UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of February, 2014.
 
Commission File Number
 
AGNICO EAGLE MINES LIMITED
(Translation of registrant’s name into English)
 
145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F  x   Form 40-F  o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)( 1): o
 
Note: Regulation S-T Rule 101 (b)( 1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(7): o
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes  o    No  x
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                .

 

 
EXHIBITS

Exhibit No.	 	Exhibit Description	
99.1	 	Press Release dated February 12, 2014 announcing the Corporation’s Fourth Quarter and Full Year 2013 Results.	
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 	AGNICO EAGLE MINES LIMITED	
 	(Registrant)	

Date: February 14, 2014	By:	/s/ R. Gregory Laing	
 	 	R. Gregory Laing	
 	 	General Counsel, Sr. Vice President, Legal	
 	 	and Corporate Secretary	
 
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Exhibit 99.1

 

Stock Symbol:	AEM (NYSE and TSX)	
 
(All amounts expressed in United States dollars unless otherwise noted)
 
Agnico Eagle reports fourth quarter and full year 2013 results - Strong operational performance yields record annual production
 
TORONTO, February 12, 2014 - Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) today reported a quarterly net loss of $453.3 million, or a net loss of $2.61 per share for the fourth quarter of 2013.  This result includes, a non-cash after tax impairment lo ss of $436.3 million ($2.51 per share), a non-cash deferred tax charge (primarily related to a new Mexican mining tax law enacted in the fourth quarter of 2013) of $47.2 million ($0.27 per share), a non-cash impairment loss on available for sale securities of $10.2 million ($0.06 per share), a non-cash stock option expense of $4.3 million ($0.02 per share), other non-recurring expenses of $5.7 million ($0.04 per share), and a non-cash foreign currency translation gain of $6.2 million ($0.04 per share).  Excluding these items would result in adjusted net income of $44.2 million ($0.25 per share) for the fourt h quarter of 2013.  In the fourth quarter of 2012, the Company reported net income of $82.8 million or $0.48 per share.
 
Fourth quarter 2013 cash provided by operating activities was $135.9 million ($144.7 million before changes in non-cash components of working capital), this compares to cash provided by operating activities of $106.0 million in the fourth quarter of 2012 ($169.3 million before changes in non-cash components of working capital).  The decline in cash flow before changes in working capital during the current period was largely due to a lower metal price environment as the Company’s realized gold and silver prices were down 26% and 35% respectively, period over period.
 
“Despite a challenging time in the gold market, our employees delivered record operating and safety performance for 2013.  This allowed us to exceed both our production and cost guidance for the second year in a row.  Over the next three years, we expect further production growth and stable costs”, said Sean Boyd, President and Chief Executive Officer.  “Despite the strong operating results, and solid production growth ahead from our existing assets, we have decided to reduce our quarterly dividend to enhance our financial flexibility in the current lower gold price environment”, added Mr. Boyd.
 
Fourth quarter and full year 2013 highlights include:
 
·                   Continued strong operational performance leads to record annual gold production - record full year payable gold production 1  of 1,099,335 ounces at total cash costs 2  of $672 per ounce for the year, compared to guidance of 1,060,000 ounces at $690 per ounce
·                   Record fourth quarter production helps drive lower costs - payable gold production of 322,443 ounces at a total cash cost of $623 per ounce in the fourth quarter of 2013
·                   All-in sustaining costs 3  for 2013 of $952 per ounce - below third quarter 2013 guidance of $1025 per ounce
·                   Record annual gold production at the Meadowbank Mine - 430,613 ounces at a total cash cost of $774 per ounce
 
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·                   Forecasting 16% projected production growth through 2016 - production is expected to sequentially increase to approximately 1,275,000 ounces in 2016
·                   Year-end 2013 gold reserves, net of production stand at 16.9 million ounces with 11% improvement in average grade to 3.51 grams per tonne (g/t) - gold reserves remain strong despite using $1,200 per ounce gold price rather than averages of $1,350 per ounce and $1,495 per ounce for year-end 2012
·                   Achievement of commercial production at Goldex and commissioning of La India mines - both projects expected to provide further production growth in 2014
·                   Quarterly dividend of $0.08 per share declared - the reduction (was $0.22 per share) in the quarterly dividend reflects current market conditions as gold is trading approximately $100 per ounce lower than the Company’s realized price in 2013.

(1) Payable production of a mineral means the quantity of mineral produced during a period contained in products that are or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
 
(2) Total cash costs per ounce is a non-GAAP measure.  For a reconciliation to production costs, see Note 1 to the financial statements contained herein.  See also “Note Regarding Certain Measures of Performance”.
 
(3) All-in sustaining cost is a non-GAAP measure.  For a reconciliation to production costs, see “Reconciliation of non-GAAP Financial Performance Measures” below.  See also “Note Regarding Certain Measures of Financial Performance”.  The Company’s methodology for calculating all-in sustaining costs may not be similar to methodology used by other gold producers that disclose all-in sustaining cost. The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in circumstances where the World Gold Council adopts formal industry guidelines regarding this measure.
 
For the full year 2013, the Company recorded a net loss of $406.5 million, or a net loss of $2.35 per share.  In 2012, Agnico Eagle recorded a net income of $310.9 million, or $1.82 per share.  Compared with the prior year, 2013 earnings were primarily negatively impacted by a non-cash impairment loss, significantly lower realized metal prices (gold and silver prices were down 18% and 29% respectively year-over year), non-cash deferred tax charges (primarily related to the new Mexican mining tax law enacted in the fourth quarter of 2013) and non-cash impairment losses on available for sale securities.
 
For 2013, cash provided by operating activities was $438.3 million ($496.9 million before changes in non-cash components of working capital).  This represents a decrease over 2012, when cash provided by operating activities totaled $696.0 million ($716.5 million before changes in non-cash components of working capital).  The decrease was primarily due to significantly lower realized metal prices in 2013.
 
In the fourth quarter of 2013, strong operational performance continued at the Company’s mines, which led to record quarterly and annual production. Once again, Meadowbank was a key contributor with increased throughput, better than expected gold grades, and strong mill recoveries.
 
Payable gold production in the fourth quarter of 2013 was a record 322,443 ounces compared to 236,535 ounces in the fourth quarter of 2012.  A detailed description of the production and cost performance of each mine is set out below.
 
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Total cash costs for the fourth quarter of 2013 were $623 per ounce versus $769 per ounce for the fourth quarter 2012.  The decrease in total cash costs per ounce in the fourth quarter of 2013 is mainly due to higher production and continued cost control at several of the operations, in particular the Meadowbank mine, which more than offset lower byproduct metals revenue.
 
For a second straight year, Agnico Eagle has reported record annual gold production. The Company’s payable gold production for the full year 2013 was 1,099,335 ounces at total cash costs per ounce of $672.  This compares to the full year 2012 level of 1,043,811 ounces at total cash costs per ounce of $640.  The improvement in gold production in 2013 was a result of strong operating results from all of the mines, particularly Meadowbank.  The increase in total cash costs per ounce in 2013 was primarily due to the impact of lower byproduct revenues when compared to 2012, which was only partly offset by the positive impact of higher gold production for 2013.
 
All-in sustaining costs for 2013 were $952 per ounce, which is below guidance given in the third quarter 2013 of $1025 per ounce.
 
Review of Asset Values and Gold Reserves at a Lower Gold Price
 
Using a $1,300 per ounce gold price to conduct impairment tests has resulted in a non-cash impairment charge of $537.2 million ($436.3 million after tax). The impairments are comprised of $269.2 million ($194.5 million after tax) at the Meadowbank mine, $200.1 million at the Meliadine development project (where the impairment was all related to goodwill), and $67.9 million ($41.7 million after tax) at the Lapa mine.
 
Gold reserves were calculated using a $1,200 per ounce gold price.  This resulted in a 0.7 million ounce reduction in reserves before 2013 production.  Reserve life remains robust at approximately 15 years (based on the 2014 production rate) while the average reserve grade has increased by 11% to 3.51 g/t gold from 3.16 g/t gold.  Several key properties saw meaningful increases in the average reserve grade: LaRonde from 4.54 g/t to 5.00 g/t, Meadowbank from 2.82 g/t to 3.27 g/t, Pinos Altos from 2.21 g/t to 2.46 g/t and Meliadine from 6.98 g/t to 7.38 g/t.
 
Quarterly Dividend Declared
 
Agnico Eagle’s Board of Directors has declared a quarterly cash dividend of $0.08 per common share, payable on March 17, 2014 to shareholders of record as of March 3, 2014.  The reduction in the quarterly dividend payment reflects current conditions in the gold market and management’s decision to conserve cash for longer-term development and growth of its asset base.  With the reduction in our dividend payment, cash outflow will be reduced by approximately $20 million per quarter.  Agnico Eagle has now declared a cash dividend every year since 1983.
 
Conversion to International Financial Reporting Standards
 
Agnico Eagle has decided to convert its basis of accounting to International Financial Reporting Standards (“IFRS”) to enhance the comparability of its financial statements to the Company’s peers within the mining industry. The Company has commenced the process to convert its basis of accounting from US GAAP to IFRS with a transition date of January 1, 2013. Agnico Eagle anticipates reporting under IFRS for interim and annual periods beginning in the third quarter of 2014, with comparative information restated under IFRS. Additional disclosure regarding the IFRS conversion is included in the Note
 
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Regarding Conversion to IFRS section of this news release and will be included in the Company’s Management’s Discussion and Analysis expected to be filed in March 2014 in respect of the year ended December 31, 2013.
 
Conference Call Tomorrow
 
The Company’s senior management will host a conference call on Thursday, February 13, 2014 at 11:00 AM (E.S.T.) to discuss financial and operating results.
 
Via Webcast:
 
A live audio webcast of the meeting will be available on the Company’s website www.agnicoeagle.com .
 
Via Telephone:
 
For those preferring to listen by telephone, please dial 416-644-3416 or Toll-free 1-800-814-4860.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
 
Replay Archive:
 
Please dial 416-640-1917 or Toll-free 1-877-289-8525, access code 4661689. The conference call replay will expire on Friday, March 13, 2014.  The webcast along with presentation slides will be archived for 180 days on www.agnicoeagle.com .
 
Liquidity - Existing Cash and Credit Facilities Provide Flexibility
 
Cash and cash equivalents increased to $170.0 million at December 31, 2013, from the September 30, 2013 balance of $141.7 million.  During the fourth quarter of 2013, the Company drew down an additional $50 million on its bank facilities as part of the normal course of fund flows.
 
Capital expenditures in the fourth quarter of 2013 were $133.1 million including $28.9 million at Kittila, $17.2 million at Meliadine, $17.5 million at La India, $17.2 million at Goldex, $16.8 million at LaRonde, $16.6 million at Pinos Altos, $8.3 million at Meadowbank, $5.5 million at Lapa, $3.0 million at Creston Mascota, and $2.1 on other Canadian projects. For the full year 2013, capital expenditures totaled $577.8 million, which was below expected levels of $621 million announced in the first quarter news release on April 25, 2013.  This decrease in capital spending is a reflection of capital and cost reduction initiatives that have been ongoing through the second half of 2013.
 
As of December 31, 2013, the Company had drawn down $200 million on its credit lines.  This results in available lines of approximately $1.0 billion.
 
With its cash balances, anticipated cash flows and available bank lines, management believes that Agnico Eagle has adequate funds to advance its pipeline of mine expansion and gold exploration projects in Canada, Finland, Mexico and the USA.
 
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Three Year Plan Outlines Continued Production Growth
 
The Company is announcing its production and cost guidance for the three-year period of 2014 through 2016.  Anticipated production through 2016 is expected to increase by approximately 16% from 2013 levels.
 
In 2014, payable gold production is expected to be within the range of 1,175,000 ounces to 1,205,000 ounces.  Total cash costs per ounce in 2014 are expected to be in the range of $670 to $690.  The 2014 guidance reflects anticipated increases in gold production and reductions in total cash cost per ounce guidance over the 2013 forecast for 2014 of 1,120,000 ounces at a total cash cost of approximately $700 per ounce.

2014 Commodity and currency price  
 assumptions	 	Approximate impact on total cash costs per  
 ounce	
Silver ($/oz)	 	20	 	$1 / oz change in silver price	 	$3	
Copper ($/mt)	 	7,100	 	10% change in copper price	 	$3	
Zinc ($/mt)	 	2,000	 	10% change in zinc price	 	$1	
C$/US$	 	1.11	 	$0.01 change in US$/C$	 	$5	
US$/EURO	 	1.36	 	$0.01 change in Euro$/US$	 	$1	
MXP/US$	 	13.25	 	1 peso change in US$/MXN	 	$4	
 
LaRonde, Goldex, La India and Meadowbank are Key Production Drivers Over the Next Two Years
 
At LaRonde, commissioning of the cooling plant is expected to have a positive impact on operating flexibility and production at the mine.  Furthermore, as LaRonde ramps up production in the deeper portion of the mine, the Company expects the gold grade at the mine to increase gradually over the course of the year.
 
Agnico Eagle also expects to have significant production growth from Goldex (due to a full year of operation) and La India (expected to achieve commercial production in the first quarter of 2014).
 
In 2014, Meadowbank is expected to have strong production in the first half of the year (about 60% of the yearly forecast) as higher grades are sequenced in the mine plan at the Portage and Goose deposits.  Strong operational performance is expected to continue in 2015 as well.
 
In 2015, further production growth is expected from LaRonde and Pinos Altos (due to anticipated improving grades), Goldex, La India and Kittila (due to completion of the mill expansion) with aggregate payable gold production expected to be approximately 1,250,000 ounces.
 
5 

 

Estimated Payable Gold 
 Production 	 	2013 Actual	 	2014 Estimated 
 Mid-Point	 	2015 Estimated 
 Mid-Point	 	2016 Estimated 
 Mid-Point	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde	 	181,781	 	215,000	 	245,000	 	285,000	 	
Lapa	 	100,730	 	80,000	 	75,000	 	45,000	 	
Goldex	 	20,810	 	80,000	 	100,000	 	90,000	 	
Kittila	 	146,421	 	150,000	 	160,000	 	170,000	 	
Meadowbank	 	430,613	 	430,000	 	375,000	 	385,000	 	
 	 	880,355	 	955,000	 	955,000	 	975,000	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos	 	181,773	 	145,000	 	165,000	 	170,000	 	
Creston Mascota	 	34,027	 	40,000	 	40,000	 	40,000	 	
La India	 	3,180	 	50,000	 	90,000	 	90,000	 	
 	 	218,980	 	235,000	 	295,000	 	300,000	 	
Total Gold Production	 	1,099,335	 	1,190,000	 	1,250,000	 	1,275,000	 	

Total Cash Costs Per Ounce	 	2013 Actual	 	2014 Estimated 
 Mid-Point	 	
Northern Business	 	 	 	 	 	
LaRonde	 	$	763	 	$	671	 	
Lapa	 	678	 	850	 	
Goldex	 	782	 	799	 	
Kittila	 	601	 	759	 	
Meadowbank	 	774	 	629	 	
 	 	732	 	692	 	
Southern Business	 	 	 	 	 	
Pinos Altos	 	412	 	532	 	
Creston Mascota	 	485	 	754	 	
La India	 	n/a	 	743	 	
 	 	424	*	615	 	
Total	 	$	672	*	$	678	 	

*Does not include the cost of non-commercial production from La India and Goldex in 2013, and costs related to the Creston Mascota shutdown in Q1 2013 and the Kittila shutdown in Q2 2013.
 
