2011-08-18 AEM Technical Update

Business

agnico-eagle-mines
  • 1. Agnico-Eagle Mines LimitedTechnical Update – August 18th, 2011
  • 2. Forward Looking StatementsThe information in this document has been prepared as at August 18, 2011. 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 forwardlooking 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 orinformation.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 futureinternal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures andother cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certainore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing ofsuch exploration, development and production or decisions with respect to such exploration, development and production; estimates ofreserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events withrespect to the Companys minesites and statements and information regarding the sufficiency of the Companys cash resources. Suchstatements and information reflect the Companys views as at the date of this document and are subject to certain risks, uncertaintiesand assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknowncould cause the actual results to be materially different from those expressed or implied by such forward looking statements andinformation. 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 othercosts; 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 theCompanys stock price; and risks associated with the Companys byproduct metal derivative strategies. For a more detaileddiscussion 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 Companys Annual Report on Form 20-F for the year ended December 31,2010, as well as the Companys other filings with the Canadian Securities Administrators and the U.S. Securities and ExchangeCommission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements andinformation. Marc Legault, a Qualified Person and the Company’s Vice-President, Project Development, reviewed the technicalinformation disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February 16, 2011press release on the Company’s website. That press release also lists the Qualified Persons for each project. 2
  • 3. Note To InvestorsRegarding 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 Companys 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 Companys historical results of operations is set forth in the notes to the financial statements included in the Companys Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2010, as well as the Companys other filings with the Canadian Securities Administrators and the SEC.LaRonde Goldex Kittila Lapa Pinos AltosMeadowbank 3
  • 4. Highlights■ LaRonde Deep – development project on time andbudget■ Goldex - Record tonnage despite soil subsidenceissues – significant exploration results at depth■ Lapa – Lower grade offset by increased tonnage■ Meadowbank – plant exceeding tonnageexpectations, focused on minimizing dilution■ Kittila – Production resumed at Suuri Open Pit andexcellent exploration results at depth on Rimpi Zone– Solid mill performance, costs improving■ Pinos Altos – Record quarterly production of 51,067ounces at a cash cost of $299 per ounce.■ Meliadine – excellent exploration results –underground bulk sample started; 10 drills on site 4
  • 5. Challenges■ Mining conditions at LaRonde and Lapa –narrow stopes■ Subsidence at Goldex with water inflow■ Equipment availability and high costs atMeadowbank■ High costs at Kittila 5
  • 6. LaRonde
  • 7. LaRonde YTD Highlights■ Gold production – 64,000 oz■ Cost per tonne - $85 vs. budget of $82■ Cash costs $95/oz■ Mill throughput 6,543 tpd 7
  • 8. LaRonde Extension – Project Update■ Load out construction almost completed on Level 282■ Crusher construction – on schedule for Q4■ First production scheduled for November■ On schedule – on budget■ LOM at 6,000 tpd – evaluating possibility of 7,000 tpd 8
  • 9. LaRonde Extension – Production■ Production Stopes194 ■ Pyramid from 269 - Q2 2012 ■ Pyramid from 293 – Q3 2013■ Production Rate Ramp-Up below 215the 245 level ■ 2011 => 1 200 tpd (Q-4 2011) ■ 2012 => 2 000 tpd ■ 2013 => 4 200 tpd245 ■ 2014 => 6 000 tpd 257269 278 282293 311 9
  • 10. LaRonde Extension - Crusher General Arrangement Transfer Conveyor (July 2011) TelSmith Crusher 48 x 52 Capacity >650 t/hr Excavation completed in April2011 Commissioning  Q4 2011Crusher (July 2011)10
  • 11. Goldex
  • 12. Goldex Highlights■ Grade in line with forecast – over 13 million tonnesof broken ore in stope■ Record milled tonnage in May-June followingaddition of 6th Manitou pump, recrushing of surfacestock pile – will be maintained for remainder ofyear; YTD 8,200 tpd■ Operating costs under budget, additional capital tomanage water inflow and soil subsidence■ Surface overburden subsidence – remediationprogram underway■ Exploration results at depth could significantlyincrease mine life■ Resource being calculated■ YTD gold production – 80,500oz; cost per tonne -C$22, on budget; cash costs $408/oz 12
