AEM Q4 & Full Year 2011 Results
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Transcript of AEM Q4 & Full Year 2011 Results
Agnico-Eagle Mines Limited
Fourth Quarter and Full Year 2011 Results February 2012
Forward Looking Statements
The information in this document has been prepared as at February 15, 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 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; 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, 2010, 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. Marc Legault, a Qualified Person and the Company’s Vice-President, Project Development, 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
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, 2010, 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, 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 LaRonde Kittila Lapa Pinos Altos Meadowbank Meliadine
All amounts are in US$, unless otherwise indicated
Q4 2011
Q4 2010
Full Year 2011
Full Year 2010
Revenues (millions) $455.5 $439.0 $1,821.8 $1,422.5
Earnings (millions) ($601.4) $88.0 ($568.9) $332.1
Earnings per share (basic) ($3.53) $0.53 ($3.36) $2.05
Cash provided by operating activities (millions) $132.0 $90.6 $663.5 $483.5
Payable Production
Gold (ounces) 227,792 256,471 985,460 987,609
Silver (ounces in thousands) 1,311 1,207 5,080 4,812
Zinc (tonnes) 12,591 14,939 54,894 62,544
Copper (tonnes) 1,002 935 3,216 4,224
Total cash costs ($/oz) $671 $462 $580 $451
Record Revenues and Cash Flows in 2011 Earnings impacted by Goldex & Meadowbank writedowns
4
All amounts are in US$, unless otherwise indicated
Dec. 31 2011
Cash and cash equivalents (millions) $221
Long term debt (millions) $920
Available credit facilities ($US millions) $880
Common shares outstanding (Weighted average, millions) 170.3
Common shares, fully diluted (Weighted average, millions) 170.3
Financial Position
5
Laronde 20% Goldex
17%
Lapa 10%
Kittila 12%
Pinos Altos 25%
Meadowbank 16%
2011 Operating Results
Total Cash
Costs ($/oz)
Payable Production
(Gold oz)
Total Gross Mine Profit
($, 000’s)
LaRonde $77 124,173 $188,662
Kittila $739 143,560 $115,135
Lapa $650 107,068 $98,937
Pinos Altos1 $299 204,380 $232,715
Meadowbank $1,000 270,801 $149,549
Goldex 2 $401 135,478 $160,723
Total $580 985,460 $945,721
2011 Total Gross Mine Profit (Total $946M)
1. Pinos Altos figures include Creston Mascota 2. Goldex operations suspended Oct. 19, 2011
Operating Results 2012 Focus Remains on Optimization
6
2012 through 2014 Forecasts
2012 Production
Forecast (Gold koz)
Total Cash Cost
($/oz) Grade
(g/t)
Gold Recovery
(%)
Minesite Cost per
tonne
2013 Production
Forecast (Gold koz)
2014 Production
Forecast (Gold koz)
LaRonde 150 – 165 570 2.3 91 C$90 220 280
Kittila 150 – 160 650 5.5 84 €71 155 170
Lapa 95 – 105 750 6.4 81 C$124 100 105
Pinos Altos1 200 – 210 415 1.9 82 $44 210 190
Meadowbank 280 – 310 1,040 3.2 92 C$97 305 310
Total 875 – 950 720 990 1,055
2012 Byproduct Forecast
Ag Production 000’s oz
Zn Production (tonnes)
Cu Production (tonnes)
LaRonde 2,100 33,000 4,800
Pinos Altos1 2,000 - -
Meadowbank 50 - -
Total 4,150 33,000 4,800
1. Pinos Altos figures include Creston Mascota 2. 2012 assumptions include Ag $30/oz, Cu $7,000/tonne, Zn $1,800/tonne, C$/US$ 1.00, US$/Euro 1.35 7
Expected To Generate Net Free Cash Flow
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2007A 2008A 2009A 2010A 2011A 2012E 2013 2014
Actual Estimate
Approximate Average EBITDA*
* 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/€
Capital Expenditures (USD $000's)
