Agnico Eagle Mines (AEM) Status Update summary

Strategic expansion and growth trajectory

• Detour Lake targets annual gold production of approximately 1 million ounces from 2030 to 2043, leveraging both open-pit and new underground mining, with ambitions to become a top five global gold mine.

• The expansion is guided by a disciplined, phased approach, including a $100 million investment over three years for exploration ramp, bulk sampling, and drilling to de-risk the underground project.

• The project leverages existing infrastructure, experienced teams, and a strong operational track record in Ontario and Quebec, with low execution risk and robust stakeholder relationships.

• The 2024 PEA outlines a low-risk, high-return expansion, with brownfield development and mill optimization to 29 Mtpa, and a focus on disciplined capital allocation.

• Recent exploration success along the western plunge and aggressive drilling programs support further resource growth and upside potential.

Operational and financial highlights

• 2023 gold production reached 677 koz at $668/oz cash cost; 2024 guidance is 690 koz at $734/oz, with average annual output expected to rise to 1,011 koz (2030–2043) and cash costs dropping to $563/oz during peak production.

• Free cash flow is projected at $650 million per year at $1,900 gold, rising to $1 billion per year at $2,300 gold, with after-tax IRR of 18% at $1,900/oz and 25% at $2,300/oz.

• Initial capital for the underground project and mill expansion is $731 million, with sustaining capital of $631 million, and a total $730 million capital program to add 300,000 ounces annually.

• Minesite costs per tonne are projected at C$24.9/t, with average total cash costs for the integrated operation at $741/oz.

• The project is most sensitive to gold price, exchange rates, capital, and operating costs.

Underground project and mine design

• The underground project features a simple, bulk mining design using transverse longhole open stoping, targeting steady-state production of 11,200 tpd at 2.46 g/t by 2033.

• The phased development strategy includes a 2km exploration ramp, bulk sampling, and high-intensity drilling to validate grade continuity.

• Underground mineral resources total 1.2 Moz indicated and 7.1 Moz inferred (COG 1.22 g/t), with ~4.6 Moz included in the PEA mine plan.

• The underground project is expected to provide earlier access to high-grade mineralization, displacing lower-grade open pit output and extending mine life to 2054.

• Underground mining avoids significant open-pit waste stripping, saving an estimated $1.3–$1.6 billion and reducing environmental impact.