  • 13. Goldex Q3 QTD Performance Unaffected By Subsidence IssuesAug 15, 2011 Q3 QTD H1/11 YTDDaily throughput (tpd)8,485 8,204Grade (g/t)1.85 1.82Mill recoveries (%) 94.6%92.8%13
  • 14. Overburden subsidence5m of overburden settling over center of GEZ Cement injection program ongoing, expected to be completed by year end 14
  • 15. Vertical Cross Section Level 38 Stope outlineShear zoneDiorite Komatiite 15
  • 16. Drilling – Level 38Infiltration Zone – Eastern Mining BlockDiamond drilling andproposed grouting programInfiltration ZoneDiamonddrill holes16
  • 17. Remediation of overburden subsidence■ Shear zones have been characterized and defined■ Reduce water inflow into the mine ■ Grouting from surface and underground■ Stabilize the water table ■ Inject mine inflow back into the water table ■ Water table defined■ Increase underground pumping capacity to secure the mine ■ Additional capacity installed in excess of inflow■ Initial results encouraging ■ Reduction in inflow noted with increased surface injection ■ Water table rising in eastern section ■ Grouting to continue westward until end of year ■ $6.0 million of total $19 million has been spent17
  • 18. Goldex - D Zone Growing at Depth Actual Exploration2011 Exploration Budget(January-June 2011) $8.4 million$3.1 million 70,200 metres DDH 26,482 metres DDH Gold Au TonnesD zone Grade (M oz) (000s)(g/t)Inferred 0.7514,361 1.62resources2011 Exploration Program$8.4 million budgetedD Zone  50 to 100 m thick3.02 g/t Au / 117.0 m  Traced 350 m wide and 500+ m depth (open in all directions) 1.70 g/t Au / 69.0 m  Initial inferred resource 0.75 Moz 1.84 g/t Au / 112.5 m 1.50 g/t Au / 120.0 m  Exploration ramp initiatedincl. 2.40 g/t Au / 61.5 m 1.48 g/t Au / 76.5 m  Resource conversion drilling underway 2.47 g/t Au / 240.0 m  Resource expansion drilling successful at1.70 g/t Au / 192.0 m depth 2.17 g/t Au / 192.0 m  Grade and thickness higher at depth  Initial mining study by end of 2011  Potential to add to reserves in 2013 18
  • 19. Lapa
  • 20. Lapa Update■ Steady state performance exceeding tonnes hoisted and tonnes milled■ Steady state performance for development – targets exceeded despitedifficult mining conditions■ Cost per tonne below budget - C$110■ Unit development cost below budget■ Overall excellent performance: YTD gold production 55,500oz20
  • 21. Meadowbank
  • 22. Meadowbank UpdateTurn around in progress but more work to do■ Secondary crushing plant runningAugust 15th Mill SheetDay Monthaccording to plan CRUSHINGOreTonnage (dmt)8756 128866Utilisation (%)55.56■ Significant improvements in miningFEED Tonnage 10737136319performance although dilution still an Head Grade - Au (g/t)2.58 2.69issueGRINDINGAvailability (%) 100.00 90.42GRAVITY■ Declining costs per tonne over the pastRecovery (%) 14.27% 8.99%LEACH / CIPGold Leach / C.I.P. Recovery (%) 79.86% 84.96%quarter – should see continuedimprovement SUMMARYGravity Gold Recovery (oz) 1271061CIP Gold Recovery (oz.)710 10025Mill Gold Recovery (%) 94.13% 93.95%■ Operating staff positions are being filledGold Production (oz) 837 11086 22
  • 23. MeadowbankQ3 QTD Throughput Significantly Above H1 LevelsAug 15, 2011Q3 QTDH1/11 YTDDaily throughput (tpd)9,143 7,160Grade (g/t) 2.803.11Mill recoveries (%)94.0% 93.7%23
  • 24. Higher mill tonnage after secondary crusher start upMeadowbank Mill_Monthly TonnesBefore Secondary CrusherAfter Secondary Crusher300 000250 000200 000Mill Tonnes (t/month)150 000•Design capacity attained in August•More stable operation downstream100 000 50 000Realized24
  • 25. Tm/day10 000 20 00030 000 40 00050 000 60 00070 000 80 00090 000 100 000 110 000 120 00001-Jan-101-Feb-101-Mar-101-Apr-101-May-101-Jun-10Mine Production Realized 1-Jul-1020101-Aug-101-Sep-101-Oct-101-Nov-10 Realized1-Dec-101-Jan-111-Feb-111-Mar-111-Apr-11Tonnes moved per day Forecast1-May-11Meadowbank Mine Performances1-Jun-11 2011 1-Jul-111-Aug-11 Budget1-Sep-111-Oct-111-Nov-111-Dec-1125
  • 26. Blast Movement Control – Improving Dilution■ Staggered pattern has been successfully implemented in South Portage■ Blast design is now optimized so that the movement of the muck is becomingmore predictable■ Improvements have been made to the QA/QC process, resulting in moreconsistent drilling and loading operations■ Floor quality & fragmentation has improved while keeping movement undercontrol■ Groundwater in South Portage is still locally hindering drilling and blastingoperations; a variance was obtained from the Mine Inspector to allow immediateloading of the holes as they are drilled, a practice that reduces the impact ofwater in the holesAgnico-Eagle Mines Limited26
