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Denver Gold Forum

Denver Gold Forum

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    Denver Gold Forum Denver Gold Forum Presentation Transcript

    • Denver Gold Forum September 2013 agnicoeagle.com
    • FORWARD LOOKING STATEMENTS The information in this document has been prepared as at September 20, 2013. 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 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 Report on Form 20-F for the year ended December 31, 2012, 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. 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 February 13, 2013 press release on the Company’s website. That press release also lists the Qualified Persons for each project. agnicoeagle.com 2
    • 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 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, 2012, as well as the Company’s other filings with the Canadian Securities Administrators 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. agnicoeagle.com 3
    • MANAGING AND DELIVERING IN A VOLATILE GOLD MARKET • Cost reductions announced for 2013 and 2014 – further savings initiatives under review • Delivering on production - strong second half expected • Funded production growth - expecting 22% growth through 2015 • Bringing on new mines ahead of schedule and on budget - La India and Goldex • Financial flexibility maintained • Consistent acquisition strategy – “toe hold” investments with exploration upside agnicoeagle.com 4
    • SIGNIFICANT REDUCTIONS IN CAPITAL AND OPERATING COSTS • ~$50 million in immediate capital and cost reductions for 2013 • For 2014, ~$200 million in capital cost reductions scheduled • Exploration budget of ~$50 million expected for 2014 (compared to historical levels of ~$100 million) • Additional cost saving opportunities under review Capital Expenditures (US$ 000’s) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2008A agnicoeagle.com 2009A 2010A 2011A 2012A 2013E 2014E 5
    • DELIVERING ON 2013 PRODUCTION Q2 2013 YTD 2013 Production Total Cash Cost (Gold oz) ($/oz) Production (Gold oz) Total Cash Cost ($/oz) LaRonde 46,119 $927 85,192 $831 Kittila Lapa 5,389 23,178 N/A $720 48,534 50,046 $6241 $699 Pinos Altos2 57,530 $496 103,601 $411 Meadowbank 91,873 $912 173,691 $986 224,089 $785 461,064 $762 Total Multiple catalysts expected to drive stronger production in 2H 2013: – Normal production at Kittila – Better grades at Meadowbank – Start up of production at Goldex – Continued grade improvement at LaRonde 1. Kittila total cash cost excludes results from Q2, 2013 due to shutdown 2. Pinos Altos figures include Creston Mascota. agnicoeagle.com 6
    • MODERATE, ACHIEVABLE PRODUCTION GROWTH Growth profile through 2015 is fully funded 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 agnicoeagle.com 2011A 2012A 2013E 2014E 2015E Estimate 7
    • LA INDIA Commissioning now underway – first production expected by year-end • Open pit, heap leach mine, with 1:1 strip ratio • • PROBABLE GOLD RESERVES (million oz) 0.8 Mining and pad loading underway, initial leaching expected to begin October 2013 AVERAGE GOLD RESERVE GRADE (g/t) 0.7 Commercial production expected in 1Q 2014 (43.2 M tonnes @ 0.4 g/t) Indicated gold resource (million oz) Inferred gold resource (million oz) • Estimated annual gold production of ~90 koz @ average total cash costs of ~$500/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. agnicoeagle.com 8
    • GOLDEX Mining and milling has resumed on the M& E Satellite zones • • First gold pour expected in early October – on track to produce approximately 15,000 oz, in 2013 Initial focus on the M & E satellite zones – GEZ remains suspended P&P GOLD RESERVES (million oz) AVERAGE GOLD RESERVE GRADE (g/t) Measured & Indicated gold resource (million oz) (27.2 M tonnes @ 1.8 g/t) Inferred gold resource (million oz) (34.6 M tonnes @ 1.5 g/t) • Long hole stoping with paste backfill • Expected average annual production of 85,000 ozs at a total cash cost of $900/oz. • 0.35 1.6 1.6 1.7 Technical studies are underway on several other satellite zones with results expected by year-end agnicoeagle.com Estimated LOM (years) 4 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. 9
    • FINANCIAL POSITION Balance sheet flexibility maintained ALL AMOUNTS ARE IN US$, unless otherwise indicated Jun. 30, 2013 CASH AND CASH EQUIVALENTS (millions) $136 LONG TERM DEBT (millions) $850 AVAILABLE CREDIT FACILITIES $1.15 Billion COMMON SHARES OUTSTANDING, BASIC (Q2’13 Weighted average, millions) 172.6 COMMON SHARES OUTSTANDING, FULLY DILUTED (Q2’13 Weighted average, millions) 172.6 Long-Term Debt Maturities 2017 Notes Outstanding (millions) Coupon agnicoeagle.com 2020 2022 2024 $115 $360 $225 $100 6.13% 6.67% 5.93% 5.02% 10
