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 of February, 2017
 
Commission File Number 001-13422
 
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 o   Form 40-F   x
 
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 February 15, 2017 announcing the Corporation’s Fourth Quarter and Full Year 2016 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: February 17, 2017	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 (“$” or “US$”) unless otherwise noted)
 
AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS —MELIADINE AND AMARUQ PROJECTS APPROVED FOR DEVELOPMENT; ANNUAL GOLD PRODUCTION EXPECTED TO GROW TO 2.0 MILLION OUNCES IN 2020
 
Toronto (February 15, 2017) — Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) (“Agnico Eagle” or the “Company”) today reported quarterly net income of $62.7 million, or net income of $0.28 per share for the fourth quarter of 2016.  This result includes impairment reversals of the Meadowbank mine and Meliadine project, net of tax, of $81.2 million ($0.36 per share), a non-cash foreign currency translation loss on deferred tax liabilities of $12.9 million ($0.06 per share), various mark-to-market adjustment losses of $9.4 million ($0.04 per share), non-recurring losses of $2.4 million ($0.01 per share) and non-cash foreign currency translation gains of $1.7 million ($0.01 per share).  Excluding these items would result in adjusted net income 1  of $4.5 million ($0.02 per share) for the fourth quarter of 2016.  In the fourth quarter of 2015, the Company reported a net loss of $15.5 million or $0.07 per share.
 
Not included in the fourth quarter of 2016 adjusted net income above are lower sales volume relative to total ounces produced, net of tax (approximately 30,620 ounces fewer), representing $13.1 million ($0.06 per share), lower realized gold and silver prices compared to average spot prices both 2% lower than the quarterly average, $5.7 million ($0.03 per share) and non-cash stock option expense of $4.2 million ($0.02 per share).
 
Fourth quarter 2016 cash provided by operating activities was $120.6 million ($120.3 million before changes in non-cash components of working capital).  This compares to cash provided by operating activities of $140.7 million in the fourth quarter of 2015 ($112.6 million before changes in non-cash components of working capital).  The increase in cash provided by operating activities before changes in non-cash components of working capital during the current period was largely due a tax adjustment in the fourth quarter of 2015.

1  Adjusted net income is a Non-GAAP measure.  For a discussion regarding the Company’s use of non-GAAP measures, please see “Note Regarding Certain Measures of Performance”.
 
1 

 
“Continued strong operating results in the fourth quarter of 2016 allowed us to exceed our production forecast and beat our cost guidance for the fifth consecutive year and positions us to complete the development of our growth projects over the next two years”, said Sean Boyd, Agnico Eagle’s Chief Executive Officer.  “Our primary focus will be on developing and expanding our business in Nunavut as we complete the construction of a new mine at Meliadine and develop the Amaruq satellite deposit at Meadowbank.  These new operations, along with optimizations at existing mines, are expected to result in production growth from current levels to approximately 2.0 million ounces in 2020, along with a decline in unit costs”, added Mr. Boyd.
 
Fourth quarter and full year 2016 highlights include:
 
·                   Continued Strong operational performance — Payable production 2  in 2016 was 1,662,888 ounces of gold on production costs per ounce of gold of $621, with total cash costs per ounce 3  of $573, compared to guidance of 1,600,000 ounces at total cash costs per ounce of $600.  All-in sustaining costs per ounce 4  (“AISC”) for 2016 were $824, compared to guidance of $860 per ounce
 
·                   2016 gold reserves increased by 5.0% to 19.9 million ounces (268.4 million tonnes grading 2.31 grams per tonne (“g/t”) gold) — Measured and indicated mineral resources increased by 9%, while inferred mineral resources decreased by 4% (largely due to conversion to higher confidence categories).  The average gold reserve grade in 2016 was essentially unchanged from the previous year
 
·                   Amaruq and Meliadine approved for development — Given favourable project economics and the expected potential for extensions to the currently forecasted mine plans, the Amaruq satellite deposit at Meadowbank and the Meliadine project have been approved by the Company’s Board of Directors.  Both operations are expected to start production in third quarter of 2019;  As such, production at Meliadine is now forecast to begin approximately one year earlier than previously anticipated
 
·                   New four year guidance; gold production expected to increase from current levels to 2.0 million ounces in 2020 with unit costs expected to decline — The production forecasts for 2017 and 2018 are unchanged from previous guidance of

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.
 
