UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month April, 2012

Commission File Number
 
AGNICO-EAGLE MINES LIMITED
(Translation of registrant’s name into English)
 
145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7
(Address of principal executive office)
 
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  x   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): o
 
Note: Regulation S-T Rule 101 (b)( 1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
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): o
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
 
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  x
 
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	
99.1	 	Press Release dated April 26, 2012 announcing the Corporation’s First Quarter 2012 operating and financial results.	
 
SIGNATURES
 
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	
 	(Registrant)	

Date: April 27, 2012	By:	/s/ R. Gregory Laing	
 	 	R. Gregory Laing	
 	 	General Counsel, Sr. Vice President, Legal	
 	 	and Corporate Secretary	
 
2 

Exhibit 99.1

 

Stock Symbol:	AEM (NYSE and TSX)	For further information:	
 	 	Investor Relations	
 	 	(416) 947-1212	
 
(All amounts expressed in U.S. dollars unless otherwise noted)
 
AGNICO-EAGLE REPORTS SOLID FIRST QUARTER 2012
OPERATING AND FINANCIAL RESULTS
 
Toronto (April 26, 2012) — Agnico-Eagle Mines Limited (NYSE:AEM)(TSX:AEM)   (“Agnico-Eagle” or the “Company”) today reported quarterly net income of $78.5 million, or $0.46 per share for the first quarter of 2012.  This result includes a non-recurring tax benefit of $9.2 million, or $0.05 per share, non-cash foreign currency translation loss of $15.5 million, or $0.09 per share and stock option expense of $11.8 million, or $0.07 per share, and other non-recurring expense of $4.8 million or $0.03 per share.  Excluding these items would result in adjusted net income of $101.4 million, or $0.59 per share.  In the first quarter of 2011, the Company reported net income of $45.3 million, or $0.27 per share.
 
Cash flow generation was strong as first quarter 2012 cash provided by operating activities was $196.5 million ($181.3 million before changes in non-cash components of working capital), up from cash provided by operating activities of $174.8 million in the first quarter of 2011 ($150.7 million before changes in non-cash components of working capital).
 
The higher net income and cash provided by operating activities in 2012 was primarily due to a 20% higher realized gold price, partly offset by lower byproduct metal prices when compared to the first quarter of 2011.
 
“A strong first quarter from our five mines has set the Company up for a solid operating year.  In fact, Agnico-Eagle produced more gold in the first quarter of 2012 than in the first quarter of 2011, which included production from the now suspended Goldex mine.  While a scheduled 40-day maintenance shutdown of Kittila’s mill, beginning in May, will result in lower second quarter gold production than the first quarter, all of our operations are performing to expectations”, said Sean Boyd, President and Chief Executive Officer.  “With an exploration update scheduled to be released in the second quarter, we look forward to further demonstrating the world-class nature of several of our assets”, added Mr. Boyd.
 
First quarter highlights include:
 
·                   Record Quarterly Recovery and Gold Output at Kittila — record quarterly recovery of 89% and gold production of 46,758 ounces
·                   Record Gold Output at Pinos Altos — record quarterly gold production of 57,016 ounces at total cash costs of $278 per ounce(1).

(1)  Total cash costs per ounce is a non-GAAP measure.  For a reconciliation to production costs, see footnote (ii) to the “Reconciliation of Production Costs to Total Cash Costs per Ounce and Minesite costs per tonne” contained herein.  See also “Note Regarding Certain Measures of Performance”.

 
·                   Strong Cash Generation — quarterly cash provided by operating activities of $196.5 million, or $1.15 per share
 
Payable gold production(2) in the first quarter of 2012 was 254,955 ounces compared to 252,362 ounces in the first quarter of 2011.  Without considering past production from the Goldex mine (operations suspended October 2011), the 2012 result was a quarterly record from the other five operating mines.  A description of the production and cost performance for each mine is set out further below.
 
The higher level of production in the 2012 period was due to increased production at each one of the Company’s five operations, year over year, as the mines mature and operating efficiencies continue to be achieved.
 
Total cash costs for the first quarter of 2012 were $594 per ounce.  This compares with $531 per ounce in the first quarter of 2011.  The higher cost in 2012 was largely attributable to lower byproduct revenue at LaRonde, higher costs at Meadowbank and the absence of production from the relatively lower cost Goldex mine.  These factors more than offset the positive impact of higher gold production.
 
Agnico-Eagle is reiterating its production and cost guidance for 2012, which remains unchanged at 875,000 to 950,000 ounces of gold at total cash costs per ounce of $690 to $750.
 
First Quarter 2012 Results Conference Call and Webcast Tomorrow
 
The Company’s senior management will host a conference call on Friday, April 27, 2012 at 8:30 AM (E.D.T.) to discuss financial results and provide an update of the Company’s exploration and development activities.
 
Via Webcast:
A live audio webcast of the meeting will be available on the Company’s website homepage at www.agnico-eagle.com.
 
Via Telephone:
For those preferring to listen by telephone, please dial 416-644-3414 or Toll-free 800-814-4859.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
 
Replay archive:
Please dial 416-640-1917 or Toll-free 877-289-8525, access code 4507261#.
The conference call replay will expire on May 27, 2012 .
 
