2. Forward Looking Statements
The information in this document has been prepared as at October 24, 2012. 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, 2011, 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 15, 2012 press release on the Company’s website. That
press release also lists the Qualified Persons for each project.
2
3. 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 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, 2011, 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.
3
4. Agnico-Eagle Mines Limited
Strong Cash Generation With Measured, Focused Growth and
Attractive Dividend Yield
Portfolio of quality, long-life mines that continue to perform well
Low risk production growth from existing assets
Significant exploration upside and reserve growth demonstrated at existing
100%-owned assets
Political risk profile expected to remain low
Strong cash flow funds dividend, exploration, capital reinvestment programs
and enhances financial position
4
5. Q3 2012 Operating Highlights
Record quarterly gold production – 286,971 oz
Record gold production and throughput at Meadowbank – 110,988 oz / 10,902 tpd
Record gold production at low cash costs from Kittila – 48,619 oz @ $478/oz
Strong gold production at record low cash costs from Mexico – 61,973 oz @ $212/oz
Record cash flow generation
Record quarterly and nine-month cash provided by operating activities of $199M and
$590M, respectively
Increased 2012E gold production guidance to approximately 1,025,000 oz
Lowered 2012E total cash cost guidance to approximately $660 / oz
5
6. Operating Results
Record production with improved costs
Q3 2012 YTD 2012
Production Total Cash Cost Production Total Cash Cost
(Gold oz) ($/oz) (Gold oz) ($/oz)
LaRonde 40,477 564 123,964 514
Kittila 48,619 478 130,605 564
Lapa 24,914 760 81,570 683
Pinos Altos1 61,973 212 182,345 284
Meadowbank 110,988 734 288,792 836
Total 286,971 556 807,276 602
Q3 2012 Revenue By Metal YTD 2012
Q3 2012
2012 Forecast
Gold (oz) 286,971 807,276 1,025,0002
Base Metals Silver (000’s oz) 1,140 3,450 4,150
3% Gold
90% Zinc (t) 7,379 29,915 33,000
Silver
7%
Copper (t) 982 3,312 4,800
Total cash costs
556 602 6602
($/oz)
1. Pinos Altos figures include Creston Mascota 2. Adjusted forecast 6
7. Financial Results
Strong earnings and cash flow
Q3 Q3 YTD YTD YTD Y/Y
2012 2011 2012 2011 Change
Gold (ounces in thousands) 287 266 807 758 7%
Total cash costs ($ per ounce) $556 $563 $602 $553 9%
Revenues from mining operations (millions) $536 $521 $1,468 $1,366 7%
Net income (millions) $106 ($82) $228 $32 603%
Net income per share (basic) $0.62 ($0.48) $1.33 $0.19 600%
Cash provided by operating activities (millions) $199 $198 $590 $535 10%
YTD 2012 Total Operating Margin - $813M
Pinos Altos
Meadowbank
29%
28%
Lapa Laronde
10% 17%
Kittila
16%
7
8. Financial Position
Net free cash flow expected to enhance balance sheet strength
ALL AMOUNTS ARE IN US$,
unless otherwise indicated Sep. 30, 2012
CASH AND CASH EQUIVALENTS (millions) $321
LONG TERM DEBT (millions) $800
AVAILABLE CREDIT FACILITIES $1.2 Billion
COMMON SHARES OUTSTANDING, BASIC (Q3’12 Weighted average, millions) 171
COMMON SHARES OUTSTANDING, FULLY DILUTED (Q3’12 Weighted average, millions) 172
8
9. Generating Net Free Cash Flow
Cash flow to fund dividend and growth plans
Capital Expenditures (US$ 000's)
$1,200,000
Approximate Average EBITDA*
$1,000,000
$800,000
Illustrative Ongoing
Re-Investment
$600,000
$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/€ 9
11. LaRonde
Transition period to lower mine extended
YTD gold production of 123,964 oz at P&P GOLD RESERVES (million oz) 4.7
total cash costs of $514 per ounce
Q3 gold grade 2.5 g/t vs. 1.7 g/t in Q3’11 AVERAGE GOLD RESERVE GRADE (g/t) 4.4
Heat, congestion and lack of flexibility
Indicated resource (million oz) 0.4
extend production ramp-up period
through 2015; Life of mine profile Inferred resource (million oz) 1.3
remains unchanged
Value of ore per tonne approximately Estimated LOM (years) 15
50% higher over life of mine versus 2012
2012 exploration budget
$1M
(LaRonde & regional)
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.
