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SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2006
Agnico-Eagle Mines Limited
 (Translation of registrant's name into English)
145 King Street East, Suite 500, Toronto, Ontario M5C 2Y7 
(Address of Principal Executive Offices)
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	
 	
ý	
 	
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):                               
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):                               
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	 	ý	
(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
	
1	 	Second Quarter Report 2006	

 
 SIGNATURE
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	

Date: August 14, 2006	

 	

 	
By:	
/s/   R. GREGORY LAING       

Name: R. Gregory Laing
Title:   General Counsel, Vice President Legal and
            Corporate Secretary	

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 EXHIBITS
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Second Quarter Report 2006

 
 QUARTERLY MANAGEMENT'S DISCUSSION AND ANALYSIS
UNITED STATES GAAP

(all figures are expressed in US dollars unless otherwise noted and
all units of measurement expressed in metric unless otherwise noted)
Results of Operations
        Agnico-Eagle reported second quarter net income of $37.1 million, or $0.32 per share, compared to net income of $12.8 million, or $0.15 per share, in the second quarter of 2005. Gold production in the second quarter of 2006 was 55,966 ounces compared to 61,771 ounces in the second quarter of 2005. Cash provided by operating activities was $48.1 million in the second quarter of 2006 compared to $19.1 million in the prior year's second quarter. For the year to date, net earnings were $74.3 million, or $0.67 per share, compared to a net income of $23.2 million, or $0.27 per share, in the first six months of 2005. Over the same periods, operating cash flow increased to $67.8 million in 2006 from $47.2 million in 2005.
        Second quarter ore processed was down 4% to 656,902 tonnes in 2006 compared to the same period in 2005. Year to date ore processed was down 1% to 1,318,430 tonnes in the first six months of 2006 compared to the same period in 2005.
        The table below summarizes the key variances in net income for the second quarter and year to date of 2006 from the net income reported for the same periods in 2005.

(millions of dollars)
	 	Second Quarter
	 	Year to Date
	 	
Increase in gold sales volume and price	 	$	11.2	 	$	24.9	 	
Increase in copper and silver revenues	 	 	20.7	 	 	27.3	 	
Increase in zinc revenue	 	 	45.6	 	 	54.1	 	
Gain on sale of available-for-sale securities	 	 	0.3	 	 	21.9	 	
Stronger Canadian dollar, net of hedges	 	 	(3.9	)	 	(6.1	)	
Decreased (increased) amortization	 	 	(0.1	)	 	1.1	 	
Loss on base metal contracts	 	 	(7.7	)	 	(11.7	)	
Increased income and mining and federal capital taxes	 	 	(30.9	)	 	(45.9	)	
Corporate costs and other	 	 	(10.9	)	 	(14.6	)	
 	 		 		 	
Net positive variance	 	$	24.3	 	$	51.0	 	
 	 		 		 	
        In the second quarter of 2006, revenues from mining operations increased to $126.9 million from $49.6 million in the second quarter of 2005. For the year to date, revenues from mining operations increased to $217.5 million from $111.3 million in the first six months of 2005. While sales volume was consistent for the second quarter and first half of 2006 as compared to the same periods in 2005, realized prices for all metals increased in 2006 compared to the same periods in 2005. Year to date gold production however, was up 4% compared to the same period in 2005.
        In addition, the Company liquidated a substantial portion of its portfolio of available-for-sale securities resulting in a gain before taxes of $21.9 million, or $0.20 per share for the first six months of 2006. The second quarter of 2006 included a gain before taxes of $0.3 million, or less than $0.01 per share.
        In the second quarter of 2006, the Company recorded an unrealized, mark-to-market loss on byproduct metals derivative contracts of $1.4 million, or $0.01 per share (before tax). These byproduct metals contracts were entered into in the first quarter of 2005. For the six months ended June 30, 2006 the unrealized, mark-to-market loss before taxes was $8.1 million, or $0.07 per share.
        Exploration costs for both the second quarter and for the first half of 2006 increased significantly compared to the same periods in 2005. Increased exploration activities on U.S. properties and continued exploration work on the Pinos Altos project located in the Sierra Madre gold belt of Mexico contributed to the increase in exploration costs. The main increase in exploration costs however, is related to Agnico-Eagle's Scandinavian activities. In the first half of 2005, Agnico-Eagle had a 14% interest in Riddarhyttan Resources AB and accounted for its investment using the equity method of accounting through to October 17, 2005. The first half
1

of 2006 is the first full six-month period of consolidating Riddarhyttan Resources AB and resulted in the inclusion of $5.5 million of exploration expenditures. As a result of the completion of a feasibility study and the decision to proceed with construction of the mine (the Kittila mine on the Suurikuusikko deposit), expensing of expenditures relating to the project ceased as of June 1, 2006. These expenditures are now being capitalized.
        Amortization in the second quarter of 2006 was consistent with the same period in 2005 and $1.1 million lower in the first half of 2006 as compared to the same periods in 2005. The first half of 2005 amortization was higher due to the reversal of the copper concentrate inventory which had built up at the end of 2004 as the amortization relating to the production of those concentrates was recognized in the same period as the related revenue. A similar build-up of inventory at the end of 2005 did not occur resulting in lower amortization for the first six months of 2006 when compared to the same period in 2005.
        General and administrative expenditures were $2.9 million higher in the second quarter of 2006 and $4.7 million higher in the first half of 2006 as compared to the same periods in 2005. The increases are primarily due to the expensing of stock options granted during the period. The compensation expense related to these options recognized in the second quarter and the first six months of 2006 was $1.1 million ($0.01 per share) and $3.6 million ($0.03 per share), respectively. Interest costs for both the second quarter and first half of 2006 was lower as compared to the same periods in 2005 due to the full redemption of the Company's Convertible Debentures by February 15, 2006.
        In the second quarter of 2006, the Company recorded a foreign exchange translation loss of $6.7 million, compared to a gain of $0.5 million in the second quarter of 2005. The year-to-date foreign exchange translation loss was $8.5 million compared to a gain of $0.9 million in the prior year. Both the quarter and year to date loss are mainly due to the effect of foreign exchange rate changes on the Company's future tax liability balances.
        In the second quarter of 2006 total cash costs per ounce decreased to $(975) per ounce of gold produced from $103 per ounce in the second quarter of 2005. Total cash costs per ounce for the first six months of 2006 was $(583) compared to $84 for the same period in 2005. The main driver leading to the decrease in total cash costs for the quarter was higher byproduct metal revenue due to increased realized prices for all metals.
        Minesite costs per tonne was C$61 in the second quarter of 2006 compared to C$56 in the second quarter of 2005. Minesite costs per tonne was C$60 for the first six months of 2006 as compared to C$54 for the first six months of 2005. Minesite costs per tonne were higher than expected due to higher input costs such as fuel, and increased equipment maintenance and ground support expenses.
        Production costs increased 18% to $35.6 million in the second quarter of 2006 compared to $30.3 in the second quarter of 2005 and increased 12% to $68.8 in the first half of 2006 compared to $61.2 in the first half of 2005. Higher input costs such as fuel and increased equipment maintenance and ground support expenses were the primary reasons for the increase.
        The following tables provide a reconciliation of the total cash costs per ounce of gold produced and mine site costs per tonne to the interim consolidated financial statements:

