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First Quarter 2011 Results – April 2011
Agnico-Eagle Mines Limited
2
Forward Looking Statements
The information in this document has been prepared as at April 28, 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 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 16, 2011 press release on the Company’s website. That press release also lists the Qualified Persons for each project.
3
Note To Investors
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.
Regarding the use of non-GAAP financial measures
LaRonde Goldex Kittila Lapa Pinos Altos Meadowbank
3
4
Corporate Strategy
■Grow gold reserves
■ Increase gold production
■Acquire small, think big
■Be a low-cost leader
■Maintain a solid financial profile
Build shareholder value by increasing PER SHARE metrics
4
For many years, we have adhered to a consistent, low-risk strategy for strengthening our gold mining business and creating shareholder value.
5
The Investment Case For AEM Uniquely positioned to outperform the competition
5
Investment Objectives
Gold ETF
Junior Explorers / Developers
Senior Gold
Operators AEM
Yield × × Stable, De-risked Leverage To Gold Price × Meaningful Exploration & Expansion Upside on a PER SHARE basis × ×
■ AEM uniquely offers gold investors exposure to important investment objectives
6
Investment Highlights
Dividends Per Share Share Price vs. Gold Price & Gold Index
Gold Reserves (oz) Per 1,000 Shares
Payable Gold Production (oz) Per 1,000 Shares
Measured, Indicated and Inferred Resources (oz) Per 1,000 Shares
0
20
40
60
80
100
120
'06 '07 '08 '09 '1090
110
130
'06 '07 '08 '09 '100
2
4
6
8
'06 '07 '08 '09 '10
0.030.12
0.18 0.18 0.18
0.64
$0.0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
'06 '07 '08 '09 '10 '11-50%
0%50%
100%150%200%250%300%350%
'05 '06 '07 '08 '09 '10
AEM Gold XAU
Increasing leverage to gold
7
Strong Financial Position Production growth drives strong earnings and cash flows
7
2011 Q1
2010 Q1 2010
Revenues from mining operations (millions)
$412.1 $237.6 $1,422.5
Earnings (millions)
$45.3 $22.3 $332.1
Earnings per share (basic)
$0.27 $0.14 $2.05
Cash provided by operating activities (millions)
$171.0 $74.5 $483.5
8
Operating Results Growing, diversified multi-asset gold producer
All $ amounts are in US$, unless otherwise indicated
2011 Q1
2010 Q1 2011E 2010
Gold (ounces in thousands)
252 188 1,080 – 1,150 988
Silver (ounces in thousands)
1,099 1,099 6,140 5,305
Zinc (tonnes)
11,941 14,224 71,800 62,544
Copper (tonnes)
817 1,052 4,386 4,224
Total cash costs ($/oz)
$531 $441 $445 – $495 $451
2011E Revenue by Mine
LaRonde25%
Goldex13%
Lapa9%Kittila
11%
Pinos Altos18%
Meadowbank24%
8
9
Strong Financial Position
All amounts are in US$, unless otherwise indicated
Mar. 31 2011
Cash and cash equivalents (millions)
$114.8
Long term debt (millions)
$600.0
Available credit facilities $1.2B
Common shares outstanding (millions)
169.0
Common shares, fully diluted (millions)
186.7
Next phase of growth fully funded
9
10
Grow Gold Reserves
■ Targeting more than 22 million oz at year end 2011
■ 2011 exploration budget up 30% to record $145 million
■ Deposits also contain an additional 6.4 million ounces of indicated gold resources and 9.8 million ounces of inferred resource*
Reserves increased 545% since 2001. Shares outstanding up 148%.
