Payable Total GrossOperating Costs Production Mine Profit LarondeResults ($/oz) (Gold oz) ($, 000’s) 20% Goldex 17%LaRonde $77 124,173 $188,662 Meadowbank 16%Kittila $739 143,560 $115,135 Lapa 10%Lapa $650 107,068 $98,937 Pinos Altos 25% Kittila 12%Pinos Altos1 $299 204,380 $232,715Meadowbank $1,000 270,801 $149,549Goldex 2 $401 135,478 $160,723Total $580 985,460 $945,7211. Pinos Altos figures include Creston Mascota 2. Goldex operations suspended Oct. 19, 2011 6
    • 2012 through 2014 Forecasts 2012 Total 2013 2014 Production Cash Gold Minesite Production Production Forecast Cost Grade Recovery Cost per Forecast Forecast (Gold koz) ($/oz) (g/t) (%) tonne (Gold koz) (Gold koz)LaRonde 150 – 165 570 2.3 91 C$90 220 280Kittila 150 – 160 650 5.5 84 €71 155 170Lapa 95 – 105 750 6.4 81 C$124 100 105Pinos Altos1 200 – 210 415 1.9 82 $44 210 190Meadowbank 280 – 310 1,040 3.2 92 C$97 305 310Total 875 – 950 720 990 1,0552012 Byproduct Ag Production Zn Production Cu ProductionForecast 000’s oz (tonnes) (tonnes)LaRonde 2,100 33,000 4,800Pinos Altos1 2,000 - -Meadowbank 50 - -Total 4,150 33,000 4,800 1. Pinos Altos figures include Creston Mascota 2. 2012 assumptions include Ag $30/oz, Cu $7,000/tonne, Zn $1,800/tonne, C$/US$ 1.00, US$/Euro 1.35 7
    • Expected To Generate Net Free Cash Flow Capital Expenditures (USD $000s) $1,200,000 Approximate Average EBITDA* $1,000,000 $800,000 $600,000 Illustrative Ongoing Re-Investment $400,000 $200,000 $0 2007A 2008A 2009A 2010A 2011A 2012E 2013 2014 Actual Estimate* Approximate average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) estimate for illustrative purposes using $1700/oz gold, $32/oz silver, $2000/t zinc, C$/US$ 1.00, 1.35USD/€ 8
    • Production Growth Continues Payable Gold Production Estimates ounces 1,200,000 1,055koz 990koz 1,000,000 875-950koz 800,000 600,000 400,000 200,000 0 2008 2009 2010 2011 2012E 2013E 2014E Actual EstimateProduction growth not yet in forecast: Kittila expansion(s), La India, Pinos Altos satellite zones, Meliadine 9
    • Focus Remains On Production Per Share GrowthGold Production (Oz per 1,000 Shares)76543210 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E Actual Estimate *Estimate figures assume current amount of issued and outstanding common shares 10
    • Long Track Record of Increasing Reserves Decrease in 2011 due to Goldex and Meadowbank reclassifications • Increased reserves at projects with strong exploration upside - Kittila and Meliadine • Current proven and probable gold reserves of 18.6 million ounces. Deposits also contain 8.7 million ounces of indicated gold resources and 10.3 million ounces of inferred resource* Gold reserves* (millions of ounces) 25 21 20 20 18 18 19 17 15 12 10 10 8 8 5 4 3 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E* See attached reserve and resource tables 11
    • Focus Remains on Reserve Per Share Growth Proven and Probable Reserves per 1,000 Shares140120100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E Actual Estimate *Estimate figures assume current amount of issued and outstanding common shares 12
    • Four Cornerstones AEM produced nearly $1B of gross mine profit in 2011 Production, reserves, free cash flow expected to grow from current minesLaRonde Kittila Mexico Meliadine 13
    • LaRonde - Production & Cash Flow Expected to Increase in 2012• Gold production expected to increase each P&P Gold reserves (million oz) 4.7 year through 2017 due to higher expected Average gold reserve grade (g/t) 4.4 grade Indicated resource (million oz) 0.4• Byproduct grades expected to decline significantly starting in 2012 Inferred resource (million oz) 1.3 Estimated LOM (years) 12• Exploration Focus 2012 exploration budget $1M • Additional potential at depth, to the East (LaRonde & regional) and to the West • Expand and convert resource on Bousquet 14
    • Kittila - Optimization Initiatives Expected To Deliver Cost Improvement, Higher Cash Flows• Higher grade in 2012 expected to result in 8% P&P Gold reserves (million oz) 5.2 higher gold production at lower costs Average reserve grade (g/t) 4.7• Anticipated mine life to 2044, not including resources Indicated resource (million oz) 1.0 Inferred resource (million oz) 1.2• Initial 25% expansion study expected in 2012 Estimated LOM (years) 32• Good exploration results at Rimpi suggest potential for larger expansion 2012 exploration budget $16M• Exploration focus continues to be at depth and to the north 15