(thousands of dollars, except where noted)
	 	Three months ended June 30, 2006
	 	Six months ended June 30, 2006
	 	Three months ended June 30, 2005
	 	Six months ended June 30, 2005
	 	
Cost of production per Consolidated Statements of Income	 	$	35,567	 	$	68,754	 	$	30,268	 	$	61,241	 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Byproduct revenues	 	 	(85,188	)	 	(133,227	)	 	(23,436	)	 	(48,697	)	
Inventory adjustment (i)	 	 	(4,833	)	 	(5,337	)	 	(358	)	 	(2,531	)	
Non-cash reclamation provision	 	 	(112	)	 	(217	)	 	(105	)	 	(212	)	
 	 		 		 		 		 	
Cash operating costs	 	$	(54,566	)	$	(70,027	)	$	6,369	 	$	9,801	 	
 	 		 		 		 		 	
Gold production (ounces)	 	 	55,966	 	 	120,201	 	 	61,771	 	 	117,081	 	
 	 		 		 		 		 	
Total cash costs (per ounce) (iii)	 	$	(975	)	$	(583	)	$	103	 	$	84	 	
 	 		 		 		 		 	
2

 
 	
(thousands of dollars, except where noted)
	 	Three months ended June 30, 2006
	 	Six months ended June 30, 2006
	 	Three months ended June 30, 2005
	 	Six months ended June 30, 2005
	 	
Cost of production per Consolidated Statements of Income	 	$	35,567	 	$	68,754	 	$	30,268	 	$	61,241	 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Inventory adjustments (ii)	 	 	153	 	 	1,562	 	 	605	 	 	(2,615	)	
Non-cash reclamation provision	 	 	(112	)	 	(217	)	 	(106	)	 	(212	)	
 	 		 		 		 		 	
Minesite operating costs (US$)	 	$	35,608	 	$	70,099	 	$	30,767	 	$	58,414	 	
 	 		 		 		 		 	
Minesite operating costs (C$)	 	$	39,973	 	$	79,438	 	$	38,155	 	$	72,073	 	
 	 		 		 		 		 	
Tonnes of ore milled (000's tonnes)	 	 	657	 	 	1,318	 	 	682	 	 	1,331	 	
 	 		 		 		 		 	
Minesite costs per tonne (C$) (iv)	 	$	61	 	$	60	 	$	56	 	$	54	 	

Notes:
(i)
Under the Company's revenue recognition policy, revenue is recognized on concentrates when legal title passes. Since total cash costs are calculated on a production basis, this adjustment reflects the portion of concentrate production for which revenue has not been recognized in the period.

(ii)
Inventory adjustments reflect costs associated with unsold concentrates.

(iii)
Total cash costs is not a recognized measure under US GAAP and this data may not be comparable to data presented by other gold producers. The Company believes that this generally accepted industry measure is a realistic indication of operating performance and is useful in allowing year over year comparisons. As illustrated in the table above, this measure is calculated by adjusting Production Costs as shown in the Consolidated Statements of Income and Comprehensive Income for net byproduct revenues, royalties, inventory adjustments and asset retirement provisions. This measure is intended to provide investors with information about the cash generating capabilities of the Company's mining operations. Management uses this measure to monitor the performance of the Company's mining operations. Since market prices for gold are quoted on a per ounce basis, using this per ounce measure allows management to assess the 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 the limitation inherent with this measure by using it in conjunction with the minesite costs per tonne measure (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)
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. As illustrated in the table above, this measure is calculated by adjusting Production Costs as shown in the Consolidated Statements of Income and Comprehensive Income for inventory and hedging adjustments and asset retirement provisions and then dividing by tonnes processed through the mill. Since total cash costs data can be affected by fluctuations in byproduct metal prices and exchange rates, management believes this measure provides additional information regarding the performance of mining operations and allows management to monitor operating costs on a more consistent basis as the per tonne measure eliminates the cost variability associated with 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 is impacted by fluctuations in production levels and thus uses this evaluation tool in conjunction with production costs prepared in accordance with US GAAP. This measure supplements production cost information prepared in accordance with US GAAP and allows investors to distinguish between changes in production costs resulting from changes in production versus changes in operating performance.
        The Company is targeting gold production of approximately 250,000 ounces in 2006 with total cash costs expected to be below nil, as the Company continues to benefit from higher byproduct production and metal prices.
Liquidity and Capital Resources
        At June 30, 2006, Agnico-Eagle's cash and cash equivalents balance was $363.5 million, restricted cash was $19.7 million, short-term investments were $32.3 million, while working capital was $502.0 million. At December 31, 2005, the Company had $61.2 million in cash and cash equivalents, nil restricted cash, $59.8 million in short-term investments and $189.8 million in working capital. The Company's policy is to invest excess cash in highly liquid investments of the highest credit quality to eliminate any risks associated with these investments. Such investments with remaining maturities at time of purchase greater than three months are classified as short-term investments and decisions regarding the length of maturities are based on cash flow
3