The webcast along with presentation slides will be archived for 180 days on the website.

(2)  Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
 
2 

 
Annual and Special General Meeting (“AGM”)
 
The AGM will begin on Friday, April 27, 2012 at 11:00am (E.D.T).  The meeting will be held at The Westin Harbour Castle Hotel, Harbour Ballroom located at 1 Harbour Square, Toronto, Canada, M5J 1A6. During the meeting we will provide an overview of our first quarter operating and financial results along with an update on our growth projects.  For those unable to attend in person, the meeting will be accessible on the internet or by telephone, as set out below.
 
Via Webcast:
A live audio webcast of the meeting will be available on the Company’s website homepage at www.agnico-eagle.com.
 
Via Telephone:
For those preferring to listen by telephone, please dial 416-644-3416 or Toll-free 800-814-4860.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
 
Replay archive:
Please dial 416-640-1917 or Toll-free 877-289-8525, access code 4509200#.
 
The conference call replay will expire on May 27, 2012.
 
Cash Position Remains Strong After Debt Repayment
 
Cash and cash equivalents totaled $199.1 million at March 31, 2012, down slightly from the December 31, 2011 balance of $221.5 million, as strong operating cash flows enabled debt repayment of approximately $90 million on the Company’s bank facilities in the first quarter of 2012.
 
Capital expenditures in the first quarter of 2012 were $76.0 million, including $18.5 million at Meliadine, $17.9 million at LaRonde, $14.5 million at Kittila, $14.4 million at Meadowbank,  $4.2 million at Pinos Altos and $3.8 million at Lapa.
 
Capital expenditures are expected to total approximately $418 million in 2012, up $36 million from previous guidance.  The increase is primarily due to $10 million expected to be spent in 2012 to begin construction of a shaft at Pinos Altos, $8 million for the acceleration of ramp development and exploration drilling in the Rimpi zone at Kittila, and other new projects.
 
With its current cash balances, anticipated cash flows and available bank lines, management believes that Agnico-Eagle remains fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland, Mexico and the USA.
 
Available bank lines as of March 31, 2012 were approximately $970 million.
 
LaRonde — Increasing Gold Output and Mine Profit
 
The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988.  Current mine life is estimated to be through 2026.
 
3 

 
The LaRonde mill processed an average of 7,087 tonnes per day (“tpd”) in the first quarter of 2012, compared with an average of 6,498 tpd in the corresponding period of 2011.  The higher throughput in 2012 represents normal mill throughput.  The lower throughput in the 2011 period was largely due to the extraction of a number of small stopes in the upper levels of the mine which could not be mined as efficiently as larger mining blocks.
 
Minesite costs per tonne(3) were on budget at approximately C$90 in the first quarter of 2012.  These costs are higher than the C$86 per tonne experienced in the first quarter of 2011.  The increase is largely due to the fourth quarter 2011 transition into the deeper ore at LaRonde.  Approximately 60% of the ore milled is now coming from the deeper, relatively higher grade, mine.
 
On a per ounce basis, net of byproduct credits, LaRonde’s total cash costs per ounce were $216 in the first quarter of 2012 on production of 43,281 ounces of gold.  This compares with the first quarter of 2011 when total cash costs per ounce were minus $12 on production of 36,893 ounces of gold.  The increase in total cash costs was mainly due to lower byproduct metal prices (for example, the realized zinc price was down approximately 15%, period over period) and higher unit costs as previously mentioned.
 
Gold production in 2012 at LaRonde is expected to be approximately 157,500 ounces at total cash costs of approximately $570 per ounce.  However, the mine may continue to extract some lower grade (predominantly) zinc and silver ores which were not in the 2012 mine plan.  This could extend the mine’s life, benefit the total cash cost per ounce and generate additional cash flow.
 
Post-2012, LaRonde is expected to ramp up production over the next several years to an average life of mine production of more than 300,000 ounces of gold per year, reflecting the higher gold grades expected at depth.  As a result of the higher grades, the value of the ore expected to be processed over LaRonde’s remaining 15-year life is approximately 50% higher than the value of the ore mined in 2011 (assuming the same metals prices).
 
Kittila Mine — Record Quarterly Mill Recoveries and Gold Production
 
The 100% owned Kittila mine in northern Finland achieved commercial production in May 2009.  Current mine life is estimated to be through 2044.
 
The Kittila mill processed an average of 3,180 tpd in the first quarter of 2012.  In the first quarter of 2011, the Kittila mill processed 2,911 tpd.  Kittila is now consistently achieving its design rate of 3,000 tpd.
 
Minesite costs per tonne at Kittila were approximately €67 in the first quarter of 2012, compared to €75 in the first quarter of 2011.  The decrease in minesite costs was largely due to successful cost control measures, the higher throughput, as mentioned above, and a lower stripping ratio in the Suuri pit in the first quarter of 2012.

(3)  Minesite costs per tonne is a non-GAAP measure.  For reconciliation to production costs,  see footnote (v) to the “Reconciliation of production costs to Total Cash Costs per Ounce and Minesite Costs per Tonne” contained herein.  See also “Note Regarding Certain Measures of Performance”.
 
