Q3 2013 Results

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Q3 2013 Results

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Q3 2013 Results

  1. 1. Third Quarter 2013 Results October 2013 agnicoeagle.com
  2. 2. FORWARD LOOKING STATEMENTS The information in this document has been prepared as at October 23, 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
  3. 3. NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This document presents estimates of future “total cash cost per ounce”, “minesite cost per tonne”, and “all-in sustaining cost per ounce of gold produced” 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 sites 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, 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
  4. 4. KEY OPERATING HIGHLIGHTS – Q3 2013 • Record quarterly gold production of 315,828 oz at a total cash cost of $591/oz • Record quarterly gold production and improved costs at Meadowbank – 133,489 oz at a total cash cost of $623/oz • 2013 Production guidance increased to approximately 1,060,000 oz of gold • 2013 Total cash cost guidance reduced to approximately $690 / oz • 2013 all-in sustaining cost estimate is reduced to $1,025/oz (from $1,100/oz) • Restart of Goldex and commissioning of La India mines commenced late Q3 agnicoeagle.com 4
  5. 5. UPCOMING CATALYSTS On track for production growth of approximately 20% from 2013 - 2015 • Grades forecast to remain strong at Meadowbank in Q4 and potentially into 2014 • Continued grade improvement expected at LaRonde as cooling plant is commissioned and higher grade mining pyramids are accessed • Production profile to benefit from a full year of operation at Goldex in 2014 • La India leaching expected to commence in November 2013 and commercial production expected to commence in Q1 2014 agnicoeagle.com 5
  6. 6. IMPROVEMENTS IN CASH FLOW GENERATION Expected to offset impact of lower metal prices 2013 Reduction in capital and operating costs (announced Q2/13) Reduction in exploration spending (announced Q2/13) $50 million $20 million Estimated positive net impact on cash flow $70 million 2014 Reduction in capital costs (announced Q2/13) Reduction in exploration spending (announced Q2/13) Reduction in Labour and G&A costs (announced October 23, 2013) $200 million $50 million $40 million Estimated positive net impact on cash flow $290 million agnicoeagle.com 6
  7. 7. OPERATING RESULTS Strong operational performance at all mines drives record quarterly production Q3 2013 YTD 2013 Production Total Cash Cost (Gold oz) ($/oz) Production (Gold oz) Total Cash Cost ($/oz) LaRonde 45,253 $746 130,445 $801 Goldex1 1,505 N/A 1,505 N/A Kittila 56,177 $518 104,711 $5642 Lapa 24,361 $662 74,407 $687 Pinos Altos 43,736 $404 135,283 $402 Creston Mascota 11,307 $523 23,361 $5113 133,489 315,828 $623 $591 307,180 776,892 $828 $692 Meadowbank Total Q3 2013 Revenue by Metal Meadowbank, 39% Base Metals 1% Silver 6% 1. 2. 3. Pre-commercial ounces Excluding production and costs from Q2/13 Excluding production and costs from Q1/13 agnicoeagle.com Q3 2013 Total Operating Margin – $213 M Gold 93% LaRonde, 12% Lapa, 8% Pinos Altos, 23% Kittila, 18% 7
  8. 8. FINANCIAL RESULTS Q3 2013 Q3 2012 YTD 2013 YTD 2012 Revenues (millions) $444 $536 $1,201 $1,468 Earnings (millions) $47 $106 $47 $228 $0.27 $0.62 $0.27 $1.33 $81 $199 $302 $590 315,8281 286,971 776,8922 807,276 Silver (ounces in thousands) 1,213 1,140 3,530 3,450 Zinc (tonnes) 3,648 7,379 15,342 29,915 Copper (tonnes) 1,241 982 3,603 3,312 Total cash costs (gold, $/oz) $591 $556 $692 $602 All amounts are in US$, unless otherwise indicated Earnings per share (basic) Cash provided by operating activities (millions) Payable Production Gold (ounces) Includes 1,505 oz of pre-commercial production from Goldex which is excluded from the total cash cost calculations ²Includes 8,801 oz production from Kittila, Creston Mascota, and Goldex that are not included in the total cash cost calculation 1 agnicoeagle.com 8