requirements, rates of returns and other various factors. As at June 30, 2006, the majority of highly liquid investments had remaining maturities of three months or less and therefore contributed to the increase in cash and cash equivalents. The total of cash and cash equivalents, restricted cash and short-term investments was $415.5 million at June 30, 2006 and $121.0 million at December 31, 2005.
        Cash provided by operating activities was $48.1 million in the second quarter of 2006 compared to $19.1 million in the second quarter of 2005. For the first six months of 2006, cash flow provided by operating activities was $67.8 million compared to $47.2 million for the same period of 2005. Cash provided by operating activities for the second quarter of 2006 was positively impacted by higher gold and byproduct metal prices.
        Between January 1, 2006 and February 15, 2006, Convertible Debenture holders representing $131.8 million aggregate principal amount converted their debentures into 9,413,189 common shares. On February 15, 2006, the Company redeemed the remaining $1.1 million aggregate principal amount, at par plus accrued interest, by exercising its redemption option and delivering 70,520 freely tradeable common shares.
        The Company currently has $150 million in undrawn credit lines. Although there are currently no amounts drawn on the $150 million credit facility, the amount available under the facility is reduced by outstanding letters of credit to approximately $139 million. The facility limits, among other things, the Company's ability to incur additional indebtedness, pay dividends, make investments or loans, transfer assets or make expenditures that are not consistent with mine plans and operating budgets delivered pursuant to the facility. The facility also requires the Company to maintain specified financial ratios and meet financial condition covenants. Letters of credit issued as security for pension and environmental obligations decrease the amount available under the facility.
        In addition, on January 19, 2006, a subsidiary of Agnico-Eagle entered into an unsecured, guaranteed bank overdraft facility (the "Overdraft Facility") of EUR 6.6 million. The Overdraft Facility is unconditionally guaranteed by the subsidiary and guaranteed to a limit of EUR 4.2 million by Agnico-Eagle. A standby fee at an annual rate of 0.70% on the Overdraft Facility amount of EUR 6.6 million is due and payable quarterly in advance. In addition, interest at an annual rate of 1.67% above EURIBOR one month is due and payable monthly in arrears on amounts outstanding under the Overdraft Facility. The subsidiary has also agreed not to enter into any other financing arrangements or issue any guarantees without the prior written consent of the lender. At June 30, 2006, US$7.2 million had been drawn. The Overdraft Facility matured on June 30, 2006 and was paid in full the following month.
        For the three months ended June 30, 2006, capital expenditures were $33.5 million compared to $14.0 million in the three months ended June 30, 2005. While sustaining capital expenditures at the LaRonde mine decreased to $3.9 million from $7.3 million in the second quarter of 2005, there were significant increases in capital expenditures on other regional projects, namely Lapa, Goldex, Bousquet and LaRonde II. Capital expenditures for these projects increased by $18.7 million to $21.9 million compared to the second quarter of 2005, primarily driven by the continued costs associated with mine construction at Lapa and Goldex. Further expenditures within the Abitibi region of Quebec of approximately $4.1 million are mainly attributable to the ramp development and the level 215 exploration drift at LaRonde, and for the implementation of a new management information system. In addition, as of June 1, 2006, expenditures relating to the Kittila mine in Finland ceased to be expensed. For the remainder of the second quarter of 2006, expenditures of $2.6 million were capitalized. For the full year, forecasted capital expenditures are now estimated to be $163 million.
        In addition to the private placement from treasury of 1,226,000 flow-through shares for total proceeds of $35 million that was closed in the first quarter of 2006, in the second quarter of 2006 the Company closed a $250 million public offering of 8,455,000 common shares. The proceeds of the offering, will be used to fund the completion of construction of the Lapa mine project, construction of the Kittila mine project, the exploration and development of Agnico-Eagle's other projects and for general corporate purposes, including possible acquisitions. In addition, the Company also expects to supplement the above expenditures with internally generated funds and other currently available cash and short-term investments. The Company's ability to continue generating cash flow is dependent on continued strength in gold and byproduct metal prices and continued cost savings generated from economies of scale at LaRonde as the mill processes more tonnes of ore.
        On March 29, 2006, Agnico-Eagle completed its acquisition of 100% of the Pinos Altos Project from Industrias Peñoles S.A. de C.V. ("Peñoles"). Under the exploration and option agreement, Agnico-Eagle paid $32.5 million in cash and issued 2,063,653 common shares of Agnico-Eagle to Peñoles. In addition, the Company incurred approximately $0.2 million in transaction costs associated with the acquisition.
4

 
 AGNICO-EAGLE MINES LIMITED

SUMMARIZED QUARTERLY DATA

(thousands of United States dollars, except where noted, US GAAP basis)
(Unaudited)

 	 	Three months ended June 30,
	 	Six months ended June 30,
	 	
 	 	2006
	 	2005
	 	2006
	 	2005
	 	
Income and cash flows	 	 	 	 	 	 	 	 	 	 	 	 	 	

LaRonde Division	

 	

 	

 	

 	
 	
Revenues from mining operations	 	$	126,872	 	$	49,572	 	$	217,453	 	$	111,338	 	
Production costs	 	 	35,567	 	 	30,268	 	 	68,754	 	 	61,241	 	
 	 		 		 		 		 	
Gross profit (exclusive of amortization shown below)	 	$	91,305	 	$	19,304	 	$	148,699	 	$	50,097	 	
Amortization	 	 	6,108	 	 	5,983	 	 	12,105	 	 	13,194	 	
 	 		 		 		 		 	
