"Our high-quality assets, Detour Lake and Macassa, and organic pipeline projects establish Ontario as a core operating region for Agnico Eagle's future growth."

Andre Leite

VICE PRESIDENT – ONTARIO OPERATIONS, AGNICO EAGLE

February 03, 2025

Can you update us on the performance of the Detour Lake and Macassa mines?

The Detour Lake and Macassa mines continue to perform well and contribute to driving Agnico Eagle's position as a global leader in gold production. At Detour Lake, an updated NI 43-101 report was completed in July 2024, which included an underground project. The report showed a pathway to increase annual gold production to 1 million oz/y by 2030, which could bring Detour Lake among the top three gold mines globally. We plan to commence an exploration ramp to gain a deeper understanding of the ore body at depth. 

At Macassa, we are focused on optimizing our existing mill. This approach allows us to enhance the mine’s performance and potentially increase production with limited investments. This year, we have implemented relatively minor adjustments and investments that have already improved milling rates. By enhancing the efficiency of our current operations, we expect gold production to reach around 300,000 oz/y in 2025.

How has Agnico Eagle managed to control costs amid recent inflationary pressures?

Agnico Eagle has established a culture of continuous improvement and cost optimization, exemplified by our successful increase in production at Detour Lake, aiding in cost control through higher volumes. An important aspect of our strategy involves internalizing our workforce to reduce reliance on contractors, which has enhanced operational efficiency.

Can you outline Agnico Eagle's partnership with the government on the Skills Development Fund?

Our partnership with the provincial government on the Skills Development Fund marks a significant advancement in our efforts to reduce reliance on contractors and strengthen our internal workforce. This proactive approach, arising from productive discussions with government officials, including Minister Pirie, showcases our commitment to workforce sustainability and fostering community growth. We aim to address the demographic shifts in northern Ontario by investing in training local youth. We see a clear business case for training programs that emphasize on-the-job learning, which will help us build a capable workforce tailored to meet the operational needs of our projects.

While training and skills development requires time and consistent effort, it is vital for the future success of our projects, which are projected to generate approximately 1,400 direct, well-paying jobs. 

Are there plans for acquisitions in the near future?

Agnico Eagle has a strong track record in making strategic investments in projects with high geological potential. Our corporate development, project evaluation and exploration teams help us identify, assess and monitor market opportunities. We approach acquisitions with discipline, ensuring that any potential investments are balanced and aligned with our overall strategy. Although the current gold price environment presents an opportunity to consider expanding our portfolio, we remain committed to making prudent investment decisions. We prioritize our portfolio of high-quality internal projects and complement these with strategic toehold positions in prospective opportunities. Our focus is on projects that provide strong risk-adjusted returns.

Can you provide an update on Agnico Eagle's ESG goals and emission reduction targets for 2030?

Agnico Eagle is recognized as a leader in sustainability within the gold industry, with one of the lowest GHG emissions intensity. Our operations in Québec and Ontario benefit from access to clean energy. We have targets to reduce our absolute scope 1 and 2 carbon emissions by 30% by 2030 and to be net-zero by 2050. We have a comprehensive vision and actionable plans to achieve our emissions reduction targets. While we have made substantial progress, we acknowledge that much work remains ahead and we are actively preparing to adapt our strategies to meet these targets.

What is Agnico Eagle's strategy in Ontario going forward?

We want to reassure our shareholders of our commitment to disciplined capital allocation, emphasizing cost control and optimization, which are essential for the sustainability of our business in the long term. As part of our strategy, we are advancing two significant projects in Ontario, including a US$300 million investment over the next three years for the exploration ramp at Detour Lake and the exploration ramp and shaft at Upper Beaver. These two projects have the potential to grow our gold production in Ontario by approximately 50% by 2030 when compared to today's production level. Our high-quality assets, Detour Lake and Macassa, and organic pipeline projects establish Ontario as a core operating region for Agnico Eagle's future growth.

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