Forward Looking Statements

Transcription

1 Agnico-Eagle Mines Limited Corporate Update January 2009

2 Forward Looking Statements The information in this document has been prepared as at January 21, 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 and information include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; 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; 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; 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, 2007, 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. 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 included in the Company's Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2007, as well as the Company's other filings with the Canadian Securities Administrators and the SEC. 3

4 Corporate Strategy Q3 Highlights Maintain focus on per share value creation Produce more gold Expected to double in 2009 and again in 2010 additional growth possible as studies on 4 internal opportunities to be completed during 2009 Grow gold reserves ability to grow beyond reserve target of 18 million to 20 million ounces several deposits likely to exceed 5 million ounces Acquire small, think big invest early in high quality gold deposits Be a low-cost leader at full production rates anticipate to be in lowest quartile total cash cost Maintain a solid financial profile Doubled credit facility to $600 million Raised C$55 million in flow-through issuance and $280 million in equity financing subsequent to quarter end 4

5 Strong Financial Position All amounts are in US$, unless otherwise indicated Proforma Sept. 30, 2008 Cash and cash equivalents (millions) $474.0 Long term debt (millions) $300.0 Available credit facilities (millions) $300.0 Common shares outstanding (millions) Common shares, fully diluted (millions)

6 Global Growth Three mines now operating. Three new gold mines under construction AEM s growth projects 100% owned, with low total acquisition costs Located in mining friendly regions of low political risk Each project region has long-term mining camp potential Total 2009 and 2010 capex estimated at $600 million. Approximately 70% committed. 6

7 Global Map 2009 Exploration Expense $54 million including capitalized exploration Canada Nunavut Finland Kittilä Mexico 24% USA 23% Canada Vancouver Canada Quebec Western Canada 8% Eastern Canada 29% Finland 16% USA Nevada Canada Toronto, HQ Mexico Pinos Altos Québec-Ontario $2.37M 12,500m Mexico $7.16M 20,000m Nunavut $6.57M 20,000m USA $7.08M 15,900m Total $8.94M 32,500m Finland $4.79M 18,500m Vancouver $2.30M 3,000m Grand Total: $30.26M 89,900m 7

8 Gold Reserves AEM s gold reserves are significantly larger than its intermediate peers Shares outstanding up only 2.9 times since Gold reserves up 12.8 times Strong record of growing gold reserves per share Targeting additional reserve conversion at Pinos Altos, Goldex, Kittila and Meadowbank Uniquely positioned with potential for several 5 million oz gold deposits (Millions of Ounces) Target: Est. LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank 8

9 Industry Leading 1 Gold Production Growth Estimates Payable Gold Production (ounces) 1,600,000 Total Cash Costs ($/oz)* 400 1,400,000 1,200, ,000, , , , , E 2010E 2011E 2012E Avg. 0 LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank Total Cash Costs (weighted average) 1 For an intermediate or senior gold producer * Total cash costs per ounce for all years were calculated using the following metal prices and exchange rates (royalties included where applicable): $10.00/oz Ag; $1,200/t Zn; $3,700/t Cu; C$/US$ of 1.22; US$/Euro of

10 AEM Provides Increasing Leverage To Gold Based on publicly available production guidance, Agnico-Eagle s share price is backed by the most robust production growth profile among its peers, ranking among the highest in ounces of production per share Ounces of Production per Thousand Shares Combined with some of the lowest cash costs in the industry, this also translates into strong cash flow per share performance A 2008E 2009E 2010E 10

11 Capital Expenditure Estimates* ($000's) 500, , , , , , , , ,000 50, Sustaining Capital LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank 11

12 LaRonde Canada Long Life Gold Reserves Proven and probable gold reserves of 34.9 million tonnes at 4.4 g/t, or 5.0 million oz Life of mine: estimated to average production of 320,000 oz/yr Shaft sinking well advanced for Extension Start of production from Extension expected in 2011 Exploration ongoing west of orebody. Eastern focus on El Coco and Bruce properties. 12

13 Goldex Canada Ramping Up to Design Rates Proven and probable gold reserves of 1.6 million ounces from 23.1 million tonnes grading 2.2 g/t Level m Estimated average annual production of 160,000 oz/yr Commercial production achieved August 1, 2008 Level m Examining options to increase production rate from 6900 tpd to 8000 tpd. Results expected Q exploration upside 100 m Probable Reserve Indicated & Inferred Resource 13

14 Goldex Canada 14

15 Kittila Finland Mining and Processing Underway Probable gold reserves of 3.0 million oz; 18.2 million tonnes at 5.1 g/t open on strike and at depth Recent drilling expands gold resource at depth Average production expected at 150,000 oz/yr First gold concentrate produced September 2008 Exploration ongoing to convert large gold resource, extend zones. $16.4 million in 2009 Examining options to significantly increase production rate of growing deposit. Results expected Q