  • 27. Blast Movement Control – Improving Dilution■ Dilution in flatter zones averaged 30%to 40% earlier this year – nowapproximately 20%■ Objective is 12% - 15% - reserve modelcontains an average of 12%■ Currently mining narrower zones in North PitNorth PortagePortage Pit■ Expansion into South Portage and South PitGoose pits will provide more flexibilityand higher gradesGoose Island PitAgnico-Eagle Mines Limited27
  • 28. Blast movement monitoring Significant reduction in blast displacementAgnico-Eagle Mines Limited28
  • 29. Cost control initiatives■ Improve equipment availability –utilization■ Improved facilities, filling vacant positions■ Prepare for coming winter – complete modifications■ Higher, consistent mill throughput■ Reduce rehandling of ore North Pit■ Train local employees – reduce logisticsPortage Pitcosts■ Reduce reliance on contract labour South Pit■ Reduce fuel consumption, stockpilelower cost fuel, reduce energyconsumption■ Optimize mill (i.e. mill liners, reagents)Agnico-Eagle Mines Limited29
  • 30. Mine Manager’s Comment – Aug 15th, 2011“Wow nice week team!!Tonnes moved average of 87 851 t/dMore consistent direction of the blasts at an average of 5.2 meters displacement(down from 13 metres)Mill tonnage average of 427 t/h (10,250 tpd)Coffer dam construction ahead of scheduleWe are going in the right direction! Keep it up and stay on the top of the waveThanks, Merci, MatnaDominique” 30
  • 31. Kittila
  • 32. Kittila Highlights – H1 2011■ Unplanned shutdowns related to scalingproblems in the Autoclave – mill availability77%■ Total mill throughputof 233,121 dmt or90% of design capacity despite millavailability■ Good underground development and wastestripping performance■ Underground ore production on planGold Brick no 400■ High unit costs per tonne and per ounce■ Contractor reduction in progress■ Excellent exploration results on Rimpi32 32
  • 33. Kittila Q3 QTD Throughput Significantly Above H1 LevelsAug 15, 2011 Q3 QTDH1/11 YTDDaily throughput (tpd)3,1872,734Grade (g/t)4.605.25Mill recoveries (%) 84.7% 84.5% 33
  • 34. Kittila Open Pit■ Ore production resumed in the Suuri pit after 2month stop ■ Eastern wall rock stability issues addressed and Suuri ore production re-started in early June ■ Ore production from Roura good, cost adjustment for stripping Suuri pit ■ Ore stockpile > 300,000 tonnesRoura pit34 34
  • 35. Kittila Underground■ UG development advance very good at 111% ofbudget – new lateral development record at 610 min May■ Good UG ore production -- 102% of budget ■ 350 m Service Level complete – UG warehouse, cafeteria and shops functional ■ Cost reduction opportunities have been identified and action plans instigated ■ Contractor reduction ■ Control overtime ■ Renegotiate reagent, explosive contracts ■ Reduce company housing35 35
  • 36. Kittila – Growing Reserves & Resources 2011 Exploration Budget Actual Exploration (January-June 2011) $15.6 million $7.0 million56,200 metres DDH28,415 metres DDH 9.32 g/t Au / 11.2 m 9.93 g/t Au / 6.2 m 5.98 g/t Au / 7.8 m9.50 g/t Au / 6.0 m 7.10 g/t Au / 21.0 m2011 Exploration Program Production expansion feasibility  Exploration success Rimpi and Suuri$15.6 million budgetedexpected in Q4, 2011 - Roura Deep Suuri – Roura Deep exploration ramp initiated  Suuri – Roura Deep exploration shaft  Potential to enhance economics of Resource expansion and resource to reserveproject under evaluation Kittila expansion and shaft projectsconversion drilling underway36
  • 37. Pinos Altos
  • 38. Pinos Altos H1 Highlights■ YTD production 99,000oz at, $28/t – significantly below budget■ Mascota continued ramp up better than expected Mexico Division Au Ounces Production (Oz)60,00050,00040,00030,00020,00010,000- Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Actual 3838
  • 39. UG Ore Production■ 3,000 TPD ore production was reached in June■ Total cost per tonne was $34.96 vs. $32.47 budget■ Q2 Meters of lateral development 1,476 m vs.1,457 m budget& unit cost of US$2,210 vs. US$2,587 budgetOre Production & Cost per tonne performance 100100909080807070606050504040303020201010- 0USD/tonne Oct Nov Dec Jan Feb Mar Apr May June tonnes2010 2010 2010 2011 2011 2011 2011 2011 2011Tonnes USD/tonne39 39
  • 40. Pinos Altos Open Pit■ Total Open pit ore production was 783,948 tonnes at 1.065 g/t Au vs. 671,531at 1.192 g/t. planned■ Total Open pit unit cost was $1.33 per tonne vs. $1.29 per tonne planned 4040
  • 41. Mascota Operation■ Ramp up production■ Heap Leach Au-Oz Production 9,449 Oz vs. 6,462 Oz budget. (payable gold) Ore Placed 2011 (000 tonnes) Au Ounces Production 2011 (Oz)180 4,500160 4,000140 3,500120 3,000100 2,500 80 2,000 60 1,500 40 1,000 20500 - -Jan Feb Mar Apr May JunJan Feb MarApr May Juntonnes placedActual41 41
