agnico-eagle mines limited...agnico-eagle mines limited . 2 . forward looking statements . ......

Second Quarter 2011 Results

Agnico-Eagle Mines Limited

2

Forward Looking Statements

The information in this document has been prepared as at July 27, 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

Q2 2011

Operating and Financial Results

5

Q2 Highlights

■ Strong cash generation

■Meadowbank secondary plant complete

■ Good cost performance in Quebec and Mexico

■ Exploration expands Meliadine, Kittila and Goldex deposits

5

Throughput Steady At All Six Mines

6

Strong Financial Position Production Growth Drives Strong Earnings And Cash Flows

6

2011 Q2

2010 Q2

2011 YTD

2010 YTD

Gold (ounces in thousands)

239 258 492 446

Total cash costs ($/oz)

$576 $488 $553 $469

Revenues from mining operations (millions)

$433.7 $347.5 $845.8 $585.0

Earnings (millions)

$68.8 $100.4 $114.1 $122.7

Earnings per share (basic)

$0.41 $0.63 $0.68 $0.78

Cash provided by operating activities (millions)

$162.8 $161.6 $333.9 $236.1

All $ amounts are in US$

7

H2 Gold Production Forecast To Increase By Approximately 20%

Laronde 23%

Goldex 15%

Lapa 10%

Kittila 10%

Pinos Altos 21%

Meadowbank 21%

Operating Results

Q2 2011 Operating Results

Total Cash Costs ($/oz)

Payable Production (Gold oz)

% of Production

LaRonde $231 27,525 11%

Goldex $387 41,998 18%

Kittila $850 30,811 13%

Lapa $599 28,552 12%

Pinos Altos1 $299 51,066 21%

Meadowbank $910 59,376 25%

Total $565 239,328 100% 1 Pinos Altos production includes heap leach

Gold 84%

Silver 10%

Base Metals

6%

Q2 2011 Revenue By Metal Q2 2011 Revenue By Mine

8

Strong Financial Position

All amounts are in US$, unless otherwise indicated

June 30 2011

Cash and cash equivalents (millions)

$139.0

Long term debt (millions)

$600.0

Available credit facilities $1.2B

Common shares outstanding (millions)

169.0

Common shares, fully diluted (millions)

186.9

Next Phase Of Growth Fully Funded

8

54 Years and Counting

Same Strategy

10

AEM Has Created Significant Per Share Value

10

“For many years, we have adhered to a consistent, low-risk strategy for strengthening our gold mining business and creating shareholder value”

– Sean Boyd, Vice-Chairman and CEO

0%

100%

200%

300%

400%

500%

600%

700%

Jul-05 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11

AEMGoldXAU

11

Creating Per Share Value

Gold Reserves (oz) Per 1,000 Shares

90

110

130

'06 '07 '08 '09 '10 '11E

Increasing Leverage To Gold – In The Ground

Gold reserves (m oz) 21.3

Average reserve grade (g/t) 3.57

Indicated resource (m oz) 6.4

Inferred resource (m oz) 9.8

Est. LOM (years) 21

12

Increasing Leverage To Gold - Produced Creating Per Share Value

0

1

2

3

4

5

6

7

'06 '07 '08 '09 '10 '11E

Payable Gold Production (oz) Per 1,000 Shares

13

Production Per Share Growth Leads to Cash Flow Per Share Growth Creating Per Share Value

$0

$1

$2

$3

$4

'05 '06 '07 '08 '09 '10 '11*

Cash Provided By Operating Activities Per Share ($)

* 2011E CFPS is annualized based on 2011YTD data

Returning Excess Capital To Shareholders

Same Strategy

15

Fully Funded Production Growth Leads To Increasing Dividends Creating Per Share Value

Dividends Per Share

* 2011E CFPS is annualized based on 2011YTD data

$0.03

$0.12

$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

16

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

NEM AEM ABX IAG AUY GG KGC EGO

Increase Cash Dividends Per Share

AEM has paid a cash dividend for 29 consecutive years

■ Goal is to continue increasing sustainable dividends

A Core Part Of Our Strategy

Dividend Yields (July 15, 2011)

17

Meliadine Project – Extensive Property Position 100% Ownership Of 80km Greenstone Belt

Prairie (grab sample 217g/t)

Sik Sik

Peter Lake 5.1/3.7 & 20.4/1.3 Aquarius

Musket Bay

Aqpik 8.6/3.2 & 9.6/3.2

Aklak (grab sample 116 g/t)

Noel 6.6/3.1 & grab sample 282 g/t

Nanook

SnowGoose

Tonic

55 Upper 11.3 / 3.6

J-2 7.7/4.2 & 70.3/1.4

Far East

Fay 2

10 Km

Discovery

F Zone

Tiriganiaq

Pump

Wolf Wesmeg

Priority targets

18

Meliadine Project - Tiriganiaq High Grade Gold Reserve Adding More Drills. Potential Ramp Development.