3  Total cash costs per ounce is a Non-GAAP measure and unless otherwise specified is reported on a by-product basis.  For a reconciliation to production costs and for total cash costs on a co-product basis, see “Reconciliation of Non-GAAP Financial Performance Measures” below.  See also “Note Regarding Certain Measures of Performance”.
 
4  All-in-sustaining costs per ounce is a Non-GAAP measure and unless otherwise specified is reported on a by-product basis.  For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see “Reconciliation of Non-GAAP Financial Performance Measures” below.  See also “Note Regarding Certain Measures of Performance”.
 
2 

 
approximately 1.55 and 1.50 million ounces, respectively.  Production in 2019 is forecast to be approximately 1.60 million ounces, while production in 2020 is expected to be approximately 2.0 million ounces.  The Company is evaluating additional opportunities to increase production in 2018 and beyond
 
·                   Cost guidance for 2017 essentially unchanged from prior year’s guidance — In 2017, total cash costs per ounce are forecast to be between $595 and $625 and AISC for 2017 are forecast to be between $850 and $900 per ounce.  Total cash costs per ounce and AISC are expected to decline as production grows through 2020
 
·                   Exploration Continues to Add Value
 
·                   Conversion drilling on the western portion of LaRonde 3 (the portion of the LaRonde mine at a depth below 3.1 kilometres) has encountered higher-grade mineralization - Recent intersections include 28.1 g/t gold over 9.3 metres and 13.8 g/t gold over 8.1 metres. These new high-grade intersections are now interpreted as being a distinct lens of massive sulphide mineralization from the main LaRonde 3 horizon.  In 2016, the first mineral reserves were declared in the eastern portion of LaRonde 3, and additional inferred mineral resources were declared in the western portion of LaRonde 3.  Studies are ongoing to evaluate the potential to mine below the currently planned 3.1 kilometre depth at LaRonde
 
·                   Initial inferred mineral resources declared at Odyssey and Barsele - At the Odyssey property (50% owned), which adjoins the Canadian Malartic mine, inferred mineral resources are estimated to be 0.7 million ounces (10.3 million tonnes grading 2.15 g/t gold), while at the Barsele project in Sweden (55% owned), inferred mineral resources are estimated to be 0.7 million ounces (11.9 million tonnes grading 1.72 g/t gold).  Both deposits appear to have bulk tonnage and underground potential, similar to Goldex and are being evaluated as potential future production opportunities.  Further mineral resource growth is expected in 2017
 
·                   Improved financial flexibility — In 2016, net debt 5  was reduced by $346 million, further strengthening the Company’s investment grade balance sheet in preparation for the next phase of growth.  At year-end 2016, Agnico Eagle had strong liquidity with $548 million in cash and cash equivalents and short term investments and $1.2 billion in undrawn credit lines
 
·                   A quarterly dividend of $0.10 per share declared

5  Net debt is a Non-GAAP measure.  For a reconciliation of net debt to the nearest IFRS equivalent, please see “Reconciliation of Non-GAAP Financial Performance Measures” below.  See also “Note Regarding Certain Measures of Performance”.
 
3 

 
Fourth Quarter and Full Year 2016 Financial and Production Highlights
 
In the fourth quarter of 2016, strong operational performance continued at the Company’s mines.  Payable production in the fourth quarter of 2016 was 426,433 ounces of gold, compared to 422,328 ounces in the fourth quarter of 2015.  A detailed description of the production performance of each mine is set out below.
 
Production costs per ounce for the fourth quarter of 2016 were $598, which was higher than the $544 in the 2015 period.  Total cash costs per ounce for the fourth quarter of 2016 were $552, which was essentially unchanged from the $547 per ounce for the fourth quarter of 2015.  A detailed description of the cost performance of each mine is set out below.
 
For the full year 2016, the Company recorded net income of $158.8 million, or $0.71 per share.  In 2015, the Company recorded net income of $24.6 million, or $0.11 per share.  The increase was primarily due to higher realized gold and silver prices (up 8% and 11%, respectively).
 
For the full year 2016, cash provided by operating activities was $778.6 million ($714.2 million before changes in non-cash components of working capital).  This represents a increase over 2015, when cash provided by operating activities totalled $616.2 million ($660.0 million before changes in non-cash components of working capital).  The increase was primarily due to the reason described above.
 
For the fifth consecutive year, Agnico Eagle has reported annual gold production in excess of annual guidance.  The Company’s payable production for the full year 2016 was 1,662,888 ounces of gold, compared to guidance of 1,600,000 ounces.  In 2015, full year production was 1,671,340 ounces.  A detailed description of the production performance of each mine is set out below.
 
