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Q1 2013 Results

Q1 2013 Results

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  • 1. First Quarter 2013 ResultsApril 2013
  • 2. FORWARD LOOKING STATEMENTSThe information in this document has been prepared as at April 25, 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 informationunder 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; estimatesof future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates ofreturn, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, andexpectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimatesof exploration, development and production and other capital costs, and estimates of the timing of such exploration, development andproduction or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements andinformation regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statementsand information regarding the sufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as atthe date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on suchstatements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed orimplied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and othermetals; 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 developmentprograms; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatilityof the Company’s stock price; and risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion ofsuch risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statementscontained 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’sother 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 theCompany’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’sreserve and resource position see the February 13, 2013 press release on the Company’s website. That press release also lists the QualifiedPersons for each project.agnicoeagle.com 2
  • 3. 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 recognized measures underUnited States generally accepted accounting principles (“US GAAP”). This data may not be comparable to data presented by other goldproducers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects toincur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirementcosts, 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 minesitecost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company’s historicalresults of operations is set forth in the notes to the financial statements included in the Company’s Annual Information Form and Annual Reporton Form 20-F, for the year ended December 31, 2012, as well as the Company’s other filings with the Canadian Securities Administrators andthe SEC.Note Regarding Production GuidanceThe gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices and foreignexchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidancepresented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves.agnicoeagle.com 3
  • 4. KEY OPERATING HIGHLIGHTS – Q1 2013Production and costs on track; Goldex and La India startup ahead of schedule• Q1 2013 gold production of 236,975 oz at a total cashcost of $740/oz – as expected• Quarterly cash flows from operations of $146 million ($0.80 per share)• Goldex to produce ahead of schedule - expected to provide 15,000 ozgold in Q4, 2013• La India to begin commissioning in late Q4, 2013, ahead of schedule;Commercial production expected in Q1, 2014• Kittila mill maintenance to take longer than expected – production toresume in late June• 2013 Production guidance unchanged at 990,000 ozagnicoeagle.com 4
  • 5. OPERATING RESULTSFirst quarter production and costs in line with expectationsagnicoeagle.com 5Q1 2013 2013 ForecastProduction(Gold oz)Total CashCost($/oz)OperatingMargin ($,000’s)Midpoint of ProductionEstimate(Gold oz)LaRonde 39,073 $718 $33,295 177,000Kittila 43,145 $624 $44,956 150,000Lapa 26,868 $680 $21,788 97,000Pinos Altos1 46,071 $300 $53,827 191,000Meadowbank 81,818 $1,069 $36,503 360,000Goldex 15,000Total 236,975 $740 $190,369 990,000LaRonde17%Lapa11%Kittila24%Pinos Altos28%Meadowbank19%Q1 2013 Total Operating Margin – $190MGold89%Silver8%BaseMetals3%Q1 2013 Revenue by Metal1. Pinos Altos figures include Creston Mascota.
  • 6. 2012 FINANCIAL RESULTSStrong operating quarter in line with expectationsagnicoeagle.com 6All amounts are in US$,unless otherwise indicatedQ12013Q12012Revenues (millions) $420.4 $472.9Earnings (millions) $23.9 $78.5Earnings per share (basic) $0.14 $0.46Cash provided by operating activities (millions) $146.1 $196.5Payable ProductionGold (ounces) 236,975 227,792Silver (ounces in thousands) 1,251 1,215Zinc (tonnes) 8,239 12,978Copper (tonnes) 1,082 1,326Total cash costs ($/oz) $740 $594