For 2015 and 2016, total cash costs per ounce are expected to be at a slightly lower level than expected for 2014.
 
In an effort to provide more transparency, Agnico Eagle is providing guidance with respect to its all-in sustaining costs.  In 2013, the Company calculated all-in sustaining costs as:
 
Total cash cost per ounce of gold produced + sustaining capital expenditures + general and administrative expenses (net of stock options) + exploration and corporate development expenditures (excluding greenfield exploration).
 
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To reflect the full cost of gold production from current operations, development capital for new projects was not included in the calculation.  The all-in sustaining cost is divided by the gold production to obtain the all-in sustaining cost per ounce.
 
Based on the recommendations of the World Gold Council in 2013, Agnico Eagle has modified its calculation of all-in sustaining costs for 2014 to be:
 
Total cash costs + sustaining capital (including capitalized exploration) + general and administrative expenses (including stock option expense) + reclamation remediation expense.
 
All-in sustaining costs for 2014 are expected to be approximately $990 per ounce.  In 2015 and 2016, the goal is to further reduce the all-in sustaining cost below the level forecast for 2014.
 
Improvement In the Three Year Gold Production Forecast
 
Since the prior three-year production guidance of February 13, 2013 (“the Previous Guidance”), there have been a number of key operating developments, resulting in changes to the overall three-year production profile.  Descriptions of the major factors that contributed to these changes are detailed below.
 
Northern Business

LaRonde Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	177,000	 	215,000	 	250,000	 	n.a.	 	
Current Guidance (oz)	 	181,781 (actual)	 	215,000	 	245,000	 	285,000	 	

 
LaRonde 
 2014 
 Forecast	 	Ore
Milled
(‘000
tonnes)	 	Gold (g/t),
Mill
Recovery	 	Silver (g/t),
Mill
Recovery	 	Zinc (%),
Mill Recovery	 	Copper (%),
Mill Recovery	 	Minesite Cost
Per Tonne 4	 	
 	 	2,132	 	3.37, 93.2	%	22.8, 65.8	%	0.55, 66.8	%	0.3, 80.1	%	C$	100	 	

(4) Minesite costs per tonne is a non-GAAP measure.  For reconciliation of this measure to production costs, as reported in the financial statements, see “Reconciliation of Non-GAAP Financial Performance Measures”
 
At LaRonde, the commissioning of the cooling plant late in the fourth quarter of 2013 has helped reduce heat and congestion in the lower part of the mine and has provided additional flexibility in the mining plan.  As a result, production from the deeper areas of the mine is expected to ramp up substantially through 2016. In 2014, total cash costs are expected to be slightly lower than last year primarily due to increased gold grades.
 
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Lapa Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	97,000	 	96,000	 	65,000	 	n.a.	 	
Current Guidance (oz)	 	100,730 (actual)	 	80,000	 	75,000	 	45,000	 	

 
Lapa 2014 
 Forecast	 	Ore Milled
(‘000
tonnes)	 	Gold (g/t)	 	Mill Recovery	 	Minesite Cost
Per Tonne	 	
 	 	555	 	5.82	 	77	%	C$	134	 	

At Lapa, 2014 and 2015 are the last two years of full production based on the current life of mine plan.  Production in these two years is expected to decline due to lower grades.  The Company expects that the Lapa mine will only operate for a portion of 2016.  Additional exploration results from the Zulapa Z8 zone could extend the mine life through 2016.

Goldex 
 Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)	 	15,000	 	49,000	 	85,000	 	n.a.	 	
Current Guidance (oz)	 	20,810 (actual)	 	80,000	 	100,000	 	90,000	 	

Goldex 2014 
 Forecast	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t)	 	Mill Recovery	 	Minesite Cost
Per Tonne	 	
 	 	1,898	 	1.42	 	92.4	%	C$	37	 	

The Goldex mine successfully started operations at the M and E zones in the fourth quarter of 2013. The increase in production over previous guidance levels, largely relates to the earlier than expected start-up of the mine and to an expected increase in throughput from 5,500 tonnes-per-day (tpd) in the fourth quarter of 2014 to 6,000 tpd in 2015.  A portion of the additional tonnage is forecast to come from the proposed development of the MX and E2 satellite zones.  Minesite costs per tonne are expected to remain stable or to slightly decline with the higher expected throughput rates.  Exploration is continuing on several other satellite zones, including the deeper D zone, which has the potential to extend the mine’s life.

Kittila 
 Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	165,000	 	165,000	 	160,000	 	n.a.	 	
Current Guidance (oz)	 	146,421 (actual)	 	150,000	 	160,000	 	170,000	 	

Kittila 2014 
 Forecast	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t),	 	Mill Recovery	 	Minesite Cost
Per Tonne	 	
 	 	1,067	 	4.9	 	89.3	%	€	78	 	

At Kittila, steady production growth is expected over the next three years. In 2014, there is a gradual return to reserve grade (4.64 g/t gold) once the remaining higher grade portions of the Suuri pit pillar are extracted. The 750 tpd mill expansion, which is expected to increase the throughput capacity at the mine to 3,750 tonnes per day, is expected to be completed by the middle of 2015.  Increased throughput from the mill expansion is expected to offset the expected decline to reserve grade.
 
Minesite costs per tonne in 2014 are expected to increase slightly over 2013 levels, but these costs are expected to be reduced with completion of the mill expansion. Additional details on the expansion can be found in the Kittila operating review section of this news release.
 
8 

 

Meadowbank 
 Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	360,000	 	367,000	 	350,000	 	n.a.	 	
Current Guidance (oz)	 	430,613 (actual)	 	430,000	 	375,000	 	385,000	 	

Meadowbank 2014 
 Forecast	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t),	 	Mill Recovery	 	Minesite Cost
Per Tonne	 	
 	 	4,156	 	3.45	 	93.3	%	C$	73	 	

In the third and fourth quarters of 2013, mining encountered higher than expected grades in the Portage and Goose pits, which resulted in gold production being well above expected levels. Initiatives undertaken in the fourth quarter of 2013 have resulted in a re-interpretation of the Meadowbank block models, which have largely driven an anticipated 16% improvement in the reserve grade to 3.27 g/t gold.  The Company expects to continue to encounter higher-grade mineralization in the first half of 2014, which it believes will be a key driver for production for the year. In succeeding years, the increased production levels over previous guidance are being driven by higher expected reserve grades and the ability to maintain throughput levels in excess of 11,000 tpd.
 
Southern Business

Pinos Altos 
 Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	159,000	 	136,000	 	161,000	 	n.a.	 	
Current Guidance (oz)	 	181,773 (actual)	 	145,000	 	165,000	 	170,000	 	

Pinos Altos 
 2014 Forecast	 	Total Ore
(‘000 tonnes)	 	Gold (g/t)
Recovery	 	Silver (g/t)
Recovery	 	Minesite Cost
Per Tonne	 	
 	 	1,945	 	2.45, 94.7	%	73, 44.8	%	$	61	 	

At Pinos Altos, the new production forecast for the three year period 2014-2016 is higher than previously estimated, as a result of expectations that the strong operating performance in 2013 will continue and support higher mill throughput.  Year-over-year variances in guidance for 2014 and 2015 are attributable to mine sequence and ore grade, and higher mill throughput.

Creston Mascota 
 Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	32,000	 	52,000	 	55,000	 	n.a.	 	
Current Guidance (oz)	 	34,027 (actual)	 	40,000	 	40,000	 	40,000	 	

Creston Mascota 
 2014 Forecast	 	Total Ore
(‘000 tonnes)	 	Gold (g/t)
Recovery	 	Silver (g/t)
Recovery	 	Minesite Cost
Per Tonne	 	
 	 	1,563	 	1.3, 61.2	%	13.4, 7.2	%	$	20	 	

Operations at Creston Mascota resumed in April 2013 after a temporary suspension for leach pad modifications. Production since this resumption has met Company expectations and was in line with guidance.  The lower annual production from 2014 through 2016 is a reflection of anticipated lower ore grades.  Construction on the Phase 3 leach pad at Creston Mascota is expected to be completed by the end of March 2014.  Minesite costs in 2014 are expected to be higher due to the commissioning of an agglomerator, higher strip ratios and the startup of the Phase 3 pad.
 
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La India Forecast	 	2013	 	2014	 	2015	 	2016	 	
Previous Guidance (oz)  	 	n.a.	 	40,000	 	81,000	 	n.a.	 	
Current Guidance (oz)	 	3,180 (actual)	 	50,000	 	90,000	 	90,000	 	

La India 2014 
 Forecast	 	Total Ore
(‘000 tonnes)	 	Gold (g/t)
Recovery	 	Silver (g/t)
Recovery	 	Minesite Cost
Per Tonne	 	
 	 	3,173	 	0.84, 58.2	%	3.6, 21.8	%	$	12	 	

Pre-commercial production at La India in 2013 was 3,180 ounces of gold.  The Company expects that production will continue to increase at La India for the next several months as the active leach pad area expands and solution volumes increase to steady state operating levels. Crushing plant throughput continues to increase, and stacking rates are currently averaging approximately 12,000 tpd.  Commercial production is anticipated at La India in the first quarter of 2014. Production guidance for La India has been increased slightly over last year’s guidance due to the mine’s earlier than planned startup.  Operating costs in 2014 are forecast to be higher than in subsequent years due to the production increase.
 
Continued Capital Discipline Expected in 2014
 
At current spot input prices, Agnico Eagle expects to fund this year’s capital expenditures, which are estimated to total approximately $416 million, from operating cash flow.  The Company’s goal is to continue to work at reducing capital expenditures in order to generate more free cash flow.
 
The estimated capital expenditures for 2014 include approximately $227 million of sustaining capital at the mines and $166 million on new projects and expansions, as set out in the table below.  Additionally, approximately $23 million is estimated to be spent on capitalized exploration and approximately $51 million on expensed exploration, project evaluation and corporate development.  Capital expenditures in 2015 are expected to decline slightly from 2014 levels.

Estimated 2014 Capital
Expenditures
(millions of $)	 	Sustaining	 	Development
Projects	 	Capitalized
Exploration	 	Expensed
Exploration	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde	 	68	 	13	 	1	 	 	 	
Lapa	 	16	 	 	 	3	 	1	 	
Goldex	 	16	 	13	 	2	 	 	 	
Kittila	 	56	 	65	 	4	 	3	 	
Meadowbank	 	34	 	 	 	 	 	 	 	
Meliadine	 	 	 	42	 	5	 	3	 	
 	 	190	 	133	 	15	 	7	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos	 	29	 	29	 	3	 	1	 	
La India	 	2	 	4	 	4	 	3	 	
Creston Mascota	 	6	 	 	 	1	 	 	 	
 	 	37	 	33	 	8	 	4	 	
Project Eval/Corp Dev	 	 	 	 	 	 	 	21	 	
Other Exploration	 	 	 	 	 	 	 	19	 	
Total Expenditures	 	$	227	 	166	 	23	 	51	 	

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Development/Expansion Projects - Future Optionality with Low Capital Commitment
 
The current three year plan sets out estimated annual gold production which increases each year through 2016 to approximately 1,275,000 million ounces.  However, these forecasts do not include the expansion and development projects set out below, which have not yet been approved for construction.
 
Kittila - Production Shaft and Rimpi Zone Development
 
A study is underway to consider the construction of a production shaft at Kittila.  This shaft would provide operating cost savings and sustain long-term production at higher throughput levels from multiple zones, especially at depths below 700 metres. A shaft would also provide access for exploration and infill drilling.  In addition, a study is underway to evaluate the feasibility to develop the Rimpi Zone as a potential ore source.
 
Meliadine - Ramp Extension provides Development Flexibility
 
Located near Rankin Inlet, Nunavut, Canada, the Meliadine project was acquired in July 2010, and is one of Agnico Eagle’s largest gold projects in terms of resources. The Company owns 100% of the 65,000-hectare property.
 
Activities in 2013 included infill and step-out diamond drilling, road construction, ramp development, permitting, camp operation and work on an updated technical study.
 
The 2013 exploration program was completed in August with a total of 79,959 metres drilled. Drilling was focused around known deposits (Tiriganiaq, Wesmeg/Normeg, F zone, Pump and Discovery) and on regional exploration targets.
 
Highlights of the program include new deep intercepts that have revealed potential to expand the Pump, F zone and Discovery deposits. Drilling has also delineated higher-grade shoots within the Wesmeg deposit, similar to those in the Tiriganiaq and Normeg deposits. These results were incorporated into the year-end 2013 reserve and resource statement (see below).  Despite using a lower gold price in 2013, the reserve grade at Meliadine increased to 7.38 g/t from 6.98 g/t.
 
Construction of a permanent portal with upgraded infrastructure for the exploration ramp was completed in the fourth quarter of 2013. A significant portion of the 2014 Meliadine capital budget (approximately $42 million) is scheduled to be dedicated to further ramp development. The ramp would allow for cost-effective exploration and conversion drilling of the deeper parts of the Tiriganiaq and Wesmeg/Normeg zones, which should provide a better understanding of the ore zones and help to optimize potential mining
 
11 

 
plans. Extension of the ramp would also keep the development time line on track for a potential late 2018 start up if the Company determines to build a mine at Meliadine. A portion of the 2014 budget is allocated to exploration and resource conversion drilling.
 
An updated technical study is progressing with completion expected in late 2014. The timing of estimating or making capital expenditures on the project beyond 2014 will be subject to Board approval and prevailing market conditions.
 
Additional Satellite Potential Being Evaluated at Goldex
 
At the Goldex mine, studies are continuing on the evaluation of other satellite zones including the Deep (top of the D Zone) and the P Zone.  These zones could have synergies with the potential development of the Akasaba West deposit (see below), which could enhance production levels or extend the current mine life and reduce operating costs.
 
Akasaba West - Could Provide Future Mill Feed to Agnico’s Abitibi Facilities
 
In January 2014, Agnico Eagle acquired the Akasaba West gold-copper deposit from Alexandria Minerals (AZX:TSXV) for C$5.0 million and a 2% NSR royalty on any gold production exceeding 210,000 ounces.  Located less than 30 km from Goldex, the Akasaba West deposit could potentially create flexibility and synergies for the Company’s operations in the Abitibi region by utilizing extra milling capacity at both Goldex and LaRonde, while reducing overall costs.
 