Gross profit	 	$	85,197	 	$	13,321	 	$	136,594	 	$	36,903	 	
 	 		 		 		 		 	
Net income for the period	 	$	37,092	 	$	12,794	 	$	74,282	 	$	23,242	 	
Net income per share (basic)	 	$	0.32	 	$	0.15	 	$	0.67	 	$	0.27	 	
Net income per share (diluted)	 	$	0.31	 	$	0.15	 	$	0.65	 	$	0.27	 	
Cash flow provided by operating activities	 	$	48,095	 	$	19,103	 	$	67,806	 	$	47,208	 	
Cash flow provided by (used in) investing activities	 	$	(5,578	)	$	(29,586	)	$	(56,547	)	$	7,562	 	
Cash flow provided by (used in) financing activities	 	$	246,449	 	$	920	 	$	291,905	 	$	(175	)	
Weighted average number of common shares outstanding — basic (in thousands)	 	 	114,434	 	 	86,220	 	 	110,281	 	 	86,176	 	
Tonnes of ore milled	 	 	656,902	 	 	681,848	 	 	1,318,430	 	 	1,330,594	 	
Head grades:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gold (grams per tonne)	 	 	2.89	 	 	3.13	 	 	3.10	 	 	3.03	 	
 	Silver (grams per tonne)	 	 	78.20	 	 	75.90	 	 	77.60	 	 	74.50	 	
 	Zinc	 	 	4.27%	 	 	4.11%	 	 	4.03%	 	 	4.12%	 	
 	Copper	 	 	0.33%	 	 	0.36%	 	 	0.37%	 	 	0.38%	 	
Recovery rates:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gold	 	 	91.35%	 	 	89.98%	 	 	91.65%	 	 	90.25%	 	
 	Silver	 	 	87.70%	 	 	85.10%	 	 	87.10%	 	 	84.40%	 	
 	Zinc	 	 	87.20%	 	 	82.10%	 	 	87.00%	 	 	81.90%	 	
 	Copper	 	 	81.10%	 	 	74.50%	 	 	82.60%	 	 	75.80%	 	
Payable production:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gold (ounces)	 	 	55,966	 	 	61,771	 	 	120,201	 	 	117,081	 	
 	Silver (ounces in thousands)	 	 	1,247	 	 	1,205	 	 	2,474	 	 	2,302	 	
 	Zinc (tonnes)	 	 	20,787	 	 	20,116	 	 	39,250	 	 	38,777	 	
 	Copper (tonnes)	 	 	1,590	 	 	1,680	 	 	3,643	 	 	3,490	 	
Payable metal sold:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gold (ounces)	 	 	60,966	 	 	60,550	 	 	130,643	 	 	130,687	 	
 	Silver (ounces in thousands)	 	 	1,185	 	 	1,121	 	 	2,375	 	 	2,519	 	
 	Zinc (tonnes)	 	 	20,621	 	 	20,127	 	 	38,799	 	 	37,116	 	
 	Copper (tonnes)	 	 	1,616	 	 	1,614	 	 	3,654	 	 	4,433	 	
Realized prices (US$):	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gold (per ounce)	 	$	687	 	$	427	 	$	646	 	$	429	 	
 	Silver (per ounce)	 	$	13.06	 	$	7.16	 	$	11.94	 	$	7.01	 	
 	Zinc (per tonne)	 	$	3,786	 	$	1,279	 	$	3,249	 	$	1,301	 	
 	Copper (per tonne)	 	$	14,901	 	$	3,417	 	$	9,833	 	$	3,329	 	

Total cash costs (per ounce) (US$):	

 	

 	

 	

 	
 	
Production costs	 	$	636	 	$	490	 	$	572	 	$	523	 	
Less: Net byproduct revenues	 	 	(1,523	)	 	(379	)	 	(1,109	)	 	(416	)	
         Inventory adjustments	 	 	(86	)	 	(6	)	 	(44	)	 	(21	)	
         Accretion expense and other	 	 	(2	)	 	(2	)	 	(2	)	 	(2	)	
 	 		 		 		 		 	
Total cash costs (per ounce)	 	$	(975	)	$	103	 	$	(583	)	$	84	 	
 	 		 		 		 		 	
Minesite costs per tonne milled (C$)	 	$	61	 	$	56	 	$	60	 	$	54	 	
 	 		 		 		 		 	
5

 
 
 AGNICO-EAGLE MINES LIMITED

SUMMARIZED QUARTERLY DATA

(thousands of United States dollars, except where noted)

 	 	September 30, 2004
	 	December 31, 2004
	 	March 31, 2005
	 	June 30, 2005
	 	September 30, 2005
	 	December 31, 2005
	 	March 31, 2006
	 	June 30, 2006
	 	
Consolidated Financial Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

Income and cash flows	

 	

 	

 	

 	

 	

 	

 	

 	

LaRonde Division	

 	

 	

 	

 	

 	

 	

 	

 	
 	
Revenues from mining operations	 	$	47,986	 	$	45,795	 	$	61,766	 	$	49,572	 	$	58,608	 	$	71,392	 	$	90,581	 	$	126,872	 	
Production costs	 	 	26,172	 	 	22,175	 	 	30,973	 	 	30,268	 	 	32,548	 	 	33,576	 	 	33,187	 	 	35,567	 	
 	 		 		 		 		 		 		 		 		 	
Gross profit (exclusive of amortization shown
below)	 	$	21,814	 	$	23,620	 	$	30,793	 	$	19,304	 	$	26,060	 	$	37,816	 	$	57,394	 	$	91,305	 	
Amortization	 	 	5,861	 	 	4,461	 	 	7,211	 	 	5,983	 	 	6,276	 	 	6,592	 	 	5,997	 	 	6,108	 	
 	 		 		 		 		 		 		 		 		 	
Gross profit	 	$	15,953	 	$	19,159	 	$	23,582	 	$	13,321	 	$	19,784	 	$	31,224	 	$	51,397	 	$	85,197	 	
 	 		 		 		 		 		 		 		 		 	
