Agnico Eagle Mines (AEM) Status Update summary

Strategic vision and expansion plan

• Detour Lake targets annual gold production of approximately 1 million ounces from 2030 to 2043, leveraging both open-pit and new underground mining operations, with a multi-decade output strategy.

• The expansion is guided by a disciplined capital approach, with a $100 million investment over three years for exploration ramp, bulk sampling, and drilling, as part of a total $730–$731 million capital program.

• The project leverages existing infrastructure, experienced teams, and strong stakeholder relationships in Ontario, minimizing operational and construction risk.

• The plan aligns with a strategy of building competitive advantage in regions with long-term geologic potential and is supported by robust exploration success along the western plunge.

• Detour Lake is positioned to become a top five global gold mine, with a phased, low-risk, high-return expansion and mill optimization to 29 Mtpa.

Operational and financial highlights

• Average annual gold output is expected to rise to 1,011,000 ounces (2030–2043), with cash costs projected at $543–$563/oz during peak production and free cash flow of $650–$647 million per year at $1,900 gold.

• The 2024 PEA projects an NPV of $886–$900 million and IRR of 18% at $1,900/oz gold, rising to 25% at higher prices, with a two-year payback period.

• Development capital for the underground project and mill expansion is forecast at $730–$731 million, with sustaining capital of $631 million.

• Cash costs are projected to rise only 2% despite 15–18% inflation over three years, reflecting strong cost control.

• Minesite costs per tonne are projected at C$24.9/t, with operational improvements including mill optimization and advanced process control.

Underground project and mine design

• The underground project features a simple, bulk mining design with minimal new surface infrastructure, 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.

• The underground mine will target high-grade ore earlier, improving head grade and cash flow, and reducing the environmental footprint compared to open-pit expansion.

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

• The mining method will use transverse longhole open stoping, ramping up to full capacity by 2033.