AGNICO-EAGLE MINES LIMITED

Transcription

1 AGNICO-EAGLE MINES LIMITED Corporate Update January 2008 Agnico-Eagle Mines Limited 1

2 Forward Looking Statements The information in this document has been prepared as at January 15, 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, planned and similar expressions are intended to identify forwardlooking statements or information. Such statements and information include without limitation: the Company s forward looking production guidance, including estimated ore grades, metal production, minesite cost per tonne, total cash costs per ounce and projected exploration and capital expenditures; estimates of future reserves, resources, mineral production and sales; estimates of mine life; estimates of future 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 and; the anticipated timing of events with respect to the Company's minesites and; statements and information regarding the sufficiency of the Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; risks associated with foreign operations; risks related to title issues at the Pinos Altos project; 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 Company's Annual Information Form and Annual Report on Form 20-F for the year ended December 31, 2006, 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. Agnico-Eagle Mines Limited 2

3 Notes To Investors Note to Investors Regarding the Use of Non-GAAP Financial Measures This document presents estimates of future "total cash cost per ounce" and "minesite cost per tonne" that are not recognized measures under United States generally accepted accounting principles ("US GAAP"). This data may not be comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-gaap financial measures to the most comparable GAAP measure. A reconciliation of the Company's total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company's historical results of operations is set forth in the notes to the financial statements and in the Company's Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2006, as well as the Company's other filings with the Canadian Securities Administrators and the SEC. Agnico-Eagle Mines Limited 3

4 Growth Strategy Building Value Through Production and Reserve Growth Produce more gold Targeting 1.3 million oz annually 2010 to 2017 Grow gold reserves in mining friendly regions 16.3 million ounces, targeting million ounces within 13 months Acquire small, think big Create value through strategic acquisitions Be a low cost leader Total cash cost estimated to average $230/oz from 2010 to 2017 Maintain a solid financial position Approximately $420 million cash, no debt, strong cash flow, undrawn $300 million credit facility Agnico-Eagle Mines Limited 4

5 Financial Position Strongest Financial Position in Company s History All amounts are in US$ millions, unless otherwise indicated Dec Cash and cash equivalents approx. $420 Long term debt $0 Common shares (millions) Basic Fully diluted Available bank lines $300 Agnico-Eagle Mines Limited 5

6 Gold Reserves AEM s gold reserves are significantly larger than its intermediate peers Targeting additional reserve conversion at Pinos Altos, Goldex, Kittila and Meadowbank Uniquely positioned with potential for several 5 million oz gold deposits Strong record of growing gold reserves per share Shares outstanding up only 2.6 times since Gold reserves up 12.5 times 20 Total Agnico-Eagle Gold Reserves (Millions of Ounces) Target: Current 2008 Est. LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank Agnico-Eagle Mines Limited 6

7 Building Gold Production and Reserves Agnico-Eagle Mines Limited 7

8 Global Growth Five New Gold Mines Under Construction AEM s growth projects 100% owned, with low total acquisition costs Finland Kittila Located in mining friendly regions of low political risk Each project region has long-term mining camp potential U.S.A. Nevada Canada Meadowbank Canada LaRonde, Goldex & Lapa Canada Toronto, HQ Largest exploration budget in Agnico-Eagle s history greater than $65 million Mexico Pinos Altos Agnico-Eagle Mines Limited 8

9 Industry Leading 1 Gold Production Growth Payable Gold Production (ounces) 1,600,000 Total Cash Costs ($/oz)* 300 1,400,000 1,200,000 1,000, , , , , E 2009E 2010E 2011E 2012E-2017E Average 0 LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank Total Cash Costs (weighted average) 1 For an intermediate or senior gold producer * Total cash costs for all years were calculated using the following trailing 3-year average metals prices and exchange rates: $10.55/oz Ag; $2,596/t Zn; $5,628/t Cu; C$/US$ of 1.15; US$/Euro of 1.29 Agnico-Eagle Mines Limited 9