Production costs per ounce for the full year 2016 were $621, which was higher than the $596 in 2015.  Total cash costs per ounce for the full year 2016 were $573, below guidance of between $580 and $620.  In 2015, total cash costs per ounce were $567.  A detailed description of the cost performance of each mine is set out below.
 
AISC for 2016 was $824 per ounce, below guidance of between $840 and $880.  The lower AISC is primarily due to lower than forecast total cash costs per ounce in 2016 and higher production than forecast.
 
4 

 
Capital Spending and Liquidity - Existing Cash and Credit Facility Provide Flexibility
 
Cash and cash equivalents and short term investments decreased to $548.4 million at December 31, 2016, from the September 30, 2016 balance of $627.4 million.
 
The outstanding balance on the Company’s credit facility remained nil at December 31, 2016.  This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
 
Total capital expenditures for the full year 2016 were $535 million, compared to guidance of $491 million.  The increase from guidance was primarily due to additional spending at Meliadine, including the purchase of long lead time equipment and material for the Meliadine project to prepare for the upcoming barge season.  The additional spending and work at the Meliadine site in 2016 has positioned the project for an expected start date of 2019, one year ahead of the previous schedule.
 
Capital Expenditures
(In thousands of US dollars)

 	 	Three Months Ended	 	Twelve Months Ended	 	
 	 	December 31, 2016	 	 December 31, 2016	 	
 	 	 	 	 	 	
Sustaining Capital	 	 	 	 	 	
LaRonde mine	 	$	18,896	 	$	64,288	 	
Canadian Malartic mine	 	15,284	 	58,174	 	
Meadowbank mine	 	3,286	 	38,248	 	
Kittila mine	 	15,943	 	62,008	 	
Goldex mine	 	7,996	 	22,030	 	
Lapa mine	 	—	 	—	 	
Pinos Altos	 	19,170	 	47,410	 	
Creston Mascota deposit at Pinos Altos	 	3,485	 	9,287	 	
La India mine	 	2,340	 	10,021	 	
Meliadine project	 	—	 	—	 	
 	 	 	 	 	 	
Development Capital	 	 	 	 	 	
LaRonde mine	 	$	—	 	$	—	 	
Canadian Malartic mine	 	395	 	2,260	 	
Meadowbank mine	 	503	 	503	 	
Kittila mine	 	4,814	 	13,896	 	
Goldex mine	 	15,224	 	59,237	 	
Lapa mine	 	—	 	—	 	
Pinos Altos	 	1,748	 	12,162	 	
Creston Mascota deposit at Pinos Altos	 	—	 	—	 	
La India mine	 	486	 	486	 	
Meliadine project	 	45,755	 	130,942	 	
Other	 	1,048	 	4,361	 	
 	 	 	 	 	 	
Total Capital Expenditures	 	$	156,373	 	$	535,313	 	
 
5 

 
Quarterly Dividend Declared
 
Agnico Eagle’s Board of Directors has declared a quarterly cash dividend of $0.10 per common share, payable on March 15, 2017 to shareholders of record as of March 1, 2017.  Agnico Eagle has now declared a cash dividend every year since 1983.
 
Expected Dividend Record and Payment Dates for 2017

Record Date	 	Payment Date	
March 1*	 	March 15*	
June 1	 	June 15	
September 1	 	September 15	
December 1	 	December 15	

*Declared
 
Dividend Reinvestment Plan
 
Please follow the link below for information on the Company’s dividend reinvestment plan.  Dividend Reinvestment Plan
 
Conference Call Tomorrow
 
The Company’s senior management will host a conference call on Thursday, February 16, 2017 at 11:00 AM (E.S.T.) to discuss the Company’s fourth quarter and full-year financial and operating results.
 
Via Webcast:
 
A live audio webcast of the conference call will be available on the Company’s website www.agnicoeagle.com .
 
Via Telephone:
 
For those preferring to listen by telephone, please dial 647-427-7450 or toll-free 1-888-231-8191.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
 
Replay Archive:
 
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access code 50879928.  The conference call replay will expire on Thursday, March 16, 2017.
 
The webcast along with presentation slides will be archived for 180 days on the Company’s website www.agnicoeagle.com .
 