Net income for the period	 	$	10,556	 	$	15,609	 	$	10,449	 	$	12,794	 	$	2,057	 	$	11,695	 	$	37,190	 	$	37,092	 	
Net income per share (basic)	 	$	0.12	 	$	0.18	 	$	0.12	 	$	0.15	 	$	0.02	 	$	0.13	 	$	0.35	 	$	0.32	 	
Net income per share (diluted)	 	$	0.12	 	$	0.18	 	$	0.12	 	$	0.15	 	$	0.02	 	$	0.13	 	$	0.34	 	$	0.31	 	
Cash provided by operating activities	 	$	16,683	 	$	11,722	 	$	28,105	 	$	19,103	 	$	11,151	 	$	24,621	 	$	19,711	 	$	48,095	 	
Cash provided by (used in) investing activities	 	$	(90,974	)	$	(28,820	)	$	37,149	 	$	(29,586	)	$	(42,467	)	$	(31,635	)	$	(50,969	)	$	(5,578	)	
Cash provided by (used in) financing activities	 	$	18,540	 	$	2,149	 	$	(1,095	)	$	920	 	$	9,431	 	$	2,433	 	$	45,456	 	$	246,449	 	
Weighted average number of common shares outstanding (Basic — in thousands)	 	 	84,791	 	 	85,989	 	 	86,131	 	 	86,220	 	 	86,638	 	 	97,127	 	 	106,127	 	 	114,434	 	
6

 
 AGNICO-EAGLE MINES LIMITED

CONSOLIDATED BALANCE SHEETS

(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	As at
June 30,
2006
	 	As at
December 31,
2005
	 	
ASSETS	 	 	 	 	 	 	 	

Current	

 	

 	
 	
 	Cash and cash equivalents	 	$	363,473	 	$	61,155	 	
 	Restricted cash	 	 	19,694	 	 	—	 	
 	Short-term investments	 	 	32,304	 	 	59,827	 	
 	Metals awaiting settlement	 	 	96,864	 	 	56,304	 	
 	Income taxes recoverable	 	 	—	 	 	7,723	 	
 	Other taxes recoverable	 	 	12,604	 	 	6,794	 	
 	Inventories:	 	 	 	 	 	 	 	
 	 	Ore stockpiles	 	 	4,400	 	 	12,831	 	
 	 	Concentrates	 	 	2,664	 	 	920	 	
 	 	Supplies	 	 	10,314	 	 	10,092	 	
 	Other current assets	 	 	10,253	 	 	27,689	 	
 	 		 		 	
Total current assets	 	 	552,570	 	 	243,335	 	
Other assets	 	 	3,411	 	 	7,995	 	
Future income and mining tax assets	 	 	35,605	 	 	63,543	 	
Property, plant and mine development	 	 	770,588	 	 	661,196	 	
 	 		 		 	
 	 	$	1,362,174	 	$	976,069	 	

LIABILITIES AND SHAREHOLDERS' EQUITY	

 	

 	

Current	

 	

 	
 	
 	Short-term debt	 	$	7,232	 	$	—	 	
 	Accounts payable and accrued liabilities	 	 	28,604	 	 	37,793	 	
 	Dividends payable	 	 	643	 	 	3,809	 	
 	Income taxes payable	 	 	2,535	 	 	—	 	
 	Interest payable	 	 	—	 	 	2,243	 	
 	Fair value of derivative financial instruments (note 7)	 	 	11,602	 	 	9,699	 	
 	 		 		 	
Total current liabilities	 	 	50,616	 	 	53,544	 	
 	 		 		 	
Long-term debt (note 4)	 	 	—	 	 	131,056	 	
 	 		 		 	
Reclamation provision and other liabilities	 	 	17,309	 	 	16,220	 	
 	 		 		 	
Future income and mining tax liabilities	 	 	129,132	 	 	120,182	 	

Shareholders' equity	

 	

 	
 	
Common shares	 	 	 	 	 	 	 	
 	Authorized — unlimited	 	 	 	 	 	 	 	
 	Issued — 120,111,883 (December 31, 2005 — 97,836,954) (note 5)	 	 	1,215,925	 	 	764,659	 	
Stock options	 	 	5,050	 	 	2,869	 	
Warrants	 	 	15,732	 	 	15,732	 	
Contributed surplus	 	 	7,181	 	 	7,181	 	
Deficit	 	 	(70,252	)	 	(138,697	)	
Accumulated other comprehensive income (loss)	 	 	(8,519	)	 	3,323	 	
 	 		 		 	
Total shareholders' equity	 	 	1,165,117	 	 	655,067	 	
 	 		 		 	
 	 	$	1,362,174	 	$	976,069	 	
 	 		 		 	
See accompanying notes
7

 
 
 AGNICO-EAGLE MINES LIMITED

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(thousands of United States dollars except share and per share amounts, US GAAP basis)
(Unaudited)

 	 	Three months ended June 30,
	 	Six months ended June 30,
	 	
 	 	2006
	 	2005
	 	2006
	 	2005
	 	
REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues from mining operations	 	$	126,872	 	$	49,572	 	$	217,453	 	$	111,338	 	
Interest and sundry income	 	 	3,125	 	 	299	 	 	4,605	 	 	947	 	
Gain on sale of available-for-sale securities (note 8)	 	 	339	 	 	—	 	 	21,913	 	 	—	 	
 	 		 		 		 		 	
 	 	 	130,336	 	 	49,871	 	 	243,971	 	 	112,285	 	

COSTS AND EXPENSES	

 	

 	

 	

 	
 	
Production	 	 	35,567	 	 	30,268	 	 	68,754	 	 	61,241	 	
Loss (gain) on derivative financial instruments	 	 	4,614	 	 	(4,193	)	 	12,045	 	 	(754	)	
Exploration and corporate development	 	 	6,818	 	 	3,364	 	 	12,335	 	 	6,127	 	
Equity loss in junior exploration companies	 	 	233	 	 	838	 	 	317	 	 	1,973	 	
Amortization	 	 	6,108	 	 	5,983	 	 	12,105	 	 	13,194	 	
General and administrative	 	 	5,275	 	 	2,412	 	 	10,819	 	 	6,161	 	
Provincial capital tax	 	 	344	 	 	311	 	 	897	 	 	910	 	
Interest	 	 	217	 	 	2,102	 	 	1,574	 	 	4,654	 	
Foreign currency loss (gain)	 	 	6,650	 	 	(467	)	 	8,518	 	 	(851	)	
 	 		 		 		 		 	
