Agnico Eagle Provides Further Update ON Quebec and Nunavut Operations
AGNICO EAGLE PROVIDES FURTHER UPDATE ON QUEBEC AND NUNAVUT
OPERATIONS
Toronto (March 24, 2020) – Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM) ("Agnico
Eagle" or the "Company") is providing a further update on its Quebec and Nunavut operations.
Today the Company held discussions with representatives from the Government of Quebec to
get additional clarity in regard to the order by the Government of Quebec to close all non-essential
businesses in response to the COVID -19 outbreak issued on the afternoon of March 23, 2020
(the "Order"). Pursuant to the Order, mining operations were directed to minimize their activities
until April 13, 2020.
Based on today's discussions, and in response to the Quebec decision, the Company will take
steps to ramp down its operations in the Abitibi region of Quebec (the LaRonde Complex, the
Goldex mine and the Canadian Malartic mine (50%)) in an orderly fashion while ensuring t he
safety of employees and the sustainability of the infrastructure. Each of these operations are to
be placed on care and maintenance until April 13, 2020, and as instructed, minimal work will take
place during that time . In addition, the Company will r educe activities at the Meliadine and
Meadowbank mining operations in Nunavut, which are currently serviced out of Mirabel and Val
d'Or, Quebec. Exploration activities in Canada will also be suspended during this period.
"The health, safety and well-being of all our employees and the communities that we operate in
continue to remain our priority. As directed by the Quebec government, our Quebec mines will
be placed on care and maintenance. At the same time, our Nunavut m ines will be operating at
reduced levels ", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "Even with the
reduction in mining activities, we plan to maintain a state of operational readiness in order to
resume normal operations in a timely and safe manner once the restrictions are lifted."
COVID-19 Initiatives
At the present time there are no confirmed cases of COVID -19 at the Company's Abitibi or
Nunavut operations or at any of the Company's global operations. The Company is working to
ensure the continued health of its employees and residents in the communities in which it
operates.
Agnico Eagle 's senior management team has been working across all of the Company's
operations to ensure correct protocols and safety precautions are in place. The Company is
basing its guidelines on, and is following, advice of the public health authorities and governments
with respect to the COVID-19 virus in the different jurisdictions in which we operate. In addition,
all of the Company's operations have implemented site-specific action plans that enable them to
better meet and respond to changing situations in their regions.
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Operations Update
In the Abitibi region, as a result of the Order, minimal staffing levels will be put in place to maintain
surface and underground infrastructure and to comply with envi ronmental requirements. The
Company expects that these activities should allow for the timely and safe re- start of normal
operations once the Order is lifted . Employees from the Quebec operations will continue to
receive their base remuneration through April 13, 2020 . The Company will continue to
communicate with the Government of Quebec to ensure compliance with its order and will
continue to discuss procedures to potentially increase activities at the Company's operations
while having regard to the health and safety of our employees and communities.
In Nunavut, the Company will be reducing activities at the Meliadine and Meadowbank operations.
At Meliadine, the Company is evaluating scenarios to continue limited underground activity and
milling operations. Existing ore stockpiles at Meliadine are sufficient to support milling activity for
approximately 40 days. At Meadowbank, the focus will be on continued ramp-up of maintenance
activities and water management as needed for the upcoming freshet (spring melt) . These
activities at both Nunavut mines, are expected to position the Company to achieve a timely and
safe ramp up of normal operations once all restrictions are lifted. Affected employees will continue
to receive their base remuneration through April 13, 2020.
At this time, Agnico Eagle's Mexican and Finnish mines continue to operate at normal levels. The
COVID-19 pandemic is a rapidly evolving situation and the Company will continue to assess its
mining operations in each of its regions on an ongoing basis.
2020 Guidance and Financial Liquidity
With the reduced production activity at the Quebec and Nunavut operations, together with the
uncertainties with respect to future developments, including the duration, severity and scope of
the COVID-19 outbreak and the measures taken to contain the outbreak, Agnico Eagle is
withdrawing its full year 2020 production and cash costs guidance. Payable gold production in
the first quarter of 2020 is expected to be approximatel y 400,000 ounces (after factoring in the
expected reduced production volumes in the Abitibi and Nunavut operations resulting from the
measures discussed above). However, gold sales could potentially be impacted by challenges
with transport and refining.