6 

 
New Four Year Guidance Plan — Amaruq and Meliadine Projects Expected to Begin Production in 2019; Production Forecast to Increase to Approximately 2.0 Mozs in 2020
 
The Company is announcing its detailed production and cost guidance for 2017, mine by mine production forecasts for 2018 and 2019 and a consolidated production forecast for 2020.  Partly due to advancing the spending at Meliadine in the fourth quarter of 2016, the Company expects average annual production of approximately 1.55 million ounces of gold over the next three years with costs stable or lower than currently.  However, the production forecast has the potential to increase in 2019 depending on timing of the Amaruq permits and progress of development at the Amaruq satellite deposit at Meadowbank and the Meliadine project.  Production in 2020 is forecast to be approximately 2.0 million ounces of gold.
 
In 2020, the Company expects to have four cornerstone production assets (the LaRonde Complex, Canadian Malartic, Meliadine and the Meadowbank Complex which includes the Amaruq satellite deposit) each with annual production of approximately 250,000 to 400,000 ounces of gold.  Beyond 2020, the Company anticipates the Meadowbank Complex production levels to increase as gold grades mined are expected to rise at the Amaruq satellite deposit.  In addition, the Kittila deposit in Finland can also become a significant gold producer as a meaningful increase in production is possible as the mining rate is expected to grow as new sources of ore are developed underground.
 
Highlights from the new production and cost guidance for 2017 through 2020 include:
 
·                   In 2017 and 2018, payable gold production is expected to be approximately 1.55 and 1.50 million ounces of gold, respectively.  These forecasts are unchanged from the previous guidance announced in the February 2016 forecast.  The Company is evaluating additional opportunities to increase production in 2018 and beyond
 
·                   Total cash costs per ounce in 2017 are expected to be between $595 and $625 using a US$/C$ foreign exchange rate assumption of 1.28.  AISC for 2017 are expected to be between $850 and $900 per ounce.  In succeeding years, the Company expects total cash costs per ounce and AISC to be below the 2017 ranges
 
·                   Given favorable project economics and the expected potential for additional extensions to the currently forecast mine plans, the Amaruq satellite deposit at Meadowbank and the Meliadine project have both been approved for development.  Amaruq is expected to start up in the third quarter of 2019 (subject to receipt of final permits), and production at Meliadine is now forecast to begin a year earlier than previously expected (also in the third quarter of 2019).  With the potential start of production at the two Nunavut projects in 2019, full year guidance for 2019 is now expected to be approximately 1.60 million ounces of gold
 
7 

 
·                   In 2020, consolidated production is forecast to be approximately 2.0 million ounces of gold
 
Following a brief two-year period of increased development capital spending, largely due to the one-year advancement of the Meliadine project, the Company is forecasting a return to free cash generation in 2019.  At current foreign exchange rate assumptions (1.28 US$/C$, 1.10 EUR/US$, 18.00 US$/MXP) total capital expenditures are forecast to be approximately $850 million in 2017, approximately $950 million in 2018 and approximately $500 million in 2019.  Annual sustaining capital expenditures (included in the above) for 2017 and beyond are expected to remain stable at approximately $300 million.
 
Funding for the development of the Amaruq satellite deposit at Meadowbank and the Meliadine project is expected to come from existing cash balances, internally generated cash and if needed, drawings on the Company’s lines of credit.  The Company has significant debt capacity, as reflected by its investment grade credit rating.
 
Additional Near-Term Production Potential (2018 to 2020)
 
The Company is evaluating several potential opportunities (none of which have yet been approved for construction) at a number of existing operations to build further value and enhance the production profile in 2018 through 2020.  These opportunities are summarized in the table below.

Minesite/Region	 	Opportunity	
LaRonde Complex	 	Potential to mine additional ounces from LaRonde Zone 5 (previously referred to as Bousquet Zone 5)	
Goldex	 	Potential for increased throughput from Deep Zone 1 and potential for advanced development of Deep Zone 2. Also potential for increased production from Akasaba West once permitting complete	
Canadian Malartic (50%)	 	Potential production from near pit zones and/or Odyssey South underground	
Meadowbank/Amaruq	 	Potential to accelerate development schedule and drilling to expand known open pit deposit and evaluate the underground potential at the Amaruq deposit	
Meliadine	 	Potential to accelerate construction schedule and testing the depth and lateral extensions of the Wesmeg, Normeg and Tiriganiaq zones	
Kittila	 	Potential expansion to 2.0 million tonnes per annum, including optimization of the Rimpi and Sisar zones	
Mexico	 	Evaluation of satellite zones at Pinos Altos/Creston Mascota and La India	
 
Development Pipeline Expected to Provide Further Production Growth in 2021 and Beyond
 
Agnico Eagle has a strong pipeline of development projects that could provide further production growth in 2021 and beyond.  These opportunities are typically at an earlier stage than those outlined above.  A summary of the longer term opportunities are presented in the following table.
 
