AGNICO-EAGLE MINES LIMITED Technical Update December 17, 2009 With its emphasis on , an exceptional record of creating shareholder value, and one of the most robust profiles in the industry, Agnico-Eagle Mines Limited has emerged as the gold stock of choice. quality growth Member of the World Gold Council www.gold.org Meadowbank, Canada
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AGNICO-EAGLE MINES LIMITEDTechnical Update
December 17, 2009
With its emphasis on , an exceptional record of creating shareholder value, and one of the most robust profiles in the industry, Agnico-Eagle Mines Limited has emerged as the gold stock of choice.
quality
growth
Member of the World Gold Council www.gold.org Meadowbank, Canada
Forward Looking Statements
The information in this document has been prepared as at December 17, 2009. 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 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'sAnnual Report on Form 20-F for the year ended December 31, 2008, 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 18, 2009 press release on the Company’s website. That press release also lists the Qualified Persons for each project.
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Note To Investors
Note to Investors Regarding the Use of Non-GAAP Financial MeasuresThis 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, 2008, as well as the Company's other filings with the Canadian Securities Administrators and the SEC.
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Corporate Strategy
■ Increase gold production■ Targeting 2010 gold production of 1.0 – 1.1 million oz■ Internal expansions expected to contribute to steady
production growth through 2014
■ Grow gold reserves■ Record reserves of 18.1 million ounces*■ Four of six deposits may ultimately exceed 5 million oz
■ Acquire small, think big■ Continue with successful acquisition strategy
■ Be a low-cost leader■ Expect to remain below average total cash cost
producer long term
■ Maintain a solid financial profile■ Credit facilities of $900M with a large syndicate of
banks
* See attached reserve and resource tables
Strategy Remains Focused On Per Share Metrics
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Status Update: Progressing As PlannedAll Q3 issues well under way to being resolved
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Nov mill production rate –2,110 tpdNov. mill grade – 2.17 g/t AuNov. leach pad ore stacked –50.9 kt
Sept. mill production rate –893 tpdSept. mill grade – 1.41 g/t AuLeach pad ore stacked – 8.4kt
Longer than expected commissioning of tailings filter presses.
Pinos Altos
Nov prod. rate – 3,107 tpdNov Au prod. – 14,505 ozNov recovery rate – 76%
Consistent Focus On Per Share Production GrowthGold production (oz) / 1000 shares
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0
1
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5
6
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2008A 2009E 2010E 2011E 2012E 2013E 2014E
■ Located in mining-friendly regions of low political risk■ 100% owned, with low total acquisition costs■ Each region has long-term mining camp potential
Operations At A GlanceFive mines now operating. One new gold mine nearing completion
LaRondeQUEBEC, CANADA
GoldexQUEBEC, CANADA
KittilaKITTILA, FINLAND
MeadowbankNUNAVUT, CANADA
Fraser Institute’s ranking 1 Fraser Institute’s
ranking 1 Fraser Institute’s ranking 14
Fraser Institute’s ranking 44
Fraser Institute’s 2008/2009 ranking of 71 mining jurisdictions
Fraser Institute’s ranking 1
LapaQUEBEC, CANADA
Fraser Institute’s ranking 28
Pinos AltosCHIHUAHUA, MEXICO
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2010 - A Year of Transition
■ Increase gold production■ LaRonde continues to perform■ LaRonde Extension on time and budget■ Goldex has exceeded daily rates of 8,500 tpd■ Grades back to reserve estimates■ Record production at Kittila in November■ Grades improving at Lapa in December■ Pinos Altos ramping up■ Meadowbank start up in January
■Grow gold reserves■ Record reserves of 18.1 million ounces*■ Four of six deposits may ultimately exceed 5 million oz■ Over 300,000 metres of drilling planned in 2010
* See attached reserve and resource tables
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LaRonde – Canada
■Operations ■ Steady state operations■ Averaging 7,070 tpd November■ Will achieve production targets
■ 2010 Exploration■ Focus on resource conversion, additional
potential at depth and to the East■ Drilling possible extension of Westwood zone on Ellison■ Drilling program at depth
Good production and cost performance continues
Au reserves (m oz) 5.0
Average reserve grade (g/t) 4.3
Measured & Indicated resource (m oz) 0.4
Inferred resource (m oz) 3.0
Estimated average production (k oz/yr) 320
Est. LOM (years) 13
2010 exploration budget $4M
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LaRonde – Canada
■ LaRonde Extension■ Shaft sinking completed to a depth of 2,854 metres■ No ground control issues experienced■ Start of production from Extension expected in 2011.