As a cautionary measure given the current uncertainty with respect to the COVID -19 pandemic,
in March, 2020, the Company drew down US$1.0 billion on its US$1.2 billion unsecured revolving
bank credit facility. The Company has no current plans to use the funds, though a portion may
be used to repay a portion of the US$360 million 6.67% Series B Notes due April 2020. The
Company will also be reviewing its 2020 sustaining and growth capital budget with a focus on
reducing expenditures.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since
1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and
development activities in each of these countries as well as in the United States and Sweden.
Agnico Eagle and its shareholders have full exposure to gold prices due to its long-standing policy
of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
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Forward-Looking Statements
The information in this news release has been prepared as at March 24, 2020. Certain statements
in this news release, referred to herein as "forward- looking statements", 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. When used in this news release, the words "expect", "may", "plan", "will" and
similar expressions are intended to identify forward-looking statements.
Such statements include, without limitation: statements regarding the Company's plans to
suspend all mining activities at its operations in the Abi tibi region of Quebec and the expected
duration of such suspension; statements regarding the Company's plans to reduce activities at
the Meliadine mine and the Meadowbank Complex and the operations that are expected to be
carried out during, and the duration of, the period of such reduced activities; statements regarding
the Company's plans to suspend exploration activities in Canada; statements regarding the
timeline for resuming normal operating levels at each of the Company's operations; statements
regarding anticipated first quarter 2020 gold production and sales ; statements regarding the
sufficiency of the Company's cash resources ; statements regarding the Company's plans with
respect to the use of the US$1.0 billion drawn on its US$1.2 billion unsecured revolving bank
credit facility ; and other statements regarding the impact of the COVID -19 pandemic and
measures taken to reduce the spread of COVID -19, on the Company's operations and overall
business.
Such statements reflect the Company's views as at the date of this news release and are subject
to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such
statements. 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 material factors and assumptions used in the preparation of the forward
looking statements contained herein, which may prove to be incorrect, include, but are not limited
to, the assumptions set forth herein and in management's discussion and analysis ("MD&A") and
the Company's Annual Information Form ("AIF") for the year ended December 31, 2018 filed with
Canadian securities regulators and that are included in its Annual Report on Form 40 -F for the
year ended December 31, 2018 ("Form 40- F") filed with the U.S. Securities and Exchange
Commission (the "SEC") as well as: that the duration or scope of the Order is not extended or
modified; that governments, the Company or others do not take other measures in response to
the COVID-19 pandemic or otherwise that, individually or in the aggregate, materially affect the
Company’s ability to operate its business. 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 risks and uncertainties with respect to: the
extent and manner to which COVID -19, and measures taken by governments, the Company or
others to attempt to reduce the spread of COVID-19, may affect the Company, which could have
an adverse impact on many aspects of the Company 's business including, employee health,
workforce productivity and availability (including the ability to transport personnel to the
Meadowbank Complex and Meliadine mine which operate as fly -in/fly-out camps) , travel
restrictions, contractor availability, supply availability, ability to sell or deliver gold dore bars or
concentrate, availability of insurance and the cost thereof , and the ability to procure inputs
required for the Company's operations and projects; and uncertainties with respect to the effe ct
on the global economy associated with the COVID-19 pandemic and measures taken to reduce
the spread of COVID-19, any of which could continue to negatively affect financial markets,
including the trading price of the Company 's shares and the price of gol d, and could adversely
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affect the Company's ability to raise capital.
For a more detailed discussion of these and other risks and factors that may affect the Company's
ability to achieve the expectations set forth in the forward- looking statements contained in this
news release, see the AIF and MD&A filed on SEDAR at www.sedar.com and included in the
Form 40- F filed on EDGAR at www.sec.gov, as well as the Company's other filings with the
Canadian securities regulators and the SEC. Readers are cautioned not to place undue reliance
on these forward- looking statements, which speak only as of the date made. Other than as
required by law, the Company does not intend, and does not assume any obligation, to update
these forward-looking statements.