Income before income, mining and federal capital taxes	 	 	64,510	 	 	9,253	 	 	116,607	 	 	19,630	 	
Federal capital tax	 	 	(204	)	 	234	 	 	—	 	 	482	 	
Income and mining tax expense (recovery)	 	 	27,622	 	 	(3,775	)	 	42,325	 	 	(4,094	)	
 	 		 		 		 		 	
Net income for the period	 	$	37,092	 	$	12,794	 	$	74,282	 	$	23,242	 	
 	 		 		 		 		 	
Net income per share — basic	 	$	0.32	 	$	0.15	 	$	0.67	 	$	0.27	 	
 	 		 		 		 		 	
Net income per share — diluted	 	$	0.31	 	$	0.15	 	$	0.65	 	$	0.27	 	
 	 		 		 		 		 	
Weighted average number of shares outstanding (in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Basic	 	 	114,434	 	 	86,220	 	 	110,281	 	 	86,176	 	
 	Diluted	 	 	117,817	 	 	86,627	 	 	113,664	 	 	86,583	 	

Comprehensive income:	

 	

 	

 	

 	
 	
Net income for the period	 	$	37,092	 	$	12,794	 	$	74,282	 	$	23,242	 	

Other comprehensive income (loss):	

 	

 	

 	

 	
 	
 	Unrealized gain on hedging activities	 	 	—	 	 	(210	)	 	—	 	 	(117	)	
 	Unrealized gain (loss) on available-for-sale securities	 	 	(571	)	 	1,130	 	 	1,572	 	 	977	 	
 	Cumulative translation adjustments	 	 	—	 	 	(1,310	)	 	—	 	 	(2,006	)	
 	Adjustments for derivative instruments maturing during the period	 	 	(1,033	)	 	(15	)	 	(1,577	)	 	(34	)	
 	Adjustments for realized gains on available-for-sale securities due to dispositions during the period	 	 	(153	)	 	—	 	 	(12,180	)	 	—	 	
 	Tax effect of other comprehensive income items	 	 	428	 	 	—	 	 	343	 	 	—	 	
 	 		 		 		 		 	
Other comprehensive loss for the period	 	 	(1,329	)	 	(405	)	 	(11,842	)	 	(1,180	)	
 	 		 		 		 		 	
Total comprehensive income for the period	 	$	35,763	 	$	12,389	 	$	62,440	 	$	22,062	 	
 	 		 		 		 		 	
See accompanying notes
8

 
 AGNICO-EAGLE MINES LIMITED

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	Three months ended June 30,
	 	Six months ended June 30,
	 	
 	 	2006
	 	2005
	 	2006
	 	2005
	 	
Deficit	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	 	$	(107,344	)	$	(162,308	)	$	(138,697	)	$	(172,756	)	
Stockpile inventory adjustment, net of tax (note 3)	 	 	—	 	 	—	 	 	(5,837	)	 	—	 	
Net income for the period	 	 	37,092	 	 	12,794	 	 	74,282	 	 	23,242	 	
 	 		 		 		 		 	
Balance, end of period	 	$	(70,252	)	$	(149,514	)	$	(70,252	)	$	(149,514	)	

Accumulated other comprehensive income (loss)	

 	

 	

 	

 	
 	
Balance, beginning of period	 	$	(7,190	)	$	(1,875	)	$	3,323	 	$	(1,100	)	
Other comprehensive loss for the period	 	 	(1,329	)	 	(405	)	 	(11,842	)	 	(1,180	)	
 	 		 		 		 		 	
Balance, end of period	 	$	(8,519	)	$	(2,280	)	$	(8,519	)	$	(2,280	)	
 	 		 		 		 		 	
See accompanying notes
9

 
 
 AGNICO-EAGLE MINES LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	Three months ended June 30,
	 	Six months ended June 30,
	 	
 	 	2006
	 	2005
	 	2006
	 	2005
	 	
Operating activities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income for the period	 	$	37,092	 	$	12,794	 	$	74,282	 	$	23,242	 	
Add (deduct) items not affecting cash:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Amortization	 	 	6,108	 	 	5,983	 	 	12,105	 	 	13,194	 	
 	Future income and mining taxes	 	 	20,133	 	 	(3,913	)	 	31,835	 	 	(4,232	)	
 	Unrealized loss (gain) on derivative contracts	 	 	1,433	 	 	(4,193	)	 	8,116	 	 	(754	)	
 	Gain on sale of available-for-sale securities	 	 	(339	)	 	—	 	 	(21,913	)	 	—	 	
 	Amortization of deferred costs and other	 	 	5,970	 	 	1,187	 	 	7,824	 	 	3,869	 	
Changes in non-cash working capital balances	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Metals awaiting settlement	 	 	(31,652	)	 	6,230	 	 	(40,560	)	 	7,983	 	
 	Income taxes recoverable	 	 	6,969	 	 	5,564	 	 	10,258	 	 	8,515	 	
 	Other taxes recoverable	 	 	(46	)	 	—	 	 	3,940	 	 	—	 	
 	Inventories	 	 	(238	)	 	999	 	 	(2,389	)	 	2,702	 	
 	Other current assets	 	 	(1,355	)	 	(139	)	 	(4,260	)	 	198	 	
 	Accounts payable and accrued liabilities	 	 	4,020	 	 	(7,026	)	 	(9,189	)	 	(7,509	)	
 	Interest payable	 	 	—	 	 	1,617	 	 	(2,243	)	 	—	 	
 	 		 		 		 		 	
Cash provided by operating activities	 	 	48,095	 	 	19,103	 	 	67,806	 	 	47,208	 	

Investing activities	

 	

