Your SlideShare is downloading. ×
AEM-Q2-2011 presentation
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

AEM-Q2-2011 presentation


Published on

Agnico-Eagle Q2-2011 presentation

Agnico-Eagle Q2-2011 presentation

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Agnico-Eagle Mines Limited
    Second Quarter 2011 Results
  • 2. Forward Looking Statements
    The information in this document has been prepared as at July 27, 2011. 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, 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 Company's minesites 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 Report on Form 20-F for the year ended December 31, 2010, as well as the Company's 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. Marc Legault, a Qualified Person and the Company’s Vice-President, Project Development, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February 16, 2011 press release on the Company’s website. That press release also lists the Qualified Persons for each project.
  • 3. Note To Investors
    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 non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of the Company's 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 Company's historical results of operations is set forth in the notes to the financial statements included in the Company's Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2010, as well as the Company's other filings with the Canadian Securities Administrators and the SEC.
    Pinos Altos
  • 4. Operating and Financial Results
    Q2 2011
  • 5. Q2 Highlights
    Throughput Steady At All Six Mines
    Strong cash generation
    Meadowbank secondary plant complete
    Good cost performance in Quebec and Mexico
    Exploration expands Meliadine, Kittila and Goldexdeposits
  • 6. Strong Financial Position
    Production Growth Drives Strong Earnings And Cash Flows
    All $ amounts are in US$
  • 7. H2 Gold Production Forecast To Increase By Approximately 20%
    Operating Results
    1Pinos Altos production includes heap leach
    Q2 2011 Revenue By Metal
    Q2 2011 Revenue By Mine
  • 8. Strong Financial Position
    Next Phase Of Growth Fully Funded
  • 9. Same Strategy
    54 Years and Counting
  • 10. AEM Has Created Significant Per Share Value
    “For many years, we have adhered to a consistent, low-risk strategy for strengthening our gold mining business and creating shareholder value”
    – Sean Boyd, Vice-Chairman and CEO
  • 11. Creating Per Share Value
    Increasing Leverage To Gold – In The Ground
    Gold Reserves (oz) Per 1,000 Shares
  • 12. Increasing Leverage To Gold - Produced
    Creating Per Share Value
    Payable Gold Production (oz) Per 1,000 Shares
  • 13. Production Per Share Growth Leads to Cash Flow Per Share Growth
    Creating Per Share Value
    Cash Provided By Operating Activities Per Share ($)
    * 2011E CFPS is annualized based on 2011YTD data
  • 14. Capital Expenditure Estimates
    Meliadine and internal expansions not included in this estimate
    Approximate Average EBITDA*
    Illustrative Ongoing Re-Investment
    * Approximate EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) estimate of average for illustrative purposes using $1350/oz gold, $35/oz silver, $2350/t zinc, C$0.99/USD, 1.40USD/€
  • 15. Same Strategy
    Returning Excess Capital To Shareholders
  • 16. Fully Funded Production Growth Leads To Increasing Dividends
    Creating Per Share Value
    Dividends Per Share
    * 2011E CFPS is annualized based on 2011YTD data
  • 17. Increase Cash Dividends Per Share
    A Core Part Of Our Strategy
    Dividend Yields (July 15, 2011)
    AEM has paid a cash dividend for 29 consecutive years
    Goal is to continue increasing sustainable dividends
  • 18. Meliadine Project – Extensive Property Position
    Aqpik 8.6/3.2 & 9.6/3.2
    Aklak (grab sample 116 g/t)
    Musket Bay
    Noel 6.6/3.1 & grab sample 282 g/t
    Peter Lake
    5.1/3.7 & 20.4/1.3
    F Zone
    55 Upper
    11.3 / 3.6
    Far East
    J-2 7.7/4.2 & 70.3/1.4
    Fay 2
    Prairie (grab sample 217g/t)
    100% Ownership Of 80km Greenstone Belt
    Priority targets
    10 Km
  • 19. Meliadine Project - Tiriganiaq High Grade Gold Reserve
    Adding More Drills. Potential Ramp Development.
  • 20. Kittila – Long Life Gold Mine
    Exciting New Hole At Rimpi Suggests Significant Reserve Potential
    6.28 g/t Au / 5.7 m
    3.64 g/t Au / 4.0 m
    9.32 g/t Au / 11.2 m
    9.93 g/t Au / 6.2 m
    5.98 g/t Au / 7.8 m
    7.10 g/t Au / 21.0 m
  • 21. Growing Gold Resource Creating Value