10 Capital Expenditure Estimates ($000's) 600, , , , , , E 2009E 2010E 2011E 2012E-2017E LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank Agnico-Eagle Mines Limited 10

11 LaRonde Canada Long Life Gold Reserves Proven and probable gold reserves of 35.6 million tonnes at 4.5 g/t, or 5.2 million oz Life of mine: average production of 340,000 oz/yr at total cash costs of approximately $150/oz Shaft sinking underway for Extension $40 million invested to date on Extension, $185 million more to completion in early 2012 Exploration ongoing west of orebody. Eastern focus on El Coco and Bruce. Agnico-Eagle Mines Limited 11

12 LaRonde Canada Longitudinal Section exploration upside 300 m exploration upside exploration upside Probable Reserve Indicated & Inferred Resource Agnico-Eagle Mines Limited 12

13 LaRonde Canada Agnico-Eagle Mines Limited 13

14 LaRonde Canada Agnico-Eagle Mines Limited 14

15 LaRonde Canada Agnico-Eagle Mines Limited 15

16 Goldex Canada Mine On Budget and Ahead of Schedule for April 2008 Start-up Proven and probable gold reserves of 1.7 million ounces from 22.9 million tonnes grading 2.3 g/t Estimated average annual production of 175,000 oz/yr with total cash costs expected at $230/oz Shaft sinking complete Processing plant expected to be complete Q1, 2008 $160 million invested to date, $23 million more to completion in April 2008 exploration upside 100 m Probable Reserve Indicated& Inferred Resource Agnico-Eagle Mines Limited 16

17 Goldex Canada Site Agnico-Eagle Mines Limited 17

18 Goldex Canada Production Hoist Agnico-Eagle Mines Limited 18

19 Goldex Canada Mill Agnico-Eagle Mines Limited 19

20 Lapa Canada New Gold Mine 11 km East of LaRonde Probable gold reserves of 1.2 million oz; 3.9 million tonnes at 9.1 g/t Anticipating average production of 125,000 oz/yr at expected total cash costs of $300/oz Shaft sinking complete and level development underway Contact Central Contact South Contact North 500 m 1,000 m $45 million invested to date, $120 million more to completion in mid m 1,369 m exploration upside 1,360 m Probable Reserve Indicated& Inferred Resource Agnico-Eagle Mines Limited 20

21 Lapa Canada Site Agnico-Eagle Mines Limited 21

22 Lapa Canada Shaft Sinking Team Agnico-Eagle Mines Limited 22

23 Lapa Canada Backfill Plant Agnico-Eagle Mines Limited 23

24 Kittila Mine Finland Deposit Continues to Expand Probable reserves of 2.6 million oz; 16.0 million tonnes at 5.1 g/t open on strike and at depth Average production expected at 150,000 oz/yr with approximate total cash costs of $300/oz Exploration ongoing to convert large gold resource and extend zones $100 million invested to date, $90 million more to completion in September 2008 Agnico-Eagle Mines Limited 24

25 Kittila Mine Finland Surface Plan 25km strike length Agnico-Eagle Mines Limited 25

26 Kittila Mine Finland Longitudinal Section Ketola Etelä Suuri Central Roura North Roura Rimpi exploration upside exploration upside exploration upside exploration upside 1000 m Probable Reserve Indicated Resource Agnico-Eagle Mines Limited 26

27 Kittila Mine Finland Gold Zones - Section 6490N Looking North 0 m -100 m -200 m m m 100 m E E Probable Reserve Indicated Resource Agnico-Eagle Mines Limited 27

28 Kittila Mine Finland Orebody Stripping Agnico-Eagle Mines Limited 28

29 Kittila Mine Finland Mill and Oxygen Plant Building Agnico-Eagle Mines Limited 29

30 Kittila Mine Finland Underground Decline Agnico-Eagle Mines Limited 30

31 Pinos Altos Mexico Growing Gold and Silver Reserve Probable gold reserves of 2.2 million ounces, 65.7 million ounces silver from 20.0 million tonnes at 3.5 g/t gold and g/t silver Expected annual gold production of 190,000 ounces at total cash costs of $210/oz Construction to begin Q1, $14 million exploration program in progress. Drilling from underground decline to begin in Q1, 2008 $30 million invested to date, $200 million more to completion in mid Agnico-Eagle Mines Limited 31