  • 42. Exploration Upside
  • 43. Meliadine Exploration Upside - 80km Strike Length2011 Exploration BudgetActual Exploration (January-June 2011)$64.8 million $11.7 million 90,000 metres DDH 44,173 metres DDH Au Tonnes AuTiriganiaq(Moz) (000) (g/t)Probable Reserves 2.609,467 8.54Indicated Resources 0.815,407 4.66Inferred Resources 1.91 7,883 7.55 Au Tonnes Au Wesmeg (Moz) (000) (g/t) Inferred Resources 0.14 1,000 4.45 TiriganiaqAu Tonnes AuF zone WolfWesmeg(Moz) (000) (g/t)Indicated Resources 0.33 1,895 5.39Pump F ZoneInferred Resources 0.18 1,010 5.62Au TonnesAuWolf(Moz) (000) (g/t) Au Tonnes AuDiscovery Indicated Resources 0.02 183 3.79 Discovery (Moz) (000) (g/t) Inferred Resources 0.16 947 5.24 Indicated Resources 0.32 1,323 7.41Inferred Resources 0.14498 8.97 Au Tonnes AuPump (Moz) (000) (g/t) Inferred Resources 0.10 495 6.292011 Exploration budget $64.8 million for drilling,feasibility and camp Resource to reserve conversion and expansionunderway at Tiriganiaq /Wesmeg Aggressive regional exploration initiated (plans to build new Permitting and preparations for access road exploration base at Discovery)construction 6,000 -10,000 tpd feasibility expected 2013 Wesmeg exploration success should increase 10 kmresources43
  • 44. Meliadine Exploration - Tiriganiaq 8.62 g/t Au / 19.3 mTiriganiaq Longitudinal Section 10.9 g/t Au / 7.0 m7.98 g/t Au / 39.3 m 15.14 g/t Au / 5.8 m 16.64 g/t Au / 7.4 m 5.33 g/t Au / 4.2 m Largest deposit at Meliadine Tiriganiaq AuTonnesAu  Ramp project to test for deeper (Moz)(000)(g/t) extensions Resource expansion and resource to Probable Reserves2.609,467 8.54reserve conversion drilling underway Indicated Resources0.815,407 4.66 Potential to add reserves and resources Underground bulk sampling initiatedInferred Resources 1.917,883 7.55at Tiriganiaq in 2011 44
  • 45. Tiriganiaq Schematic Cross SectionBulk SampleArea2011 Exploration Program atTiriganiaq Underground bulk sampling andgrade confirmation drillingunderway to refine feasibilityresource model Resource to reserve conversiondrilling Resource expansion drilling Exploration ramp proposed tofollow up and extend Tiriganiaqand Wesmeg (both wide open atdepth) 45
  • 46. Wesmeg – The most recent discovery at Meliadine Wesmeg Longitudinal Section 4.78 g/t Au / 13.5 m7.02 g/t Au / 10.6 m 7.02 g/t Au / 10.6 m8.17 g/t Au / 5.4 m 6.87 g/t Au / 4.7 m 5.72 g/t Au / 9.4 m Initial resource in Dec’ 2010 (Wesmeg North only) Au TonnesGold Grade Exploration success extends Wesmeg North open pit potential more than 2.1Wesmeg zone (M oz) (000s) (g/t)kilometres; Underground potential also developingInferred0.141,000 4.45 New Wesmeg South trend currently traced for 600 metres and extending at depthresourcesbelow 160 metres Potential to significantly expand Wesmeg resource in 2011 and enhance feasibility46
  • 47. Appendix
  • 48. Gold and Silver Reserves and Resources December 31, 2010 TonnesGold GoldTonnes Silver Silver (000’s)(g/t) (ounces) (000’s) (g/t)*(ounces)(000’s)(000’s)Proven 24,8692.291,832Proven 7,702 54.75 13,558Probable160,9443.76 19,467Probable71,190 48.09110,061Total Total185,8133.57 21,29978,892 48.74123,620ReservesReservesIndicated95,1352.106,437Indicated 32,554 21.90 22,918Inferred 118,111 2.599,839Inferred37,183 19.98 23,883*Calculated grades 48
  • 49. Copper, Zinc and Lead Reserves and Resources December 31, 2010 Tonnes Copper CopperTonnes Zinc Zinc Tonnes Lead Lead (000’s)(%) (tonnes)(000’s)(%) (tonnes)(000’s)(%) (tonnes) Proven4,838 0.26 12,433 Proven 4,838 2.78 134,651Proven 4,838 0.32 15,572 Probable 29,892 0.28 82,360 Probable29,892 0.90 269,581Probable29,892 0.07 19,463 Total TotalTotal34,730 0.27 94,793 34,730 1.16 404,23234,730 0.10 35,035 ReservesReserves Reserves Indicated 6,933 0.128,462 Indicated6,933 1.36 94,457 Indicated6,933 0.138,942 Inferred 11,526 0.27 30,820 Inferred11,526 0.48 55,556 Inferred11,526 0.055,463*Calculated grades 49
  • 50. A solid financial position, low-cost structure,well-funded growth projects in regions of low political risk, and a focused, consistent strategyput Agnico-Eagle in a strong position to continuecreating exceptional per share value.Sean Boyd Executive and Registered Office: Vice-Chairman and 145 King Street East, Suite 400Chief Executive OfficerToronto, Ontario, Canada, M5C 2Y7 Ebe Scherkus Tel:416-947-1212President and Toll-Free:888-822-6714Chief Operating Officer Fax:416-367-4681Ammar Al-Joundi SVP Finance and Chief Financial Officer David SmithSVP Investor RelationsTrading Symbol: AEM on TSX & NYSEInvestor Relations:416-947-1212info@agnico-eagle.com agnico-eagle.com