8 

 

Minesite/Region	 	Opportunity	
LaRonde Complex	 	Potential development of LaRonde 3 (located below a depth of 3.1 kilometres) where recent drilling has encountered high grade gold intersections	
Goldex	 	Evaluation of the South Zone, G Zone and Deep 3 Zone and the neighboring Joubi Mine École properties	
Canadian Malartic (50%)	 	Evaluation of the potential for production from Odyssey North underground	
Kittila	 	Further optimization of underground mine and development of the lower mine with shaft access	
Meadowbank	 	Evaluation of the potential to carry out underground mining at the Amaruq deposit and the potential to expand the higher grade V Zone	
Meliadine	 	Further drill testing of known zones and gold occurrences on the 80-kilometre-long greenstone belt	
Barsele	 	Testing additional mineralized zones and evaluation of production potential	
El Barqueno	 	Evaluation of several potential production scenarios	
Hammond Reef (50%)	 	Potential for production in a higher margin environment	
Kirkland Lake (50%)	 	Potential production scenario at Upper Beaver and potential synergies from development of other properties in the region	
 
Four-Year Guidance Plan Outlines a Growing Production Profile with Stable Costs
 
Mine by mine production and cost guidance for 2017, mine by mine production forecasts for 2018 and 2019 and a consolidated production forecast for 2020 are presented below.  Opportunities to improve these forecasts are ongoing.
 
Estimated Payable Gold Production

 	 	2016
Actual	 	2017
Forecast	 	2018
Forecast	 	2019
Forecast	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde	 	305,788	 	315,000	 	360,000	 	365,000	 	
LaRonde Zone 5	 	—	 	—	 	20,000	 	35,000	 	
Canadian Malartic (50%)	 	292,514	 	300,000	 	325,000	 	320,000	 	
Lapa	 	73,930	 	15,000	 	—	 	—	 	
Goldex	 	120,704	 	105,000	 	115,000	 	120,000	 	
Kittila	 	202,508	 	190,000	 	200,000	 	210,000	 	
Meadowbank	 	312,214	 	320,000	 	165,000	 	—	 	
Amaruq Deposit	 	—	 	—	 	—	 	135,000	 	
Meliadine	 	—	 	—	 	—	 	125,000	 	
 	 	1,307,658	 	1,245,000	 	1,185,000	 	1,310,000	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos	 	192,772	 	170,000	 	175,000	 	175,000	 	
Creston Mascota	 	47,296	 	40,000	 	30,000	 	5,000	 	
La India	 	115,162	 	100,000	 	110,000	 	110,000	 	
 	 	355,230	 	310,000	 	315,000	 	290,000	 	
Total Gold Production	 	1,662,888	 	1,555,000	 	1,500,000	 	1,600,000	 	
 
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Total cash costs per ounce on a by-product basis of gold produced ($ per ounce):

 	 	2016	 	2017	 	
 	 	Actual	 	Forecast	 	
Northern Business	 	 	 	 	 	
LaRonde	 	$	501	 	$	510	 	
Canadian Malartic (50%)	 	606	 	578	 	
Lapa	 	732	 	1,002	 	
Goldex	 	532	 	667	 	
Kittila	 	699	 	728	 	
Meadowbank	 	715	 	683	 	
 	 	$	622	 	$	623	 	
Southern Business	 	 	 	 	 	
Pinos Altos	 	356	 	474	 	
Creston Mascota	 	516	 	812	 	
La India	 	395	 	583	 	
 	 	$	390	 	$	553	 	
Total	 	$	573	 	$	609	 	
 
Currency and commodity assumptions used for 2017 cost estimates and sensitivities are presented in the table below:

2017 commodity and currency price
assumptions	 	 	 	Approximate impact on total cash costs per
ounce basis	 	 	 	
Silver ($/oz)	 	16.00	 	$	1 / oz change in silver price	 	$	3	 	
Copper ($/mt)	 	5,500	 	10% change in copper price	 	$	2	 	
Zinc ($/mt)	 	2,425	 	10% change in zinc price	 	$	1	 	
Diesel (C$/ltr)	 	0.80	 	10% change in diesel price	 	$	3	 	
US$/C$	 	1.28	 	1.0% change in US$/C$	 	$	4	 	
EURO$/US$	 	1.10	 	1.0% change in Euro$/US$	 	$	1	 	
US$/MXP	 	18.00	 	10% change in US$/MXP	 	$	5	 	