In 2014, $2.3 million is scheduled to be spent on infill drilling to verify the known mineralization and move the project towards feasibility and permitting.
 
Gold Reserves - 16.9M Ounces with 11% Improvement in Grade
 
With the recent downturn in commodity prices, the Company has used lower commodity price assumptions to calculate 2013 year-end reserves ($1,200/oz gold and $18/oz silver).
 
At year-end 2013, the Company’s proven and probable gold reserves (net of 2013 production) totaled 149 million tonnes grading 3.51 g/t gold, containing 16.9 million ounces of gold, a decrease of 1.8 million ounces from 2012 levels (including 2013 production of approximately 1.1 million ounces). Despite the decline in overall reserves, the average reserve grade increased to 3.51 g/t gold, which is a considerable increase over last year’s grade of 3.16 g/t gold.
 
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The Company’s year-end 2013 gold reserves, net of the 1,099,335 ounces of gold production in 2013 are set out below:

 	 	Proven & Probable	 	Average Gold Reserve	 	
Gold Reserves 	 	Reserve (000s ounces)	 	Grade (g/t)	 	
By Mine	 	2013	 	2012	 	Change	 	2013	 	2012	 	Change	 	
Northern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
LaRonde	 	3,880	 	4,206	 	-326	 	5.00	 	4.54	 	0.46	 	
Lapa	 	281	 	395	 	-114	 	5.97	 	5.95	 	0.02	 	
Goldex	 	372	 	349	 	24	 	1.52	 	1.55	 	-0.03	 	
Kittila	 	4,714	 	4,783	 	-68	 	4.64	 	4.49	 	0.15	 	
Meadowbank	 	1,751	 	2,294	 	-542	 	3.27	 	2.82	 	0.45	 	
Meliadine	 	2,841	 	2,987	 	-145	 	7.38	 	6.98	 	0.40	 	
Bousquet	 	0	 	178	 	-178	 	—	 	1.88	 	—	 	
Total/Average	 	13,840	 	15,192	 	-1,352	 	4.61	 	4.20	 	0.40	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pinos Altos	 	2,266	 	2,714	 	-448	 	2.46	 	2.21	 	0.25	 	
La India	 	758	 	776	 	-17	 	0.87	 	0.72	 	0.15	 	
Total/Average	 	3,024	 	3,490	 	-18	 	1.69	 	1.52	 	0.17	 	
Total Reserves	 	16,865	 	18,681	 	-1,817	 	3.51	 	3.16	 	0.35	 	
 
Amounts presented in the table and in this news release have been rounded to the nearest thousand. See “Detailed Mineral Reserve and Resource Data (as at December 31, 2013)” set out at the end of this news release for more details.
 
In prior years, economic parameters used to model reserves for all properties were calculated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC guidelines.  These guidelines require the use of prices that reflect current economic conditions at the time of reserve determination, which the SEC has interpreted to mean historic three-year average prices.  Given the downturn in commodity prices in 2013, and in order to focus on improving the quality of the reserve base, Agnico Eagle has decided to use more conservative gold and silver prices of $1,200 per ounce and $18 per ounce, respectively, for the December 2013 reserve estimations.  These prices are well below the three-year historic gold and silver price averages of approximately $1,551 per ounce and $30 per ounce, respectively.
 
For the December 2013 reserve calculations, the same economic parameters were used at all of the Company’s mines and advanced projects.  Details on the economic parameters used in generating the December 2013 reserves are shown with the detailed reserve and resource tables near the end of this news release.
 
The consequence of using substantially lower metals prices for reserve estimation than last year is a higher cut-off grade for each operation. This results in reserves that have fewer ounces but higher gold grade than in 2012. The global reserves gold grade increased year-over-year by 11% to 3.51 g/t in 2013,
 
13 

 
as shown in the change in reserves table. While the reserves at each operating mine had declines greater than those from depletion resulting from 2013 production, the higher grade makes the remaining reserves more robust in the short-term uncertainty of the current gold market.
 
The Meadowbank mine had the largest decline in reserves due to the 2013 record high 457,000 ounces of in-situ gold mined (431,000 ounces of gold production) and a higher cut-off grade used in the 2013 estimations.  The reserve grade at Meadowbank improved 15% to 3.24 g/t gold, largely due to the re-interpretation of the Goose and Portage block models (see the mine discussion below).  The decline includes approximately 246,000 ounces of lower-grade material from the deeper portion of the Vault pit.  A table near the end of this section shows the 2012-to-2013 reduction of 264,000 ounces of gold in total reserves at the Vault deposit.  Mining is expected to begin in the Vault deposit in 2014.
 
Pinos Altos also saw a decline in reserves due to the setting aside of previous reserves in an underground support pillar.  The reserve grade at Pinos Altos also increased 11% to 2.46 g/t gold.
 
There were also significant grade increases at LaRonde (5.00 g/t versus the prior estimate of 4.54 g/t gold) and Meliadine (7.38 g/t versus the prior estimate of 6.98 g/t gold).
 
It is the Company’s goal to maintain its gold reserves at approximately 15 times its annual gold production rate.  The current reserves are approximately at this level when compared to the Company’s projected annual 2014 production rate.
 
In addition to proven and probable gold reserves, Agnico Eagle’s byproduct reserves include approximately 75 million ounces of silver at the Pinos Altos and LaRonde mines (52.8 million tonnes grading 43.89 g/t silver), plus 161,000 tonnes of zinc and 60,000 tonnes of copper at the LaRonde mine (24.1 million tonnes grading 0.67% zinc and 0.25% copper).
 
For a $150 per ounce (13%) increase in the gold price (leaving all other assumptions unchanged), there would be an estimated 8.3% increase in proven and probable gold reserves. Conversely for a $150 per ounce (13%) decrease in the gold price (leaving all other assumptions unchanged), there would be an estimated 5.4% decrease in proven and probable gold reserves. It should also be noted that approximately 89% of the Company’s gold reserves have forecast total cash costs below $950 per ounce, and approximately 64% of the Company’s reserves have forecast total cash costs below $700 per ounce. These are estimates and are not based on detailed mining plans.
 
Measured and Indicated Gold Resources Grow by 11%
 
In 2013, drilling was carried out to increase the confidence level of the resource base. This work led to a substantial increase and upgrade to the quality of the resources in 2013.
 
The Company’s measured and indicated resources now total approximately 157 million tonnes grading 1.91 g/t, or 9.7 million ounces of gold. This represents an increase of about 11% or 1.6 million ounces and a 7% increase in grade over the December 2012 measured and indicated resource (see the February 13, 2013 news release for comparison). The increase in contained gold represents successful conversion drilling from inferred resources as well as reclassification of some gold reserves, offset by the effects of a higher cut-off grade.
 
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The main increase to indicated resources came at the Meliadine project, where the gold grade increased 28% to 5.05 g/t. There was also a large increase in the measured and indicated resources at the Kittila mine due to the same factors, and the gold grade increased by 5% to 2.79 g/t.
 
At Goldex, there was an increase of 285,000 ounces of gold contained in indicated resources (largely from the D zone), where the grade increased 11% to 2.03 g/t gold (see the February 13, 2013 news release for comparison). A table near the end of this section shows the 2012-to-2013 increase of 260,000 ounces of gold in indicated resources at the D zone. The La India property also increased measured and indicated resources, largely due to a new geological model at the Tarachi deposit.
 
At the Pinos Altos property, the indicated resources declined due to a more conservative mine plan at the Santo Nino underground deposit and the proposed Sinter pit.
 
The Company’s inferred resources now total approximately 169 million tonnes grading 1.86 g/t, or 10.1 million ounces of gold. This represents a decrease of approximately 2.0 million ounces of gold in inferred resources (see the February 13, 2013 news release for comparison). The change is due to the transfer of 1.2 million ounces to indicated resources and a 1.9-million-ounce reduction from using higher cut-off grades, partially offset by a 1.1 million ounce addition from exploration drilling. The successful conversion to indicated resources was mainly at the Meliadine, Goldex and Kittila mines. The negative impact of the higher cut-off grades was felt most strongly at Kittila and Meliadine, a result of this year’s program to increase confidence in the resources. The main exploration success was at the Meliadine and Kittila properties, with some success at LaRonde’s Zone 19 as well.
 
The distribution of resources by property is set out in the following table.
 
December 31, 2013 Resources

 	 	Measured & Indicated	 	Inferred	 	
 	 	Resources*	 	Resources*	 	
 	 	(000 oz gold)	 	(000 oz gold)	 	
Northern Business	 	 	 	 	 	
LaRonde	 	289	 	1,561	 	
Lapa	 	213	 	172	 	
Goldex	 	1,896	 	1,374	 	
Kittila	 	988	 	996	 	
Meadowbank	 	768	 	421	 	
Meliadine	 	3,082	 	2,712	 	
Bousquet/Ellison	 	1,008	 	778	 	
Other	 	31	 	420	 	
Subtotal	 	8,276	 	8,434	 	
 	 	 	 	 	 	
Southern Business	 	 	 	 	 	
Pinos Altos	 	692	 	726	 	
La India	 	686	 	960	 	
Subtotal	 	1,378	 	1,686	 	
Total Resources	 	9,654	 	10,121	 	
 
15 

 

*For full details including tonnages and grade, see the Detailed Mineral Reserve and Resource Data table in this news release
 
Changes to reserves or resources of selected zones, Dec. 31, 2012 and 2013

 	 	Dec. 31, 2012	 	Dec. 31, 2013	 	
Zone	 	Gold grade 
 (g/t)	 	Gold 
 (000s oz)	 	Tonnes 
 (000s)	 	Gold grade 
 (g/t)	 	Gold 
 (000s oz)	 	Tonnes 
 (000s)	 	
Proven & Probable reserves	 	 	 	 	 	 	 	 	 	 	 	 	 	
Vault zone, Meadowbank mine	 	2.59	 	1,119	 	13,453	 	2.79	 	855	 	9,537	 	
Indicated resources	 	 	 	 	 	 	 	 	 	 	 	 	 	
D zone, Goldex mine	 	2.06	 	338	 	5,070	 	2.39	 	598	 	7,793	 	
 
2014 Exploration Program and Budget - a Significant Reduction Over Historical Levels
 
A large component of the 2014 exploration program will be focused on regional areas such as Nunavut (Meliadine and the IVR property located 50 km northwest of Meadowbank), Quebec (Akasaba), Mexico (Tarachi and La India) and Finland. These programs are designed to further evaluate deposits which could ultimately supplement the Company’s existing production profile. In 2014, Agnico Eagle’s direct exploration budget (not including project evaluation and corporate development activities) is approximately $53 million, of which about $23 million will be spent on capitalized exploration, mostly at the various mine sites.
 
Northern Business Operating Review
 
LaRonde Mine - Cooling Plant Commissioning Complete; Exhaust System Installation on Schedule
 
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
 
The LaRonde mill processed an average of 6,726 tpd in the fourth quarter of 2013, compared with an average of 6,379 tpd in the corresponding period of 2012.  Minesite costs per tonne were approximately C$90 in the fourth quarter of 2013, lower than the C$98 per tonne experienced in the fourth quarter of 2012.  The decrease in costs over the prior-year period is partly due to higher tonnage, lower labor costs, and various other cost reduction initiatives.
 
Milling performance for the full year 2013 was approximately 6,354 tpd versus 6,444 tpd in 2012.  The slightly lower throughput in 2013 relates primarily to 16 days of unplanned shutdown related to the hoist drive compared to 2012.
 
Minesite costs per tonne for the full year 2013 were approximately C$99, slightly higher than C$95 per tonne in 2012.  The higher costs were mainly due to the 16 days of unplanned shutdown as mentioned above.
 
On a per ounce basis, net of byproduct credits, LaRonde’s total cash costs per ounce were $664 in the fourth quarter of 2013 on payable production of 51,336 ounces of gold.  This compares with the fourth quarter of 2012 when total cash costs per ounce were $756 on production of 36,911 ounces of gold.  The decrease in total cash costs in the 2013 period was largely due to higher production (due to increased
 
16 

 
tonnage, higher gold grades and the improved recoveries from the CIP circuit), and lower costs, offset somewhat in part by lower by-product production and revenues.
 
For the full year 2013, LaRonde’s total cash costs per ounce were $763 on gold production of 181,781 ounces.  This compares to total cash costs per ounce of $569 on gold production of 160,875 ounces in 2012.  Higher gold production in 2013 is a result of an improvement in grade, consistent with more of the ore being mined from the lower mine area where gold grades are higher.  The increase in total cash costs over 2012 is primarily due to lower by-product production (zinc and silver) and significantly lower by-product revenues.
 
In 2013, the LaRonde mine also produced approximately 19,814 tonnes of zinc (49% less than in 2012), 2.1 million ounces of silver (6% less than in 2012), and 4,835 tonnes of copper (17% more than in 2012) as by-products to the gold production. These totals are consistent with the change in the metals mix as the mine goes deeper and becomes more gold / copper rich as opposed to zinc / silver rich in the upper levels.  In 2014, approximately 80% of the production will come from the lower mine area.
 
The new cooling plant on the 262 level began operating in December 2013, and other components of the new ventilation system are currently being commissioned, with everything expected to be on line in time to handle higher summer temperatures and reduce the frequency of heat-related delays from prior years.
 
In 2014, work will begin on the installation of a coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level.  The new conveyor, which is expected to be operational in late 2015, should help lower costs and reduce congestion in the deeper portions of the mine.
 
A three week shutdown is planned at LaRonde in July 2014 to facilitate the installation of new hoist drives to replace obsolete production and service hoist equipment in the Penna shaft.
 
Lapa - Steady Production and Strong Cost Containment in 2013
 
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.
 
The Lapa circuit, located at the LaRonde mill, processed an average of 1,821 tpd in the fourth quarter of 2013.  This compares with an average of 1,746 tpd in the fourth quarter of 2012. The improved throughput in the 2013 period was largely due to increased ore hoisted during the quarter compared to the 2012 period.
 
Minesite costs per tonne were C$108 in the fourth quarter of 2013, slightly better than the C$113 realized in the fourth quarter of 2012.  The improvement in the 2013 period was largely due to the higher tonnage processed and strong cost control in all aspects of the operation, including lower usage of consumables (especially cement), lower development costs and lower energy consumption due to better ventilation management.
 
For the full year 2013, Lapa averaged 1,755 tpd, which is almost identical to 2012 levels. Full-year minesite costs in 2013 were C$110 per tonne, slightly below the C$115 achieved in 2012.  Costs were lower in 2013 largely due to the factors set out above.
 
Payable production in the fourth quarter of 2013 was 26,323 ounces of gold at a total cash cost per ounce of $655.  This compares with the fourth quarter of 2012, when production was 24,621 ounces of gold at
 
17 

 
total cash cost per ounce of $742.  Slightly higher tonnage and recoveries and good cost containment resulted in higher production and lower costs during the fourth quarter of 2013 compared to the 2012 period.
 