    • Mexico - Highest Cash Flow Generator• 2012 production at Creston Mascota expected P&P Gold reserves (m oz) 3.3 to increase due to full-year contribution Average gold reserve grade (g/t) 2.3• Underground expansion underway. Expected Indicated resource (m oz) 0.8 to offset lower grades in outer years Inferred resource (m oz) 0.9• Anticipated mine life to 2029 Est. LOM (years) 18• La India may add to production profile in 2014 2012 exploration budget $15M• Exploration potential at Tarachi and satellite zones 16
    • Meliadine – Quickly Growing Gold Reserve And Resource Permitting Underway• Examining production scenarios from open P&P Gold reserves (million oz) 2.9 pits and underground• Updated feasibility study expected in 2013 Average reserve grade (g/t) 7.2• Drilling has expanded gold contained in reserves and resources by approximately 40% Indicated resource (million oz) 1.7 in 1.5 years• Potential to accelerate underground Inferred resource (million oz) 2.4 development to test deposit at depth 2012 exploration budget $30M 17
    • Other Operations 18
    • Goldex - Action Plan Focused on Monitoring, Investigation and Remediation• Mine operations suspended October 2011• Grouting program reoriented to protect surface area infrastructure• Increased rock and soil monitoring• Evaluate possibility of recovering gold resources• Reserves have been reclassified to resources 19
    • Meadowbank – New Optimized Mine Plan Partial writedown of $645 million after tax• Mill consistently exceeding design throughput• New plan results in similar net asset value• New mine plan expected to be lower risk due to: • 36% fewer tonnes moved over life of mine • More conservative estimates for dilution P&P Gold reserves (m oz) 2.2 Average reserve grade (g/t) 2.8 Indicated resource (m oz) 1.3 Inferred resource (m oz) 0.5 Est. LOM (years) 6 2012 exploration budget $7M 20
    • Lapa - Steady State with Good Tonnage and Cost Control• 2012 production and costs expected to P&P Gold reserves (m oz) 0.5 be similar to 2011 Average reserve grade (g/t) 6.5• Anticipated life of mine extended through 2015 Indicated resource (m oz) 0.3• Exploration Focus Inferred resource (m oz) 0.1 • Extension of underground exploration drift to provide access to drill targets to extend mine life Est. LOM (years) 4 2012 exploration budget $3M 21
    • Exploration Upside 22
    • Meliadine Project - Local Geology Map Mineralization identified over 80 kilometer trendIndicated resources – 33 koz AuInferred resources – 197 koz Au Proven & Probable reserves – 2,781 koz Au Indicated resources – 649 koz Au Inferred resources – 1,329 koz Au Indicated resources – 343 koz Au Inferred resources – 411 koz Au Inferred resources – 133koz Au Meliadine (Total) Proven & Probable reserves – 2,877 koz Au Indicated resources – 1,658 koz Au Proven & Probable reserves – 97 koz Au Indicated resources – 254 koz Au Inferred resources – 2,438 koz Au Inferred resources – 179 koz Au 23
    • Meliadine – Tiriganiaq Composite Longitudinal Section M11-1251 M11-1211 M11-1173 M11-1201 23.3 g/t Au / 3.3 m 11.6 g/t Au / 3.6 m 16.8 g/t Au / 5.5 m 21.9 g/t Au / 6.6 m M11-1119 14.5 g/t Au / 2.9 m M11-1349 M11-1092 22.6 g/t Au / 5.8 m7.4 g/t Au / 11.2 m M11-1171 M11-1108A M11-1236 6.2 g/t Au / 5.1 m6.2 g/t Au / 9.6 m 9.4 g/t Au / 3.2 m M11-1161 13.4 g/t Au / 6.4 m 35.5 g/t Au / 3.0 m 2012 Exploration Focus 24
    • Kittila – Composite Longitudinal Section• 2011 Exploration expanded reserves and resources in Roura and Rimpi trends• Further focus on exploration at depth and to the North in 2012 14.94 g/t Au/3.5m 6.03 g/t Au/11.8m 8.46 g/t Au / 4.5 m 7.67g/t Au/17.9m 2012 Focus Area 8.27g/t Au/3.5m 5.34 g/t Au/14.9m 6.98g/t Au/10.1m 6.00g/t Au / 14.7 m 4.68 g/t Au/12.4m 4.22g/t Au /8.5m 6.58 g/t Au / 7.5 m 25
    • Creston Mascota – New Reserves Lead to Larger Open Pit New Pit Design Creston Mascota Previous Pit Design Bravo 26