The estimated production level in 2018 is currently forecast to be approximately 1.50 million ounces of gold, which is unchanged from the 1.50 million ounces in the February 2016 forecast.  The Company is currently evaluating potential opportunities to further optimize and improve production levels in 2018 and beyond (see discussion below for additional details).
 
With the start of production at the two Nunavut projects in 2019, full year guidance for 2019 is now expected to be approximately 1.60 million ounces of gold.
 
In 2020, consolidated production is forecast to be approximately 2.0 million ounces of gold.  In 2018 through 2020, the Company expects total cash costs per ounce and AISC to be below the 2017 ranges based on the currency and commodity assumptions used for 2017 as described above.
 
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Depreciation Guidance
 
Agnico Eagle expects its 2017 depreciation and amortization expense to be between $580 and $610 million.
 
General & Administrative Cost Guidance
 
Agnico Eagle expects 2017 general and administration expense to be between $70 and $80 million, excluding share based compensation.  In 2017, share based compensation is expected to be between $25 and $35 million (including non-cash stock option expense of between $15 and $20 million), which is consistent with previous years.
 
Please see the supplemental financial data section of the Financial and Operating Database on the Company’s website for additional historical financial data.
 
Tax Guidance for 2017
 
For 2017, the effective tax rates are expected to be:
 
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
 
The Company’s overall tax rate is expected to be between 40% and 45%.
 
Updated Three Year Guidance Plan; Incorporating Initial Production from Meliadine and the Amaruq Satellite Deposit at Meadowbank
 
Since the prior three-year production guidance of February 10, 2016 (“Previous Guidance”), there have been several operating developments resulting in changes to the overall three-year production profile.  Descriptions of these changes are set out below.
 
Northern Business
 
ABITIBI REGION, QUEBEC

LaRonde Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	275,000	 	320,000	 	375,000	 	N.A.	 	
Current Guidance (oz)	 	305,788 (actual)	 	315,000	 	360,000	 	365,000	 	
 
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LaRonde
Forecast
2017	 	Ore
Milled
(‘000
tonnes)	 	Gold
(g/t)	 	Gold Mill
Recovery
(%)	 	Silver
(g/t)	 	Silver Mill
Recovery
(%)	 	Zinc
(%)	 	Zinc Mill
Recovery
(%)	 	Copper
(%)	 	Copper
Mill
Recovery
(%)	 	Minesite
Costs
per
Tonne 6	 	
 	 	2,150	 	4.77	 	95.6	%	20.03	 	77.5	%	0.51	%	66.9	%	0.25	%	82.0	%	C$	115	 	

At LaRonde, the slightly lower production guidance for 2017 and 2018 (as compared to Previous Guidance) is primarily due to changes in the mining sequence.  In 2017, approximately 87% of the ore is expected to come from the higher grade lower mine area (below the 248 level) compared to 89% in the Previous Guidance.  The year-over-year production forecasts through 2019 largely reflect an increase in grade closer to that of the average mineral reserves.

LaRonde Zone 5 Forecast	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	N.A.	 	N.A.	 	N.A.	 	
Current Guidance (oz)	 	N.A.	 	20,000	 	35,000	 	
 
In 2003, the Company acquired the Bousquet gold property from Barrick Gold Corporation.  The property adjoins the LaRonde mining complex to the east and hosts the Bousquet Zone 5 , which previous operators had partly exploited by open pit.  Given its proximity to the LaRonde complex, the Company has renamed the property LaRonde Zone 5.
 
LaRonde Zone 5 has been approved for development (subject to permitting approval).  Permits are expected to be received by mid-2018, with mining expected to commence shortly thereafter.  Please see below for additional details on LaRonde Zone 5.

Canadian Malartic Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	280,000	 	295,000	 	305,000	 	N.A.	 	
Current Guidance (oz)	 	292,514 (actual)	 	300,000	 	325,000	 	320,000	 	

Canadian Malartic Forecast 2017	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t)	 	Gold Mill
Recovery (%)	 	Minesite
Costs per
Tonne	 	
 	 	9,425	 	1.11	 	89.3	%	C$	24	 	

At Canadian Malartic (in which Agnico Eagle has 50% ownership) guidance for 2017 and 2018 has been slightly increased due to a change in the life-of-mine plan.  The updated plan provides for earlier access to higher grade zones that are located deeper in the Canadian Malartic pit.