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    • 1. Agnico-Eagle Mines LimitedTechnical Update – August 18th, 2011
  • 2. Forward Looking StatementsThe information in this document has been prepared as at August 18, 2011. 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 forwardlooking 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 orinformation.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 futureinternal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures andother cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certainore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing ofsuch exploration, development and production or decisions with respect to such exploration, development and production; estimates ofreserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events withrespect to the Companys minesites and statements and information regarding the sufficiency of the Companys cash resources. Suchstatements and information reflect the Companys views as at the date of this document and are subject to certain risks, uncertaintiesand assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknowncould cause the actual results to be materially different from those expressed or implied by such forward looking statements andinformation. 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 othercosts; 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 theCompanys stock price; and risks associated with the Companys byproduct metal derivative strategies. For a more detaileddiscussion 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 Companys Annual Report on Form 20-F for the year ended December 31,2010, as well as the Companys other filings with the Canadian Securities Administrators and the U.S. Securities and ExchangeCommission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements andinformation. Marc Legault, a Qualified Person and the Company’s Vice-President, Project Development, reviewed the technicalinformation disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February 16, 2011press release on the Company’s website. That press release also lists the Qualified Persons for each project. 2
  • 3. Note To InvestorsRegarding 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 Companys 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 Companys historical results of operations is set forth in the notes to the financial statements included in the Companys Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2010, as well as the Companys other filings with the Canadian Securities Administrators and the SEC.LaRonde Goldex Kittila Lapa Pinos AltosMeadowbank 3
  • 4. Highlights■ LaRonde Deep – development project on time andbudget■ Goldex - Record tonnage despite soil subsidenceissues – significant exploration results at depth■ Lapa – Lower grade offset by increased tonnage■ Meadowbank – plant exceeding tonnageexpectations, focused on minimizing dilution■ Kittila – Production resumed at Suuri Open Pit andexcellent exploration results at depth on Rimpi Zone– Solid mill performance, costs improving■ Pinos Altos – Record quarterly production of 51,067ounces at a cash cost of $299 per ounce.■ Meliadine – excellent exploration results –underground bulk sample started; 10 drills on site 4
  • 5. Challenges■ Mining conditions at LaRonde and Lapa –narrow stopes■ Subsidence at Goldex with water inflow■ Equipment availability and high costs atMeadowbank■ High costs at Kittila 5
  • 6. LaRonde
  • 7. LaRonde YTD Highlights■ Gold production – 64,000 oz■ Cost per tonne - $85 vs. budget of $82■ Cash costs $95/oz■ Mill throughput 6,543 tpd 7
  • 8. LaRonde Extension – Project Update■ Load out construction almost completed on Level 282■ Crusher construction – on schedule for Q4■ First production scheduled for November■ On schedule – on budget■ LOM at 6,000 tpd – evaluating possibility of 7,000 tpd 8
  • 9. LaRonde Extension – Production■ Production Stopes194 ■ Pyramid from 269 - Q2 2012 ■ Pyramid from 293 – Q3 2013■ Production Rate Ramp-Up below 215the 245 level ■ 2011 => 1 200 tpd (Q-4 2011) ■ 2012 => 2 000 tpd ■ 2013 => 4 200 tpd245 ■ 2014 => 6 000 tpd 257269 278 282293 311 9
  • 10. LaRonde Extension - Crusher General Arrangement Transfer Conveyor (July 2011) TelSmith Crusher 48 x 52 Capacity >650 t/hr Excavation completed in April2011 Commissioning  Q4 2011Crusher (July 2011)10
  • 11. Goldex
  • 12. Goldex Highlights■ Grade in line with forecast – over 13 million tonnesof broken ore in stope■ Record milled tonnage in May-June followingaddition of 6th Manitou pump, recrushing of surfacestock pile – will be maintained for remainder ofyear; YTD 8,200 tpd■ Operating costs under budget, additional capital tomanage water inflow and soil subsidence■ Surface overburden subsidence – remediationprogram underway■ Exploration results at depth could significantlyincrease mine life■ Resource being calculated■ YTD gold production – 80,500oz; cost per tonne -C$22, on budget; cash costs $408/oz 12