For the full year 2013, payable production was 100,730 ounces of gold at total cash costs of $678 per ounce.  The prior year production was 106,191 ounces of gold at total cash costs of $697 per ounce.  Production in 2013 was lower due to reduced grades, while costs were lower due to successful cost cutting measures implemented by the Company.
 
At Lapa, 2014 and 2015 are the last two years of full production based on the current life of mine plan.  In 2016, production is expected to exhibit a decline from the current levels.  Additional exploration drilling in the parallel Zulapa Z8 zone could extend the mine life.
 
Goldex - Commercial Production Achieved in Fourth Quarter 2013
 
The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original Goldex Extension Zone (GEZ) orebody were suspended in October 2011 (see October 19, 2011 news release). In July 2012, the M and E satellite zones were approved for development. Mining operations at GEZ remain suspended.
 
Mining operations resumed on the M and E satellite zones in September 2013. Initial mill testing, late in the third quarter of 2013, yielded 1,505 ounces of pre-commercial gold production. The Goldex mine achieved commercial production in the fourth quarter of 2013, with the mill processing an average of 5,343 tpd during the quarter.  Throughput is expected to gradually increase from a level of 5,400 tpd in the fourth quarter of 2014 to approximately 6,000 tpd in 2015.
 
Minesite costs per tonne at Goldex were approximately C$32 in the fourth quarter of 2013, which was well below the September 2013 forecast cost of approximately C$40 per tonne. Mine site costs per tonne were significantly lower than forecast primarily due to higher tonnage, lower drilling and blasting costs and lower backfill costs.  However the life of mine cost per tonne remains forecast to be approximately C$39.
 
Payable gold production in the fourth quarter of 2013 was 19,305 ounces at a total cash cost per ounce of $782. Forecasts in September 2013 had called for commercial production of approximately 15,000 ounces at a total cash cost of approximately $900 per ounce. Higher gold production was primarily due to higher head grade combined with higher tonnage and slightly higher recovery.  Costs were lower due to the reasons outlined above.
 
For the full year 2013, the mine produced 20,810 ounces of gold, including 1,505 pre-production ounces.
 
In 2014, development activities will begin on the MX and E2 satellite zones.  In addition, exploration is continuing on several other satellite zones, including the Deep and P zone (top of the D zone), which have the potential to further extend the mine’s life.  Economies of scale may be available if additional zones are developed as the mill has the ability to operate at over 8,000 tpd.
 
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Meadowbank - Record Production in 2013
 
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in March 2010.
 
The Meadowbank mill processed a record average of 11,398 tpd in the fourth quarter of 2013, compared to the 11,193 tpd achieved in the fourth quarter of 2012.  The continued improvement in mill throughput in the fourth quarter of 2013 is due to significant improvements in equipment availability and maintenance, compared to the 2012 period.
 
For the full year 2013, the Meadowbank mill processed an average of 11,350 tpd, compared to 10,440 tpd in the full year 2012.  The continued improvement in mill throughput in 2013 compared to 2012 is due to the same reasons outlined above.
 
Minesite costs per tonne were a record low C$79 in the fourth quarter and C$83 for the full year of 2013.  These costs were lower than the C$90 and C$88 per tonne in the fourth quarter and full year 2012, respectively.  The improvement in cost per tonne was primarily driven by improved productivity, the 2013 cost management program and ongoing cost controls, compared to the respective 2012 period.
 
Payable production in the fourth quarter of 2013 was 123,433 ounces of gold at total cash costs per ounce of gold of $637.  This compares with the fourth quarter of 2012 when 77,238 ounces were produced at total cash costs per ounce of $1,200.  The higher production and lower costs in the 2013 period compared to the 2012 period are primarily due to a 54% increase in the grade processed and ongoing cost control programs.
 
Full year 2013 payable gold production was a record 430,613 ounces at total cash costs per ounce of gold of $774.  In 2012, the mine produced 366,030 ounces at total cash costs per ounce of $913.  The increase in year over year production and decline in total cash costs is primarily due to better tonnage and grade than predicted by the block models, consistently high crusher throughput levels, slightly better recoveries and strong cost containment programs.
 
Initially in the third quarter of 2013, mining encountered higher than expected grades in the Portage B pit predominantly due to the presence of more free gold than modeled.  Additionally, in the Portage E pit, there was approximately a 30% increase in tonnes and grade compared to the block model.  This appears to have been due to an underestimation of the geological complexity (folding) of the mineralization in this portion of the ore body. At the Goose pit, the assay capping level and the block model interpretation down played the continuity of higher-grade areas, which also led to stronger grade reconciliation.
 
In the fourth quarter of 2013, grades remained high due to accelerated stripping in the Goose pit (providing additional access to the high grade ore), and encountering higher grades than expected in the Goose and Portage pits.
 
In order to reduce the variance between the block model and the grades going through the mill, a number of initiatives were undertaken in the fourth quarter of 2013. At Goose, the main zone was remodeled to separate the “Super High Grade” ore (greater than 10 g/t gold) from the run-of mine ore and also remove significant zones of internal waste.  In addition, reserves were re-estimated using adjusted parameters and a new interpolation method to better match the grade control estimations.  As a result, tonnage declined
 
19 

 
by 18.5%, but the grade and contained ounces increased by 34.3% and 9.4% respectively when compared to the December 2012 model.
 
At the Portage deposit, 4,400 metres of delineation and infill drilling were completed in Portage South.  Ore wireframes were then updated and re-interpreted to be more selective. As a result, the block model has now been estimated using modified parameters.  With these modifications, there has been a 13.4% increase in tonnes, a 7.4% increase in grade and a 13.3% increase in ounces at the Portage pit compared to the December 2012 model.
 
Overall, the reserve grade at Meadowbank improved 16% to 3.24 g/t gold, largely due to the re-interpretation of the Goose and Portage block models.  With the increased reserve grades and an accelerated stripping program at the Goose pit, Meadowbank is expected to have strong first half production in 2014.  The Goose pit is expected to be completed in the second half of 2014.
 
In 2013, Agnico Eagle returned to its IVR property, located approximately 50km northwest of Meadowbank, with a small exploration program.  Due to the exploration success with several holes returning intriguing gold mineralization, a follow-up program of 5,000 metres will be drilled in 2014.
 
Kittila - Mill Expansion on Schedule for Mid-2015 Start-up
 
The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.
 
The Kittila mill processed an average of 3,349 tpd in the fourth quarter of 2013.  In the fourth quarter of 2012, the Kittila mill processed 3,030 tpd.  Since the completion of the extended maintenance period in the second quarter of 2013, as expected, mill availability and efficiency has improved significantly, which has allowed for higher throughput levels at the mill.
 
Minesite costs per tonne at Kittila were approximately €70 in the fourth quarter of 2013, compared to €69 in the fourth quarter of 2012.  Costs remained flat in the fourth quarter of 2013 due to higher tonnages and good cost control (particularly on explosives and chemicals) when compared with the 2012 period.
 
For the full year 2013, the mill processed an average of 2,559 tpd as compared with 2012 when the mill processed an average of 2,979 tpd.  The decrease in throughput relates to the extended shutdown in the second quarter of 2013. For the full year 2013, the minesite costs per tonne were €73, compared to €69 in 2012.  The increased minesite costs per tonne in the 2013 period primarily relate to the lower tonnage and the shift to higher cost underground mining from open pit mining.
 
Fourth quarter 2013 payable gold production at Kittila was 41,710 ounces with a total cash cost per ounce of $687.  In the fourth quarter of 2012 the mine produced 45,273 ounces at total cash costs per ounce of $569.  In the 2012 period, mining activities were just being completed in the Suuri pit, which resulted in higher grades and lower costs compared to the 2013 period, during which all the ore was sourced from the relatively higher cost underground.
 
For the full year 2013, payable gold production from Kittila was 146,421 ounces at total cash costs of $601 per ounce.  In 2012, the mine produced 175,878 ounces of gold at total cash costs of $565 per ounce.  The lower production in 2013 was largely due to the extended maintenance shutdown in the second quarter of 2013.  The higher costs are largely due to lower production and slightly higher costs associated with the transition to underground mining compared to the 2012 period.
 
20 

 
In 2013, the Kittila mill had annual record recovery of 90.17%.
 
The 750 tonne per day mill expansion at Kittila is progressing on schedule and budget with start-up expected to occur in mid-2015. Civil works are proceeding as planned with all concrete pouring completed and the erection of steel structures underway. Commissioning of the ore handling area is on-going and construction of the building to house the oxygen plant has been completed. In addition, the manufacture of the ball mill is slightly ahead of schedule. The expansion is expected to improve unit costs and to offset a gradual reduction in realized grade towards the average reserve grade over the next several years.
 
Southern Business Operating Review
 
Pinos Altos - Continued Higher Mill Throughput
 
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009. Current mine life is estimated to be through 2029.
 
The Pinos Altos mill processed 5,313 tpd in the fourth quarter of 2013, compared to 5,121 tpd per day processed in the fourth quarter of 2012, largely attributable to a new mill liner design and higher mechanical availability. During the fourth quarter of 2013, approximately 184,300 tonnes of ore were stacked on the leach pad at Pinos Altos, compared to 259,200 tonnes in the comparable 2012 period. Minesite cost per tonne at Pinos Altos was $46 in the fourth quarter of 2013 identical to those in the fourth quarter of 2012.  Costs held steady despite a higher percentage of lower cost heap leach ore being stacked in the 2012 period due to the ongoing cost containment efforts.
 
For the full year 2013, the Pinos Altos mill processed an average of 5,262 tpd, compared to 5,020 tpd processed in 2012. In 2013, approximately 805,200 tonnes of ore were stacked on the leach pad at Pinos Altos, compared to 1,025,000 tonnes in 2012. Minesite cost per tonne at Pinos Altos for full year period in 2013 were approximately $45, compared to $41 in 2012, with the difference largely attributable to variations in the proportion of heap leach ore to milled ore.
 
Payable production in the fourth quarter of 2013 was 46,490 ounces of gold at a cash cost per ounce of $442. This compares with production of 48,932 ounces at a total cash cost of $295 in the fourth quarter of 2012. Lower production in 2013 is largely due to slightly lower grades processed over the comparable period last year. The increase in the year over year total cash cost per ounce is largely due to a 34% decline in realized silver price compared to the prior year period.
 
For the full year 2013, Pinos Altos produced 181,773 ounces of gold at a total cash cost per ounce of $412. This is in contrast to 2012 when the mine produced 183,662 ounces of gold at a total cash cost of $276 per ounce. The increase in the cash costs per ounce on a year-over-year basis is largely due to a lower realized silver price.
 
The $106 million Pinos Altos shaft sinking project remains on schedule and budget with approximately 58% of the total budget committed to date. Head frame erection has been completed and the hoist and hoist house electrical installation has been completed.  Shaft sinking is underway (currently at a depth of approximately 120 metres) and hoist commissioning is currently in progress. When the shaft is completed (scheduled to be in 2015), it will allow better matching of the mill capacity with the future mining
 
21 

 
capacity at Pinos Altos when the open pit mining operation begins to wind down as planned over the next several years.
 
The Company continues to evaluate a number of regional satellite opportunities such as Sinter and Reyna de Plata in order to better understand the development potential of these projects.
 
Creston Mascota - Phase 3 Leach Pad Nearing Completion
 
The Creston Mascota heap leach has been operating as a satellite operation to the Pinos Altos mine since late 2010. Operations at Creston Mascota resumed in April 2013 after a temporary suspension for leach pad modifications. Production since this resumption has met Company expectations and is in line with guidance.
 
Approximately 325,500 tonnes of ore were stacked on the Creston Mascota leach pad during the fourth quarter of 2013, compared to approximately 78,300 tonnes stacked in the fourth quarter of 2012. Minesite costs per tonne at Creston Mascota were $15 in the fourth quarter of 2013, compared to nil in the fourth quarter of 2012. Tonnes stacked and minesite costs per tonne for the comparable period of 2012 are not representative given that operations were temporarily suspended for leach pad modifications.
 
Payable gold production at Creston Mascota in the fourth quarter of 2013 was 10,666 ounces at a total cash cost per ounce of $431. This compares to 3,560 ounces during the fourth quarter of 2012. The lower production in the 2012 period is due to the suspension of operations referred to above, which resulted in fewer ounces from drain-down of older leach panels.
 
For the full year 2013, approximately 1,276,200 tonnes of ore were stacked on the Creston Mascota leach pad, compared to approximately 1,532,400 tonnes stacked in the full year 2012. Minesite costs per tonne at Creston Mascota were $16 for the full year 2013, compared to $12 in 2012. Tonnes stacked and minesite costs per tonne for the comparable period of 2012 are not representative given that operations were temporarily suspended for leach pad modifications.
 
Payable gold production for the full year 2013 totaled 34,027 ounces at a total cash cost per ounce of $485, compared to 51,175 ounces at a total cash cost per ounce of $326 in 2012. The lower production and higher costs per ounce in 2013 are reflective of the temporary shutdown of the operation from January until April 2013.
 
Construction on the Phase 3 leach pad at Creston Mascota is expected to be completed by the end of March 2014. Production at Creston Mascota is expected to increase in the latter half of 2014 as the new agglomerator planned for installation in the second quarter of 2014 allows will increase crushed ore processing capacity.
 
La India - Commissioning Continues; Commercial Production Expected in Q1 2014
 
The La India mine in Sonora, Mexico, located approximately 70 kilometres from the Company’s Pinos Altos mine, was acquired in November 2011 through the purchase of Grayd Resources which included a 56,000 hectare land position in the Mulatos Gold belt. Commissioning of the mine commenced ahead of schedule in the third quarter of 2013. Design, permitting, construction and start-up of the La India mine were completed within 22 months of the acquisition. In 2013, the mine reported 3,180 ounces of pre-
 
22 

 
commercial production, and the project was on target with regard to the budgeted capital cost of $157.6 million.
 
Throughput continues to ramp up and stacking rates are currently averaging approximately 12,000 tpd.  It is expected that several months of operation will be required to achieve steady state production.  Commercial production is expected to be declared in the first quarter of 2014.
 
While progressing as expected during the commissioning phase, ramp up challenges have included congestion for leaching and stacking ore at the bottom of the leach pad due to the “inverted pyramid” geometry of the pad, debottlenecking of the crushing and stacking system, and higher than expected ore abrasion.
 
Further work is also planned at La India to better define the mineral domains of the known sulfide mineralization.
 
Depreciation Guidance
 
Agnico Eagle expects its 2014 amortization expense to be in the range of $355 to $375 million.
 
General & Administrative Cost Guidance
 
Agnico Eagle expects 2014 general and administration expense to be between $55 to $65 million, excluding share based compensation.  This represents a decline of approximately 15% from 2013 levels. In 2014, share based compensation is expected to be between $30 to $35 million including stock option expense (which is a non-cash item) of between $18 to $22 million (which is lower than in previous years due to lower stock option valuation).
 