 	

 	

 	
 	
Additions to mining properties	 	 	(33,533	)	 	(14,020	)	 	(54,508	)	 	(29,203	)	
Acquisition of Pinos Altos property	 	 	—	 	 	—	 	 	(32,500	)	 	—	 	
Recoverable Value Added Tax on acquisition of Pinos Altos property	 	 	—	 	 	—	 	 	(9,750	)	 	—	 	
Decrease (increase) in short-term investments	 	 	18,507	 	 	(14,929	)	 	27,523	 	 	34,652	 	
Proceeds on sale of available-for-sale securities and other	 	 	363	 	 	(2,314	)	 	32,382	 	 	(3,036	)	
Decrease (increase) in restricted cash	 	 	9,085	 	 	1,677	 	 	(19,694	)	 	5,149	 	
 	 		 		 		 		 	
Cash provided by (used in) investing activities	 	 	(5,578	)	 	(29,586	)	 	(56,547	)	 	7,562	 	

Financing activities	

 	

 	

 	

 	
 	
Dividends paid	 	 	—	 	 	—	 	 	(3,166	)	 	(2,542	)	
Short-term debt	 	 	3,968	 	 	—	 	 	7,232	 	 	—	 	
Proceeds from common shares issued	 	 	254,769	 	 	920	 	 	302,456	 	 	2,367	 	
Share issue costs	 	$	(12,288	)	$	—	 	$	(14,617	)	$	—	 	
 	 		 		 		 		 	
Cash provided by (used in) financing activities	 	 	246,449	 	 	920	 	 	291,905	 	 	(175	)	
 	 		 		 		 		 	
Effect of exchange rate changes on cash and cash equivalents	 	 	(812	)	 	(5	)	 	(846	)	 	(10	)	
 	 		 		 		 		 	
Net increase (decrease) in cash and cash equivalents during the period	 	 	288,154	 	 	(9,568	)	 	302,318	 	 	54,585	 	
Cash and cash equivalents, beginning of period	 	 	75,319	 	 	97,158	 	 	61,155	 	 	33,005	 	
 	 		 		 		 		 	
Cash and cash equivalents, end of period	 	$	363,473	 	$	87,590	 	$	363,473	 	$	87,590	 	

Other operating cash flow information:	

 	

 	

 	

 	
 	
Interest paid during the period	 	$	45	 	$	161	 	$	3,319	 	$	3,985	 	
 	 		 		 		 		 	
Income, mining and capital taxes paid (recovered) during the period	 	$	484	 	$	(4,682	)	$	968	 	$	(6,741	)	
 	 		 		 		 		 	
See accompanying notes
10

 AGNICO-EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(thousands of United States dollars except per share amounts, unless otherwise indicated)
(Unaudited)
June 30, 2006
1.     BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("US GAAP") in US dollars. They do not include all of the disclosures required by generally accepted accounting principles for annual financial statements. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, which consist only of normal and recurring adjustments necessary to present fairly the financial position as at June 30, 2006 and the results of operations and cash flows for the three and six months ended June 30, 2006 and 2005.
Operating results for the six-month period ended June 30, 2006 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2006. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the fiscal 2005 annual consolidated financial statements, including the accounting policies and notes thereto, included in the Annual Report and Annual Information Form/Form 20-F for the year ended December 31, 2005.
2.     USE OF ESTIMATES
The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in the preparation of the interim consolidated financial statements are reasonable and prudent; however, actual results could differ from these estimates.
3.     ACCOUNTING POLICIES
These interim consolidated financial statements follow the same accounting policies and methods of their application as the December 31, 2005 audited consolidated annual financial statements except for the application of the Financial Accounting Standards Board's ("FASB") Emerging Issues Task Force Issue No. 04-6 ("EITF 04-6") and FAS 123 — revised 2004 ("FAS 123R"), " Share-Based Payment ".
In the mining industry, companies may be required to remove overburden and other mine waste materials to access mineral deposits. During the development of a mine (before production begins), it is generally accepted practice that such costs are capitalized as part of the depreciable cost of building, developing and constructing the mine. The capitalized costs are typically amortized over the productive life of the mine using the units-of-production method. A mining company may continue to remove overburden and waste materials, and therefore incur deferred costs, during the production phase of the mine.
In March 2005, FASB ratified EITF 04-6 which addresses the accounting for deferred costs incurred during the production phase of a mine and refers to these costs as variable production costs that should be included as a component of inventory to be recognized in costs applicable to sales in the same period as the revenue from the sale of inventory. As a result, capitalization of costs is appropriate only to the extent product inventory exists at the end of a reporting period. Agnico-Eagle Mines Limited ("Agnico-Eagle" or "the Company") adopted the provisions of EITF 04-6 on January 1, 2006. The impact of adoption was to decrease ore stockpile inventory by $8.4 million, and increase future income and mining tax assets by $2.6 million. Adoption of EITF 04-6 had no impact on the Company's cash position.
In December 2004, FASB enacted FAS 123R which replaces FAS 123 and supersedes APB Opinion No. 25 ("APB 25"), " Accounting for Stock Issued to Employees ". FAS 123R requires the measurement of all employee share-based payments to employees, including grants of employee stock options, using a fair value-based method and the recording of such expense in the consolidated statements of income and comprehensive income. The Company was required to adopt FAS 123R in the first quarter of 2006. There was no impact on the Company's consolidated financial statements based on the adoption of the new requirements under FAS 123R.
4.     LONG-TERM DEBT
During the first quarter of 2006, the Company extinguished the remainder of its Convertible Debentures. Between January 1, 2006 and February 15, 2006, holders representing $131.8 million aggregate principal amount converted their debentures into 9,413,189 common shares. On February 15, 2006, the Company redeemed the remaining $1.1 million aggregate principal amount, at par plus accrued interest, by exercising its redemption option and delivering 70,520 freely tradeable common shares.
5.     CAPITAL STOCK
For the three and six months ended June 30, 2006, the Company's warrants were dilutive. For the three and six months ended June 30, 2005, the Company's warrants were anti-dilutive and thus were excluded from the calculation of diluted net income per share.
11