  • 7. FINANCIAL POSITIONExpecting to generate free cash flow in 2013agnicoeagle.com 7ALL AMOUNTS ARE IN US$,unless otherwise indicated Mar. 31, 2013CASH AND CASH EQUIVALENTS (millions) $264LONG TERM DEBT (millions) $800AVAILABLE CREDIT FACILITIES $1.2 BillionCOMMON SHARES OUTSTANDING, BASIC (Q1’13 Weighted average, millions) 172.3COMMON SHARES OUTSTANDING, FULLY DILUTED (Q1’13 Weighted average, millions) 172.6Long-Term Debt Maturities2017 2020 2022 2024Notes Outstanding (millions) $115 $360 $225 $100Coupon 6.13% 6.67% 5.93% 5.02%
  • 8. MODERATE, ACHIEVABLE PRODUCTION GROWTHLow political risk, mining-friendly jurisdictionsagnicoeagle.com 8100,000300,000500,000700,000900,0001,100,0001,300,0002008A 2009A 2010A 2011A 2012A 2013E 2014E 2015EActual EstimatePayable Gold Production Profile (oz)
  • 9. GENERATING NET FREE CASH FLOWWell positioned to fund growth plans and dividendsagnicoeagle.com 9$0$200,000$400,000$600,000$800,000$1,000,000$1,200,0002008A 2009A 2010A 2011A 2012A 2013E 2014 2015Actual EstimateCapital Expenditures (US$ 000’s)Illustrative OngoingRe-InvestmentEstimate for projectsnot yet approved~ $350MSustaining Capital andCapitalized Exploration~ $250M
  • 10. OPERATIONS
  • 11. LARONDERamp up at lower mine on track• Q1 2013 production of 39,073 oz goldat total cash costs per ounce of $718• Additional cooling capacity expected tobe installed in 4Q 2013• Positive for operating flexibilityand production• Approximately 60% of ore in Q1 2013sourced from deeper mine• Value of ore per tonne approximately50% higher over life mine versus 2012agnicoeagle.com 11P&P GOLD RESERVES (million oz) 4.2AVERAGE GOLD RESERVE GRADE (g/t) 4.5Indicated resource (million oz)(5.4 M tonnes @ 1.88 g/t)0.3Inferred resource (million oz)(11.9 M tonnes @ 3.73 g/t)1.4Estimated LOM (years) 142013 exploration budget(LaRonde & regional)$2MSee AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.$0M$80M$160M$240M2010 2011 2012Cash Operating Margin
  • 12. LAPAContinues to deliver steady operating results• Q1 2013 production of 26,868 oz goldat total cash costs per ounce of $680• Optimization led to increased millthroughput on a year over year basis• Ongoing exploration could extendthe mine life beyond 2016agnicoeagle.com 12$0M$40M$80M$120M2010 2011 2012Cash Operating MarginP&P GOLD RESERVES (million oz) 0.4AVERAGE GOLD RESERVE GRADE (g/t) 6.0Indicated resource (million oz)(1.1 M tonnes @ 4.08 g/t)0.2Inferred resource (million oz)(0.9 M tonnes @ 6.69 g/t)0.2Estimated LOM (years) 32013 exploration budget $3MSee AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.
  • 13. KITTILARecord quarterly recoveries of 92%; Scheduled maintenance totake longer than planned• Q1 2013 production of 43,145 oz gold at totalcash costs per ounce of $624• Scheduled maintenance for Q2 2013 nowextended to include complete relining of theautoclave – production anticipated to resumelate June• Expected to reduce 2013 production by10,000 to 15,000 oz and increase total cashcosts for the Company by $10/ozagnicoeagle.com 13$0M$80M$160M$240M2010 2011 2012Cash Operating MarginP&P GOLD RESERVES (million oz) 4.8AVERAGE GOLD RESERVE GRADE (g/t) 4.5Indicated resource (million oz)(7.8 M tonnes @ 2.65 g/t)0.7Inferred resource (million oz)(19.0 M tonnes @ 3.88 g/t)2.4Estimated LOM (years) 262013 exploration budget $7MSee AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.
  • 14. MEXICO – PINOS ALTOS & CRESTON MASCOTACreston Mascota leaching resumes ahead of schedule.• Q1 2013 production of 46,071 oz gold attotal cash cost of US$300/oz*• Leaching resumed on the Phase 2 pad atCreston Mascota in March 2013, one monthahead of schedule.• Production at Creston Mascota expectedto ramp up gradually through year-end• Shaft sinking proceeding on time andon budgetagnicoeagle.com 14P&P GOLD RESERVES (million oz) 2.7AVERAGE GOLD RESERVE GRADE (g/t) 2.2Indicated resource (million oz)(17.9 M tonnes @ 1.52 g/t)0.9Inferred resource (million oz)(24.6 M tonnes @ 1.19 g/t)0.9Estimated LOM (years) 162013 exploration budget $9MSee AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.$0M$80M$160M$240M$320M2010 2011 2012Cash Operating Margin*Total cash costs per ounce of gold produced and minesite costs per tonne for theCreston Mascota deposit at Pinos Altos are excluded in Q1 2013 due to suspension ofheap leach operations effective October 1, 2012.