4 

 
First quarter 2012 gold production at Kittila was a record 46,758 ounces with a total cash cost per ounce of $565.  In the first quarter of 2011 the mine produced 40,317 ounces at total cash costs per ounce of $687.  The higher production and lower costs were largely the result of improved throughput, higher grades and lower minesite costs in the first quarter of 2012.
 
Due to a scheduled 40-day mill maintenance shutdown (expected to begin in mid-May), the second quarter performance at Kittila will not be as strong as the first quarter.  Minesite costs per tonne and total cash costs per ounce are expected to be higher as a result of the shutdown.  However, full year production and costs are expected to be consistent with prior Company guidance with estimated minesite costs of €71 per tonne, gold production of approximately 155,000 ounces at total cash costs of approximately $650 per ounce.
 
A study is underway examining the possibility of increasing the production rate at Kittila by approximately 25%.  This relatively low-cost (expected to be less than $100 million) expansion is expected to be reviewed and presented to the Board of Directors in late 2012.
 
Additionally, considering the drilling success at Kittila on the Rimpi zone, a larger expansion is possible in the future.  As previously mentioned, a program is now underway to accelerate the ramp development and exploration drilling towards the northern end of the Kittila orebody in 2012.  Incorporating this new drilling, a study on a larger expansion is expected to be delivered in approximately two years.
 
Lapa — Consistent Performer
 
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.  Current mine life is estimated to be through 2015.
 
The Lapa circuit, at the LaRonde mill, processed an average of 1,738 tpd in the first quarter of 2012.  This compares with an average of 1,581 tpd in the first quarter of 2011 as the Lapa circuit now consistently exceeds its design rate of 1,500 tpd.
 
Minesite costs per tonne were C$120 in the first quarter of 2012, compared to C$117 in the first quarter of 2011.  The slightly higher minesite cost is largely due to general cost pressure in the industry which more than offset the efficiencies realized from the higher throughput.
 
Payable production in the first quarter of 2012 was 28,499 ounces of gold at total cash costs per ounce of $664.  This compares with the first quarter of 2011, when production was 26,914 ounces of gold at total cash cost per ounce of $630.  The increase in gold production is largely due to the higher grades and throughput in the first quarter of 2012.  These factors more than offset lower than expected mill recoveries in the first quarter of 2012 as abnormally high arsenic concentrations in the ore temporarily limited gold recoveries.  The increase in cash costs is largely due to general cost pressure in the industry.
 
Payable production in 2012 is expected to be approximately 100,000 ounces of gold at total cash costs of approximately $750 per ounce.
 
5 

 
Pinos Altos — Record Gold Production at Low Costs Generates Record Quarterly Mine Profit
 
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009.    Current mine life is estimated to be through 2029.
 
The Pinos Altos mill processed an average of 4,967 tpd in the first quarter of 2012.  This compares favourably with 4,475 tonnes per day in the first quarter of 2011.
 
Approximately 782,000 tonnes were stacked on the Pinos Altos and Creston Mascota leach pads during the first quarter of 2012.  In the first quarter of 2011, approximately 630,000 tonnes were stacked on the leach pads.  The increase in tonnes stacked was mainly a result of a full quarter of operation at Creston Mascota, which achieved commercial production in March 2011.
 
Minesite costs per tonne were $26 in the first quarter of 2012, compared to $28 in the first quarter of 2011.  The lower costs in 2012 are largely a result of the higher proportion of ore from the low cost Creston Mascota heap leach operation.
 
Payable production in the first quarter of 2012 was a record 57,016 ounces of gold at total cash costs per ounce of $278, including the satellite Creston Mascota operation.  This compares with production of 48,001 ounces at a total cash cost of $312 in the first quarter of 2011.  The increase in production was largely due to the full quarter contribution from Creston Mascota and the decrease in the total cash costs per ounce was due to the higher byproduct silver production and higher credit from silver prices.
 
Payable production in 2012 at Pinos Altos is expected to be approximately 205,000 ounces of gold at total cash costs per ounce of approximately $415.  The mine is also expected to produce approximately two million ounces of byproduct silver.
 
Today, Board approval was received for a four-year, $106 million dollar underground production shaft project at Pinos Altos which is expected to be completed in 2016.  This project will allow better matching of the mill capacity with the future mining capacity at Pinos Altos when the open pit mining operation begins to wind up as planned in the next several years.  When the project is completed, the maximum capacity of the underground mine at Pinos Altos will increase to 4,500 tonnes per day from the current 3,000 tonne per day design rate.  As a result of the economies of scale, an associated reduction in total cash cost per ounce is also anticipated.
 
Agnico Eagle’s Mexican division received the “Great Place to Work” award Certification in February 2012 and has been listed as one of the 100 best companies to work for in Mexico. The Pinos Altos mine also received the “Empresa Socialmente Responsable” recognition as a socially responsible company in Mexico for the fifth consecutive year.
 
Meadowbank — Record Mill Throughput
 
The 100% owned Meadowbank mine is located in Nunavut, northern Canada.  Current mine life is estimated to be through 2017.
 
6 

 
The Meadowbank mill processed an average of 9,748 tpd in the first quarter of 2012, a quarterly record.  This compares with 6,985 tpd in the first quarter of 2011.  The higher throughput, period over period, is largely due to the July 2011 commissioning of the permanent secondary crushing unit and reduced operating time in the 2011 period due to the March kitchen fire.
 