  • 13. Goldex Q3 QTD Performance Unaffected By Subsidence IssuesAug 15, 2011 Q3 QTD H1/11 YTDDaily throughput (tpd)8,485 8,204Grade (g/t)1.85 1.82Mill recoveries (%) 94.6%92.8%13
  • 14. Overburden subsidence5m of overburden settling over center of GEZ Cement injection program ongoing, expected to be completed by year end 14
  • 15. Vertical Cross Section Level 38 Stope outlineShear zoneDiorite Komatiite 15
  • 16. Drilling – Level 38Infiltration Zone – Eastern Mining BlockDiamond drilling andproposed grouting programInfiltration ZoneDiamonddrill holes16
  • 17. Remediation of overburden subsidence■ Shear zones have been characterized and defined■ Reduce water inflow into the mine ■ Grouting from surface and underground■ Stabilize the water table ■ Inject mine inflow back into the water table ■ Water table defined■ Increase underground pumping capacity to secure the mine ■ Additional capacity installed in excess of inflow■ Initial results encouraging ■ Reduction in inflow noted with increased surface injection ■ Water table rising in eastern section ■ Grouting to continue westward until end of year ■ $6.0 million of total $19 million has been spent17
  • 18. Goldex - D Zone Growing at Depth Actual Exploration2011 Exploration Budget(January-June 2011) $8.4 million$3.1 million 70,200 metres DDH 26,482 metres DDH Gold Au TonnesD zone Grade (M oz) (000s)(g/t)Inferred 0.7514,361 1.62resources2011 Exploration Program$8.4 million budgetedD Zone  50 to 100 m thick3.02 g/t Au / 117.0 m  Traced 350 m wide and 500+ m depth (open in all directions) 1.70 g/t Au / 69.0 m  Initial inferred resource 0.75 Moz 1.84 g/t Au / 112.5 m 1.50 g/t Au / 120.0 m  Exploration ramp initiatedincl. 2.40 g/t Au / 61.5 m 1.48 g/t Au / 76.5 m  Resource conversion drilling underway 2.47 g/t Au / 240.0 m  Resource expansion drilling successful at1.70 g/t Au / 192.0 m depth 2.17 g/t Au / 192.0 m  Grade and thickness higher at depth  Initial mining study by end of 2011  Potential to add to reserves in 2013 18
  • 19. Lapa
  • 20. Lapa Update■ Steady state performance exceeding tonnes hoisted and tonnes milled■ Steady state performance for development – targets exceeded despitedifficult mining conditions■ Cost per tonne below budget - C$110■ Unit development cost below budget■ Overall excellent performance: YTD gold production 55,500oz20
  • 21. Meadowbank
  • 22. Meadowbank UpdateTurn around in progress but more work to do■ Secondary crushing plant runningAugust 15th Mill SheetDay Monthaccording to plan CRUSHINGOreTonnage (dmt)8756 128866Utilisation (%)55.56■ Significant improvements in miningFEED Tonnage 10737136319performance although dilution still an Head Grade - Au (g/t)2.58 2.69issueGRINDINGAvailability (%) 100.00 90.42GRAVITY■ Declining costs per tonne over the pastRecovery (%) 14.27% 8.99%LEACH / CIPGold Leach / C.I.P. Recovery (%) 79.86% 84.96%quarter – should see continuedimprovement SUMMARYGravity Gold Recovery (oz) 1271061CIP Gold Recovery (oz.)710 10025Mill Gold Recovery (%) 94.13% 93.95%■ Operating staff positions are being filledGold Production (oz) 837 11086 22
  • 23. MeadowbankQ3 QTD Throughput Significantly Above H1 LevelsAug 15, 2011Q3 QTDH1/11 YTDDaily throughput (tpd)9,143 7,160Grade (g/t) 2.803.11Mill recoveries (%)94.0% 93.7%23
  • 24. Higher mill tonnage after secondary crusher start upMeadowbank Mill_Monthly TonnesBefore Secondary CrusherAfter Secondary Crusher300 000250 000200 000Mill Tonnes (t/month)150 000•Design capacity attained in August•More stable operation downstream100 000 50 000Realized24
  • 25. Tm/day10 000 20 00030 000 40 00050 000 60 00070 000 80 00090 000 100 000 110 000 120 00001-Jan-101-Feb-101-Mar-101-Apr-101-May-101-Jun-10Mine Production Realized 1-Jul-1020101-Aug-101-Sep-101-Oct-101-Nov-10 Realized1-Dec-101-Jan-111-Feb-111-Mar-111-Apr-11Tonnes moved per day Forecast1-May-11Meadowbank Mine Performances1-Jun-11 2011 1-Jul-111-Aug-11 Budget1-Sep-111-Oct-111-Nov-111-Dec-1125
  • 26. Blast Movement Control – Improving Dilution■ Staggered pattern has been successfully implemented in South Portage■ Blast design is now optimized so that the movement of the muck is becomingmore predictable■ Improvements have been made to the QA/QC process, resulting in moreconsistent drilling and loading operations■ Floor quality & fragmentation has improved while keeping movement undercontrol■ Groundwater in South Portage is still locally hindering drilling and blastingoperations; a variance was obtained from the Mine Inspector to allow immediateloading of the holes as they are drilled, a practice that reduces the impact ofwater in the holesAgnico-Eagle Mines Limited26