  • 15. MEADOWBANKRecord quarterly mill throughput• Q1 2013 production of 81,818 oz gold ata total cash cost of $1,069/oz.• Record quarterly throughput of 11,320tpd• Production expected to be higher in H22013 due to higher anticipated gradesagnicoeagle.com 15P&P GOLD RESERVES (million oz) 2.3AVERAGE GOLD RESERVE GRADE (g/t) 2.8Measured & Indicated resource (million oz)(10.3 M tonnes @ 2.49 g/t)0.8Inferred resource (million oz)(3.6 M tonnes @ 3.81 g/t)0.4Estimated LOM (years) 62013 exploration budget $4MSee AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.$0M$80M$160M$240M$320M2010 2011 2012Cash Operating Margin
  • 16. DEVELOPMENT
  • 17. LA INDIACommissioning expected to start by year-end 2013• Construction proceeding well and onbudget• Commercial production expected in 1Q2014, one quarter ahead of schedule• Estimated annual gold production ofapprox. 90 koz @ average total cashcosts of approx. $500/oz• Open pit, heap leach mine, with strippingratio of 1:1agnicoeagle.com 17PROBABLE GOLD RESERVES (million oz) 0.8AVERAGE GOLD RESERVE GRADE (g/t) 0.7Indicated gold resource (million oz)(43.2 M tonnes @ 0.4 g/t)0.6Inferred gold resource (million oz)(81 M tonnes @ 0.4 g/t)1.0Estimated LOM (years) 8See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.
  • 18. GOLDEXInitial production expected in Q4 2013• Expected 2013 production - 15,000 oz,two quarters ahead of schedule• Initial focus on the M & E satellitezones – GEZ remains suspended• Technical studies are underway onseveral other satellite zones withresults expected by year-endagnicoeagle.com 18P&P GOLD RESERVES (million oz) 0.35AVERAGE GOLD RESERVE GRADE (g/t) 1.6Measured & Indicated gold resource (million oz)(27.2 M tonnes @ 1.8 g/t)1.6Inferred gold resource (million oz)(34.6 M tonnes @ 1.5 g/t)1.7Estimated LOM (years) 4See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources.
  • 19. SOUND BUSINESS CONTINUES TO DELIVERNo change in strategy or focus• AEM continues to be among industry leaders in per share reserves, production,cash flows and dividends• Meaningful near-term production growth driven by LaRonde, La India and Goldex,with manageable, fully funded capex• Solid, achievable production and cost guidance• 22% production growth 2013–2015 at stable costs• Business generating strong cash flows in regions of low political risk• Allocated to dividends, exploration and investing in strategic assetsagnicoeagle.com 190%500%1000%1500%12/31/1997 5/18/2000 10/10/2002 3/01/2005 7/19/2007 12/03/2009 4/23/201215-Year Indexed Price PerformanceAEM-NYSE XAU Spot Gold
  • 20. APPENDIX
  • 21. COST EFFECTIVE EXPLORATION REFLECTS SUCCESSFUL M&A STRATEGYSignificant exploration results at acquired propertiesagnicoeagle.com 2103,0006,0009,000Kittila05Kittila12PinosAltos06PinosAltos12Meadowbank07Meadowbank12Meliadine10Meliadine12LaIndia11LaIndia12MinedProven &ProbableMeasured &IndicatedInferred+1105 koz+5644 koz+3161 koz+3085 koz+1097 koz$54 $43$173$121$186$18 $27$48$26$10$0$50$100$150$200Kittila Pinos Altos Meadowbank Meliadine La IndiaPurchase Cost per OzDiscovery Cost per OzNote: 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.