6 Minesite costs per tonne is a non-GAAP measure.  For a reconciliation of this measure to production costs as reported in the financial statements, see “Reconciliation of Non-GAAP Financial Performance Measures” below.  See also “Note Regarding Certain Measures of Performance”.
 
12 

 

Lapa Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	60,000	 	—	 	—	 	N.A.	 	
Current Guidance (oz)	 	73,930 (actual)	 	15,000	 	—	 	—	 	

Lapa Forecast 2017	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t)	 	Gold Mill
Recovery (%)	 	Minesite
Costs
per
Tonne	 	
 	 	140	 	4.04	 	82.5	%	C$	134	 	

Under the current life of mine plan, Lapa is expected to operate until the end of the first quarter of 2017, with production coming from Zone Deep East and Zone 7 Deep.  The Company is evaluating opportunities to continue production into the second quarter of 2017.

Goldex Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	105,000	 	105,000	 	130,000	 	N.A.	 	
Current Guidance (oz)	 	120,704 (actual)	 	105,000	 	115,000	 	120,000	 	

Goldex Forecast 2017	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t)	 	Gold Mill
Recovery (%)	 	Minesite
Costs per
Tonne	 	
 	 	2,360	 	1.51	 	92.0	%	C$	38	 	

At Goldex, production guidance in 2017 is in line with Previous Guidance.  Production guidance in 2018 has been lowered to reflect the transition from mining the M and E satellite zones and the start of production from the Deep 1 Zone.  Commissioning of the Deep 1 project remains on budget and schedule for early 2018.
 
Agnico Eagle acquired the Akasaba West gold-copper deposit in January 2014.  Located less than 30 kilometres from Goldex, the Akasaba West deposit could create flexibility and synergies for the Company’s operations in the Abitibi region by utilizing extra milling capacity at both Goldex and LaRonde, while reducing overall costs.  The permitting process is ongoing and the Company expects to begin sourcing open pit ore from Akasaba West in 2019.
 
13 

 
NUNAVUT REGION

Meadowbank Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	305,000	 	320,000	 	155,000	 	N.A.	 	
Current Guidance (oz)	 	312,214 (actual)	 	320,000	 	165,000	 	—	 	

Meadowbank Forecast 2017	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t)	 	Gold Mill
Recovery
(%)	 	Minesite
Costs per
Tonne	 	
 	 	3,881	 	2.85	 	90.0	%	C$	73	 	

At Meadowbank, production guidance for 2018 has increased slightly over Previous Guidance due to a slight increase in mineral reserves at year-end 2016, and the mining of additional higher grade ore in the Portage pit.  At the Vault deposit, opportunities are being investigated to potentially extend production through year-end 2018.

Amaruq Forecast	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	N.A.	 	N.A.	 	N.A.	 	
Current Guidance (oz)	 	N.A.	 	N.A.	 	135,000	 	
 
In 2016, the Company completed an internal technical study on the Amaruq satellite deposit at Meadowbank.  Based on this study, the Company has approved the project for development pending the receipt of the required permits, which are currently expected to be received by the second quarter of 2018.  Production is currently forecast to begin in the third quarter of 2019 (approximately 4 to 5 months of production in 2019).  Additional details on the project (including operational parameters) are described below.

Meliadine Forecast	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	N.A.	 	N.A.	 	N.A.	 	
Current Guidance (oz)	 	N.A.	 	N.A.	 	125,000	 	
 
In 2016, internal studies were carried out to optimize the previous Meliadine mine plan that had been outlined in an updated National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report dated February 11, 2015 (see Agnico Eagle news release of March 12, 2015).  These internal studies evaluated various opportunities to improve the project economics and the after-tax internal rate of return.
 
Based on the results of these internal studies, the Company’s Board of Directors has approved the construction of the Meliadine project.  The mine is expected to begin operations in the third quarter of 2019 (approximately 4 months of production in 2019), which is approximately one year ahead of the previous schedule.  Additional details on the project (including operational parameters) are described below.
 