Please see the supplemental financial data section of the Financial and Operating Database on the Company’s website for additional historical financial data.
 
Tax Guidance for 2014
 
Beginning in 2014, mining companies in Mexico must pay a royalty of essentially 7.5% of earnings before interest, taxes, depreciation and amortization (EBITDA).  As capital expenditures are not deductible for purposes of the royalty, a temporary difference arose upon enactment in the fourth quarter of 2013 with respect to the accounting carrying value of such expenditures in the consolidated financial statements. This temporary difference gives rise to an additional deferred tax liability and must be charged to earnings in the year of enactment. For the Pinos Altos, Creston Mascota and La India mines, the total charge in the fourth quarter of 2013 was US$50M.
 
While Agnico will be paying cash taxes with respect to the Mexican mining royalty beginning in 2014, the fourth quarter 2013 deferred tax charge is not a recurring tax expense and arises as a result of the enactment of the new mining tax in the fourth quarter of 2013.
 
23 

 
For 2014, the jurisdictional tax rates are expected to be:
 
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
 
The Company’s overall tax rate is expected to be between 40% to 45%.
 
Significant Mining Expertise Added to the Board of Directors
 
The Board of Directors is pleased to announce the appointment of Deborah McCombe , P.Geo, to the Board effective today.  Ms. McCombe is the President and CEO of Roscoe Postle Associates, and she has over 30 years of experience in exploration project management, feasibility studies, reserve estimation, due diligence and evaluation studies.  In addition, Ms. McCombe will also serve on the Health, Safety, Environment and Sustainable Development Committee.
 
Annual General Meeting
 
Friday, May 2, 2014 at 11:00 am (E.D.T.)
Sheraton Centre Toronto Hotel (Dominion Ballroom)
123 Queen Street West
Toronto, ON M5H 2M9
 
Expected Dividend Record and Payment Dates for the Remainder of 2014

Record Date	 	Payment Date	
March 3*	 	March 17*	
June 2	 	June 16	
September 2	 	September 16	
December 1	 	December 15	

*Declared
 
Dividend Reinvestment Plan
 
Please follow the link below for information on the Company’s dividend reinvestment program. 
Dividend Reinvestment Plan
 
About Agnico Eagle
 
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957.  Its seven mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions as well as in the United States. The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
 
24 

 
Note Regarding Conversion to IFRS
 
The Company has identified several differences between US GAAP and IFRS that may have an impact on the Company’s consolidated financial statements. These differences should not be regarded as a complete list of changes that will result from the transition to IFRS, rather they encompass management’s high level evaluation of significant differences between US GAAP and IFRS and available IFRS accounting policy choices as they currently exist. At this stage in the IFRS conversion plan, the Company has not quantified the impact of these differences on our consolidated financial statements or selected IFRS accounting policies. Significant identified differences between US GAAP and IFRS include asset impairment testing and measurement, accounting for production stripping costs, accounting for exploration and evaluation expenditures and accounting for property, plant and equipment. The Company anticipates providing additional information on the expected quantitative impact of IFRS adoption in its consolidated financial statements filed in respect of the second quarter of 2014.
 
Under US GAAP, a two-step approach is used for long-lived asset impairment testing whereby long-lived assets are first tested for recoverability based on their expected undiscounted cash flows. If a long-lived asset’s expected undiscounted cash flow exceeds the recorded carrying amount, no impairment charge is required. If the expected undiscounted cash flow is lower than the recorded carrying amount, the long-lived assets are written down to their estimated fair value. US GAAP does not permit the reversal of impairment losses. IFRS prescribes a one-step approach for asset impairment testing and measurement whereby an asset’s recoverable amount is compared directly against its recorded carrying amount. Under IFRS, an asset’s recoverable amount is determined as the higher of the estimated fair value less costs to sell or value in use (which is measured using discounted cash flows). If an asset’s recoverable amount is less than the recorded carrying amount, an impairment charge is required. IFRS also requires the reversal of previously recorded impairment losses where circumstances have changed such that the impairments have been reduced. The difference in the approach to asset impairment testing and measurement may result in more frequent impairment charges under IFRS, where asset carrying values previously supported under US GAAP on an undiscounted cash flow basis cannot be supported on a discounted cash flow basis. However, the impact of any additional asset impairments recorded under IFRS may be partially offset by the requirement to reverse previously recorded impairment losses where circumstances have changed.
 
Under US GAAP, the cost of removing overburden and waste materials to expose ore and access mineral deposits for extraction during the production phase of a surface mine (“production stripping costs”) are accounted for as production costs and are included in the cost of the inventory produced during the period in which the stripping costs are incurred. IFRS requires that production stripping costs relating to improved access to ore be capitalized as part of a non-current stripping activity asset if probable future economic benefits will be realized, the costs can be reliably measured and the component of an ore body for which access has been improved can be identified. To the extent that ore is extracted and inventory is produced in the current period, IFRS instead prescribes that production stripping costs be accounted for as part of the cost of the inventory produced. The difference in approach to accounting for production stripping costs will result in a decrease in direct production costs and an increase in amortization expense relating to the recognition of non-current stripping activity assets under IFRS.
 
Under US GAAP, the Company accounts for exploration and evaluation (“E&E”) expenditures as current period operating expenses until it is determined that a mining property can be economically developed as a result of established proven and probable reserves. Once proven and probable reserves are established based on the results of a final feasibility study, the costs of drilling and development to further delineate the ore body are capitalized. IFRS provides guidance related to expenditures incurred during the E&E
 
25 

 
phase. IFRS requires entities to select and consistently apply an accounting policy that specifies which expenditures are capitalized as E&E assets. However, IFRS provides no specific guidance as to when E&E expenditures are to be capitalized. Agnico Eagle is in the process of defining the E&E phase within the context of IFRS and developing an accounting policy that outlines the point at which specific types of E&E expenditures will be capitalized.
 
IFRS requires the separate identification and measurement of significant individual components of property, plant and equipment, with individual components depreciated based on their individual useful lives. The Company identified significant individual components of property, plant and equipment under US GAAP in 2013 and will assess whether an adjustment relating to the retrospective application and depreciation of these components is required to its opening January 1, 2013 balance sheet under IFRS.
 
Note Regarding Production Guidance
 
The gold production guidance is based on the Company’s mineral reserves but includes contingencies, assumed metal prices and foreign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidance presented in this news release may not reconcile exactly with the production models used to support these mineral reserves.
 
Note Regarding Certain Measures of Performance
 
This news release presents financial performance measures, including “total cash costs per ounce of gold produced,” “minesite costs per tonne” and “all-in sustaining costs”, that are not recognized measures under US GAAP. This data may not be comparable to data presented by other gold producers. The Company believes that these generally accepted industry measures are realistic indicators of operating performance and useful in allowing year-over-year comparisons. However, each of these non-US GAAP measures should be considered together with other data prepared in accordance with US GAAP. These measures, taken by themselves, are not necessarily indicative of operating costs or cash flow measures prepared in accordance with US GAAP. Reconciliations of the Company’s total cash costs per ounce of gold produced, minesite costs per tonne and all-in sustaining costs financial performance measures to comparable financial measures calculated and presented in accordance with US GAAP are detailed below.
 
The mineral reserve and resource information of this news release has been reviewed and approved by Daniel Doucet, Corporate Director, Reserve Development, under the supervision of Alain Blackburn, Senior Vice-President, Exploration. Both Mr. Doucet and Mr. Blackburn are designated P.Eng. with the Ordre ingenieurs du Quebec and qualified persons as defined by NI 43-101.
 
26 

 
Detailed Mineral Reserve and Resource Data (as at December 31, 2013)

Category and Operation	 	Au	 	Ag	 	Cu	 	Zn	 	Pb	 	Au	 	Tonnes	 	
 	 	(g/t)	 	(g/t)	 	(%)	 	(%)	 	(%)	 	(000s	 	(000s)	 	
 	 	 	 	 	 	 	 	 	 	 	 	oz.)	 	 	 	
Proven Mineral Reserve	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LaRonde (underground)	 	3.48	 	23.27	 	0.31	 	0.60	 	0.07	 	668	 	5,978	 	
Lapa (underground)	 	5.99	 	 	 	 	 	 	 	 	 	195	 	1,011	 	
Goldex (underground)	 	1.52	 	 	 	 	 	 	 	 	 	6	 	119	 	
Kittila (open pit)	 	3.50	 	 	 	 	 	 	 	 	 	25	 	222	 	
Kittila (underground)	 	4.46	 	 	 	 	 	 	 	 	 	126	 	882	 	
Kittila Total Proven	 	4.27	 	 	 	 	 	 	 	 	 	151	 	1,104	 	
Meadowbank (open pit)	 	2.88	 	 	 	 	 	 	 	 	 	104	 	1,128	 	
Meliadine (open pit)	 	7.31	 	 	 	 	 	 	 	 	 	8	 	34	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pinos Altos (open pit)	 	0.97	 	20.59	 	 	 	 	 	 	 	11	 	365	 	
Pinos Altos (underground)	 	2.90	 	96.19	 	 	 	 	 	 	 	149	 	1,601	 	
Pinos Altos Total Proven	 	2.54	 	82.17	 	 	 	 	 	 	 	161	 	1,966	 	
La India (open pit)	 	0.64	 	 	 	 	 	 	 	 	 	5	 	228	 	
Subtotal Proven Mineral Reserve 	 	3.49	 	 	 	 	 	 	 	 	 	1,298	 	11,568	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Probable Mineral Reserve	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LaRonde (underground)	 	5.50	 	18.37	 	0.23	 	0.69	 	0.03	 	3,212	 	18,149	 	
Lapa (underground)	 	5.92	 	 	 	 	 	 	 	 	 	87	 	456	 	
Goldex (underground)	 	1.52	 	 	 	 	 	 	 	 	 	367	 	7,485	 	
Kittila (open pit)	 	3.45	 	 	 	 	 	 	 	 	 	16	 	147	 	
Kittila (underground)	 	4.66	 	 	 	 	 	 	 	 	 	4,547	 	30,373	 	
Kittila Total Probable	 	4.65	 	 	 	 	 	 	 	 	 	4,563	 	30,520	 	
Meadowbank (open pit)	 	3.26	 	 	 	 	 	 	 	 	 	1,647	 	15,692	 	
Meliadine (open pit)	 	6.03	 	 	 	 	 	 	 	 	 	963	 	4,965	 	
Meliadine (underground)	 	8.34	 	 	 	 	 	 	 	 	 	1,870	 	6,978	 	
Meliadine Total Probable	 	7.38	 	 	 	 	 	 	 	 	 	2,833	 	11,943	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pinos Altos (open pit)	 	2.09	 	42.84	 	 	 	 	 	 	 	728	 	10,835	 	
Pinos Altos (underground)	 	2.69	 	76.74	 	 	 	 	 	 	 	1,377	 	15,903	 	
Pinos Altos Total Probable	 	2.45	 	63.00	 	 	 	 	 	 	 	2,105	 	26,738	 	
La India projects (open pit)	 	0.87	 	 	 	 	 	 	 	 	 	753	 	26,868	 	
Subtotal Probable Mineral Reserve	 	3.51	 	 	 	 	 	 	 	 	 	15,567	 	137,850	 	
Northern Total Proven and Probable Reserves	 	4.60	 	 	 	 	 	 	 	 	 	13,841	 	93,618	 	
Southern Total Proven and Probable Reserves	 	1.69	 	 	 	 	 	 	 	 	 	3,024	 	55,800	 	
Total Proven and Probable Mineral Reserves	 	3.51	 	 	 	 	 	 	 	 	 	16,865	 	149,418	 	
 
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Category and Operation	 	Au	 	Ag	 	Cu	 	Zn	 	Pb	 	Tonnes	 	
 	 	(g/t)	 	(g/t)	 	(%)	 	(%)	 	(%)	 	(000s)	 	
Measured Mineral Resource	 	 	 	 	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
Goldex (underground)	 	1.86	 	 	 	 	 	 	 	 	 	12,360	 	
Kittila (underground)	 	2.69	 	 	 	 	 	 	 	 	 	511	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
La India projects (open pit)	 	0.33	 	 	 	 	 	 	 	 	 	4,970	 	
Total Measured Mineral Resource	 	1.46	 	 	 	 	 	 	 	 	 	17,841	 	
Indicated Mineral Resource	 	 	 	 	 	 	 	 	 	 	 	 	 	
Northern Business 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LaRonde (underground)	 	2.12	 	32.53	 	0.16	 	1.61	 	0.16	 	4,242	 	
Lapa (underground)	 	4.28	 	 	 	 	 	 	 	 	 	1,550	 	
Goldex (underground)	 	2.03	 	 	 	 	 	 	 	 	 	17,744	 	
Kittila (underground)	 	2.79	 	 	 	 	 	 	 	 	 	10,519	 	
Meadowbank (open pit)	 	2.54	 	 	 	 	 	 	 	 	 	4,934	 	
Meadowbank (underground)	 	4.85	 	 	 	 	 	 	 	 	 	2,341	 	
Meadowbank Total Indicated	 	3.28	 	 	 	 	 	 	 	 	 	7,275	 	
Meliadine (open pit)	 	4.33	 	 	 	 	 	 	 	 	 	6,911	 	
Meliadine (underground)	 	5.46	 	 	 	 	 	 	 	 	 	12,075	 	
Meliadine Total Indicated	 	5.05	 	 	 	 	 	 	 	 	 	18,986	 	
Bousquet (open pit)	 	1.79	 	 	 	 	 	 	 	 	 	11,044	 	
Bousquet (underground)	 	5.63	 	 	 	 	 	 	 	 	 	1,704	 	
Bousquet Total Indicated	 	2.31	 	 	 	 	 	 	 	 	 	12,748	 	
Ellison (underground)	 	4.54	 	 	 	 	 	 	 	 	 	429	 	
Swanson (open pit)	 	1.93	 	 	 	 	 	 	 	 	 	504	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pinos Altos (open pit)	 	0.78	 	9.95	 	 	 	 	 	 	 	3,420	 	
Pinos Altos (underground)	 	1.79	 	41.33	 	 	 	 	 	 	 	10,515	 	
Pinos Altos Total Indicated	 	1.54	 	33.63	 	 	 	 	 	 	 	13,935	 	
La India projects (open pit)	 	0.38	 	 	 	 	 	 	 	 	 	51,266	 	
Total Indicated Mineral Resource	 	1.97	 	 	 	 	 	 	 	 	 	139,199	 	
Northern Total Measured and Indicated Resources	 	2.96	 	 	 	 	 	 	 	 	 	86,869	 	
Southern Total Measured and Indicated Resources	 	0.61	 	 	 	 	 	 	 	 	 	70,171	 	
Total Measured & Indicated Mineral Resources	 	1.91	 	 	 	 	 	 	 	 	 	157,040	 	
 
28 

 