    • MELIADINE 2014 budget focuses on critical path elements to provide development flexibility • 2013 project expenditures reduced by $10 million • 2014 capital expenditures reduced by $80 million to $45 million – Initial production could still be achievable in 2018 under new expenditures schedule – Program will focus on ramp development and exploration drilling P&P GOLD RESERVES (million oz) 3.0 AVERAGE GOLD RESERVE GRADE (g/t) 7.0 Indicated gold resource (million oz) (17.2 M tonnes @ 3.9 g/t) Inferred gold resource (million oz) (14.8 M tonnes @ 6.2 g/t) 2.2 2.9 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. • Updated technical study on track for Q2 2014 • Encouraging results from Tiriganiaq, Normeg, Pump South, and F Zones agnicoeagle.com 11
    • COST EFFECTIVE EXPLORATION REFLECTS SUCCESSFUL M&A STRATEGY Significant exploration results at acquired properties 9,000 +5644 koz 6,000 +3085 koz +3161 koz Mined Proven & Probable Measured & 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. agnicoeagle.com 12
    • ADAPTING BUSINESS TO CURRENT GOLD PRICE ENVIRONMENT Operational review suggests significant cost savings going forward • AEM continues to be among industry leaders in per share reserves, production and dividends • Meaningful near-term production growth expected to be driven by LaRonde, La India and Goldex, with manageable capex • Solid, achievable production and cost guidance • 22% production growth expected in 2013–2015 at stable costs • Business generating strong cash flows in regions of low political risk • Allocated to dividends, exploration and investing in strategic assets 15-Year Indexed Price Performance 2500% 2000% AEM - NYSE XAU Spot Gold 1500% 1000% 500% 0% 9/11/1998 1/29/2001 6/23/2003 11/07/2005 3/31/2008 8/16/2010 1/03/2013 Source: FactSet agnicoeagle.com 13
    • APPENDIX agnicoeagle.com
    • LARONDE Cooling plant infrastructure development progressing well • Additional cooling capacity expected to be installed in 4Q 2013 – Positive for operating flexibility and production • • Approximately 60% of ore in Q2 2013 sourced from deeper mine Value of ore per tonne expected to be ~50% higher over life mine versus 2012 (assuming the same metal prices) $240M P&P GOLD RESERVES (million oz) 4.2 AVERAGE GOLD RESERVE GRADE (g/t) 4.5 Indicated resource (million oz) (5.4 M tonnes @ 1.88 g/t) 0.3 Inferred resource (million oz) (11.9 M tonnes @ 3.73 g/t) 1.4 Estimated LOM (years) 14 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Cash Operating Margin $160M $80M $0M 2010 agnicoeagle.com 2011 2012 15
    • MEADOWBANK Expecting a strong 2H 2013 due to cost efficiencies and anticipated higher grades • Stronger production expected in 2H 2013 due to sequencing of higher grades • Throughput expected to be maintained P&P GOLD RESERVES (million oz) 2.3 AVERAGE GOLD RESERVE GRADE (g/t) 2.8 consistently above 11,000 tpd • Measured & Indicated resource (million oz) Excellent cost control in 1H 2013 due to Inferred resource (million oz) (10.3 M tonnes @ 2.49 g/t) improved productivity and cost reduction (3.6 M tonnes @ 3.81 g/t) Estimated LOM (years) 0.8 0.4 6 initiatives $320M Cash Operating Margin See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. $240M $160M $80M $0M 2010 agnicoeagle.com 2011 2012 16
    • MEXICO – PINOS ALTOS & CRESTON MASCOTA Steady production and operating cost control at Pinos Altos • • Restart of leaching at Creston Mascota progressing well and production expected to increase during the remainder of 2013 Shaft construction at Pinos Altos in Q2: – Preparation of headframe foundation – Construction of hoist building – Galloway assembly $320M P&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) 0.9 0.9 17 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Cash Operating Margin $240M $160M $80M $0M 2010 agnicoeagle.com 2011 2012 17
    • KITTILA Autoclave successfully restarted after extended maintenance • Normal operations restarted at the end of Q2 • Throughput and recoveries back to steady state • 750 tpd per day expansion on schedule for P&P GOLD RESERVES (million oz) 4.8 AVERAGE GOLD RESERVE GRADE (g/t) 4.5 Indicated resource (million oz) (7.8 M tonnes @ 2.65 g/t) completion in 2H 2015 Inferred resource (million oz) (19.0 M tonnes @ 3.88 g/t) Estimated LOM (years) $240M 0.7 2.4 25 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Cash Operating Margin $160M $80M $0M 2010 agnicoeagle.com 2011 2012 18