  9. 9. FINANCIAL POSITION Adequate cash balance with financial flexibility Sep. 30, 2013 ALL AMOUNTS ARE IN US$, (unless otherwise indicated) CASH AND CASH EQUIVALENTS (millions) $142 LONG TERM DEBT (millions) $950 AVAILABLE CREDIT FACILITIES $1.05 Billion COMMON SHARES OUTSTANDING, BASIC (Q3’13 Weighted average, millions) 173.1 COMMON SHARES OUTSTANDING, FULLY DILUTED (Q3’13 Weighted average, millions) 173.5 Long-Term Debt Maturities 2017 Notes Outstanding (millions) Coupon agnicoeagle.com 2020 2022 2024 $115 $360 $225 $100 6.13% 6.67% 5.93% 5.02% 9
  10. 10. MODERATE, ACHIEVABLE PRODUCTION GROWTH Low political risk, mining-friendly jurisdictions Payable Gold Production Profile (oz) 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 1,000,000 950,000 900,000 2010A 2011A 2012A Actual agnicoeagle.com 2013E 2014E 2015E Estimate 10
  11. 11. PROJECTED CAPITAL SPENDING Capital Expenditures (US$ 000’s) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2008A 2009A 2010A Actual agnicoeagle.com 2011A 2012A 2013E 2014E Estimate 11
  12. 12. OPERATIONS agnicoeagle.com
  13. 13. LARONDE Cooling plant on track for Q4 commissioning • Cooling plant expected to be commissioned in Q4 with full start up in early 2014 • 69% of ore was sourced from deeper mine in Q3 2013; Expected to increase through yearend Mined grade expected to increase towards average reserve grades $240M 4.2 AVERAGE GOLD RESERVE GRADE (g/t) • P&P GOLD RESERVES (million oz) 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 13
  14. 14. LAPA Cost containment initiatives continue to deliver results • Lower total cash costs due to ongoing cost reductions - $662/oz in Q3 • Steady state operation • 0.4 AVERAGE GOLD RESERVE GRADE (g/t) Positive exploration results in the Zulapa area could extend the mine life P&P GOLD RESERVES (million oz) 6.0 Indicated resource (million oz) (1.1 M tonnes @ 4.08 g/t) 0.2 Inferred resource (million oz) (0.9 M tonnes @ 6.69 g/t) 0.2 Estimated LOM (years) $120M 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 14
  15. 15. GOLDEX Commercial production expected in early Q4 2013 P&P GOLD RESERVES (million oz) • • • • Initial mill testing yielded 1,505 oz of precommercial gold production Estimated 2013 production of 15,000 oz Average annual production expected to be 85,000 oz at total cash costs of $900/oz 0.35 AVERAGE GOLD RESERVE GRADE (g/t) 1.6 Measured & Indicated gold resource (million oz) (27.2 M tonnes @ 1.8 g/t) 1.6 Inferred gold resource (million oz) (34.6 M tonnes @ 1.5 g/t) 1.7 Estimated LOM (years) 4 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. Technical study on other satellite zones expected by end of 2013 agnicoeagle.com 15
  16. 16. KITTILA Production positively impacted by high-grade pit pillar • Record quarterly gold production on increased throughput, and recoveries • Better SAG mill performance and simplified autoclave operation following the Q2 2013 relining • $240M 4.8 AVERAGE GOLD RESERVE GRADE (g/t) 4.5 Indicated resource (million oz) (7.8 M tonnes @ 2.65 g/t) 0.7 Inferred resource (million oz) (19.0 M tonnes @ 3.88 g/t) 2.4 Estimated LOM (years) 750 tpd mill expansion remains on budget and schedule P&P GOLD RESERVES (million oz) 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 16
  17. 17. MEADOWBANK Record quarterly gold production • • • Record quarterly production on positive tonnage and grade reconciliation, consistently high crusher throughput and higher recoveries Excellent cost control due to improved productivity and cost reduction initiatives Grades forecast to remain strong in Q4 2013 P&P GOLD RESERVES (million oz) 2.3 AVERAGE GOLD RESERVE GRADE (g/t) 2.8 Measured & Indicated resource (million oz) (10.3 M tonnes @ 2.49 g/t) 0.8 Inferred resource (million oz) (3.6 M tonnes @ 3.81 g/t) 0.4 Estimated LOM (years) $320M Cash Operating Margin 6 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. $240M $160M $80M $0M 2010 agnicoeagle.com 2011 2012 17