Category and Operation	 	Au	 	Ag	 	Cu	 	Zn	 	Pb	 	Tonnes	 	
 	 	(g/t)	 	(g/t)	 	(%)	 	(%)	 	(%)	 	(000s)	 	
Inferred Mineral Resource	 	 	 	 	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
LaRonde (underground)	 	4.61	 	14.72	 	0.27	 	0.55	 	0.05	 	10,536	 	
Lapa (open pit Zulapa)	 	3.14	 	 	 	 	 	 	 	 	 	391	 	
Lapa (underground)	 	7.06	 	 	 	 	 	 	 	 	 	585	 	
Lapa Total Inferred	 	5.49	 	 	 	 	 	 	 	 	 	976	 	
Goldex (underground)	 	1.64	 	 	 	 	 	 	 	 	 	26,068	 	
Kittila (open pit)	 	4.00	 	 	 	 	 	 	 	 	 	257	 	
Kittila (underground)	 	4.12	 	 	 	 	 	 	 	 	 	7,265	 	
Kittila Total Inferred	 	4.12	 	 	 	 	 	 	 	 	 	7,522	 	
Meadowbank (open pit)	 	3.15	 	 	 	 	 	 	 	 	 	1,100	 	
Meadowbank (underground)	 	4.36	 	 	 	 	 	 	 	 	 	2,213	 	
Meadowbank Total Inferred	 	3.96	 	 	 	 	 	 	 	 	 	3,313	 	
Meliadine (open pit)	 	4.87	 	 	 	 	 	 	 	 	 	1,137	 	
Meliadine (underground)	 	7.45	 	 	 	 	 	 	 	 	 	10,574	 	
Meliadine Total Inferred	 	7.20	 	 	 	 	 	 	 	 	 	11,711	 	
Bousquet (open pit)	 	1.16	 	 	 	 	 	 	 	 	 	679	 	
Bousquet (underground)	 	4.54	 	 	 	 	 	 	 	 	 	3,888	 	
Bousquet Total Inferred	 	4.04	 	 	 	 	 	 	 	 	 	4,567	 	
Ellison (underground)	 	4.56	 	 	 	 	 	 	 	 	 	1,263	 	
Kuotko, Finland (open pit)	 	2.89	 	 	 	 	 	 	 	 	 	1,823	 	
Kylmäkangas, Finland (underground)	 	4.11	 	31.11	 	 	 	 	 	 	 	1,896	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pinos Altos (open pit)	 	1.05	 	21.23	 	 	 	 	 	 	 	15,040	 	
Pinos Altos (underground)	 	2.54	 	54.77	 	 	 	 	 	 	 	2,667	 	
Pinos Altos Total Inferred	 	1.28	 	26.28	 	 	 	 	 	 	 	17,707	 	
La India projects (open pit)	 	0.36	 	 	 	 	 	 	 	 	 	82,089	 	
Northern Total Inferred Resources	 	3.77	 	 	 	 	 	 	 	 	 	69,674	 	
Southern Total Inferred Resources	 	0.53	 	 	 	 	 	 	 	 	 	99,795	 	
Total Inferred Resource	 	1.86	 	 	 	 	 	 	 	 	 	169,470	 	
 
Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand. Reserves are not a sub-set of resources.
 
29 

 
Forward-Looking Statements
 
The information in this news release has been prepared as at February 12, 2014. Certain statements contained in this news release 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 and are referred to herein as “forward-looking statements”. When used in this document, words such as “anticipate”, “expect”, “estimate”, “forecast”, “planned”, “possible”, “will”, “likely”, “schedule” and similar expressions are intended to identify forward-looking statements.
 
Such statements include without limitation: the Company’s forward-looking production guidance, including estimated ore grades, project timelines, drilling results, orebody configurations, metal production, life of mine estimates, production estimates, total cash costs per ounce, minesite costs per tonne and all-in sustaining costs estimates, cash flows, the estimated timing of scoping and other studies, the methods by which ore will be extracted or processed, expansion projects, recovery rates, mill throughput, and projected exploration and capital expenditures, including costs and other estimates upon which such projections are based and estimates of depreciation expense, general and administrative expense and tax rates; the Company’s ability to fund its current pipeline of projects; the impact of maintenance shutdowns; the Company’s goal to build a mine at Meliadine; the Company’s ability to bring into commercial production the mine at La India; and other statements and information regarding anticipated trends with respect to the Company’s operations, exploration and the funding thereof. Such statements reflect the Company’s views as at the date of this news release and are subject to certain risks, uncertainties and assumptions. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions of Agnico Eagle contained in this news release, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management’s discussion and analysis and the Company’s Annual Report on Form 20-F for the year ended December 31, 2012 (“Form 20-F”) as well as: that there are no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment, natural occurrences, equipment failures, accidents, political changes, title issues or otherwise; that permitting, production and expansion at each of Agnico Eagle’s mines and growth projects proceeds on a basis consistent with current expectations, and that Agnico Eagle does not change its plans relating to such projects; that the exchange rate between the Canadian dollar, European Union euro, Mexican peso and the United  States dollar will be approximately consistent with Agnico Eagle’s expectations; that prices for gold, silver, zinc, copper and lead will be consistent with Agnico Eagle’s expectations; that prices for key mining and construction supplies, including labour costs, remain consistent with Agnico Eagle’s current expectations; that Agnico Eagle’s current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Company’s current plans to optimize production are successful; and that there are no material variations in the current tax and regulatory environment.  Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. 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 metal 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; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and
 
30 

 
risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors, see the Form 20-F, as well as the Company’s other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission (the “SEC”). The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Certain of the foregoing statements, primarily related to projects, are based on preliminary views of the Company with respect to, among other things, grade, tonnage, processing, recoveries, mining methods, capital costs, total cash costs, minesite costs, and location of surface infrastructure.  Actual results and final decisions may be materially different from those currently anticipated.
 
Notes to Investors Regarding the Use of Resources
 
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources
 
This news release uses the terms “measured resources” and “indicated resources”.  Investors are advised that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them.  Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves .
 
Cautionary Note to Investors Concerning Estimates of Inferred Resources
 
This news release also uses the term “inferred resources”.  Investors are advised that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
 
Scientific and Technical Data
 
Agnico Eagle Mines Limited is reporting mineral resource and reserve estimates in accordance with the CIM guidelines for the estimation, classification and reporting of resources and reserves.
 
Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce.  Agnico Eagle uses certain terms in this press release, such as “measured”, “indicated”, and “inferred”, and “resources” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, which may be obtained from Agnico Eagle, or from the SEC’s website at: http://sec.gov/edgar.shtml.  A “final” or “bankable” feasibility study is required to meet the requirements to designate reserves under Industry Guide 7.
 
In prior periods, reserves for all properties were typically estimated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC guidelines. These guidelines require the use of prices that reflect current economic conditions at the time of reserve determination, which the Staff of the SEC has interpreted to mean historic three-year average prices.  Given the current lower
 
31 

 
commodity price environment, Agnico Eagle has decided to use price assumptions that are below the three-year averages. The assumptions used for the mineral reserves estimates at all mines and advanced projects as of December 31, 2013, reported by the Company on February 12, 2014, are $1,200 per ounce gold, $18.00 per ounce silver, $0.82 per pound zinc, $3.00 per pound copper, $0.91 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.03, 1.32 and 12.75, respectively.
 
The Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) requires mining companies to disclose reserves and resources using the subcategories of “proven” reserves, “probable” reserves, “measured” resources, “indicated” resources and “inferred” resources.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.
 
A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study.  This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allows for losses that may occur when the material is mined.  A proven mineral reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study.  A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study.
 
A mineral resource is a concentration or occurrence of natural, solid, inorganic material, or natural, solid fossilized organic material including base and precious metals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction.  The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.  A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit.  The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.  An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.  The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.  An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.  The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  Mineral resources which are not mineral reserves do not have demonstrated economic viability.
 
Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
 
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of realistically assumed mining,
 
32 

 
processing, metallurgical, economic, marketing, legal, environmental, social and governmental considerations together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable).  The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project.  The confidence level of the study will be higher than that of a Pre-Feasibility Study.
 
The mineral reserves presented in this disclosure are separate from and not a portion of the mineral resources.

Property/Project name 
 and location	 	Qualified Person 
 responsible for the 
 current Mineral 
 Resource and Reserve 
 Estimate and 
 relationship to Agnico 
 Eagle	 	Date of most recent 
 Technical Report (NI 
 43-101) filed on 
 SEDAR	 	
LaRonde, Bousquet & Ellison, Quebec, Canada	 	François Blanchet Ing., LaRonde Division Superintendent of geology	 	March 23, 2005	 	
Kittila, Kuotko and Kylmakangas, Finland	 	Daniel Doucet, Ing., Corporate Director of Reserve Development	 	March 4, 2010	 	
Pinos Altos, Mexico	 	Daniel Doucet, Ing., Corporate Director of Reserve Development	 	March 25, 2009	 	
Swanson, Quebec, Canada	 	Daniel Doucet, Ing., Corporate Director of Reserve Development	 	 	 	
La India, Mexico	 	Daniel Doucet, Ing., Corporate Director of Reserve Development	 	August 31, 2012	 	
Meadowbank, Nunavut, Canada	 	Alex Proulx, Ing., Meadowbank Division Mine Operations Manager	 	February 15, 2012	 	
Goldex, Quebec, Canada	 	Robert Crépeau, P.Geo., Independent Consultant	 	October 14, 2012	 	
Lapa, Quebec, Canada	 	Richard Dubuc, P.Geo., Lapa Division Superintendent of geology	 	June 8, 2006	 	
Meliadine, Nunavut, Canada	 	Julie Larouche, P.Geo., Project Geologist, Technical Services Group	 	March 8, 2011	 	
 
33 

 
The effective date for all of the Company’s mineral resource and reserve estimates in this press release is December 31, 2013.  Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in the Technical Reports referred to above, which may be found at www.sedar.com.  Other important operating information can be found in the Company’s Form 20-F.
 
AGNICO EAGLE MINES LIMITED 
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
(Unaudited)

 	 	Three months ended 
 December 31,	 	Year ended 
 December 31,	 	
 	 	2013	 	2012	 	2013	 	2012	 	
Operating margin (i)  by mine:	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	$	26,186	 	$	35,363	 	$	99,989	 	$	173,596	 	
Goldex mine	 	8,246	 	—	 	8,246	 	—	 	
Lapa mine	 	17,345	 	20,755	 	71,635	 	100,377	 	
Kittila mine	 	27,414	 	53,199	 	111,277	 	186,392	 	
Pinos Altos mine	 	36,864	 	61,092	 	173,074	 	234,495	 	
Creston Mascota deposit at Pinos Altos	 	8,009	 	441	 	21,679	 	63,227	 	
Meadowbank mine	 	75,788	 	36,170	 	227,579	 	261,915	 	
Total operating margin 	 	199,852	 	207,020	 	713,479	 	1,020,002	 	
Amortization of property, plant and mine development	 	79,825	 	72,680	 	296,078	 	271,861	 	
Impairment loss	 	537,227	 	—	 	537,227	 	—	 	
Exploration, corporate and other	 	57,421	 	36,232	 	250,856	 	313,000	 	
Income (loss) before income and mining taxes 	 	(474,621	)	98,108	 	(370,682	)	435,141	 	
Income and mining taxes expense (recovery)	 	(21,305	)	15,338	 	35,844	 	124,225	 	
Net income (loss) for the period 	 	$	(453,316	)	$	82,770	 	$	(406,526	)	$	310,916	 	
Net income (loss) per share - basic (US$)	 	$	(2.61	)	$	0.48	 	$	(2.35	)	$	1.82	 	
 	 	 	 	 	 	 	 	 	 	
Cash provided by operating activities 	 	$	135,944	 	$	105,964	 	$	438,296	 	$	696,007	 	
 	 	 	 	 	 	 	 	 	 	
Realized prices (US$):	 	 	 	 	 	 	 	 	 	
Gold (per ounce) 	 	$	1,244	 	$	1,684	 	$	1,366	 	$	1,667	 	
Silver (per ounce) 	 	$	20.20	 	$	31.25	 	$	22.42	 	$	31.66	 	
Zinc (per tonne)	 	$	1,958	 	$	1,906	 	$	1,907	 	$	1,955	 	
Copper (per tonne) 	 	$	7,275	 	$	7,668	 	$	7,160	 	$	8,083	 	
 
34 

 

Payable production (ii) :	 	 	 	 	 	 	 	 	 	
Gold (ounces):	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	51,336	 	36,911	 	181,781	 	160,875	 	
Goldex mine	 	19,305	 	—	 	20,810	 	—	 	
Lapa mine	 	26,323	 	24,621	 	100,730	 	106,191	 	
Kittila mine	 	41,710	 	45,273	 	146,421	 	175,878	 	
Pinos Altos mine	 	46,490	 	48,932	 	181,773	 	183,662	 	
Creston Mascota deposit at Pinos Altos	 	10,666	 	3,560	 	34,027	 	51,175	 	
La India project	 	3,180	 	—	 	3,180	 	—	 	
Meadowbank mine	 	123,433	 	77,238	 	430,613	 	366,030	 	
Total gold (ounces)	 	322,443	 	236,535	 	1,099,335	 	1,043,811	 	
Silver (thousands of ounces):	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	496	 	547	 	2,102	 	2,244	 	
Kittila mine	 	2	 	—	 	6	 	—	 	
Pinos Altos mine	 	548	 	622	 	2,366	 	2,237	 	
Creston Mascota deposit at Pinos Altos	 	15	 	6	 	46	 	74	 	
La India project	 	3	 	—	 	3	 	—	 	
Meadowbank mine	 	29	 	21	 	100	 	91	 	
Total silver (thousands of ounces)	 	1,093	 	1,196	 	4,623	 	4,646	 	
Zinc (tonnes) 	 	4,472	 	8,722	 	19,814	 	38,637	 	
Copper (tonnes) 	 	1,232	 	814	 	4,835	 	4,126	 	
 	 	 	 	 	 	 	 	 	 	
Payable metal sold:	 	 	 	 	 	 	 	 	 	
Gold (ounces):	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	50,763	 	37,726	 	184,489	 	158,823	 	
Goldex mine	 	16,991	 	—	 	16,991	 	—	 	
Lapa mine	 	28,784	 	24,309	 	102,673	 	104,771	 	
Kittila mine	 	43,442	 	46,620	 	148,561	 	170,478	 	
Pinos Altos mine	 	45,117	 	46,149	 	182,964	 	178,334	 	
Creston Mascota deposit at Pinos Altos	 	10,496	 	4,052	 	31,956	 	51,650	 	
Meadowbank mine	 	130,928	 	79,752	 	430,748	 	364,006	 	
Total gold (ounces)	 	326,521	 	238,608	 	1,098,382	 	1,028,062	 	
Silver (thousands of ounces):	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	525	 	566	 	2,179	 	2,233	 	
Kittila mine	 	1	 	—	 	5	 	—	 	
Pinos Altos mine	 	553	 	575	 	2,367	 	2,162	 	
Creston Mascota deposit at Pinos Altos	 	14	 	7	 	44	 	73	 	
Meadowbank mine	 	28	 	19	 	99	 	87	 	
Total silver (thousands of ounces)	 	1,121	 	1,167	 	4,694	 	4,555	 	
Zinc (tonnes) 	 	5,123	 	9,073	 	20,432	 	42,604	 	
Copper (tonnes) 	 	1,227	 	800	 	4,838	 	4,115	 	
 
35 

 

Total cash costs per ounce of gold produced (US$) (iii) :	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	$	664	 	$	756	 	$	763	 	$	569	 	
Goldex mine (iv)	 	782	 	—	 	782	 	—	 	
Lapa mine	 	655	 	742	 	678	 	697	 	
Kittila mine (v)	 	687	 	569	 	601	 	565	 	
Pinos Altos mine	 	442	 	295	 	412	 	276	 	
Creston Mascota deposit at Pinos Altos (vi)	 	431	 	—	 	485	 	326	 	
Meadowbank mine	 	637	 	1,200	 	774	 	913	 	
Weighted average total cash costs per ounce of gold produced	 	$	623	 	$	769	 	$	672	 	$	640	 	

(i)	 	Operating margin is calculated as revenues from mining operations less production costs.	
 	 	 	