* See attached reserve and resource tables
3.3 4.0
7.9 7.9
10.412.4
16.718.1 18.4
21.3 22.0+
0
2
4
6
8
10
12
14
16
18
20
22
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E
Gold reserves* (millions of ounces)
11
Grow Gold Reserves Per Share AEM is among the top 3 gold equities in reserves per share
48
93 92 106 103
117 117 117
AEM 126
ABX
NEM
0
50
100
150
200
250
2002 2003 2004 2005 2006 2007 2008 2009 2010
Proven and Probable Reserves per 1,000 Shares
12
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
1,600,000
2010 2011E 2012E 2013E 2014E
Payable Gold Production Estimates (ounces)
Targeting 1.5 million oz by 2014, a 50% increase over 2010 Growth fully funded from operating cash flows
Production growth for 2015 and beyond expected to include: Kittila expansion, Meliadine, Pinos Altos mill and satellite zones
13
2.0 1.6 1.8
3.1
AEM 5.9
ABX
NEM
0
2
4
6
8
10
12
14
2006 2007 2008 2009 2010
Gold Production (Oz per 1,000 Shares)
Growing Production Per Share AEM is among the top 3 gold equities in production per share
14
Acquire Small, Think Big
Transaction Date Purchase Price (Net of Cash)
Reserve Then
Resource Then
Purchase Cost per
oz
Oz Added Since
Acquisition
Total Exploration Investment
Exploration Cost per oz
Time to Drill, Permit
& Build
Comaplex –Meliadine
Apr 10 $668 M nil 5.0 Moz $134 +1.7 Moz
(+34%) $9.9 M ~$6/oz tbd
Cumberland –Meadowbank
Feb 07 $480 M 2.9 Moz 1.1 Moz $120 +1.9 Moz
(+48%) $44.3 M ~$23/oz 3 yrs
Pinos Altos Mar 06 $67 M nil 2.1 Moz $32 +3.0 Moz
(+143%) $77.8 M ~$26/oz 3.5 yrs
Riddarhyttan – Kittila
May 05 $145 M nil 2.8 Moz $52 +4.2 Moz
(150%) $83.4 M ~20/oz 4 yrs
Total $1.4B 2.9 Moz 11 Moz $98 10.8 Moz (78%) $215 M ~$20/oz
Established track record of adding value via quality acquisitions and exploration
15
Kittila – Focused Exploration Builds Long Term Value
16
Be A Low-Cost Leader Optimization expected to drive unit costs down
16
LaRonde, $54/oz
Goldex, $349/oz
Pinos Altos, $406/oz
Lapa, $518/oz Kittila, $548/oz
Meadowbank, $700/oz
-$400/oz
-$200/oz
$0/oz
$200/oz
$400/oz
$600/oz
$800/oz
$1,000/oz
0% 25% 50% 75% 100%
2010 World Cash Cost Avg - $557/oz
Source: GFMS, TD Newcrest
2011E Global Cash Cost and Production Curve
17
Capital Expenditure Estimates Increasing net free cash flow as production increases and capex decreases
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E
US
D $
000'
s
Actual Estimate
Approximate Average EBITDA*
Illustrative Ongoing Re-Investment
* Approximate EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) estimate of average for illustrative purposes using $1350/oz gold, $35/oz silver, $2350/t zinc, C$0.99/USD, 1.40USD/€
18
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Newmont Barrick Agnico-Eagle Goldcorp IAMGold Kinross Yamana Eldorado
2009 2010E 2011E 2012E
Among Industry Leaders in Cash Generation Per Share
2010
2011
E
2012
E
2009
Cash Flow Per Share
Commodity assumptions: Au – (2011: $1423/oz, 2012: 1463/oz); Ag – (2011: $32.78/oz, 2012: 35.58/oz) Source: Merrill Lynch, April18/2011
19
Upcoming Events
Q2 – 2011 ■ Investor tours of Kittila, Pinos Altos, Meadowbank
and Meliadine ■ Exploration update
Q3 – 2011 ■ Production ramp up with additional crushing
capacity at Meadowbank ■ Exploration update and new Meliadine resource
Q4 – 2011 ■ Complete Kittila expansion study ■ Dividend Announcement ■ Exploration update
19
Operations & Exploration Update
21
LaRonde – Canada
■ 2011 ■ Estimated production of 157,000oz Au at total cash costs
of $54/oz
■ 2012-2015 ■ Estimated average annual production of 290,000 oz Au
at total cash costs of $381/oz
■ Exploration Focus ■ Additional potential at depth, to the East and to the West ■ Expand and convert resource on Zone 5 ■ Defining a gold resource at Ellison (2 km west of LaRonde)
Increasing gold output in 2012
Gold reserves (m oz) 4.8
Average gold reserve grade (g/t) 4.3
Indicated resource (m oz) 0.4
Inferred resource (m oz) 1.4
Est. LOM (years) 13
Estimated average LOM production (k oz/yr) 324
2011 exploration budget (LaRonde & regional) $11M