The following table presents the maximum number of common shares that would be outstanding if all instruments outstanding at June 30, 2006 were exercised:

Common shares outstanding at June 30, 2006	 	120,111,883	
Employees' stock options	 	3,329,115	
Warrants	 	6,900,000	
 	 		
 	 	130,340,998	
 	 		
During the six-month period ended June 30, 2006, 962,510 (2005 — 54,600) employee stock options were exercised for cash of $14.4 million (2005 — $0.5 million) and 1,232,000 (2005 — 892,000) options were granted with a weighted average exercise price of C$24.52 (2005 — C$16.68).
During the first quarter of 2006, the Company closed two private placements from treasury for a total of 1,226,000 flow-through shares and total proceeds of $35 million. The funds were raised in three tranches during February and March 2006. Under the terms of the private placements, the Company will renounce an equivalent amount of tax deductions from its exploration program expenditures to the investors. There were no flow-through shares issued during the six months ended June 30, 2005.
In addition, during June 2006 the Company closed a public offering of 8,455,000 common shares (2005 — nil), for net proceeds of $238 million after estimated expenses of the offering of $12 million.
The following table illustrates the changes in share capital for the six months ended June 30, 2006:

 	 	Shares
	 	Amount
	
Beginning balance	 	97,836,954	 	$	764,659	
Shares issued under Employee Stock Option Plan	 	962,510	 	 	15,733	
Shares issued under Incentive Share Purchase Plan	 	79,054	 	 	2,348	
Shares issued on redemption of Convertible Debentures (note 4)	 	9,483,709	 	 	130,367	
Shares issued under public offering	 	8,455,000	 	 	238,241	
Shares issued under flow-through share private placement	 	1,226,000	 	 	30,245	
Shares issued under Dividend Reinvestment Plan	 	5,003	 	 	22	
Shares issued for acquisition (note 9)	 	2,063,653	 	 	34,310	
 	 		 		
 	 	120,111,883	 	$	1,215,925	
 	 		 		
6.     STOCK-BASED COMPENSATION
The following summary sets out the activity with respect to Agnico-Eagle's outstanding stock options:

 	 	Six months ended
June 30, 2006
	
 	 	# of Options
	 	Weighted average exercise price
	
Outstanding, beginning of period	 	3,071,625	 	C$15.78	
Granted	 	1,232,000	 	C$24.52	
Exercised	 	(962,510	)	C$17.27	
Cancelled	 	(12,000	)	C$20.33	
 	 		 		
Outstanding, end of period	 	3,329,115	 	C$18.54	
 	 		 		
Options exercisable at end of period	 	1,815,671	 	C$16.13	
 	 		 		
12

 
7.     FINANCIAL INSTRUMENTS
As at June 30, 2006, Agnico-Eagle had the following byproduct metal contracts:

 	 	Expected Maturity
	
 	 	2006
	
Zinc	 	 	 	
 	Forwards	 	 	 	
 	 	Pounds (000s)	 	 	6,000	
 	 	Average price ($/tonne)	 	$	1,235	
At June 30, 2006, the aggregate net market value of Agnico-Eagle's metals derivative position amounted to $(11.6) million. Since the Company uses only over-the-counter instruments, the fair value of individual hedging instruments is based on readily available market values.
8.     GAIN ON SALE OF AVAILABLE-FOR-SALE SECURITIES
During the first six months of 2006, the Company liquidated a substantial portion of its portfolio of available-for-sale securities which resulted in proceeds of $32.9 million and a gain before taxes of $21.9 million.
9.     ACQUISITION
Pinos Altos Project
In March 2005, the Company entered into an agreement with Industrias Peñoles S.A. de C.V. ("Peñoles") to acquire the Pinos Altos project in Chihuahua, Mexico. The Pinos Altos project is located in the Sierra Madre gold belt, 225 kilometres west of Chihuahua City, the state capital.
Under the terms of the agreement, Agnico-Eagle had the option to purchase the Pinos Altos project for cash and share consideration. On March 15, 2006 Agnico-Eagle paid Peñoles, $32.5 million in cash and 2,063,653 common shares to close the agreement and obtain 100% ownership of the Pinos Altos project. In addition, the Company incurred $0.2 million in transaction costs associated with the property acquisition.
The allocation of the total purchase price to the fair values of assets acquired is set forth in the table below:

Total Purchase Price:	 	 	 	
Purchase price	 	$	66,809	
Transaction costs	 	 	167	
 	 		
Total purchase price to allocate	 	$	66,976	

Fair Value of Assets Acquired:	

 	
Pinos Altos mining property	 	$	66,976	
 	 		
10.   SUBSEQUENT EVENTS
Subsequent to period-end, Agnico-Eagle entered into a hard lock-up agreement with Stornoway Diamond Corporation ("Stornoway") under which the Company irrevocably agreed to tender 13.8 million Contact Diamond shares ("Contact") in conjunction with Stornoway's take over bid to acquire all of the outstanding shares of Contact and concurrent take over bid to acquire all the outstanding shares of Ashton Mining of Canada Ltd ("Ashton"). Under the terms of the agreement, each share of Contact will be exchanged for 0.36 of a Stornoway share.
In addition, Agnico-Eagle has agreed to subscribe to a private placement by Stornoway for a total value of C$22.5M and has placed this amount in escrow until the successful completion of the Ashton take-over bid.
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The completion of these two events is subject to certain conditions, including receipt of all necessary regulatory clearances and the absence of any material adverse changes. Stornoway's take-over bid for Contact is not conditional on any minimum number of Contact shares being tendered, other than the shares held by Agnico-Eagle.
11.   COMPARATIVE FIGURES
Certain items in the comparative consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2006 consolidated financial statements.
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 AGNICO-EAGLE MINES LIMITED SUMMARIZED QUARTERLY DATA (thousands of United States dollars, except where noted, US GAAP basis) (Unaudited)
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