(ii)	 	Payable production is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventory at the end of the period.	
 	 	 	
(iii)	 	Total cash costs per ounce of gold produced is calculated net of silver, copper, zinc and other byproduct revenue credits. The weighted average total cash costs per ounce of gold produced is based on commercial production ounces. Total cash costs per ounce of gold produced is a non-GAAP measure that the Company uses to monitor the performance of its operations. See “Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine” contained herein for details.	
 	 	 	
(iv)	 	Excludes the Goldex mine’s results for the third quarter of 2013. Initial non-commercial payable gold production of 1,505 ounces was achieved at the Goldex mine during the third quarter of 2013.	
 	 	 	
(v)	 	Excludes the Kittila mine’s results for the second quarter of 2013. Due to scheduled maintenance, the Kittila mine only operated for 14 days during the second quarter of 2013. The Kittila mine incurred $18,159 in production costs during the second quarter of 2013, which were excluded from total cash costs per ounce of gold produced.	
 	 	 	
(vi)	 	Excludes the Creston Mascota deposit at Pinos Altos’ results for the first quarter of 2013 and the fourth quarter of 2012 due to the temporary suspension of active leaching between October 1, 2012 and March 13, 2013.  The Creston Mascota deposit at Pinos Altos incurred $3,117 and $6,439 in production costs during the first quarter of 2013 and the fourth quarter of 2012, respectively, which were excluded from total cash costs per ounce of gold produced.	

36 

 
AGNICO EAGLE MINES LIMITED 
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	As at 
 December 31, 2013	 	As at 
  December 31, 2012	 	
 	 	 	 	 	 	
ASSETS	 	 	 	 	 	
Current	 	 	 	 	 	
Cash and cash equivalents	 	$	170,041	 	$	332,008	 	
Trade receivables	 	67,300	 	67,750	 	
Inventories:	 	 	 	 	 	
Ore stockpiles	 	39,941	 	52,342	 	
Concentrates and dore bars	 	58,543	 	69,695	 	
Supplies	 	253,160	 	222,630	 	
Income taxes recoverable	 	18,682	 	19,313	 	
Available-for-sale securities	 	74,581	 	44,719	 	
Fair value of derivative financial instruments	 	5,590	 	2,112	 	
Other current assets	 	116,993	 	92,977	 	
Total current assets	 	804,831	 	903,546	 	
Other assets	 	66,394	 	55,838	 	
Goodwill	 	39,017	 	229,279	 	
Property, plant and mine development	 	4,049,117	 	4,067,456	 	
 	 	$	4,959,359	 	$	5,256,119	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	
Current	 	 	 	 	 	
Accounts payable and accrued liabilities	 	$	173,374	 	$	185,329	 	
Reclamation provision	 	3,452	 	16,816	 	
Dividends payable	 	—	 	37,905	 	
Interest payable	 	13,803	 	13,602	 	
Income taxes payable	 	7,523	 	10,061	 	
Capital lease obligations	 	12,035	 	12,955	 	
Fair value of derivative financial instruments	 	467	 	277	 	
Total current liabilities	 	210,654	 	276,945	 	
Long-term debt	 	1,000,000	 	830,000	 	
Reclamation provision and other liabilities  	 	178,236	 	127,735	 	
Deferred income and mining tax liabilities	 	593,320	 	611,227	 	
SHAREHOLDERS’ EQUITY	 	 	 	 	 	
Common shares:	 	 	 	 	 	
Authorized - unlimited Issued - 174,181,163 (December 31, 2012 - 172,296,610)	 	3,294,007	 	3,241,922	 	
Stock options	 	174,470	 	148,032	 	
Warrants	 	—	 	24,858	 	
Contributed surplus	 	37,254	 	15,665	 	
Retained earnings (deficit)	 	(513,441	)	7,046	 	
Accumulated other comprehensive loss	 	(15,141	)	(27,311	)	
Total shareholders’ equity	 	2,977,149	 	3,410,212	 	
 	 	$	4,959,359	 	$	5,256,119	 	
 
37 

 
AGNICO EAGLE MINES LIMITED 
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(thousands of United States dollars, except share and per share amounts, US GAAP basis)
(Unaudited)

 	 	Three months ended 
 December 31,	 	Year ended 
 December 31,	 	
 	 	2013	 	2012	 	2013	 	2012	 	
 	 	 	 	 	 	 	 	 	 	
REVENUES	 	 	 	 	 	 	 	 	 	
Revenues from mining operations	 	$	437,240	 	$	449,383	 	$	1,638,406	 	$	1,917,714	 	
 	 	 	 	 	 	 	 	 	 	
COSTS, EXPENSES AND OTHER INCOME	 	 	 	 	 	 	 	 	 	
Production (i)	 	237,388	 	242,363	 	924,927	 	897,712	 	
Exploration and corporate development	 	8,789	 	16,083	 	44,236	 	109,500	 	
Amortization of property, plant and mine development	 	79,825	 	72,680	 	296,078	 	271,861	 	
General and administrative	 	25,890	 	27,726	 	115,800	 	119,085	 	
Impairment loss on available-for-sale securities	 	5,665	 	551	 	34,272	 	12,732	 	
Provincial capital tax	 	—	 	—	 	(1,504	)	4,001	 	
Interest expense	 	15,424	 	14,287	 	57,999	 	57,887	 	
Interest and sundry expense (income)	 	5,019	 	(565	)	8,824	 	2,389	 	
Loss (gain) on derivative financial instruments	 	2,941	 	(933	)	(1,509	)	819	 	
Gain on sale of available-for-sale securities	 	(74	)	(16,464	)	(74	)	(9,733	)	
Impairment loss (ii)	 	537,227	 	—	 	537,227	 	—	 	
Foreign currency translation (gain) loss	 	(6,233	)	(4,453	)	(7,188	)	16,320	 	
Income (loss) before income and mining taxes	 	(474,621	)	98,108	 	(370,682	)	435,141	 	
Income and mining taxes expense (recovery)	 	(21,305	)	15,338	 	35,844	 	124,225	 	
Net income (loss) for the period	 	$	(453,316	)	$	82,770	 	$	(406,526	)	$	310,916	 	
 	 	 	 	 	 	 	 	 	 	
Net income (loss) per share - basic	 	$	(2.61	)	$	0.48	 	$	(2.35	)	$	1.82	 	
Net income (loss) per share - diluted	 	$	(2.61	)	$	0.48	 	$	(2.35	)	$	1.81	 	
 	 	 	 	 	 	 	 	 	 	
Weighted average number of common shares outstanding (in thousands):	 	 	 	 	 	 	 	 	 	
Basic	 	173,616	 	171,837	 	172,893	 	171,250	 	
Diluted	 	173,616	 	173,432	 	172,893	 	171,486	 	

(i)    Exclusive of amortization, which is shown separately.
 
(ii)           Includes impairment losses on the Meadowbank mine ($269,269), Meliadine project ($200,064) and Lapa mine ($67,894). Total impairment loss amounts to $436,262, net of tax.
 
38 

 
AGNICO EAGLE MINES LIMITED 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	Three months ended 
 December 31,	 	Year ended 
 December 31,	 	
 	 	2013	 	2012	 	2013	 	2012	 	
 	 	 	 	 	 	 	 	 	 	
OPERATING ACTIVITIES	 	 	 	 	 	 	 	 	 	
Net income (loss) for the period	 	$	(453,316	)	$	82,770	 	$	(406,526	)	$	310,916	 	
Add (deduct) items not affecting cash:	 	 	 	 	 	 	 	 	 	
Amortization of property, plant and mine development	 	79,825	 	72,680	 	296,078	 	271,861	 	
Deferred income and mining taxes	 	(39,246	)	25,358	 	(16,550	)	72,145	 	
Stock-based compensation	 	9,074	 	9,934	 	44,904	 	47,632	 	
Gain on sale of available-for-sale securities	 	(74	)	(16,464	)	(74	)	(9,733	)	
Impairment loss on available-for-sale securities	 	5,665	 	551	 	34,272	 	12,732	 	
Impairment loss	 	537,227	 	—	 	537,227	 	—	 	
Foreign currency translation (gain) loss	 	(6,233	)	(4,453	)	(7,188	)	16,320	 	
Other	 	12,506	 	4,626	 	23,817	 	16,048	 	
Adjustment for settlement of environmental remediation	 	(694	)	(5,682	)	(9,081	)	(21,449	)	
Changes in non-cash working capital balances:	 	 	 	 	 	 	 	 	 	
Trade receivables	 	(3,129	)	9,294	 	450	 	8,149	 	
Income taxes	 	2,687	 	(29,687	)	717	 	13,304	 	
Inventories	 	21,706	 	6,811	 	(23,232	)	(44,145	)	
Other current assets	 	26,490	 	7,156	 	(23,447	)	18,909	 	
Accounts payable and accrued liabilities	 	(50,340	)	(49,550	)	(12,695	)	(20,928	)	
Interest payable	 	(6,204	)	(7,380	)	(376	)	4,246	 	
Cash provided by operating activities	 	135,944	 	105,964	 	438,296	 	696,007	 	
 	 	 	 	 	 	 	 	 	 	
INVESTING ACTIVITIES	 	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	(133,095	)	(151,843	)	(577,789	)	(445,550	)	
Acquisitions and investments  	 	(4,776	)	—	 	(69,855	)	(12,035	)	
Net proceeds from sale of available-for-sale securities	 	171	 	42,626	 	171	 	73,358	 	
Cash used in investing activities  	 	(137,700	)	(109,217	)	(647,473	)	(384,227	)	
 	 	 	 	 	 	 	 	 	 	
FINANCING ACTIVITIES                  	 	 	 	 	 	 	 	 	 	
Dividends paid      	 	(31,999	)	(29,331	)	(126,266	)	(118,121	)	
Repayment of capital lease obligations	 	(1,961	)	(3,274	)	(10,605	)	(12,063	)	
Sale-leaseback financing    	 	10,928	 	—	 	10,928	 	—	 	
Proceeds from long-term debt  	 	50,000	 	60,000	 	290,000	 	315,000	 	
Repayment of long-term debt  	 	—	 	(30,000	)	(120,000	)	(605,000	)	
Notes issuance      	 	—	 	—	 	—	 	200,000	 	
Long-term debt financing costs  	 	—	 	—	 	—	 	(3,133	)	
Repurchase of common shares for restricted share unit plan	 	—	 	—	 	(19,000	)	(12,031	)	
Common shares issued    	 	3,843	 	16,741	 	23,672	 	32,742	 	
Cash provided by (used in) financing activities	 	30,811	 	14,136	 	48,729	 	(202,606	)	
 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash and cash equivalents	 	(682	)	318	 	(1,519	)	1,376	 	
 	 	 	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents during the period	 	28,373	 	11,201	 	(161,967	)	110,550	 	
Cash and cash equivalents, beginning of period	 	141,668	 	320,807	 	332,008	 	221,458	 	
Cash and cash equivalents, end of period	 	$	170,041	 	$	332,008	 	$	170,041	 	$	332,008	 	
 	 	 	 	 	 	 	 	 	 	
SUPPLEMENTAL CASH FLOW INFORMATION:	 	 	 	 	 	 	 	 	 	
Interest paid      	 	$	22,261	 	$	21,889	 	$	58,152	 	$	52,213	 	
Income and mining taxes paid	 	$	16,495	 	$	29,973	 	$	56,478	 	$	56,962	 	
 
39 

 
AGNICO EAGLE MINES LIMITED 
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES
(Unaudited)
 
Total Production Costs by Mine

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs per the consolidated statements of income (loss)	 	$	237,388	 	$	242,363	 	$	924,927	 	$	897,712	 	
LaRonde mine	 	54,120	 	58,106	 	229,911	 	225,647	 	
Goldex mine	 	13,172	 	—	 	13,172	 	—	 	
Lapa mine	 	18,165	 	19,482	 	69,532	 	73,376	 	
Kittila mine (i)	 	27,691	 	25,406	 	80,287	 	98,037	 	
Pinos Altos mine	 	31,402	 	33,606	 	130,129	 	128,618	 	
Creston Mascota deposit at Pinos Altos (ii)  	 	5,279	 	—	 	16,726	 	17,885	 	
Meadowbank mine	 	87,559	 	99,324	 	363,894	 	347,710	 	
Total 	 	$	237,388	 	$	235,924	 	$	903,651	 	$	891,273	 	
 
40 

 
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced (iii)  by Mine
LaRonde Mine - Total Cash Costs per Ounce of Gold Produced (iii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	54,120	 	$	58,106	 	$	229,911	 	$	225,647	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	(18,845	)	(29,214	)	(82,057	)	(131,750	)	
Inventory and other adjustments (iv)  	 	(688	)	(367	)	(7,123	)	107	 	
Non-cash reclamation provision 	 	(520	)	(611	)	(2,122	)	(2,422	)	
Cash operating costs 	 	$	34,067	 	$	27,914	 	$	138,609	 	$	91,582	 	
Gold production (ounces) 	 	51,336	 	36,911	 	181,781	 	160,875	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	664	 	$	756	 	$	763	 	$	569	 	
 
Goldex Mine - Total Cash Costs per Ounce of Gold Produced (iii)(v)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	13,172	 	$	—	 	$	13,172	 	$	—	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	26	 	—	 	26	 	—	 	
Inventory and other adjustments (iv)  	 	1,896	 	—	 	1,896	 	—	 	
Cash operating costs 	 	$	15,094	 	$	—	 	$	15,094	 	$	—	 	
Gold production (ounces) 	 	19,305	 	—	 	19,305	 	—	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	782	 	$	—	 	$	782	 	$	—	 	
 