32 Pinos Altos Mexico Surface Plan Agnico-Eagle Mines Limited 32

33 Pinos Altos Mexico Longitudinal Section Santo Nino San Eligio Oberon de Weber El Apache Cerro Colorado exploration upside exploration upside exploration upside exploration upside exploration upside 300 m Probable Reserve Indicated & Inferred Resource Agnico-Eagle Mines Limited 33

34 Pinos Altos Mexico Santo Nino - Section S4600E Looking West North Pit Outline South Ore Zone Buenavista Ignimbrite Victoria Ignimbrite Santo Nino Fault Santo Nino Andesite 50 m Agnico-Eagle Mines Limited 34

35 Pinos Altos Mexico Creston Mascota Section 5900N Looking North West East Open Open Ore grade gold mineralization 50 m Agnico-Eagle Mines Limited 35

36 Pinos Altos Mexico AEM Camp Agnico-Eagle Mines Limited 36

37 Pinos Altos Mexico Underground Decline Agnico-Eagle Mines Limited 37

38 Pinos Altos Mexico 7 Operating Drills Agnico-Eagle Mines Limited 38

39 Meadowbank Canada Start Up Accelerated Six Months Initial Production January 2010 Probable reserves of 3.5 million oz; 27.7 million tonnes at 3.9 g/t open on strike and at depth Years 1 to 4 production to expected average 435,000 oz with approximate total cash costs of $240/oz Average LOM production expected at 360,000 oz/yr with approximate total cash costs of $300/oz Exploration ongoing to convert large gold resource, extend zones and test new targets $110 million invested to date, $280 million more to completion in January 2010 Agnico-Eagle Mines Limited 39

40 Meadowbank Canada Surface Plan Agnico-Eagle Mines Limited 40

41 Meadowbank Canada Longitudinal Section South Over 3.5 km strike length North Goose South Goose Island Portage Bay Island Portage Cannu exploration upside exploration upside exploration upside exploration upside 200 m Probable Reserve Indicated Resource Agnico-Eagle Mines Limited 41

42 Meadowbank Canada Portage Deposit Section Section 3P2 180N Looking North Probable Reserve Sediment Ultramafic Volcanic Approx. Pit Outline 0 50 Metres Agnico-Eagle Mines Limited 42

43 Meadowbank Canada Site Agnico-Eagle Mines Limited 43

44 Meadowbank Canada 110 Km All Weather Road Completed Agnico-Eagle Mines Limited 44

45 Meadowbank Canada Road Construction Complete Agnico-Eagle Mines Limited 45

46 Timeline of Upcoming News First Quarter 2008 Exploration Update February 20, 2008 Q4, 2007 Earnings and Reserve/Resource update Second Quarter 2008 May 2008 Q1, 2008 Earnings and Annual General Meeting Agnico-Eagle Mines Limited 46 46

47 Investment Highlights Industry Leading Production and Reserve Growth Story 1 Generating strong earnings and cash flows Gold growth projects fully funded Potential to increase gold production fivefold by 2010 Existing projects provide potential to increase gold reserves to beyond 18 million to 20 million ounces Potential for several 5 million ounce gold deposits 1 For an intermediate gold producer Agnico-Eagle Mines Limited 47

48 Sean Boyd Vice Chairman and Chief Executive Officer Ebe Scherkus President and Chief Operating Officer David Garofalo Sr. Vice President, Finance and Chief Financial Officer Trading Symbols: AEM / TSX & NYSE Executive and Registered Office: 145 King Street East, Suite 400 Toronto, Ontario, Canada, M5C 2Y7 Tel: Toll-Free: Fax: [email protected] Web: Investor Relations Contact: David Smith VP, Investor Relations Agnico-Eagle Mines Limited 48