Illustrative Ongoing Re-Investment
8
Production Growth Continues Payable Gold Production Estimates
Production growth not yet in forecast: Kittila expansion(s), La India, Pinos Altos satellite zones, Meliadine
875-950koz 990koz
1,055koz
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2008 2009 2010 2011 2012E 2013E 2014E
Actual Estimate
ounces
9
Focus Remains On Production Per Share Growth
0
1
2
3
4
5
6
7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E
Actual Estimate
Gold Production (Oz per 1,000 Shares)
10 *Estimate figures assume current amount of issued and outstanding common shares
Long Track Record of Increasing Reserves Decrease in 2011 due to Goldex and Meadowbank reclassifications
• Increased reserves at projects with strong exploration upside - Kittila and Meliadine • Current proven and probable gold reserves of 18.6 million ounces. Deposits also
contain 8.7 million ounces of indicated gold resources and 10.3 million ounces of inferred resource*
3 4
8 8
10 12
17 18 18
21
19 20
0
5
10
15
20
25
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E
Gold reserves* (millions of ounces)
* See attached reserve and resource tables 11
Focus Remains on Reserve Per Share Growth
0
20
40
60
80
100
120
140
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E
Actual Estimate
Proven and Probable Reserves per 1,000 Shares
12 *Estimate figures assume current amount of issued and outstanding common shares
Four Cornerstones AEM produced nearly $1B of gross mine profit in 2011 Production, reserves, free cash flow expected to grow from current mines
LaRonde Kittila Mexico Meliadine
13
LaRonde - Production & Cash Flow Expected to Increase in 2012
• Gold production expected to increase each year through 2017 due to higher expected grade
• Byproduct grades expected to decline significantly starting in 2012
• Exploration Focus • Additional potential at depth, to the East
and to the West • Expand and convert resource on Bousquet
P&P Gold reserves (million oz) 4.7
Average gold reserve grade (g/t) 4.4
Indicated resource (million oz) 0.4
Inferred resource (million oz) 1.3
Estimated LOM (years) 12
2012 exploration budget (LaRonde & regional) $1M
14
Kittila - Optimization Initiatives Expected To Deliver Cost Improvement, Higher Cash Flows
• Higher grade in 2012 expected to result in 8% higher gold production at lower costs
• Anticipated mine life to 2044, not including resources
• Initial 25% expansion study expected in 2012
• Good exploration results at Rimpi suggest potential for larger expansion
• Exploration focus continues to be at depth and to the north
P&P Gold reserves (million oz) 5.2
Average reserve grade (g/t) 4.7
Indicated resource (million oz) 1.0
Inferred resource (million oz) 1.2
Estimated LOM (years) 32
2012 exploration budget $16M
15
Mexico - Highest Cash Flow Generator
• 2012 production at Creston Mascota expected to increase due to full-year contribution
• Underground expansion underway. Expected to offset lower grades in outer years
• Anticipated mine life to 2029
• La India may add to production profile in 2014
• Exploration potential at Tarachi and satellite zones
P&P Gold reserves (m oz) 3.3
Average gold reserve grade (g/t) 2.3
Indicated resource (m oz) 0.8
Inferred resource (m oz) 0.9
Est. LOM (years) 18
2012 exploration budget $15M
16
Meliadine – Quickly Growing Gold Reserve And Resource Permitting Underway
• Examining production scenarios from open pits and underground
• Updated feasibility study expected in 2013