41 

 
Lapa Mine - Total Cash Costs per Ounce of Gold Produced (iii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	18,165	 	$	19,482	 	$	69,532	 	$	73,376	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	78	 	167	 	376	 	513	 	
Inventory and other adjustments (iv)  	 	(978	)	(1,365	)	(1,504	)	(71	)	
Non-cash reclamation provision 	 	(16	)	(15	)	(67	)	191	 	
Cash operating costs 	 	$	17,249	 	$	18,269	 	$	68,337	 	$	74,009	 	
Gold production (ounces) 	 	26,323	 	24,621	 	100,730	 	106,191	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	655	 	$	742	 	$	678	 	$	697	 	
 
Kittila Mine - Total Cash Costs per Ounce of Gold Produced (i)(iii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	27,691	 	$	25,406	 	$	80,287	 	$	98,037	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	60	 	65	 	281	 	391	 	
Inventory and other adjustments (iv)  	 	1,096	 	432	 	4,561	 	1,564	 	
Non-cash reclamation provision 	 	(185	)	(148	)	(435	)	(551	)	
Cash operating costs 	 	$	28,662	 	$	25,755	 	$	84,694	 	$	99,441	 	
Gold production (ounces) 	 	41,710	 	45,273	 	141,032	 	175,878	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	687	 	$	569	 	$	601	 	$	565	 	
 
42 

 
Pinos Altos Mine - Total Cash Costs per Ounce of Gold Produced (iii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	31,402	 	$	33,606	 	$	130,129	 	$	128,618	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	(10,079	)	(19,006	)	(48,417	)	(67,720	)	
Inventory and other adjustments (iv)  	 	614	 	2,192	 	(884	)	2,718	 	
Non-cash reclamation provision 	 	(75	)	(51	)	(297	)	(205	)	
Stripping costs (vi)  	 	(1,327	)	(2,291	)	(5,581	)	(12,762	)	
Cash operating costs 	 	$	20,535	 	$	14,450	 	$	74,950	 	$	50,649	 	
Gold production (ounces) 	 	46,490	 	48,932	 	181,773	 	183,662	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	442	 	$	295	 	$	412	 	$	276	 	
 
Creston Mascota deposit at Pinos Altos - Total Cash Costs per Ounce of Gold Produced (ii)(iii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	5,279	 	$	—	 	$	16,726	 	$	17,885	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	(171	)	—	 	(520	)	(1,758	)	
Inventory and other adjustments (iv)  	 	(5	)	—	 	517	 	(60	)	
Non-cash reclamation provision 	 	(35	)	—	 	(108	)	(559	)	
Stripping costs (vi)  	 	(471	)	—	 	(1,052	)	—	 	
Cash operating costs 	 	$	4,597	 	$	—	 	$	15,563	 	$	15,508	 	
Gold production (ounces) 	 	10,666	 	—	 	32,120	 	47,615	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	431	 	$	—	 	$	485	 	$	326	 	
 
43 

 
Meadowbank Mine - Total Cash Costs per Ounce of Gold Produced (iii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs 	 	$	87,559	 	$	99,324	 	$	363,894	 	$	347,710	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Byproduct metal revenues, net of smelting, refining and marketing charges	 	(298	)	(6	)	(1,471	)	(1,651	)	
Inventory and other adjustments (iv)  	 	(4,628	)	2,084	 	(5,471	)	4,582	 	
Non-cash reclamation provision 	 	(377	)	(406	)	(1,538	)	(1,611	)	
Stripping costs (vi)  	 	(3,593	)	(8,341	)	(22,305	)	(14,806	)	
Cash operating costs 	 	$	78,663	 	$	92,655	 	$	333,109	 	$	334,224	 	
Gold production (ounces) 	 	123,433	 	77,238	 	430,613	 	366,030	 	
Total cash costs per ounce of gold produced ($ per ounce) (iii)  	 	$	637	 	$	1,200	 	$	774	 	$	913	 	
 
44 

 
Reconciliation of Production Costs to Minesite Costs per Tonne (vii)  by Mine
 
LaRonde Mine - Minesite Costs per Tonne (vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	54,120	 	$	58,106	 	$	229,911	 	$	225,647	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	(487	)	(282	)	(6,259	)	984	 	
Non-cash reclamation provision 	 	(520	)	(610	)	(2,122	)	(2,421	)	
Minesite operating costs	 	$	53,113	 	$	57,214	 	$	221,530	 	$	224,210	 	
Minesite operating costs (thousands of C$) 	 	C$	55,812	 	C$	57,280	 	C$	228,654	 	C$	225,159	 	
Tonnes of ore milled (thousands of tonnes)	 	619	 	587	 	2,319	 	2,359	 	
Minesite costs per tonne (C$) (vii)	 	C$	90	 	C$	98	 	C$	99	 	C$	95	 	

Goldex Mine - Minesite Costs per Tonne (vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	13,172	 	$	—	 	$	13,172	 	$	—	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	1,896	 	—	 	1,896	 	—	 	
Non-cash reclamation provision 	 	—	 	—	 	—	 	—	 	
Minesite operating costs	 	$	15,068	 	$	—	 	$	15,068	 	$	—	 	
Minesite operating costs (thousands of C$) 	 	C$	15,798	 	C$	—	 	C$	15,798	 	C$	—	 	
Tonnes of ore milled (thousands of tonnes)	 	492	 	—	 	492	 	—	 	
Minesite costs per tonne (C$) (vii)	 	C$	32	 	C$	—	 	C$	32	 	C$	—	 	

45 

 
Lapa Mine - Minesite Costs per Tonne (vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	18,165	 	$	19,482	 	$	69,532	 	$	73,376	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	(907	)	(1,343	)	(1,217	)	54	 	
Non-cash reclamation provision 	 	(16	)	(15	)	(67	)	191	 	
Minesite operating costs	 	$	17,242	 	$	18,124	 	$	68,248	 	$	73,621	 	
Minesite operating costs (thousands of C$) 	 	C$	18,106	 	C$	18,142	 	C$	70,621	 	C$	73,813	 	
Tonnes of ore milled (thousands of tonnes)	 	168	 	161	 	641	 	641	 	
Minesite costs per tonne (C$) (vii)	 	C$	108	 	C$	113	 	C$	110	 	C$	115	 	

46 

 
Kittila Mine - Minesite Costs per Tonne (i)(vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	27,691	 	$	25,406	 	$	80,287	 	$	98,037	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	1,096	 	432	 	4,561	 	1,569	 	
Non-cash reclamation provision	 	(185	)	(148	)	(435	)	(551	)	
Minesite operating costs	 	$	28,602	 	$	25,690	 	$	84,413	 	$	99,055	 	
Minesite operating costs (thousands of €)	 	€	21,629	 	€	19,148	 	€	64,102	 	€	75,305	 	
Tonnes of ore milled (thousands of tonnes)	 	308	 	279	 	882	 	1,090	 	
Minesite costs per tonne (€) (vii)	 	€	70	 	€	69	 	€	73	 	€	69	 	
 
Pinos Altos Mine - Minesite Costs per Tonne (vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	31,402	 	$	33,606	 	$	130,129	 	$	128,618	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	671	 	2,248	 	(821	)	2,815	 	
Non-cash reclamation provision 	 	(75	)	(51	)	(297	)	(205	)	
Stripping costs (vi)  	 	(1,327	)	(2,291	)	(5,581	)	(12,762	)	
Minesite operating costs	 	$	30,671	 	$	33,512	 	$	123,430	 	$	118,466	 	
Tonnes of ore processed (thousands of tonnes)	 	673	 	730	 	2,725	 	2,862	 	
Minesite costs per tonne (US$) (vii)	 	$	46	 	$	46	 	$	45	 	$	41	 	
 
47 

 
Creston Mascota deposit at Pinos Altos - Minesite Costs per Tonne (ii)(vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	5,279	 	$	—	 	$	16,726	 	$	17,885	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	(5	)	—	 	515	 	(60	)	
Non-cash reclamation provision 	 	(35	)	—	 	(108	)	(559	)	
Stripping costs (vi)  	 	(471	)	—	 	(1,052	)	—	 	
Minesite operating costs	 	$	4,768	 	$	—	 	$	16,081	 	$	17,266	 	
Tonnes of ore processed (thousands of tonnes)	 	326	 	—	 	1,024	 	1,454	 	
Minesite costs per tonne (US$) (vii)	 	$	15	 	$	—	 	$	16	 	$	12	 	
 
Meadowbank Mine - Minesite Costs per Tonne (vii)

 	 	Three
Months
Ended	 	Three
Months
Ended	 	Year
Ended	 	Year
Ended	 	
(thousands of United States dollars, except
as noted)	 	December
31, 2013	 	December
31, 2012	 	December
31, 2013	 	December
31, 2012	 	
Production costs	 	$	87,559	 	$	99,324	 	$	363,894	 	$	347,710	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory adjustment (viii)  	 	(4,229	)	1,806	 	(5,220	)	4,407	 	
Non-cash reclamation provision 	 	(377	)	(406	)	(1,538	)	(1,610	)	
Stripping costs (vi)  	 	(3,593	)	(8,341	)	(22,305	)	(14,806	)	
Minesite operating costs	 	$	79,360	 	$	92,383	 	$	334,831	 	$	335,701	 	
Minesite operating costs (thousands of C$) 	 	C$	82,703	 	C$	92,471	 	C$	343,147	 	C$	336,431	 	
Tonnes of ore milled (thousands of tonnes)	 	1,048	 	1,030	 	4,143	 	3,821	 	
Minesite costs per tonne (C$) (vii)	 	C$	79	 	C$	90	 	C$	83	 	C$	88	 	

48 

 
Reconciliation of Weighted Average Total Cash Costs per Ounce of Gold Produced (iii)  to All-In Sustaining Costs per Ounce of Gold Produced (ix)

 	 	Year
Ended	 	
(United States dollars per ounce of gold
produced)	 	December
31, 2013	 	
Weighted average total cash costs per ounce of gold produced (i)(ii)(iii)	 	$	672	 	
Sustaining capital expenditures	 	184	 	
Exploration and corporate development expenses (excluding greenfield exploration)	 	14	 	
General and administrative expenses (net of stock options)	 	82	 	
All-in sustaining costs per ounce of gold produced (ix)	 	$	952	 	

(i)	 	Excludes the Kittila mine’s results for the second quarter of 2013. Due to scheduled maintenance, the Kittila mine only operated for 14 days during the second quarter of 2013.  The Kittila mine incurred $18,159 in production costs during the second quarter of 2013, which were excluded from total cash costs per ounce of gold produced.	
 	 	 	
(ii)	 	Excludes the Creston Mascota deposit at Pinos Altos’ results for the first quarter of 2013 and the fourth quarter of 2012 due to the temporary suspension of active leaching between October 1, 2012 and March 13, 2013.  The Creston Mascota deposit at Pinos Altos incurred $3,117 and $6,439 in production costs during the first quarter of 2013 and the fourth quarter of 2012, respectively, which were excluded from total cash costs per ounce of gold produced.	
 	 	 	
(iii)	 	Total cash costs per ounce of gold produced is not a recognized measure under US GAAP and this data may not be comparable to data presented by other gold producers. This measure is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for byproduct revenues, unsold concentrate inventory production costs, non-cash reclamation provisions, deferred stripping costs and other adjustments, and then dividing by the	
 
49 

 

 	 	number of ounces of gold produced. The Company believes that this generally accepted industry measure is a realistic indication of operating performance and is a useful comparison point between periods. Total cash costs per ounce of gold produced is intended to provide investors with information about the cash generating capabilities of the Company’s mining operations. Management also uses this measure to monitor the performance of the Company’s mining operations. As market prices for gold are quoted on a per ounce basis, using this per ounce measure allows management to assess a mine’s cash generating capabilities at various gold prices. Management is aware that this per ounce measure of performance can be impacted by fluctuations in byproduct metal prices and exchange rates. Management compensates for these inherent limitations by using this measure in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with US GAAP. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.	
 	 	 	
(iv)	 	Under the Company’s revenue recognition policy, revenue is recognized on concentrates when legal title passes. As total cash costs per ounce of gold produced are calculated on a production basis, this inventory adjustment reflects the sales margin on the portion of concentrate production not yet recognized as revenue.	
 	 	 	
(v)	 	Excludes the Goldex mine’s results for the third quarter of 2013. Initial non-commercial payable gold production of 1,505 ounces was achieved at the Goldex mine during the third quarter of 2013.	
 	 	 	
(vi)	 	The Company reports total cash costs per ounce of gold produced and minesite costs per tonne using a common industry practice of deferring certain stripping costs that can be attributed to future production. The purpose of adjusting for these stripping costs is to enhance the comparability of total cash costs per ounce of gold produced and minesite costs per tonne to the Company’s peers within the mining industry.	
 	 	 	
(vii)	 	Minesite costs per tonne is not a recognized measure under US GAAP and this data may not be comparable to data presented by other gold producers. This measure is calculated by adjusting production costs as shown in the consolidated statements of income (loss) for unsold concentrate inventory production costs, non-cash reclamation provisions, deferred stripping costs and other adjustments, and then dividing by tonnes of ore milled. As the total cash costs per ounce of gold produced measure can be impacted by fluctuations in byproduct metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with US GAAP.	
 	 	 	
(viii)	 	This inventory adjustment reflects production costs associated with unsold concentrates.	
 	 	 	
(ix)	 	All-in sustaining costs per ounce of gold produced, calculated beginning in 2013, is not a	
 
50 

 

 	 	recognized measure under US GAAP and this data may not be comparable to data presented by other gold producers. The Company believes that this measure provides a realistic indicator of operating performance. However, this non-US GAAP measure should be considered together with other data prepared in accordance with US GAAP as it is not necessarily indicative of operating costs or cash flow measures prepared in accordance with US GAAP.	
 
Note Regarding Certain Measures of Performance
 
This press release presents financial performance measures, including “total cash costs per ounce of gold produced”, “minesite costs per tonne” and “all-in sustaining costs per ounce of gold produced” that are not recognized measures under US GAAP. This data may not be comparable to data presented by other gold producers. The Company believes that these generally accepted industry measures are realistic indicators of operating performance and useful in allowing year-over-year comparisons. However, each of these non-US GAAP measures should be considered together with other data prepared in accordance with US GAAP. These measures, taken by themselves, are not necessarily indicative of operating costs or cash flow measures prepared in accordance with US GAAP. Reconciliations of the Company’s total cash costs per ounce of gold produced, minesite costs per tonne and all-in sustaining costs per ounce of gold produced financial performance measures to comparable financial measures are calculated and presented in accordance with US GAAP are detailed above.
 
The contents of this press release have been prepared under the supervision of, and reviewed by, Alain Blackburn, Ing., Senior Vice-President Exploration and a “Qualified Person” for the purposes of NI 43-101.
 
SOURCE: Agnico Eagle Mines Limited
 
For further information:
Investor Relations  
(416) 947-1212
 
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