21
22
Bousquet – LaRonde Gold Trend – Ellison Target Established mining camp still has potential to grow
23
Goldex – Canada
■ 2011 ■ Estimated production of 184,000oz Au at total cash
costs of $349/oz
■ 2012-2015 ■ Estimated average annual production of 179,000oz Au
at total cash costs of $344/oz
■ Exploration Focus ■ Resource definition and expansion at D zone at depth,
exploration to west, east and at depth ■ Potential to add reserves and increase mine life
Strong free cash flow generator
23
Gold reserves (m oz) 1.6
Average reserve grade (g/t) 1.8
Indicated resource (m oz) 0.5
Inferred resource (m oz) 1.4
Est. LOM (years) 8
Estimated average production (k oz/yr) 164
2011 exploration budget $6M
24
Goldex - Composite Longitudinal Section
73-414 1.77 g/t Au / 108 m
76-011 1.64 g/t Au / 165.0 m
76-012 1.70 g/t Au / 192.0 m
76-013 2.47 g/t Au / 240.0 m 76-014
2.17 g/t Au / 192.00 m
25
Lapa – Canada
■ 2011 ■ Estimated production of 125,000oz Au at total cash costs
of $518/oz
■ 2012-2014 ■ Estimated average annual production of 117,000oz Au
at total cash costs of $535/oz
■ Exploration Focus ■ Extension of underground exploration drift to provide
access to drill targets to extend mine life
Steady state mine with good tonnage and cost performance
25
Gold reserves (m oz) 0.7
Average reserve grade (g/t) 7.4
Indicated resource (m oz) 0.2
Inferred resource (m oz) 0.1
Est. LOM (years) 4
Estimated average production (k oz/yr) 119
2011 exploration budget $6M
26
Lapa – Composite Longitudinal Section
LA11-98-28 8.9 g/t Au / 2.8 m
LA11-98-25 15.5 g/t Au / 2.8 m
LA11-98-23 23.5 g/t Au / 2.8 m
LA11-98-40 13.5 g/t Au / 2.8 m
LA10-98-19 12.8 g/t Au / 2.8 m
27
Kittila – Finland
■ 2011 ■ Estimated production of 150,000oz Au at total cash costs
of $548/oz ■ Expansion study expected to be completed Q4 2011;
Targeting 50% increase in production rate
■ 2012-2015 ■ Estimated average annual production of 173,000oz Au
at total cash costs of $501/oz
■ Exploration Focus ■ Resource conversion, expansion below Suuri and Roura,
and along strike
Record production in Q1/11; Focus on cost reduction
27
Gold reserves (m oz) 4.9
Average reserve grade (g/t) 4.6
Indicated resource (m oz) 1.2
Inferred resource (m oz) 0.7
Est. LOM (years) 22
Estimated average production (k oz/yr) 146
2011 exploration budget $16M
28
Kittila – Composite Longitudinal Section Deposit remains open at depth and along strike
ROU10035 4.78 g/t Au / 3.8 m
ROU10036C 4.10 g/t Au / 6.8 m 5.08 g/t Au / 4.2 m
ROU10037 9.50 g/t Au / 6.0 m
ROU10036B 5.97 g/t Au / 5.9 m
29
Pinos Altos – Mexico
■ 2011 ■ Estimated production of 199,000oz Au at
total cash costs of $406/oz
■ 2012-2015 ■ Estimated average annual production of 230,000oz Au
at total cash costs of $334/oz ■ Studying underground expansion
■ Exploration Focus ■ Potential to develop satellite deposits
Operating costs declining as start-up phase complete
29
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) 16
Estimated average production (k oz/yr) 187
2011 exploration budget $2M
30
Pinos Altos Composite Longitudinal Section
31
Meadowbank – Canada
■ 2011 ■ Estimated production of 310,000oz Au at
total cash costs of approximately $700/oz ■ Secondary crushing plant expected to be
commissioned in Q3
■ 2012-2015 ■ Estimated average annual production of 399,000oz Au
at total cash costs of $511/oz
■ Exploration Focus ■ Focus on resource conversion and expansion of Vault,
Goose South and Portage
Newest mine – largest gold producer
31
Gold reserves (m oz) 3.5
Average reserve grade (g/t) 3.2
Measured & Indicated resource (m oz) 1.4
Inferred resource (m oz) 0.7
Est. LOM (years) 10
Estimated average production (k oz/yr) 297
2011 exploration budget $7M
32
Meadowbank Regional Geology Map
Vault
Portage
Goose Island
Goose South
Focus on resource conversion and expansion of Vault deposit
33
Gold reserves (m oz) 2.6
Average reserve grade (g/t) 8.5
Indicated resource (m oz) 1.5
Inferred resource (m oz) 2.6
2011 exploration budget $65M
Meliadine – Canada
■ Initial Gold Reserve ■ 2.6 million ounces from 9.5 million tonnes @ 8.5 g/t