• Drilling has expanded gold contained in reserves and resources by approximately 40% in 1.5 years
• Potential to accelerate underground development to test deposit at depth
P&P Gold reserves (million oz) 2.9
Average reserve grade (g/t) 7.2
Indicated resource (million oz) 1.7
Inferred resource (million oz) 2.4
2012 exploration budget $30M
17
Other Operations
18
Goldex - Action Plan Focused on Monitoring, Investigation and Remediation
• Mine operations suspended October 2011
• Grouting program reoriented to protect surface area infrastructure
• Increased rock and soil monitoring
• Evaluate possibility of recovering gold resources
• Reserves have been reclassified to resources
19
Meadowbank – New Optimized Mine Plan Partial writedown of $645 million after tax
• Mill consistently exceeding design throughput • New plan results in similar net asset value • New mine plan expected to be lower risk due to:
• 36% fewer tonnes moved over life of mine
• More conservative estimates for dilution
20
P&P Gold reserves (m oz) 2.2
Average reserve grade (g/t) 2.8
Indicated resource (m oz) 1.3
Inferred resource (m oz) 0.5
Est. LOM (years) 6
2012 exploration budget $7M
Lapa - Steady State with Good Tonnage and Cost Control
• 2012 production and costs expected to be similar to 2011
• Anticipated life of mine extended through 2015
• Exploration Focus
• Extension of underground exploration drift to provide access to drill targets to extend mine life
P&P Gold reserves (m oz) 0.5
Average reserve grade (g/t) 6.5
Indicated resource (m oz) 0.3
Inferred resource (m oz) 0.1
Est. LOM (years) 4
2012 exploration budget $3M
21
Exploration Upside
22
Meliadine Project - Local Geology Map Mineralization identified over 80 kilometer trend
Indicated resources – 33 koz Au Inferred resources – 197 koz Au
Proven & Probable reserves – 2,781 koz Au Indicated resources – 649 koz Au Inferred resources – 1,329 koz Au
Indicated resources – 343 koz Au Inferred resources – 411 koz Au
Inferred resources – 133koz Au
Proven & Probable reserves – 97 koz Au Indicated resources – 254 koz Au Inferred resources – 179 koz Au
Meliadine (Total) Proven & Probable reserves – 2,877 koz Au Indicated resources – 1,658 koz Au Inferred resources – 2,438 koz Au
23
Meliadine – Tiriganiaq Composite Longitudinal Section
2012 Exploration Focus
M11-1236 9.4 g/t Au / 3.2 m
M11-1161 13.4 g/t Au / 6.4 m 35.5 g/t Au / 3.0 m
M11-1171 6.2 g/t Au / 5.1 m
M11-1349 22.6 g/t Au / 5.8 m
M11-1173 16.8 g/t Au / 5.5 m
M11-1201 21.9 g/t Au / 6.6 m
M11-1211 11.6 g/t Au / 3.6 m
M11-1251 23.3 g/t Au / 3.3 m
M11-1119 14.5 g/t Au / 2.9 m
M11-1092 7.4 g/t Au / 11.2 m
M11-1108A 6.2 g/t Au / 9.6 m
24
Kittila – Composite Longitudinal Section
7.67g/t Au/17.9m
8.27g/t Au/3.5m
6.00g/t Au / 14.7 m 6.58 g/t Au / 7.5 m
8.46 g/t Au / 4.5 m
14.94 g/t Au/3.5m 6.03 g/t Au/11.8m
6.98g/t Au/10.1m 4.22g/t Au /8.5m
5.34 g/t Au/14.9m 4.68 g/t Au/12.4m
2012 Focus Area
• 2011 Exploration expanded reserves and resources in Roura and Rimpi trends • Further focus on exploration at depth and to the North in 2012
25
Creston Mascota – New Reserves Lead to Larger Open Pit
Bravo
Creston Mascota
New Pit Design
Previous Pit Design
26
-
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11
P/N
AV
AEM
Moving Forward
• Changes have been made at executive and mine management levels • Changes have been made in budgeting, forecasting and reporting processes • Historically, AEM’s trading multiple has rarely been this low
Average P/NAV 1.72x
27
Notes: 1) Source: TD Securities Research 2) Pricing data up to Feb 17, 2012
Appendix
28
Operating Metrics
$0/t
$20/t