Minesite costs per tonne were C$92 in the first quarter of 2012.  Minesite costs per tonne were C$93 in the first quarter of 2011.  These costs were essentially unchanged, however, the improved throughput in 2012 was largely offset by higher chemical consumption related to the higher mill throughput, accelerated waste stripping and ongoing cost pressures in the industry.
 
Payable production in the first quarter of 2012 was 79,401 ounces of gold at total cash costs per ounce of $1,020.  This compares with payable production in the first quarter of 2011 of 61,737 ounces of gold at total cash costs per ounce of $943.  As above, the improvement in gold production was offset by higher processing costs and overall cost pressures.
 
Payable production in 2012 is expected to be approximately 295,000 ounces of gold at total cash costs of approximately $1040 per ounce.
 
Goldex Mine — Assessment, Remediation and Exploration Program Ongoing
 
The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations were suspended in October 2011 due to geotechnical concerns.
 
Since the shutdown, the work on site has focused on monitoring, assessment and remediation.  Additionally, exploration has continued on several nearby mineralized zones on the property.  A full risk assessment program is in progress and an update on Goldex is expected mid-year 2012.
 
Meliadine — Permitting and Permanent Road Building Underway
 
In July 2010, Agnico-Eagle completed the acquisition of the Meliadine project near Rankin Inlet, Nunavut.
 
Approximately $82 million is expected to be spent on Meliadine exploration and infrastructure in 2012.  The main focus of the exploration program is conversion drilling in the main deposit which will be reflected in an updated feasibility study.  Additionally, construction is underway on a permanent all-season road linking the project with the community of Rankin Inlet, 24 kilometres away.
 
Based on the exploration success and the growth in the deposit since it was acquired, the Company is evaluating the possibility of accelerating underground ramp development at Meliadine to facilitate further exploration and the eventual development of the growing deposit.  The ramp study is expected to be completed in the third quarter of 2012.
 
The updated feasibility study is anticipated for completion and review in late 2013.
 
7 

 
Dividend Record and Payment Dates for the Second Quarter of 2012

Record Date	 	Payment Date	
June 1	 	June 15	
 
Dividend Reinvestment Program
 
Please follow the link below for information on the Company’s dividend reinvestment program.
 
DividendReinvestmentPlan
 
About Agnico-Eagle
 
Agnico-Eagle is a long established, Canadian headquartered, gold producer with operations located in Canada, Finland and Mexico, and exploration and/or development activities in Canada, Finland, Mexico and the United States.  The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales and maintains a corporate strategy based on increasing shareholders exposure to gold, on a per share basis.  It has declared a cash dividend for 30 consecutive years.  www.agnico-eagle.com
 
8 

 
AGNICO-EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted, US GAAP basis)
(Unaudited)

 	 	Three months ended 
 March 31,	 	
 	 	2012	 	2011	 	
Operating Margin (exclusive of amortization shown below) (Note 1)	 	 	 	 	 	
LaRonde	 	$	63,266	 	$	48,983	 	
Goldex	 	—	 	40,333	 	
Lapa	 	27,677	 	19,178	 	
Kittila	 	49,049	 	27,831	 	
Pinos Altos (Note 2)	 	69,135	 	47,259	 	
Meadowbank	 	48,772	 	29,917	 	
Total Operating Margin	 	257,899	 	213,501	 	
Amortization	 	64,553	 	61,929	 	
Corporate	 	85,836	 	74,210	 	
Income before income and mining taxes	 	107,510	 	77,362	 	
Income and mining taxes	 	28,962	 	32,098	 	
Net income for the period	 	$	78,548	 	$	45,264	 	
Net income per share - basic	 	$	0.46	 	$	0.27	 	
Cash provided by operating activities	 	$	196,497	 	$	174,766	 	
Realized price per sales volume (US$):	 	 	 	 	 	
Gold (per ounce)	 	$	1,684	 	$	1,400	 	
Silver (per ounce)	 	$	34.46	 	$	36.10	 	
Zinc (per tonne)	 	$	2,125	 	$	2,509	 	
Copper (per tonne)	 	$	9,006	 	$	10,027	 	
Payable production:	 	 	 	 	 	
Gold (ounces)	 	 	 	 	 	
LaRonde	 	43,281	 	36,893	 	
Goldex	 	—	 	38,500	 	
Lapa	 	28,499	 	26,914	 	
Kittila	 	46,758	 	40,317	 	
Pinos Altos (Note 2)	 	57,016	 	48,001	 	
Meadowbank	 	79,401	 	61,737	 	
Total gold (ounces)	 	254,955	 	252,362	 	
Silver (000s ounces)	 	 	 	 	 	
LaRonde	 	690	 	680	 	
Pinos Altos (Note 2)	 	507	 	406	 	
Meadowbank	 	18	 	13	 	
Total silver (000s ounces)	 	1,215	 	1,099	 	
Zinc (tonnes)	 	12,978	 	11,941	 	
Copper (tonnes)	 	1,326	 	817	 	
Payable metal sold:	 	 	 	 	 	
Gold (ounces – LaRonde)	 	43,745	 	37,459	 	
Gold (ounces – Goldex)	 	—	 	41,895	 	
Gold (ounces – Lapa)	 	27,897	 	25,776	 	
Gold (ounces – Kittila)	 	44,227	 	40,698	 	
Gold (ounces – Pinos Altos) (Note 2)	 	52,145	 	45,484	 	
Gold (ounces – Meadowbank)	 	74,614	 	61,928	 	
Total gold (ounces)	 	242,628	 	253,240	 	
Silver (000s ounces – LaRonde)	 	718	 	679	 	
Silver (000s ounces – Pinos Altos) (Note 2)	 	493	 	409	 	
Silver (000s ounces – Meadowbank)	 	18	 	21	 	
Total silver (ounces)	 	1,229	 	1,109	 	
Zinc (tonnes)	 	13,032	 	8,302	 	
Copper (tonnes)	 	1,293	 	820	 	
 	 	 	 	 	 	