■ 2011 Exploration budget ■ $65 million to be spent, including 90,000m of drilling ■ Potential to accelerate underground development to test
deposit at depth
■ Production decision expected in 2013
Fast growing gold reserve and resource
33
34
Meliadine Project - Local Geology Map 100% ownership of 80km greenstone belt
North trend
35
Meliadine Project – Wesmeg Composite Longitudinal Section
M11-1004 4.78g/t Au / 13.5 m
M11-1008 2.2 g/t Au / 3.0 m
M11-1014 8.17 g/t Au / 5.4 m
M11-1010 5.89 g/t Au / 3.9 m
M11-1013 3.1 g/t Au / 6.7 m
M11-1021 3.79 g/t Au / 4.0 m 5.84 g/t Au / 4.2 m
Growing, near-surface gold deposit
36
Meliadine Project - Tiriganiaq Longitudinal Section High grade gold deposit remains open for expansion
37
Appendix
38
Operating Metrics
LaRonde
$0/t
$20/t
$40/t
$60/t
$80/t
$100/t
$120/t
4,000tpd4,500tpd5,000tpd5,500tpd6,000tpd6,500tpd7,000tpd7,500tpd8,000tpd
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
LaRonde - Ore milled ('000 tonnes) LaRonde - Minesite costs per tonne (C$)Steady state producer
$0/t
$5/t
$10/t
$15/t
$20/t
$25/t
$30/t
$35/t
0tpd
1,000tpd
2,000tpd
3,000tpd
4,000tpd
5,000tpd
6,000tpd
7,000tpd
8,000tpd
9,000tpd
Q3
08
Q4
08
Q1
09
Q2
09
Q3
09
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Goldex - Ore milled ('000 tonnes) Goldex - Minesite costs per tonne (C$)
$0/t
$20/t
$40/t
$60/t
$80/t
$100/t
$120/t
$140/t
$160/t
0tpd
200tpd
400tpd
600tpd
800tpd
1,000tpd
1,200tpd
1,400tpd
1,600tpd
1,800tpd
Q2
09
Q3
09
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Lapa - Ore milled ('000 tonnes) Lapa - Minesite costs per tonne (C$)
Goldex Strong throughput keeps unit costs low
Lapa Consistently exceeding design throughput
39
Operating Metrics
€0/t €10/t €20/t €30/t €40/t €50/t €60/t €70/t €80/t €90/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
Kittila - Ore milled('000 tonnes) Kittila - Minesite costs per tonne (EUR)
$0/t
$10/t
$20/t
$30/t
$40/t
$50/t
$60/t
0tpd
500tpd
1,000tpd
1,500tpd
2,000tpd
2,500tpd
3,000tpd
3,500tpd
4,000tpd
4,500tpd
5,000tpd
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Pinos Altos - Ore milled ('000 tonnes) Pinos Altos - Minesite costs per tonne (USD$)
$0/t
$20/t
$40/t
$60/t
$80/t
$100/t
$120/t
$140/t
$160/t
$180/t
0tpd
1,000tpd
2,000tpd
3,000tpd
4,000tpd
5,000tpd
6,000tpd
7,000tpd
8,000tpd
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Meadowbank - Ore milled ('000 tonnes) Meadowbank - Minesite costs per tonne (C$)
Kittila Mill process stabilizing
Pinos Altos Additional tailings filters increased mill capacity
Meadowbank Design throughput expected by Q3, 2011
40
Gold and Silver Reserves and Resources December 31, 2010
Tonnes (000’s)
Gold (g/t)
Gold (ounces)
(000’s)
Proven 24,869 2.29 1,832
Probable 160,944 3.76 19,467
Total Reserves 185,813 3.57 21,299
Indicated 95,135 2.10 6,437
Inferred 118,111 2.59 9,839
Tonnes (000’s)
Silver (g/t)*
Silver (ounces)
(000’s)
Proven 7,702 54.75 13,558
Probable 71,190 48.09 110,061
Total Reserves 78,892 48.74 123,620
Indicated 32,554 21.90 22,918
Inferred 37,183 19.98 23,883
*Calculated grades
41
Copper, Zinc and Lead Reserves and Resources (December 31, 2010)
*Calculated grades
Tonnes (000’s)
Copper (%)
Copper (tonnes)
Proven 4,838 0.26 12,433
Probable 29,892 0.28 82,360
Total Reserves 34,730 0.27 94,793
Indicated 6,933 0.12 8,462
Inferred 11,526 0.27 30,820
Tonnes (000’s)
Zinc (%)
Zinc (tonnes)
Proven 4,838 2.78 134,651
Probable 29,892 0.90 269,581
Total Reserves 34,730 1.16 404,232
Indicated 6,933 1.36 94,457
Inferred 11,526 0.48 55,556
Tonnes (000’s)
Lead (%)
Lead (tonnes)
Proven 4,838 0.32 15,572
Probable 29,892 0.07 19,463
Total Reserves 34,730 0.10 35,035
Indicated 6,933 0.13 8,942
Inferred 11,526 0.05 5,463
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 Vice-Chairman and
Chief Executive Officer
Ebe Scherkus President and
Chief Operating Officer
Ammar Al-Joundi SVP Finance and
Chief Financial Officer
David Smith SVP Investor Relations
Trading Symbol: AEM on TSX & NYSE
Investor Relations: 416-947-1212