  • 27. Blast Movement Control – Improving Dilution■ Dilution in flatter zones averaged 30%to 40% earlier this year – nowapproximately 20%■ Objective is 12% - 15% - reserve modelcontains an average of 12%■ Currently mining narrower zones in North PitNorth PortagePortage Pit■ Expansion into South Portage and South PitGoose pits will provide more flexibilityand higher gradesGoose Island PitAgnico-Eagle Mines Limited27
  • 28. Blast movement monitoring Significant reduction in blast displacementAgnico-Eagle Mines Limited28
  • 29. Cost control initiatives■ Improve equipment availability –utilization■ Improved facilities, filling vacant positions■ Prepare for coming winter – complete modifications■ Higher, consistent mill throughput■ Reduce rehandling of ore North Pit■ Train local employees – reduce logisticsPortage Pitcosts■ Reduce reliance on contract labour South Pit■ Reduce fuel consumption, stockpilelower cost fuel, reduce energyconsumption■ Optimize mill (i.e. mill liners, reagents)Agnico-Eagle Mines Limited29
  • 30. Mine Manager’s Comment – Aug 15th, 2011“Wow nice week team!!Tonnes moved average of 87 851 t/dMore consistent direction of the blasts at an average of 5.2 meters displacement(down from 13 metres)Mill tonnage average of 427 t/h (10,250 tpd)Coffer dam construction ahead of scheduleWe are going in the right direction! Keep it up and stay on the top of the waveThanks, Merci, MatnaDominique” 30
  • 31. Kittila
  • 32. Kittila Highlights – H1 2011■ Unplanned shutdowns related to scalingproblems in the Autoclave – mill availability77%■ Total mill throughputof 233,121 dmt or90% of design capacity despite millavailability■ Good underground development and wastestripping performance■ Underground ore production on planGold Brick no 400■ High unit costs per tonne and per ounce■ Contractor reduction in progress■ Excellent exploration results on Rimpi32 32
  • 33. Kittila Q3 QTD Throughput Significantly Above H1 LevelsAug 15, 2011 Q3 QTDH1/11 YTDDaily throughput (tpd)3,1872,734Grade (g/t)4.605.25Mill recoveries (%) 84.7% 84.5% 33
  • 34. Kittila Open Pit■ Ore production resumed in the Suuri pit after 2month stop ■ Eastern wall rock stability issues addressed and Suuri ore production re-started in early June ■ Ore production from Roura good, cost adjustment for stripping Suuri pit ■ Ore stockpile > 300,000 tonnesRoura pit34 34
  • 35. Kittila Underground■ UG development advance very good at 111% ofbudget – new lateral development record at 610 min May■ Good UG ore production -- 102% of budget ■ 350 m Service Level complete – UG warehouse, cafeteria and shops functional ■ Cost reduction opportunities have been identified and action plans instigated ■ Contractor reduction ■ Control overtime ■ Renegotiate reagent, explosive contracts ■ Reduce company housing35 35
  • 36. Kittila – Growing Reserves & Resources 2011 Exploration Budget Actual Exploration (January-June 2011) $15.6 million $7.0 million56,200 metres DDH28,415 metres DDH 9.32 g/t Au / 11.2 m 9.93 g/t Au / 6.2 m 5.98 g/t Au / 7.8 m9.50 g/t Au / 6.0 m 7.10 g/t Au / 21.0 m2011 Exploration Program Production expansion feasibility  Exploration success Rimpi and Suuri$15.6 million budgetedexpected in Q4, 2011 - Roura Deep Suuri – Roura Deep exploration ramp initiated  Suuri – Roura Deep exploration shaft  Potential to enhance economics of Resource expansion and resource to reserveproject under evaluation Kittila expansion and shaft projectsconversion drilling underway36
  • 37. Pinos Altos
  • 38. Pinos Altos H1 Highlights■ YTD production 99,000oz at, $28/t – significantly below budget■ Mascota continued ramp up better than expected Mexico Division Au Ounces Production (Oz)60,00050,00040,00030,00020,00010,000- Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Actual 3838
  • 39. UG Ore Production■ 3,000 TPD ore production was reached in June■ Total cost per tonne was $34.96 vs. $32.47 budget■ Q2 Meters of lateral development 1,476 m vs.1,457 m budget& unit cost of US$2,210 vs. US$2,587 budgetOre Production & Cost per tonne performance 100100909080807070606050504040303020201010- 0USD/tonne Oct Nov Dec Jan Feb Mar Apr May June tonnes2010 2010 2010 2011 2011 2011 2011 2011 2011Tonnes USD/tonne39 39
  • 40. Pinos Altos Open Pit■ Total Open pit ore production was 783,948 tonnes at 1.065 g/t Au vs. 671,531at 1.192 g/t. planned■ Total Open pit unit cost was $1.33 per tonne vs. $1.29 per tonne planned 4040
  • 41. Mascota Operation■ Ramp up production■ Heap Leach Au-Oz Production 9,449 Oz vs. 6,462 Oz budget. (payable gold) Ore Placed 2011 (000 tonnes) Au Ounces Production 2011 (Oz)180 4,500160 4,000140 3,500120 3,000100 2,500 80 2,000 60 1,500 40 1,000 20500 - -Jan Feb Mar Apr May JunJan Feb MarApr May Juntonnes placedActual41 41