19

RIE11008 7.10 g/t Au / 21.0 m

RIM10010 9.93 g/t Au / 6.2 m

RIM10009 6.28 g/t Au / 5.7 m RIM10003B

3.64 g/t Au / 4.0 m

ROU10036D 5.98 g/t Au / 7.8 m

ROU09002F 9.32 g/t Au / 11.2 m

Kittila – Long Life Gold Mine Exciting New Hole At Rimpi Suggests Significant Reserve Potential

20

73-426 3.02 g/t Au / 117.0 m

73-427 1.84 g/t Au / 112.5 m

73-429 1.48 g/t Au / 76.5 m

84-023 1.70 g/t Au / 69.0 m

84-067 1.50 g/t Au / 120.0 m

incl. 2.40 g/t Au / 61.5 m

76-013 2.47 g/t Au / 240.0 m

76-014 2.17 g/t Au / 192.0 m

Goldex – Significant Extension Of Mine Life Likely Growing Gold Resource Creating Value

21

Increase Reserves Per Share – Recent Acquisitions Early Stage M&A Has Added Shareholder Value

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

22

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

AEMXAUGold

The Strategy Is Unchanged. Because It Works.

“The strong skill set of our team is at the core of our success. The team is ready to grow Agnico-Eagle well into the future ”

– Ebe Scherkus, President and COO

22

Appendix

24

LaRonde – Canada

■ 2011 ■ First half gold production of 64,418 ounces ■ Deep mine development on time and budget

■ 2012-2015 ■ Estimated average annual gold production of 290,000 oz

■ Exploration Focus ■ Additional potential at depth, to the East and to the West ■ Expand and convert resource on Bousquet Zone 5 ■ Defining a gold resource at Ellison (2 km west of LaRonde)

Increasing Gold Output In 2012


Average gold reserve grade (g/t) 4.3



Est. LOM (years) 13

Estimated average LOM production (k oz/yr) 324

2011 exploration budget (LaRonde & regional) $11M

24

25

Goldex – Canada

■ 2011 ■ First half gold production of 80,498 ounces ■ Minesite cost per tonne on budget


■ 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

25





Est. LOM (years) 8

Estimated average production (k oz/yr) 164

2011 exploration budget $6M

26

Lapa – Canada



■ 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

26





Est. LOM (years) 4



27

Kittila – Finland

■ 2011 ■ First half gold production of 71,128 ounces ■ Expansion study expected to be completed Q4 2011;

Targeting 50% increase in production rate


■ Exploration Focus ■ Resource conversion, expansion below Suuri, Roura and

Rimpi and along strike ■ Recent drilling has extended known gold resource

Focus On Optimization And Cost Reduction

27





Est. LOM (years) 22



28

Pinos Altos – Mexico


■ 2012-2015 ■ Estimated average annual gold production of 230,000 oz ■ Increase underground capacity to match mill

■ Exploration Focus ■ Potential to develop satellite deposits

Record Quarterly Gold Production

28


Average gold reserve grade (g/t) 2.3



Est. LOM (years) 16



29

Meadowbank – Canada

■ 2011 ■ First half gold production of 121,113 ounces ■ Secondary crushing plant complete. 9,300 tpd to date in

July ■ Focus on optimization and cost reduction


■ Exploration Focus ■ Focus on resource conversion and expansion of Vault,

Goose South and Portage

Newest Mine – Largest Gold Producer

29



Measured & Indicated resource (m oz) 1.4


Est. LOM (years) 10



30






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 ■ Recent drilling has extended known gold resource ■ Potential to accelerate underground development to

test deposit at depth

■ Production decision expected in 2013

Fast Growing Gold Reserve And Resource

30

31

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 Q2 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

Q2

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

2,000tpd

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Lapa - Ore milled ('000 tonnes) Lapa - Minesite costs per tonne (C$)

Goldex Strong throughput keeps unit costs low

Lapa Consistently exceeding design throughput

32

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

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

Q2

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

Q2

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

33

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

34

Copper, Zinc and Lead Reserves and Resources

*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

December 31, 2010

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

[email protected]

agnico-eagle mines limited...agnico-eagle mines limited . 2 . forward looking statements . ......

Documents