On time, on budget■ Changeover on schedule
Au reserves (m oz) 5.0
Average reserve grade (g/t) 4.3
Measured & Indicated resource (m oz) 0.4
Inferred resource (m oz) 3.0
Estimated average production (k oz/yr) 320
Est. LOM (years) 13
2010 exploration budget $4M
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2010 LaRonde Extension – Shaft Schedule
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Last bench : Nov. 14th 2009
Changeover end : Jan. 23th 2010
Exploration Plan 2010-2014
Puits PennaPuits IPuits Bousquet IIPuits Bousquet I Puits II
Total Cash Cost per ounce $318 $307 $332 $342 $329
3 Year Exploration Plan
38 Level
73 Level
5000m to test the West area
(1 500 m per year for 150m spacing)
GEZ Deep
West of GEZ
EAST
Of
GEZ
Exploration Area for 3 years 60m to 90m spacing below GEZ and150m spacing West of GEZ
10 000m to test the eastern area
( 150m spacing)
View Looking North
R-Zone
Evaluation of the potential of the zone and drilling.
Drilling under GEZ DEEP to explore deeper
Continue to explore South Zones
Goldex Challenges
■Ground control management of three mining blocks■ potential impact on mucking and grade
■ Drilling and blasting schedules to maintain stope inventory – ground control
■ Vibration management■ community relations■ research & development with
explosive supplier
■ Surface crusher commissioning
■ LaRonde – concentrate circuit■ optimization still in progress
Goldex Opportunities
■ Potential increase in tonnage toward year’s end
■ Drilling and blasting 1.5 years ahead of schedule
■Mining of S zone with ramp to M Zone in vicinity
■ Smelting contract (higher recovery)
■ Experienced management & workforce
Lapa – Canada
■Operations■ Tonnage hoisted to date has exceeded plan■ Ore development according to plan■Grades have been reconciled with mill■Mill recoveries approaching design■ Still plagued by excessive dilution (50% – 65%)
Efforts focused on reducing mining cycle time
Au reserves (m oz) 1.1
Average reserve grade (g/t) 8.8
Measured & Indicated resource (m oz) 0.1
Inferred resource (m oz) 0.2
Estimated average production (k oz/yr) 115
Est. LOM (yrs) 6
2010 exploration budget $3M
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Lapa – Canada
■ Dilution – potential solutions■ Reduce cycle time – two 6 yd scoops on order■ Improve ground support – two rock bolters■ Reduce stope size■ Improve blasting■ Increased dilution incorporated in mine plan – 50%
Efforts focused on reducing mining cycle time
Au reserves (m oz) 1.1
Average reserve grade (g/t) 8.8
Measured & Indicated resource (m oz) 0.1
Inferred resource (m oz) 0.2
Estimated average production (k oz/yr) 115
Est. LOM (yrs) 6
2010 exploration budget $3M
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Lapa Operations Forecast
Lapa Operations Summary 2010 2011 2012 2013 2014
Ore milled (000's tonnes) 516 540 539 539 536
Grade: Gold (g/tonne) 8.13 7.88 7.91 7.90 8.05
Mill recovery: Gold 86% 87% 86% 85% 85%
Payable metal produced: Gold (ozs) 115,600 118,500 118,400 116,500 118,300
Pinos Altos – MexicoPlant commissioning in progress. Commercial production Q4 2009
■Operations■Open pit and underground - according to plan■ Plant undergoing commissioning and ramp up■ Issue with pressure filter commissioning and capacity■ Has negatively impacted mill availability■ Reserve model not yet reconciled■ Development of Mascota has started
■2009 Exploration ■ Potential to develop additional satellite
deposits (Cubiro, Sinter, San Eligio)■ Focus on resource conversion, expansion of
Pinos Altos zones, Reyna de Plata, Creston Mascota
Au reserves (m oz) 3.6
Average reserve grade (g/t) 2.7
Measured & Indicated resource (m oz) 0.4
Inferred resource (m oz) 0.2
Estimated average production (k oz/yr) 165
Est. LOM (yrs) 20
2010 exploration budget $4M
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Pinos Altos Operations Forecast
* Assumes slower than expected ramp-up to full production levels.