    • Moving Forward • Changes have been made at executive and mine management levels • Changes have been made in budgeting, forecasting and reporting processes • Historically, AEM’s trading multiple has rarely been this low 3.5x 3.0x 2.5x Average 2.0x P/NAV 1.72xP/NAV 1.5x 1.0x 0.5x - Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 AEM Notes: 1) Source: TD Securities Research 2) Pricing data up to Feb 17, 2012 27
    • Appendix 28
    • Operating Metrics LaRonde - Ore milled (000 tonnes) LaRonde LaRonde - Minesite costs per tonne (C$)8,000tpd $120/t7,500tpd $100/t7,000tpd $80/t6,500tpd6,000tpd $60/t5,500tpd $40/t5,000tpd $20/t4,500tpd4,000tpd $0/t Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Lapa2,000tpd $160/t1,800tpd $140/t1,600tpd $120/t1,400tpd1,200tpd $100/t1,000tpd $80/t 800tpd $60/t 600tpd $40/t 400tpd 200tpd $20/t 0tpd $0/t Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Lapa - Ore milled (000 tonnes) Lapa - Minesite costs per tonne (C$) 29
    • Operating Metrics Kittila - Ore milled(000 tonnes) Kittila Kittila - Minesite costs per tonne (EUR)3,500tpd €100/t €90/t3,000tpd €80/t2,500tpd €70/t2,000tpd €60/t €50/t1,500tpd €40/t1,000tpd €30/t €20/t 500tpd €10/t 0tpd €0/t Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Pinos Altos Meadowbank6,000tpd $60/t 10,000tpd $180/t 9,000tpd $160/t5,000tpd $50/t 8,000tpd $140/t4,000tpd $40/t 7,000tpd $120/t 6,000tpd $100/t3,000tpd $30/t 5,000tpd $80/t 4,000tpd2,000tpd $20/t $60/t 3,000tpd 2,000tpd $40/t1,000tpd $10/t 1,000tpd $20/t 0tpd $0/t 0tpd $0/t Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Pinos Altos - Ore milled (000 tonnes) Meadowbank - Ore milled (000 tonnes) Pinos Altos - Minesite costs per tonne (USD$) Meadowbank - Minesite costs per tonne (C$) 30
    • Gold and Silver Reserves and Resources December 31, 2011 Tonnes Gold Gold Tonnes Silver SilverGold (000’s) (g/t) (ounces) Silver (000’s) (g/t) (ounces) (000’s) (000’s)Proven 11,029 2.80 994 Proven 7,318 45.35 10,670Probable 146,057 3.78 17,757 Probable 72,693 45.06 105,319Total Total 157,086 3.71 18,750 80,011 45.09 115,989Reserves ReservesMeasured & Measured & 168,336 1.78 9,633 27,801 27.24 24,344Indicated IndicatedInferred 131,216 2.30 9,712 Inferred 34,513 19.00 21,082
    • Copper, Zinc and Lead Reserves and Resources December 31, 2011 Tonnes Copper Copper Tonnes Zinc Zinc Tonnes Lead Lead Copper Zinc Lead (000’s) (%) (tonnes) (000’s) (%) (tonnes) (000’s) (%) (tonnes) Proven 5,331 0.28 15,025 Proven 5,331 2.04 108,626 Proven 5,331 0.23 12,391 Probable 27,901 0.27 76,160 Probable 27,901 0.77 215,522 Probable 27,901 0.05 13,441 Total Total Total 33,232 0.27 91,184 33,232 0.98 324,149 33,232 0.08 25,832 Reserves Reserves Reserves Indicated 7,225 0.12 8,629 Indicated 7,225 1.49 107,338 Indicated 7,225 0.15 11,127 Inferred 11,400 0.26 29,664 Inferred 11,400 0.44 49,745 Inferred 11,400 0.05 5,138*Calculated grades 32
    • Notes to Investors Regarding the Use of ResourcesCautionary Note to Investors Concerning Estimates of Measured and Indicated ResourcesThis document uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and required byCanadian regulations, the SEC does not recognize them. Investors are cautioned not to assume that any part or all of mineral deposits in these categorieswill ever be converted into reserves.Cautionary Note to Investors Concerning Estimates of Inferred ResourcesThis document also uses the term "inferred resources". We advise investors that while this term is recognized and required by Canadian regulations, the SEC doesnot recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Itcannot 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 inferredmineral 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 ofan inferred resource exists, or is economically or legally mineable.Scientific and Technical DataAgnico-Eagle Mines Limited is reporting mineral resource and reserve estimates in accordance with the CIM guidelines for the estimation, classification andreporting 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 acompany 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 considerclosely the disclosure in our Form 20-F, which may be