  • 42. Exploration Upside
  • 43. Meliadine Exploration Upside - 80km Strike Length2011 Exploration BudgetActual Exploration (January-June 2011)$64.8 million $11.7 million 90,000 metres DDH 44,173 metres DDH Au Tonnes AuTiriganiaq(Moz) (000) (g/t)Probable Reserves 2.609,467 8.54Indicated Resources 0.815,407 4.66Inferred Resources 1.91 7,883 7.55 Au Tonnes Au Wesmeg (Moz) (000) (g/t) Inferred Resources 0.14 1,000 4.45 TiriganiaqAu Tonnes AuF zone WolfWesmeg(Moz) (000) (g/t)Indicated Resources 0.33 1,895 5.39Pump F ZoneInferred Resources 0.18 1,010 5.62Au TonnesAuWolf(Moz) (000) (g/t) Au Tonnes AuDiscovery Indicated Resources 0.02 183 3.79 Discovery (Moz) (000) (g/t) Inferred Resources 0.16 947 5.24 Indicated Resources 0.32 1,323 7.41Inferred Resources 0.14498 8.97 Au Tonnes AuPump (Moz) (000) (g/t) Inferred Resources 0.10 495 6.292011 Exploration budget $64.8 million for drilling,feasibility and camp Resource to reserve conversion and expansionunderway at Tiriganiaq /Wesmeg Aggressive regional exploration initiated (plans to build new Permitting and preparations for access road exploration base at Discovery)construction 6,000 -10,000 tpd feasibility expected 2013 Wesmeg exploration success should increase 10 kmresources43
  • 44. Meliadine Exploration - Tiriganiaq 8.62 g/t Au / 19.3 mTiriganiaq Longitudinal Section 10.9 g/t Au / 7.0 m7.98 g/t Au / 39.3 m 15.14 g/t Au / 5.8 m 16.64 g/t Au / 7.4 m 5.33 g/t Au / 4.2 m Largest deposit at Meliadine Tiriganiaq AuTonnesAu  Ramp project to test for deeper (Moz)(000)(g/t) extensions Resource expansion and resource to Probable Reserves2.609,467 8.54reserve conversion drilling underway Indicated Resources0.815,407 4.66 Potential to add reserves and resources Underground bulk sampling initiatedInferred Resources 1.917,883 7.55at Tiriganiaq in 2011 44
  • 45. Tiriganiaq Schematic Cross SectionBulk SampleArea2011 Exploration Program atTiriganiaq Underground bulk sampling andgrade confirmation drillingunderway to refine feasibilityresource model Resource to reserve conversiondrilling Resource expansion drilling Exploration ramp proposed tofollow up and extend Tiriganiaqand Wesmeg (both wide open atdepth) 45
  • 46. Wesmeg – The most recent discovery at Meliadine Wesmeg Longitudinal Section 4.78 g/t Au / 13.5 m7.02 g/t Au / 10.6 m 7.02 g/t Au / 10.6 m8.17 g/t Au / 5.4 m 6.87 g/t Au / 4.7 m 5.72 g/t Au / 9.4 m Initial resource in Dec’ 2010 (Wesmeg North only) Au TonnesGold Grade Exploration success extends Wesmeg North open pit potential more than 2.1Wesmeg zone (M oz) (000s) (g/t)kilometres; Underground potential also developingInferred0.141,000 4.45 New Wesmeg South trend currently traced for 600 metres and extending at depthresourcesbelow 160 metres Potential to significantly expand Wesmeg resource in 2011 and enhance feasibility46
  • 47. Appendix
  • 48. Gold and Silver Reserves and Resources December 31, 2010 TonnesGold GoldTonnes Silver Silver (000’s)(g/t) (ounces) (000’s) (g/t)*(ounces)(000’s)(000’s)Proven 24,8692.291,832Proven 7,702 54.75 13,558Probable160,9443.76 19,467Probable71,190 48.09110,061Total Total185,8133.57 21,29978,892 48.74123,620ReservesReservesIndicated95,1352.106,437Indicated 32,554 21.90 22,918Inferred 118,111 2.599,839Inferred37,183 19.98 23,883*Calculated grades 48
  • 49. Copper, Zinc and Lead Reserves and Resources December 31, 2010 Tonnes Copper CopperTonnes Zinc Zinc Tonnes Lead Lead (000’s)(%) (tonnes)(000’s)(%) (tonnes)(000’s)(%) (tonnes) Proven4,838 0.26 12,433 Proven 4,838 2.78 134,651Proven 4,838 0.32 15,572 Probable 29,892 0.28 82,360 Probable29,892 0.90 269,581Probable29,892 0.07 19,463 Total TotalTotal34,730 0.27 94,793 34,730 1.16 404,23234,730 0.10 35,035 ReservesReserves Reserves Indicated 6,933 0.128,462 Indicated6,933 1.36 94,457 Indicated6,933 0.138,942 Inferred 11,526 0.27 30,820 Inferred11,526 0.48 55,556 Inferred11,526 0.055,463*Calculated grades 49
  • 50. A solid financial position, low-cost structure,well-funded growth projects in regions of low political risk, and a focused, consistent strategyput Agnico-Eagle in a strong position to continuecreating exceptional per share value.Sean Boyd Executive and Registered Office: Vice-Chairman and 145 King Street East, Suite 400Chief Executive OfficerToronto, Ontario, Canada, M5C 2Y7 Ebe Scherkus Tel:416-947-1212President and Toll-Free:888-822-6714Chief Operating Officer Fax:416-367-4681Ammar Al-Joundi SVP Finance and Chief Financial Officer David SmithSVP Investor RelationsTrading Symbol: AEM on TSX & NYSEInvestor Relations:416-947-1212info@agnico-eagle.com agnico-eagle.com
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