Total cash costs per ounce of gold (US$) (Note 3):	 	 	 	 	 	
LaRonde	 	$	216	 	$	(12	)	
Goldex	 	—	 	$	431	 	
Lapa	 	$	664	 	$	630	 	
Kittila	 	$	565	 	$	687	 	
Pinos Altos	 	$	278	 	$	312	 	
Meadowbank	 	$	1,020	 	$	943	 	
Weighted average total cash costs per ounce	 	$	594	 	$	531	 	
 
9 

 
Note 1
 
Operating margin is calculated as total revenues from all metals, by mine, minus total production costs, by mine.
 
Note 2
 
Creston Mascota achieved commercial production as of March 1, 2011. All payable production ounces are post commercial production as they were sold after March 1, 2011.
 
Note 3
 
Total cash costs per ounce of gold is calculated net of silver, copper, zinc and other byproduct credits. The weighted average total cash cost per ounce is based on commercial production ounces.  Total cash costs per ounce is a non-GAAP measure.  See “Reconciliation of Production Costs to Total Cash Costs per Ounce and Minesite Costs per Tonne” contained herein for details.
 
10 

 
AGNICO-EAGLE MINES LIMITED
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	As at
March 31,
2012	 	As at
December 31,
2011	 	
 	 	 	 	 	 	
ASSETS	 	 	 	 	 	
Current	 	 	 	 	 	
Cash and cash equivalents	 	$	199,075	 	$	221,458	 	
Trade receivables	 	90,892	 	75,899	 	
Inventories:	 	 	 	 	 	
Ore stockpiles	 	22,121	 	28,155	 	
Concentrates and dore bars	 	66,742	 	57,528	 	
Supplies	 	162,024	 	182,389	 	
Income taxes recoverable	 	—	 	371	 	
Available-for-sale securities	 	132,379	 	145,411	 	
Fair value of derivative financial instruments	 	2,360	 	—	 	
Other current assets	 	92,109	 	110,369	 	
Total current assets	 	767,702	 	821,580	 	
Other assets	 	94,357	 	88,048	 	
Goodwill	 	229,279	 	229,279	 	
Property, plant and mine development	 	3,907,085	 	3,895,355	 	
 	 	$	4,998,423	 	$	5,034,262	 	
 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	
Current	 	 	 	 	 	
Accounts payable and accrued liabilities	 	$	173,695	 	$	203,547	 	
Environmental remediation liability	 	39,746	 	26,069	 	
Interest payable	 	19,193	 	9,356	 	
Income taxes payable	 	19,869	 	—	 	
Capital lease obligations	 	11,409	 	11,068	 	
Fair value of derivative financial instruments	 	—	 	4,404	 	
Total current liabilities	 	263,912	 	254,444	 	
Long term debt	 	830,000	 	920,095	 	
Reclamation provision and other liabilities 	 	127,493	 	145,988	 	
Deferred income and mining tax liabilities 	 	525,170	 	498,572	 	
SHAREHOLDERS’ EQUITY	 	 	 	 	 	
Common shares	 	 	 	 	 	
Authorized - unlimited	 	 	 	 	 	
Issued - 171,194,430 (December 31, 2011 - 170,859,604)	 	3,182,923	 	3,181,381	 	
Stock options	 	129,962	 	117,694	 	
Warrants	 	24,858	 	24,858	 	
Contributed surplus	 	15,665	 	15,166	 	
Deficit	 	(84,579	)	(129,021	)	
Accumulated other comprehensive loss	 	(16,981	)	(7,106	)	
 	 	3,251,848	 	3,202,972	 	
Non-controlling interest	 	—	 	12,191	 	
Total shareholders’ equity	 	3,251,848	 	3,215,163	 	
 	 	$	4,998,423	 	$	5,034,262	 	
 
11 

 
AGNICO-EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(thousands of United States dollars except share and per share amounts, US GAAP basis)
(Unaudited)

 	 	Three months ended
March 31,	 	
 	 	2012	 	2011	 	
 	 	 	 	 	 	
REVENUES	 	 	 	 	 	
Revenues from mining operations	 	$	472,934	 	$	412,068	 	
Interest and sundry income and other	 	1,164	 	1,599	 	
Gain on sale of available-for-sale securities	 	—	 	4,394	 	
 	 	474,098	 	418,061	 	
 	 	 	 	 	 	