obtained from us, or from the SEC’s website at: http://sec.gov/edgar.shtml. A “final” or “bankable” feasibilitystudy is required to meet the requirements to designate reserves under Industry Guide 7.Estimates for all properties were calculated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC Industry Guide7. Industry Guide 7 requires the use of prices that reflect current economic conditions at the time of reserve determination, which the Staff of the SEC hasinterpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates reported by the Company onFebruary 16, 2011 were based on three-year average prices for the period ending December 31, 2011 of $1,255 per ounce gold, $23.00 per ounce silver, $0.91 perpound zinc, $3.25 per pound copper, $0.95 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.05, 1.37 and 12.86, respectively.The Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) requires mining companies to disclose reserves and resources using thesubcategories of “proven” reserves, “probable” reserves, “measured” resources, “indicated” resources and “inferred” resources. Mineral resources that are notmineral reserves do not have demonstrated economic viability. 33
    • Notes to Investors Regarding the Use of ResourcesA mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This studymust include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, thateconomic extraction can be justified. A mineral reserve includes diluting materials and allows for losses that may occur when the material is mined. A provenmineral reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. A probable mineralreserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated by at least a preliminaryfeasibility study.A mineral resource is a concentration or occurrence of natural, solid, inorganic material, or natural solid fossilized organic material including base and preciousmetals 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 andknowledge. A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are sowell established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to supportproduction planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testinginformation gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough toconfirm both geological and grade continuity. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shapeand physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, tosupport mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing informationgathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological andgrade 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 estimatedon the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based onlimited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Mineralresources 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 detailedassessments of realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmental considerationstogether with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that extraction isreasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution toproceed 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 document is December 31, 2011. Additional information about each ofthe 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 Form 20-F and its news release dated February 15,2012.The contents of this document have been prepared under the supervision of, and reviewed by, Marc Legault P.Eng., Vice-President Project Development and a“Qualified Person” for the purposes of NI 43-101. 34
    • A solid financial position, low-cost structure, well-funded growth projects in regionsof low political risk, and a focused, consistent strategy put Agnico-Eagle in a strongposition to continue creating exceptional per share value.Sean Boyd Executive and Registered Office:President and 145 King Street East, Suite 400Chief Executive Officer Toronto, Ontario, Canada, M5C 2Y7Ammar Al-Joundi Tel: 416-947-1212SVP Finance and Toll-Free: 888-822-6714Chief Financial Officer Fax: 416-367-4681David SmithSVP, Strategic Planning & InvestorRelationsTrading Symbol:AEM on TSX & NYSEInvestor Relations:416-947-1212info@agnico-eagle.com agnico-eagle.com