2010 Exploration Budget - Lapa8,000 metres , $3 Million
Level 101 Exploration Drift
2010 Exploration Budget - Nevada15,900 metres, $7 Million
Nevada Strategy 2010 Generate exploration property in USA and
South America Project evaluations in South America Advance West Pequop project, Nevada Joint venture in Santa Cruz, Argentina
90Total
ArgentinaUSA
2010 Budget615.9$ MillionsDDH km
115.9 7
Nevada
Santa Cruz JV
2010 Exploration Budget - Western Canada
Jennings
Jennings Property - Yukon / BC Jennings property in Yukon/BC hosts a
potentially large W-Mo skarn porphyry (200 - 400 Mt)
Jennings Target is a Logtung (Northern Dancer: the 6th largest W resource in the world with 168 Mt @0.13% WO3, 0.052% MoS2 )
2010 program: sufficient info to estimate inferred
resource scoping study to determine economic
potential baseline environmental study evaluate next step (sale, option, spin-off)
16,500 metres, $7 Million
Vancouver Strategy 2010 Generate exploration property in
Western Canada and Northern USA Project evaluations in Americas Establish links with Vancouver juniors Advance Jennings project
LaRonde site, Canada
Appendix
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Operating Mines With Reserves Over 5M oz, Grading Over 2g/t Au
Kittila, Meadowbank and Pinos Altos have the potential to join this group of top-tier world class operating assets
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Property Name CountryLocation Ranking*
Reserves Grade
Reserves - Contained
Total Cash Costs $/oz
Prod'n (000's oz)
(100% basis)
% Owned Operator/Significant Owner
1 Turquoise Ridge (Getchell) United States - Nevada 3 15.58 g/t 5,313,000 oz $515 165 75% Barrick Gold Corporation (Operator)2 Moab Khotsong Gold Mine South Africa 49 10.86 g/t 7,320,000 oz $379 192 100% AngloGold Ashanti Limited3 Mponeng Gold Mine South Africa 49 10.69 g/t 13,000,000 oz $249 600 100% AngloGold Ashanti Limited4 Bulyanhulu Gold Operation Tanzania 48 9.86 g/t 11,977,000 oz $620 200 100% Barrick Gold Corporation (Operator)5 Phakisa Gold Mine South Africa 49 8.05 g/t 5,300,000 oz $555 22 100% Harmony Gold Mining Company Limited6 Driefontein Gold Mine South Africa 49 7.50 g/t 18,200,000 oz $448 830 100% Gold Fields Limited (Operator)7 Obuasi Gold Mine Ghana 35 7.50 g/t 9,660,000 oz $633 357 100% AngloGold Ashanti Limited8 Evander Gold Mine South Africa 49 7.26 g/t 13,800,000 oz $572 190 100% Harmony Gold Mining Company9 Kloof Gold Mine South Africa 49 6.20 g/t 10,521,000 oz $552 643 100% Gold Fields Limited (Operator)
10 Elandsrand Gold Mine South Africa 49 6.20 g/t 7,500,000 oz $660 174 100% Harmony Gold Mining Company11 South Deep Gold Mine South Africa 49 6.10 g/t 29,486,000 oz $717 175 100% Gold Fields Limited (Operator)12 Beatrix Gold Mine South Africa 49 5.00 g/t 6,450,000 oz $507 391 100% Gold Fields Limited (Operator)13 Loulo Gold Operation Mali 33 4.90 g/t 7,400,992 oz $511 258 80% Randgold Resources Limited14 LaRonde Gold/Base Metals Mine Canada - Quebec 1 4.32 g/t 5,000,000 oz $106 