COSTS AND EXPENSES	 	 	 	 	 	
Production	 	215,035	 	198,567	 	
Exploration and corporate development	 	23,108	 	16,978	 	
Amortization of property, plant and mine development	 	64,553	 	61,929	 	
General and administrative	 	33,928	 	35,152	 	
Interest expense	 	14,447	 	14,008	 	
Foreign currency translation loss	 	15,517	 	14,065	 	
Income before income and mining taxes	 	107,510	 	77,362	 	
Income and mining taxes	 	28,962	 	32,098	 	
Net income for the period	 	$	78,548	 	$	45,264	 	
 	 	 	 	 	 	
Net income per share - basic	 	$	0.46	 	$	0.27	 	
Net income per share - diluted	 	$	0.46	 	$	0.26	 	
 	 	 	 	 	 	
Weighted average number of common shares outstanding (in thousands)	 	 	 	 	 	
Basic	 	170,837	 	168,853	 	
Diluted	 	171,017	 	172,863	 	
 
12 

 
AGNICO-EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars, US GAAP basis)
(Unaudited)

 	 	Three months ended
March 31,	 	
 	 	2012	 	2011	 	
 	 	 	 	 	 	
OPERATING ACTIVITIES	 	 	 	 	 	
Net income for the period	 	$	78,548	 	$	45,264	 	
Add (deduct) items not affecting cash:	 	 	 	 	 	
Amortization of property, plant and mine development	 	64,553	 	61,929	 	
Deferred income and mining taxes	 	10,320	 	8,879	 	
Environmental remediation	 	(6,232	)	—	 	
Gain on sale of available-for-sale securities and derivative financial instruments	 	(895	)	(6,428	)	
Foreign currency translation loss and other	 	34,983	 	41,026	 	
Changes in non-cash working capital balances:	 	 	 	 	 	
Trade receivables	 	(14,993	)	41,383	 	
Income taxes (payable) recoverable	 	19,869	 	(13,057	)	
Inventories	 	11,549	 	(16,595	)	
Other current assets	 	18,810	 	4,466	 	
Accounts payable and accrued liabilities	 	(29,852	)	(2,871	)	
Interest payable	 	9,837	 	10,770	 	
Cash provided by operating activities	 	196,497	 	174,766	 	
 	 	 	 	 	 	
INVESTING ACTIVITIES	 	 	 	 	 	
Additions to property, plant and mine development	 	(75,995	)	(96,849	)	
Acquisitions, investments and other	 	(11,325	)	4,199	 	
Cash used in investing activities	 	(87,320	)	(92,650	)	
 	 	 	 	 	 	
FINANCING ACTIVITIES	 	 	 	 	 	
Dividends paid	 	(30,515	)	(25,820	)	
Repayment of capital lease obligations	 	(3,112	)	(3,053	)	
Repayment of long-term debt	 	(90,000	)	(50,000	)	
Repurchase of common shares for restricted share unit plan	 	(12,031	)	(3,723	)	
Common shares issued	 	3,580	 	10,031	 	
Cash used in financing activities	 	(132,078	)	(72,565	)	
 	 	 	 	 	 	
Effect of exchange rate changes on cash and cash equivalents	 	518	 	629	 	
 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents during the period	 	(22,383	)	10,180	 	
Cash and cash equivalents, beginning of period	 	221,458	 	104,645	 	
Cash and cash equivalents, end of period	 	$	199,075	 	$	114,825	 	
 	 	 	 	 	 	
Supplemental cash flow information:	 	 	 	 	 	
Interest paid	 	$	4,093	 	$	3,229	 	
Income and mining taxes paid	 	$	4,305	 	$	35,219	 	
 
13 

 
AGNICO-EAGLE MINES LIMITED
RECONCILIATION OF PRODUCTION COSTS TO
TOTAL CASH COSTS PER OUNCE AND MINESITE COSTS PER TONNE
(Unaudited)
 
Total Cash Costs per Ounce of Gold Produced
(thousands of United States dollars, except where noted)

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
 	 	 	 	 	 	
Total Production costs per Consolidated Statements of Income	 	$	215,035	 	$	198,567	 	
 	 	 	 	 	 	
Attributable to LaRonde	 	58,180	 	47,885	 	
Attributable to Goldex	 	—	 	17,874	 	
Attributable to Lapa	 	18,657	 	16,751	 	
Attributable to Kittila	 	26,030	 	28,500	 	
Attributable to Pinos Altos	 	35,161	 	30,907	 	
Attributable to Meadowbank	 	77,007	 	56,650	 	
Total	 	$	215,035	 	$	198,567	 	
 
LaRonde

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	58,180	 	$	47,885	 	
Adjustments:	 	 	 	 	 	
Byproduct revenues	 	(47,518	)	(52,979	)	
Inventory adjustment and other adjustments(i) 	 	(715	)	5,352	 	
Non-cash reclamation provision	 	(604	)	(700	)	
Cash operating costs	 	$	9,343	 	$	(442	)	
Gold production (ounces)	 	43,281	 	36,893	 	
Total cash costs (per ounce)(ii) 	 	$	216	 	$	(12	)	
 