    3.02 g/t Au / 117.0 m
    1.70 g/t Au / 69.0 m
    1.84 g/t Au / 112.5 m
    1.50 g/t Au / 120.0 m
    incl. 2.40 g/t Au / 61.5 m
    1.48 g/t Au / 76.5 m
    2.47 g/t Au / 240.0 m
    2.17 g/t Au / 192.0 m
    Goldex – Significant Extension Of Mine Life Likely
  • 22. Increase Reserves Per Share – Recent Acquisitions
    Early Stage M&A Has Added Shareholder Value
  • 23. The Strategy Is Unchanged. Because It Works.
    “The strong skill set of our team is at the core of our success. The team is ready to grow Agnico-Eagle well into the future ”
    – Ebe Scherkus, President and COO
  • 24. Appendix
  • 25. LaRonde – Canada
    Increasing Gold Output In 2012
    First half gold production of 64,418 ounces
    Deep mine development on time and budget
    • 2012-2015
    Estimated average annual gold production of 290,000 oz
    • Exploration Focus
    Additional potential at depth, to the East and to the West
    Expand and convert resource on Bousquet Zone 5
    Defining a gold resource at Ellison (2 km west of LaRonde)
  • 26. Goldex – Canada
    Strong Free Cash Flow Generator
    • 2011
    First half gold production of 80,498 ounces
    Minesite cost per tonne on budget
    • 2012-2015
    • 27. Estimated average annual gold production of 179,000 oz
    • 28. Exploration Focus
    • 29. Resource definition and expansion at D zone at depth, exploration to west, east and at depth
    • 30. Potential to add reserves and increase mine life
  • 31. Lapa – Canada
    Steady State Mine With Good Tonnage And Cost Performance
    First half gold production of 55,466 ounces
    Minesite cost per tonne on budget
    • 2012-2014
    Estimated average annual gold production of 117,000 oz
    • Exploration Focus
    Extension of underground exploration drift to provide access to drill targets to extend mine life
  • 32. Kittila – Finland
    Focus On Optimization And Cost Reduction
    • 2011
    First half gold production of 71,128 ounces
    • Expansion study expected to be completed Q4 2011; Targeting 50% increase in production rate
    • 33. 2012-2015
    • 34. Estimated average annual gold production of 173,000 oz
    • 35. Exploration Focus
    • 36. Resource conversion, expansion below Suuri, Roura and Rimpi and along strike
    • 37. Recent drilling has extended known gold resource
  • 38. Pinos Altos – Mexico
    Record Quarterly Gold Production
    First half gold production of 99,067 ounces
    Minesite cost per tonne on budget
    • 2012-2015
    Estimated average annual gold production of 230,000 oz
    Increase underground capacity to match mill
    • Exploration Focus
    Potential to develop satellite deposits
  • 39. Meadowbank – Canada
    Newest Mine – Largest Gold Producer
    First half gold production of 121,113 ounces
    Secondary crushing plant complete. 9,300 tpd to date in July
    Focus on optimization and cost reduction
    • 2012-2015
    Estimated average annual gold production of 399,000 oz
    • Exploration Focus
    Focus on resource conversion and expansion of Vault,Goose South and Portage
  • 40. Meliadine – Canada
    Fast Growing Gold Reserve And Resource
    Initial Gold Reserve
    2.6 million ounces from 9.5 million tonnes @ 8.5 g/t
    • 2011 Exploration budget
    $65 million to be spent, including 90,000m of drilling
    Recent drilling has extended known gold resource
    Potential to accelerate underground development to test deposit at depth
    • Production decision expected in 2013
  • 41. Operating Metrics
    Steady state producer
    Strong throughput keeps unit costs low
    Consistently exceeding design throughput
  • 42. Operating Metrics
    Mill process stabilizing
    Pinos Altos
    Additional tailings filters increased mill capacity
    Design throughput expected by Q3, 2011
  • 43. Gold and Silver Reserves and Resources
    December 31, 2010
    *Calculated grades
  • 44. Copper, Zinc and Lead Reserves and Resources
    December 31, 2010
    *Calculated grades
  • 45. A solid financial position, low-cost structure, well-funded growth projects in regions of low political risk, and a focused, consistent strategy put Agnico-Eagle in a strong position to continue creating exceptional per share value.
    Sean BoydVice-Chairman and Chief Executive Officer
    Ebe ScherkusPresident and Chief Operating Officer
    AmmarAl-JoundiSVP Finance andChief Financial Officer
    David SmithSVP Investor Relations
    Trading Symbol: AEM on TSX & NYSE
    Executive and Registered Office:145 King Street East, Suite 400Toronto, Ontario, Canada, M5C 2Y7
    Tel: 416-947-1212Toll-Free: 888-822-6714 Fax: 416-367-4681