216 100% Agnico-Eagle Mines Limited15 Carlin Gold Mine United States - Nevada 3 3.80 g/t 12,709,380 oz na na 100% Newmont Mining Corporation16 Olimpiada Gold Operation Russia 53 3.75 g/t 15,385,265 oz na 854 100% OJSC Polyus Gold (Operator)17 Betze-Post Gold Mine - Open Pit United States - Nevada 3 3.70 g/t 10,294,000 oz $452 1,706 100% Barrick Gold Corporation (Operator)18 Porgera Gold Operation Papua New Guinea 61 3.08 g/t 8,240,000 oz $417 660 95% Barrick Gold Corporation (Operator)19 Geita Gold Mine Tanzania 48 2.93 g/t 5,140,000 oz $728 264 100% AngloGold Ashanti Limited20 Lihir Gold Mine Papua New Guinea 61 2.83 g/t 21,778,721 oz $406 771 100% Lihir Gold Limited (Operator)21 Aksu Gold Mine Kazakhstan 56 2.55 g/t 5,796,297 oz na na 100% KazakhGold Group Limited22 Ahafo Gold Operation Ghana 35 2.33 g/t 9,380,000 oz $408 521 100% Newmont Mining Corporation
Lapa Canada - Quebec 1 8.80 g/t 1,061,000 oz na na 100% Agnico-Eagle Mines LimitedKittila Gold Mine Finland 14 4.69 g/t 3,224,000 oz na na 100% Agnico-Eagle Mines LimitedPinos Altos Mexico 28 2.68 g/t 3,593,000 oz na na 100% Agnico-Eagle Mines LimitedMeadowbank Gold Mine Canada - Nunavut 44 3.45 g/t 3,638,000 oz na na 100% Agnico-Eagle Mines LimitedGoldex Canada - Quebec 1 2.05 g/t 1,571,000 oz $419 57 100% Agnico-Eagle Mines Limited
Notes: *2008/09 Fraser Institute study ranked 71 mining jurisdictions
Source: Intierra, Fraser Institute, company websites -- March 2009
Au
min
es w
ith
rese
rves
>5m
oz,
grad
ing
>2 g
/t
Gold and Silver Reserves and Resources
Tonnes (000’s)
Gold (g/t)
Gold(ounces)
(000’s)
Proven 4,828 2.77 430
Probable 154,469 3.55 17,631
Total Reserves 159,297 3.53 18,061
Indicated 47,569 2.07 3,173
Inferred 46,603 3.84 5,760
Tonnes (000’s)
Silver(g/t)*
Silver(ounces)
(000’s)
Proven 4,172 66.74 8,952
Probable 73,404 55.83 131,759
Total 77,576 56.42 140,711
Indicated 18,817 26.31 15,919
Inferred 8,937 28.32 8,138
*Calculated grades
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Copper, Zinc and Lead Reserves and Resources
Tonnes (000’s)
Copper(%)*
Copper(tonnes)
Proven 4,075 0.33 13,370
Probable 31,735 0.28 89,961
Total 35,810 0.29 103,331
Indicated 6,349 0.15 9,399
Inferred 4,937 0.44 21,515
Tonnes (000’s)
Zinc(%)*
Zinc(tonnes)
Proven 4,075 3.27 133,442
Probable 31,735 1.42 450,246
Total 35,810 1.63 583,688
Indicated 6,349 1.55 98,124
Inferred 4,937 0.77 38,068
Tonnes (000’s)
Lead(%)*
Lead(tonnes)
Proven 4,075 0.37 15,146
Probable 31,735 0.12 38,769
Total 35,810 0.15 53,915
Indicated 6,349 0.16 10,235
Inferred 4,937 0.08 3,946
*Calculated grades
95
Executive and Registered Office:145 King Street East, Suite 400Toronto, Ontario, Canada, M5C 2Y7Tel: 416-947-1212Toll-Free: 888-822-6714 Fax: 416-367-4681
www.agnico-eagle.com
Trading Symbol: AEM on TSX & NYSE
Sean BoydVice Chairman and Chief Executive Officer Ebe ScherkusPresident and Chief Operating OfficerDavid GarofaloSenior Vice President, Finance and Chief Financial Officer
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.