Agnico Eagle Mines (AEM) Bank of America Global Metals, Mining and Steel Conference 2025 summary

Company strategy and competitive advantages

• Focuses on regional consolidation in politically stable regions with geologic potential, primarily in Canada, to create a competitive advantage and operate efficiently over decades.

• 85% of production and value come from Northern Ontario, Northern Quebec, and Nunavut, supported by a loyal workforce and strong supplier relationships.

• Benefits from economies of scale, technical synergies, and low employee turnover, resulting in cost advantages and operational efficiency.

• Maintains a collaborative, low-politics culture with a strong technical focus and early-stage investments in over 60 companies to gain knowledge advantages.

• Strategy includes being metal-agnostic for select projects where operational expertise provides a competitive edge, though gold remains the primary focus.

Financial performance and capital allocation

• Production increased from 240,000 oz in 2005 to nearly 3.5 million oz in 2023, with production per share tripling and EBITDA per share up tenfold over 20 years.

• Dividend has increased 50-fold in two decades, with over CAN 3 billion returned to shareholders and a 40-year dividend track record.

• Maintains stable quarterly production and costs, with Q1 2024 production at 874,000 oz and all-in sustaining costs below guidance.

• Cost increases have been kept below inflation, supporting margin expansion; expects to generate over CAN 3 billion in free cash flow in 2024.

• 42% of free cash flow returned to shareholders in the last 15 months; balance sheet strengthened from CAN 1.5 billion net debt to near net cash, with a record exploration and capital budget for 2024.

Growth projects and production outlook

• Five key value drivers: Detour Lake, Canadian Malartic, Upper Beaver, Hope Bay, and San Nicholas, expected to drive production growth into the 2030s.

• Detour Lake aims to expand to 1 million oz/year by 2030, sustaining that for at least 14 years, generating significant free cash flow.

• Canadian Malartic transitioning to underground mining, targeting up to 1 million oz/year by early 2030s through higher grades and mill optimization.

• Upper Beaver and Hope Bay projects could add significant new production, with construction decisions expected in 2027 and 2025, respectively.

• San Nicholas joint venture in Mexico could add 200,000 oz gold equivalent annually, with a construction decision possible by early 2025.