    • LAPA Zulapa drilling could have a positive impact on production and grades • • Lower unit costs due to reduced cement consumption, productivity improvements, and cost reductions P&P GOLD RESERVES (million oz) 0.4 AVERAGE GOLD RESERVE GRADE (g/t) 6.0 Indicated resource (million oz) Ongoing exploration could extend the mine life beyond 2016 (1.1 M tonnes @ 4.08 g/t) Inferred resource (million oz) (0.9 M tonnes @ 6.69 g/t) Estimated LOM (years) $120M 0.2 0.2 3 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Cash Operating Margin $80M $40M $0M 2010 agnicoeagle.com 2011 2012 19
    • OPERATING METRICS LaRonde LaRonde - Ore milled ('000 tonnes) LaRonde - Minesite costs per tonne (C$) 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 $0/t Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Lapa Q4 12 Q1 13 Q2 13 Lapa - Ore milled ('000 tonnes) Lapa - Minesite costs per tonne (C$) 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 agnicoeagle.com Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 20
    • OPERATING METRICS Kittila - Ore milled('000 tonnes) Kittila - Minesite costs per tonne (EUR) Kittila 4,000tpd 3,500tpd €90/t 3,000tpd €80/t 2,500tpd €70/t 2,000tpd 1,500tpd €60/t 1,000tpd €50/t 500tpd 0tpd €40/t Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Pinos Altos Q2 12 Q3 12 Q4 12 Q1 13 Meadowbank 5,400tpd $60/t 12,000tpd $140/t 5,200tpd $50/t 10,000tpd $120/t $40/t 8,000tpd $30/t 6,000tpd 5,000tpd $100/t 4,800tpd $80/t 4,600tpd $60/t $20/t 4,400tpd 4,000tpd $40/t Pinos Altos - Ore milled ('000 tonnes) Pinos Altos - Minesite costs per tonne (USD$) agnicoeagle.com 2,000tpd $20/t 0tpd Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 $0/t Q1 11 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Q4 11 $0/t Q3 11 4,000tpd Q2 11 $10/t Q1 11 4,200tpd Meadowbank - Ore milled ('000 tonnes) Meadowbank - Minesite costs per tonne (C$) 21
    • GOLD AND SILVER RESERVES AND RESOURCES December 31, 2012 Tonnes (000’s) Silver (g/t) Silver (ounces) (000’s) 9,390 47.30 14,281 Probable 57,536 43.93 81,256 Total Reserves 66,926 44.40 95,537 Measured & Indicated 23,379 31.95 24,015 Inferred 36,479 20.66 24,228 Gold Tonnes (000’s) Gold (g/t) Gold (ounces) (000’s) Silver Proven 13,836 3.13 1,394 Proven Probable 170,300 3.16 17,286 Total Reserves 184,136 3.16 18,681 Measured & Indicated 140,995 1.79 8,104 Inferred 199,503 1.90 12,159 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources. agnicoeagle.com 22
    • COPPER, ZINC AND LEAD RESERVES AND RESOURCES December 31, 2012 Copper Tonnes Copper Copper Zinc Tonnes Zinc Zinc (000’s) (%) (tonnes) 6,323 1.06 67,211 Lead Tonnes Lead (%) (tonnes) 6,323 0.30 18,744 Proven Probable 22,462 0.24 53,835 Probable 22,462 0.68 152,973 Probable 22,462 0.05 10,304 Total Reserves 28,786 0.25 72,580 Total Reserves 28,786 0.76 220,184 Total Reserves 28,786 0.06 18,042 Indicated 5,432 0.12 Indicated 5,432 1.50 81,551 Indicated 5,432 0.15 8,071 11,887 0.58 69,048 Inferred 11,887 0.05 5,375 Proven Inferred 11,887 6,644 0.25 29,317 Inferred Proven (000’s) Lead (000’s) 6,323 (%) (tonnes) 0.12 7,738 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources. agnicoeagle.com 23
    • 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 20-F, which may be obtained from us, or from the SEC’s website at: http://sec.gov/edgar.shtml. A “final” or “bankable” feasibility study 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 Guide 7. 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 has interpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates at the Lapa, Meadowbank and Creston Mascota mines and the Goldex and Meliadine projects reported by the Company on February 13, 2013 are based on three-year average prices for the period ending December 31, 2012 of $1,490 per ounce gold, $29.00 per ounce silver, $0.95 per pound zinc, $3.67 per pound copper, $1.00 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.00, 1.34 and 12.75, respectively. The assumptions used for the mineral reserves and resources estimates at the LaRonde, Pinos Altos and Kittila mines and the La India and Tarachi projects reported by the Company on February 13, 2013 were based on three-year average prices for the period ending June 30, 2012 of $1,345 per ounce gold, $25.00 per ounce silver, $0.95 per pound zinc, $3.49 per pound copper, $0.99 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.00, 1.30 and 13.00, 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. agnicoeagle.com agnicoeagle.com 24
    • 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 press release is December 31, 2012. 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 Form 20-F and this news release dated February 13, 2013. Alain Blackburn, a Qualified Person and the Company’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. agnicoeagle.com agnicoeagle.com 25
    • agnicoeagle.com Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-847-3708 info@agnicoeagle.com agnicoeagle.com