$40/t
$60/t
$80/t
$100/t
$120/t
4,000tpd4,500tpd5,000tpd5,500tpd6,000tpd6,500tpd7,000tpd7,500tpd8,000tpd
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
LaRonde - Ore milled ('000 tonnes) LaRonde - Minesite costs per tonne (C$)
$0/t
$20/t
$40/t
$60/t
$80/t
$100/t
$120/t
$140/t
$160/t
0tpd
200tpd
400tpd
600tpd
800tpd
1,000tpd
1,200tpd
1,400tpd
1,600tpd
1,800tpd
2,000tpd
Q2
09
Q3
09
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Q3
11
Q4
11
Lapa - Ore milled ('000 tonnes) Lapa - Minesite costs per tonne (C$)
Lapa
LaRonde
29
Operating Metrics
€0/t €10/t €20/t €30/t €40/t €50/t €60/t €70/t €80/t €90/t €100/t
0tpd
500tpd
1,000tpd
1,500tpd
2,000tpd
2,500tpd
3,000tpd
3,500tpd
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Kittila - Ore milled('000 tonnes) Kittila - Minesite costs per tonne (EUR)
$0/t
$10/t
$20/t
$30/t
$40/t
$50/t
$60/t
0tpd
1,000tpd
2,000tpd
3,000tpd
4,000tpd
5,000tpd
6,000tpd
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Q3
11
Q4
11
Pinos Altos - Ore milled ('000 tonnes) Pinos Altos - Minesite costs per tonne (USD$)
$0/t
$20/t
$40/t
$60/t
$80/t
$100/t
$120/t
$140/t
$160/t
$180/t
0tpd
1,000tpd
2,000tpd
3,000tpd
4,000tpd
5,000tpd
6,000tpd
7,000tpd
8,000tpd
9,000tpd
10,000tpd
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Q3
11
Q4
11
Meadowbank - Ore milled ('000 tonnes) Meadowbank - Minesite costs per tonne (C$)
Pinos Altos Meadowbank
Kittila
30
Gold and Silver Reserves and Resources December 31, 2011
Gold Tonnes (000’s)
Gold (g/t)
Gold (ounces)
(000’s)
Proven 11,029 2.80 994
Probable 146,057 3.78 17,757
Total Reserves 157,086 3.71 18,750
Measured & Indicated 168,336 1.78 9,633
Inferred 131,216 2.30 9,712
Silver Tonnes (000’s)
Silver (g/t)
Silver (ounces)
(000’s)
Proven 7,318 45.35 10,670
Probable 72,693 45.06 105,319
Total Reserves 80,011 45.09 115,989
Measured & Indicated 27,801 27.24 24,344
Inferred 34,513 19.00 21,082
Copper, Zinc and Lead Reserves and Resources December 31, 2011
Copper Tonnes (000’s)
Copper (%)
Copper (tonnes)
Proven 5,331 0.28 15,025
Probable 27,901 0.27 76,160
Total Reserves 33,232 0.27 91,184
Indicated 7,225 0.12 8,629
Inferred 11,400 0.26 29,664
Zinc Tonnes (000’s)
Zinc (%)
Zinc (tonnes)
Proven 5,331 2.04 108,626
Probable 27,901 0.77 215,522
Total Reserves 33,232 0.98 324,149
Indicated 7,225 1.49 107,338
Inferred 11,400 0.44 49,745
Lead Tonnes (000’s)
Lead (%)
Lead (tonnes)
Proven 5,331 0.23 12,391
Probable 27,901 0.05 13,441
Total Reserves 33,232 0.08 25,832
Indicated 7,225 0.15 11,127
Inferred 11,400 0.05 5,138
*Calculated grades 32
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 16, 2011 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.
33
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 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 its news release dated February 15, 2012. The contents of this document have been prepared under the supervision of, and reviewed by, Marc Legault P.Eng., Vice-President Project Development and a “Qualified Person” for the purposes of NI 43-101.
34
A solid financial position, low-cost structure, 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.
Executive and Registered Office: 145 King Street East, Suite 400 Toronto, Ontario, Canada, M5C 2Y7 Tel: 416-947-1212 Toll-Free: 888-822-6714 Fax: 416-367-4681
agnico-eagle.com
Sean Boyd President and Chief Executive Officer
Ammar Al-Joundi SVP Finance and Chief Financial Officer
David Smith SVP, Strategic Planning & Investor Relations
Trading Symbol: AEM on TSX & NYSE
Investor Relations: 416-947-1212 [email protected]