Goldex

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	—	 	$	17,874	 	
Adjustments:	 	 	 	 	 	
Byproduct revenues	 	—	 	87	 	
Inventory adjustment and other adjustments(i) 	 	—	 	(1,309	)	
Non-cash reclamation provision	 	—	 	(55	)	
Cash operating costs	 	—	 	$	16,597	 	
Gold production (ounces)	 	—	 	38,500	 	
Total cash costs (per ounce)(ii) 	 	—	 	$	431	 	
 
14 

 
Lapa

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	18,657	 	$	16,751	 	
Adjustments:	 	 	 	 	 	
Byproduct revenues	 	61	 	66	 	
Inventory adjustment and other adjustments(i) 	 	-17	 	158	 	
Non-cash reclamation provision	 	236	 	-15	 	
Cash operating costs	 	$	18,937	 	$	16,960	 	
Gold production (ounces)	 	28,499	 	26,914	 	
Total cash costs (per ounce)(ii) 	 	$	664	 	$	630	 	
 
Kittila

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	26,030	 	$	28,500	 	
Adjustments:	 	 	 	 	 	
Byproduct revenues	 	119	 	77	 	
Inventory adjustment and other adjustments(i) 	 	440	 	-843	 	
Non-cash reclamation provision	 	-157	 	-50	 	
Cash operating costs	 	$	26,432	 	$	27,684	 	
Gold production (ounces)	 	46,758	 	40,317	 	
Total cash costs (per ounce)(ii) 	 	$	565	 	$	687	 	
 
Pinos Altos (includes Creston Mascota)

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	35,161	 	$	30,907	 	
Adjustments:	 	 	 	 	 	
Byproduct revenues	 	-16,449	 	-15,003	 	
Inventory adjustment and other adjustments(i) 	 	1,754	 	5,697	 	
Non-cash reclamation provision	 	-433	 	-282	 	
Stripping (capitalized vs expensed)(iii) 	 	-4,180	 	-6,325	 	
Cash operating costs	 	$	15,853	 	$	14,994	 	
Gold production (ounces)	 	57,016	 	48,001	 	
Total cash costs (per ounce)(ii) 	 	$	278	 	$	312	 	
 
15 

 
Meadowbank

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	77,007	 	$	56,650	 	
Adjustments:	 	 	 	 	 	
Byproduct revenues	 	(634	)	(449	)	
Inventory adjustment and other adjustments(i) 	 	5,254	 	2,426	 	
Non-cash reclamation provision	 	(394	)	(412	)	
Stripping (capitalized vs expensed)(iii)	 	(222	)	—	 	
Cash operating costs	 	$	81,011	 	$	58,215	 	
Gold production (ounces)	 	79,401	 	61,737	 	
Total cash costs (per ounce)(ii) 	 	$	1,020	 	$	943	 	
 
16 

 
Minesite Cost per Tonne
(thousands of United States dollars, except where noted)
 
LaRonde

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	58,180	 	$	47,885	 	
Adjustments:	 	 	 	 	 	
Inventory adjustments(iv) 	 	(125	)	4,517	 	
Non-cash reclamation provision	 	(604	)	(700	)	
Minesite operating costs	 	$	57,451	 	$	51,702	 	
Minesite operating costs (C$)	 	$	57,730	 	$	50,357	 	
Tonnes of ore milled (000s)	 	645	 	585	 	
Minesite cost per tonne (C$)(v)	 	$	90	 	$	86	 	
 
Goldex

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	—	 	$	17,874	 	
Adjustments:	 	 	 	 	 	
Inventory adjustments(iv) 	 	—	 	(1,161	)	
Non-cash reclamation provision	 	—	 	(55	)	
Minesite operating costs	 	—	 	$	16,658	 	
Minesite operating costs (C$)	 	—	 	$	16,327	 	
Tonnes of ore milled (000s)	 	—	 	715	 	
Minesite cost per tonne (C$)(v)	 	—	 	$	23	 	
 
Lapa

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	18,657	 	$	16,751	 	
Adjustments:	 	 	 	 	 	
Inventory adjustments(iv) 	 	20	 	306	 	
Non-cash reclamation provision	 	236	 	(15	)	
Minesite operating costs	 	$	18,913	 	$	17,042	 	
Minesite operating costs (C$)	 	$	18,904	 	$	16,640	 	
Tonnes of ore milled (000s)	 	158	 	142	 	
Minesite cost per tonne (C$)(v)	 	$	120	 	$	117	 	
 
Kittila

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	26,030	 	$	28,500	 	
Adjustments:	 	 	 	 	 	
Inventory adjustments(iv) 	 	440	 	(843	)	
Non-cash reclamation provision	 	(157	)	(50	)	
Minesite operating costs	 	$	26,313	 	$	27,607	 	
Minesite operating costs (EUR)	 	€	19,458	 	€	19,710	 	
Tonnes of ore milled (000s)	 	289	 	262	 	
Minesite cost per tonne (EUR)(v)	 	€	67	 	€	75	 	
 
17 

 
Pinos Altos (includes Creston Mascota)