  • 22. OPERATING METRICSagnicoeagle.com 22$0/t$20/t$40/t$60/t$80/t$100/t$120/t$140/t4,000tpd4,500tpd5,000tpd5,500tpd6,000tpd6,500tpd7,000tpd7,500tpdQ1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13LaRonde - Ore milled (000 tonnes)LaRonde - Minesite costs per tonne (C$)$50/t$70/t$90/t$110/t$130/t$150/t$170/t1,400tpd1,450tpd1,500tpd1,550tpd1,600tpd1,650tpd1,700tpd1,750tpd1,800tpd1,850tpd1,900tpdQ1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13Lapa - Ore milled (000 tonnes)Lapa - Minesite costs per tonne (C$)LapaLaRonde
  • 23. OPERATING METRICSagnicoeagle.com 23€40/t€50/t€60/t€70/t€80/t€90/t0tpd500tpd1,000tpd1,500tpd2,000tpd2,500tpd3,000tpd3,500tpd4,000tpdQ1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13Kittila - Ore milled(000 tonnes)Kittila - Minesite costs per tonne (EUR)$0/t$20/t$40/t$60/t$80/t$100/t$120/t$140/t0tpd2,000tpd4,000tpd6,000tpd8,000tpd10,000tpd12,000tpdQ111Q211Q311Q411Q112Q212Q312Q412Q113Meadowbank - Ore milled (000 tonnes)Meadowbank - Minesite costs per tonne (C$)$0/t$10/t$20/t$30/t$40/t$50/t$60/t4,000tpd4,200tpd4,400tpd4,600tpd4,800tpd5,000tpd5,200tpd5,400tpdQ111Q211Q311Q411Q112Q212Q312Q412Q113Pinos Altos - Ore milled (000 tonnes)Pinos Altos - Minesite costs per tonne (USD$)KittilaPinos Altos Meadowbank
  • 24. GOLD AND SILVER RESERVES AND RESOURCESDecember 31, 2012agnicoeagle.com 24GoldTonnes(000’s)Gold(g/t)Gold(ounces)(000’s)Proven 13,836 3.13 1,394Probable 170,300 3.16 17,286TotalReserves184,136 3.16 18,681Measured &Indicated140,995 1.79 8,104Inferred 199,503 1.90 12,159SilverTonnes(000’s)Silver(g/t)Silver(ounces)(000’s)Proven 9,390 47.30 14,281Probable 57,536 43.93 81,256TotalReserves66,926 44.40 95,537Measured &Indicated23,379 31.95 24,015Inferred 36,479 20.66 24,228See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources.
  • 25. COPPER, ZINC AND LEAD RESERVES AND RESOURCESDecember 31, 2012agnicoeagle.com 25See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources.CopperTonnes(000’s)Copper(%)Copper(tonnes)Proven 6,323 0.30 18,744Probable 22,462 0.24 53,835TotalReserves28,786 0.25 72,580Indicated 5,432 0.12 6,644Inferred 11,887 0.25 29,317ZincTonnes(000’s)Zinc(%)Zinc(tonnes)Proven 6,323 1.06 67,211Probable 22,462 0.68 152,973TotalReserves28,786 0.76 220,184Indicated 5,432 1.50 81,551Inferred 11,887 0.58 69,048LeadTonnes(000’s)Lead(%)Lead(tonnes)Proven 6,323 0.12 7,738Probable 22,462 0.05 10,304TotalReserves28,786 0.06 18,042Indicated 5,432 0.15 8,071Inferred 11,887 0.05 5,375
  • 26. 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 thesecategories will 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 SECdoes not recognize it. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legalfeasibility. 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, estimatesof inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume thatpart or all of an 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 areurged 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 IndustryGuide 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 SEChas interpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates at the Lapa, Meadowbankand Creston Mascota mines and the Goldex and Meliadine projects reported by the Company on February 13, 2013 are based on three-year average prices forthe 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, $1.00 per pound leadand C$/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 resourcesestimates 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 onthree-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 poundcopper, $0.99 per pound lead and C$/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 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.agnicoeagle.com 26
  • 27. 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. Thisstudy 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. Aproven mineral reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. A probablemineral reserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated by at least apreliminary feasibility 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 characteristicsare so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, tosupport production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling andtesting information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closelyenough 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 andeconomic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliableexploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that arespaced closely enough for geological and grade continuity to be reasonably assumed. An inferred mineral resource is that part of a mineral resource for whichquantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geologicaland 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 appropriatelydetailed assessments of realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmentalconsiderations together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reportingthat extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent orfinancial 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-FeasibilityStudy.The effective date for all of the Company’s mineral resource and reserve estimates in this press release is December 31, 2012. Additional information abouteach 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 Reportsreferred 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 newsrelease 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 27
  • 28. agnicoeagle.comTrading Symbol:AEM on TSX & NYSEInvestor Relations:416-847-8665info@agnicoeagle.com