  18. 18. MEXICO – PINOS ALTOS & CRESTON MASCOTA Record quarterly mill throughput • Record mill throughput on new mill liner design and higher availability P&P GOLD RESERVES (million oz) 2.7 • Creston Mascota ramping up as expected AVERAGE GOLD RESERVE GRADE (g/t) 2.2 • Stable production costs Indicated resource (million oz) (17.9 M tonnes @ 1.52 g/t) 0.9 • Shaft construction at Pinos Altos on schedule and on budget Inferred resource (million oz) (24.6 M tonnes @ 1.19 g/t) 0.9 Estimated LOM (years) 17 $320M 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 18
  19. 19. LA INDIA Leaching expected in November • Approx. 125,000 tonnes of ore stacked to date with crushing circuit now operational • Estimated annual gold production of 90 koz @ average total cash costs of $500/oz Metallurgical testing results on La India sulphides and Tarachi mineralization expected later this year 0.8 AVERAGE GOLD RESERVE GRADE (g/t) • PROBABLE GOLD RESERVES (million oz) 0.7 Indicated gold resource (million oz) (43.2 M tonnes @ 0.4 g/t) 0.6 Inferred gold resource (million oz) (81 M tonnes @ 0.4 g/t) 1.0 Estimated LOM (years) 8 See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. agnicoeagle.com 19
  20. 20. MANAGING AND DELIVERING IN A VOLATILE GOLD MARKET • 2013 production guidance raised • Improved cashflow generation for 2013 and 2014 expected through cost savings and increased production guidance – potential total impact approximately $400 million • Delivering on production - strong operating performance expected to continue into 2014 • 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 20
  21. 21. APPENDIX agnicoeagle.com
  22. 22. 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 $0 Kittila Pinos Altos Meadowbank Meliadine La India Note: The terms “measured resources”, “indicated resources” and “inferred resources” are not recognized under the SEC guidelines. Detailed information can be found in the February 13, 2013 press release. agnicoeagle.com 22
  23. 23. OPERATING METRICS LaRonde LaRonde - Ore milled ('000 tonnes) LaRonde - Minesite costs per tonne (C$) 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 $0/t Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Lapa Q1 13 Q2 13 Q3 13 Lapa - Ore milled ('000 tonnes) Lapa - Minesite costs per tonne (C$) 1,900tpd $170/t 1,850tpd $150/t 1,800tpd $130/t 1,750tpd 1,700tpd $110/t 1,650tpd 1,600tpd $90/t 1,550tpd $70/t 1,500tpd 1,450tpd $50/t Q2 11 Q3 11 agnicoeagle.com Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 23
  24. 24. 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 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Pinos Altos Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Meadowbank 5,600tpd $60/t 14,000tpd $140/t 5,400tpd $50/t 12,000tpd $120/t 10,000tpd $100/t 8,000tpd $80/t 6,000tpd $60/t 4,000tpd $40/t 2,000tpd $20/t 5,200tpd $40/t 5,000tpd $30/t 4,800tpd $20/t Pinos Altos - Ore milled ('000 tonnes) Pinos Altos - Minesite costs per tonne (USD$) agnicoeagle.com 0tpd Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Q4 11 $0/t Q3 11 Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 $0/t Q4 11 4,200tpd Q3 11 $10/t Q2 11 4,400tpd Q2 11 4,600tpd Meadowbank - Ore milled ('000 tonnes) Meadowbank - Minesite costs per tonne (C$) 24
  25. 25. 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 25
  26. 26. 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 26
  27. 27. 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 27
  28. 28. 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 28
  29. 29. agnicoeagle.com Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-847-8665 info@agnicoeagle.com agnicoeagle.com

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