16 Kittila Finland New Gold Zones at Depth Longitudinal Section 0 m Ketola Etelä Suuri Central Roura North Roura Rimpi 0 m SUU / m SUU / 5.1 SUU / 3.2 & 8.08/ 11.6 & 4.21/ 3.2 ROU / 47.5 Incl. 8.3 / 3.0 & 4.17 / 3.9 & 5.43 / 6.3 & 11.3 / m 5000 N SUU / / 5.9 SUU / N SUU08001B 5.39 / 3.9 & 4.36 / 3.4 & 6.30 / N SUU / 15.1 SUU / 2.9 & 4.69 / 3.9 ROU / N 1000 m 9000 N Probable Reserve Mineral Resource Exploration upside Section N Latest Drill Holes Gold in g/t / true width in meters Previously Released Drill Holes Gold in g/t / true width in meters 16

17 Kittila Mine Finland Section 36500N Looking North 0m Pit Outline ProbableReserve Mineral Resource 500 m Latest Drill Holes Gold g/t / True Width meters New Lens? SUU / / 11.6 n Pote Zo East tial ne E? tial ne E 1000 m Poten l Zo Centra Potential 250 m West Zone E SUU /

18 Kittila Finland 18

19 Kittila Mine Finland 19

20 Lapa Canada Start-up of production expected mid-year 2009 Probable gold reserves of 1.1 million oz; 3.8 million tonnes at 8.9 g/t 500 m Anticipating average production of 115,000 oz/yr Lateral level development underway Exploration upside at depth 1,000 m 1,369 m 1,360 m exploration upside 200 m Probable Reserve Indicated& Inferred Resource 20

21 Pinos Altos Mexico Growing Gold and Silver Reserve Probable gold reserves of 2.5 million ounces, 73.1 million ounces silver from 24.7 million tonnes at 3.2 g/t gold and 92.2 g/t silver Estimated annual gold production of 175,000 ounces and 2.6 million ounces of silver Initial production expected in Q3, Pre-stripping 40,000 tonnes per day $11.1 million exploration program in progress. Drilling from underground decline underway Scoping study in progress on potential stand-alone operation at Creston / Mascota. Results expected Q

22 Pinos Altos Mexico Additional Potential Exists Santo Nino San Eligio Oberon de Weber El Apache Cerro Colorado exploration upside exploration upside exploration upside exploration upside 300 m Probable Reserve Indicated& Inferred Resource 22

23 Pinos Altos Employee Camp 23

24 Mill Construction December

25 Underground Development >3km 25

26 Open Pit Mining- pre-production stripping 26

27 Meadowbank Canada Underground potential being investigated Probable reserves of 3.4 million oz; 28.6 million tonnes at 3.7 g/t open on strike and at depth Estimated average LOM production expected at 350,000 oz/yr Start-up expected Q1, Mill building being erected following good shipping season Exploration ongoing to convert large gold resource, extend zones, test new targets. $10.6 million in 2009 Scoping study underway on potential of underground operation on southern end of deposit. Could increase production rate from 8500 tpd to 10,000 tpd. Results expected Q

28 Meadowbank Canada Exploration Drilling Ongoing South North Over 3.5 km strike length Goose South Goose Island Portage Bay Island Portage Cannu exploration upside exploration upside with underground potential 28

29 Meadowbank Canada August 2008 Over 3.5 km strike length Goose South Goose Island Portage Bay Island Portage exploration upside exploration upside with underground potential 29

30 Meadowbank Canada January 2009 Over 3.5 km strike length Goose South Goose Island Portage Bay Island Portage exploration upside exploration upside with underground potential 30

31 Investment Highlights Industry Leading Production and Reserve Growth Story 1 Long operating history and strong management team Gold production expected to double to 590,000 ounces in 2009, double again to 1.2 million ounces in 2010 Existing projects provide potential to increase gold reserves to 18 million to 20 million ounces by year end 2008 Potential for several five million ounce gold deposits is driving additional internal growth opportunities Four internal growth opportunities expected to add to production rate post For an intermediate gold producer 31

32 Timeline and Upcoming News First Quarter 2009 First gold pour at Kittila Year end 2008 results Exploration update Scoping Studies 2009 Internal Expansions Goldex and Creston/Mascota Q2 Meadowbank Q3 Kittila Q4 32

33 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 Symbol: AEM on TSX & NYSE Executive and Registered Office: 145 King Street East, Suite 400 Toronto, Ontario, Canada, M5C 2Y7 Tel: Toll-Free: Fax: Web: Investor Relations Contact: David Smith Vice President, Investor Relations 33