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	35,161	 	$	30,907	 	
Adjustments:	 	 	 	 	 	
Inventory adjustments(iv) 	 	1,754	 	5,064	 	
Non-cash reclamation provision	 	(433	)	(282	)	
Stripping (capitalized vs expensed)(iii)	 	(4,180	)	(6,325	)	
Minesite operating costs	 	$	32,302	 	$	29,364	 	
Tonnes of ore processed (000s)	 	1,234	 	1,033	 	
Minesite cost per tonne (US$)(v)	 	$	26	 	$	28	 	
 
Meadowbank

 	 	Three months ended	 	Three months ended	 	
 	 	March 31, 2012	 	March 31, 2011	 	
Production costs	 	$	77,007	 	$	56,650	 	
Adjustments:	 	 	 	 	 	
Inventory adjustments(iv) 	 	5,429	 	2,772	 	
Non-cash reclamation provision	 	(394	)	(412	)	
Stripping (capitalized vs expensed)(iii)	 	(222	)	—	 	
Minesite operating costs	 	$	81,820	 	$	59,010	 	
Minesite operating costs (C$)	 	$	81,730	 	$	58,242	 	
Tonnes of ore milled (000s)	 	887	 	629	 	
Minesite cost per tonne (C$)(v)	 	$	92	 	$	93	 	

(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 inventory adjustment reflects the sales margin on the portion of concentrate production for which revenue has not been recognized in the period.
 
(ii)          Total cash cost per ounce 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 tables 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.
 
(iii)       The Company has decided to report total cash costs using the more common industry practice of deferring certain stripping costs that can be attributed to future production.  The methodology is in line with the Gold Institute Production Cost Standard.  The purpose of adjusting for these stripping costs is to enhance the comparability of cash costs to the majority of the Company’s peers within the mining industry.
 
(iv)      This inventory adjustment reflects production costs associated with unsold concentrates.
 
(v)         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 tables above, this measure is calculated by adjusting production costs as shown in the Consolidated Statements of Income and Comprehensive Income for inventory, asset retirement provisions and deferred stripping costs, 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 minesite costs per tonne 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.
 
18 

 
Note Regarding Certain Measures of Performance
 
This press release presents measures including “total cash costs per ounce” and “minesite costs per tonne” that are not recognized measures under US GAAP. This data may not be comparable to data presented by other gold producers. The Company believes that these generally accepted industry measures are realistic indicators of operating performance and useful for year-over-year comparisons. However, both of these non-GAAP measures should be considered together with other data prepared in accordance with US GAAP. These measures, taken by themselves, are not necessarily indicative of operating costs or cash flow measures prepared in accordance with US GAAP. A reconciliation of the Company’s total cash costs per ounce and minesite costs per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company’s historical results of operations is set out above.
 
Forward-Looking Statements
 
The information in this news release has been prepared as at April 26, 2012. Certain statements contained in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward looking information” under the provisions of Canadian provincial securities laws and are referred to herein as “forward-looking statements”. When used in this document, words such as “anticipate”, “expect”, “estimate”, “forecast”, “planned”, “will”, “likely”, “schedule” and similar expressions are intended to identify forward-looking statements.
 
Such statements include without limitation: the Company’s forward-looking production guidance, including estimated ore grades, project timelines, drilling results, orebody configurations, metal production, life of mine estimates, production estimates, total cash costs per ounce estimates, cash flows, the estimated timing of scoping and other studies, the methods by which ore will be extracted or processed, expansion projects, recovery rates, mill throughput, and projected exploration and capital expenditures, including costs and other estimates upon which such projections are based; the Company’s ability to fund its current pipeline of projects; the impact of maintenance shutdowns at Kittila; the Company’s goal to build a mine at Meliadine; the Company’s ability to produce at Goldex; and other statements and information regarding anticipated trends with respect to the Company’s operations, exploration and the funding thereof. Such statements reflect the Company’s views as at the date of this news release and are subject to certain risks, uncertainties and assumptions. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico-Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions of Agnico-Eagle contained in this news release, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management’s discussion and analysis and the Company’s Annual Report on Form 20-F for the year ended December 31, 2010 (“Form 20-F”) as well as: that there are no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment, natural occurrences, equipment failures, accidents, political changes, title issues or otherwise; that permitting, production and expansion at each of Agnico-Eagle’s mines and growth projects proceeds on a basis consistent with current expectations, and that Agnico-Eagle does not change its
 
19 

 
plans relating to such projects; that the exchange rate between the Canadian dollar, European Union euro, Mexican peso and the United States dollar will be approximately consistent with current levels or as set out in this news release; that prices for gold, silver, zinc, copper and lead will be consistent with Agnico-Eagle’s expectations; that prices for key mining and construction supplies, including labour costs, remain consistent with Agnico-Eagle’s current expectations; that Agnico-Eagle’s current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Company’s current plans to optimize production are successful; and that there are no material variations in the current tax and regulatory environment.  Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and metal recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors, see the Form 20-F, as well as the Company’s other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission (the “SEC”). The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Certain of the foregoing statements, primarily related to projects, are based on preliminary views of the Company with respect to, among other things, grade, tonnage, processing, recoveries, mining methods, capital costs, total cash costs, minesite costs, and location of surface infrastructure.  Actual results and final decisions may be materially different from those currently anticipated.
 
20