$75M
Cash Operating Margin
$60M
$45M
$30M
$15M
$0M
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 11
12. Lapa
Stable production and cost control continues
YTD gold production of 81,570 oz at total P&P GOLD RESERVES (million oz) 0.5
cash costs per ounce of $683
AVERAGE GOLD RESERVE GRADE (g/t) 6.5
Anticipated life of mine extended into
2016 Indicated resource (million oz) 0.3
Underground exploration drifts to east Inferred resource (million oz) 0.1
and west will provide access to drill
targets that could extend mine life Est. LOM (years) 4
2012 exploration budget $5M
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.
$40M
Cash Operating Margin
$20M
$0M
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 12
13. Kittila
Record quarterly production at low costs
Q3 gold production a record 48,619 oz
P&P GOLD RESERVES (million oz) 5.2
at total cash costs of $478 per ounce
Initial 25% expansion study expected AVERAGE GOLD RESERVE GRADE (g/t) 4.7
in late 2012
Indicated resource (million oz) 1.0
Good exploration results at Rimpi
Inferred resource (million oz) 1.2
suggest potential for ongoing phased
expansions Estimated LOM (years) 33
Transitioning fully to underground 2012 exploration budget $17M
operations in 2013; Expecting higher
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.
unit costs
$55M
Cash Operating Margin
$40M
$25M
$10M
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 13
14. Mexico - Pinos Altos & Creston Mascota
Strong Q3 production at record low cash costs
Q3 gold production of 61,973 oz at record P&P GOLD RESERVES (million oz) 3.1
low total cash costs per ounce of $212
La India to add to production profile in AVERAGE GOLD RESERVE GRADE (g/t) 2.1
2014
Indicated resource (million oz) 0.8
Production delays at Creston Mascota;
Ramp-up to resume in Q2 2013 Inferred resource (million oz) 0.8
Estimated LOM (years) 18
2012 exploration budget $6M
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.
$100M
Cash Operating Margin
$80M
$60M
$40M
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 14
15. Meadowbank
Record production and operating profit
Another gold production record in Q3 P&P GOLD RESERVES (million oz) 2.2
of 110,988 oz at total cash costs per
ounce of $734 AVERAGE GOLD RESERVE GRADE (g/t) 2.8
De-risked mine plan continuing to Indicated resource (million oz) 1.3
hit/exceed targets on throughput
(10,902 tpd in Q3) and grade (3.7 g/t in Inferred resource (million oz) 0.5
Q3)
Est. LOM (years) 6
2012 exploration budget $7M
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.
Cash Operating Margin
$100M
$80M
$60M
$40M
$20M
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 15
16. Upcoming News Flow
November 2012 – Exploration update
December 2012 – Annual dividend announcement
February 2013
Q4 Results
New reserve/resource estimates
Updated three year production and cost guidance
16
17. Sound Business Continues To Deliver
No change in strategy or focus
AEM is among industry leaders in per share production, reserves, 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
Expecting growth in reserves through exploration of existing assets
Business generating strong cash flows in regions of low political risk
Allocated to dividends, exploration and reinvesting in our core assets
17
21. Gold and Silver Reserves and Resources
December 31, 2011
Tonnes Gold Gold Tonnes Silver Silver
Gold (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 10,670
Probable 146,057 3.78 17,757 Probable 72,693 45.06 105,319
Total Total
157,086 3.71 18,750 80,011 45.09 115,989
Reserves Reserves
Measured & Measured &
168,336 1.78 9,633 27,801 27.24 24,344
Indicated Indicated
Inferred 131,216 2.30 9,712 Inferred 34,513 19.00 21,082
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources.
22. 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
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources
22
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 reported
by the Company on February 15, 2012 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 per pound 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 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.
23
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 document is December 31, 2011. 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 Technical Reports,
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.
Alain Blackburn, a Qualified Person and the Company’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein.
24
25. A solid financial position, 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 Boyd Executive and Registered Office:
President and 145 King Street East, Suite 400
Chief Executive Officer Toronto, Ontario, Canada, M5C 2Y7
David Smith Tel: 416-947-1212
SVP Finance and Chief Financial Officer Toll-Free: 888-822-6714
Fax: 416-367-4681
Trading Symbol:
AEM on TSX & NYSE
Investor Relations:
416-847-8665
info@agnico-eagle.com
agnico-eagle.com