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FINLAND

Kittila Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	200,000	 	190,000	 	200,000	 	N.A.	 	
Current Guidance (oz)	 	202,508 (actual)	 	190,000	 	200,000	 	210,000	 	

Kittila Forecast 2017	 	Ore Milled
(‘000 tonnes)	 	Gold (g/t)	 	Gold Mill
Recovery
(%)	 	Minesite
Costs per
Tonne	 	
 	 	1,600	 	4.30	 	86.0	%	€	78.00	 	

At Kittila, production guidance for 2017 and 2018 is unchanged from the Previous Guidance.  The increased production in 2019 is due to higher grades in the mine sequence.  The Company is carrying out studies to evaluate the economics of increasing throughput rates to 2.0 million tonnes per annum from the current rate of 1.6 million tonnes.  This increased rate could also be further supported by the development of the Rimpi and Sisar zones.
 
Southern Business

Pinos Altos Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	175,000	 	175,000	 	180,000	 	N.A.	 	
Current Guidance (oz)	 	192,772 (actual)	 	170,000	 	175,000	 	175,000	 	

Pinos Altos Forecast 2017	 	Total Ore
(‘000 tonnes)	 	Gold (g/t)	 	Gold
Recovery
(%)	 	Silver (g/t)	 	Silver Mill
Recovery
(%)	 	Minesite
Costs
per
Tonne	 	
 	 	2,210	 	2.52	 	95.0	%	71.02	 	52.9	%	$	55	 	

At Pinos Altos, production guidance for 2017 and 2018 is slightly below Previous Guidance, primarily due to changes in the mining sequence.  In 2016, exploration at the Cerro Colorado Zone outlined additional mineralization on the boundaries of the zone.  Further drilling will be carried out in 2017 to evaluate this potential.
 
15 

 

Creston Mascota Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	45,000	 	40,000	 	40,000	 	N.A.	 	
Current Guidance (oz)	 	47,296 (actual)	 	40,000	 	30,000	 	5,000	 	

Creston Mascota Forecast 2017	 	Total Ore
(‘000 tonnes)	 	Gold (g/t)	 	Gold
Recovery
(%)	 	Silver (g/t)	 	Silver
Recovery
(%)	 	Minesite
Costs
per
Tonne	 	
 	 	2,000	 	1.01	 	61.8	%	11.54	 	13.8	%	$	17	 	

At Creston Mascota, production guidance in 2018 is below Previous Guidance due to the winding down of mining activities under the current life-of-mine plan.  Recent exploration at Bravo and Madrono has yielded positive results and further drilling is planned for 2017.  This work could lead to the delineation of additional mineral reserves and mineral resources, which could extend the mine life at Creston Mascota.

La India Forecast	 	2016	 	2017	 	2018	 	2019	 	
Previous Guidance (oz)	 	100,000	 	105,000	 	115,000	 	N.A.	 	
Current Guidance (oz)	 	115,162 (actual)	 	100,000	 	110,000	 	110,000	 	

La India Forecas t 2017	 	Total Ore
(‘000 tonnes)	 	Gold (g/t)	 	Gold
Recovery
(%)	 	Silver (g/t)	 	Silver
Recovery
(%)	 	Minesite
Costs
per
Tonne	 	
 	 	5,300	 	0.89	 	66.0	%	2.10	 	11.0	%	$	11	 	

At La India, production guidance in 2017 and 2018 is slightly below Previous Guidance reflecting changes in the grade and mining sequence.  The 2016 exploration program resulted in a 18% increase in mineral reserves year-over-year and a 5% increase in measured and indicated mineral resources.  Step out drilling in 2016 at the nearby El Realito project also yielded encouraging results, and additional work is planned for 2017.
 
Amaruq Satellite Deposit — Gold Resources Continues to Expand, Road Construction in Progress
 
Agnico Eagle has a 100% interest in the Amaruq satellite deposit at Meadowbank, which sits on a large 114,761 hectare property, approximately 50 kilometres northwest of the Meadowbank mine.  A significant gold discovery was made on the property in 2013, and activities since that time have focused on the development of satellite mineralization to feed the existing Meadowbank mill.
 
At December 31, 2016, the Amaruq satellite deposit at Meadowbank contained an open pit indicated mineral resource of 2.1 million ounces (16.9 million tonnes grading 3.88 g/t gold); an open pit inferred mineral resource of 763,000 ounces (4.9 million tonnes grading 4.81 g/t gold); and an underground inferred mineral resource of 1.4 million ounces (6.8 million tonnes grading 6.22 g/t gold).  Further details on the mineral
 
16 

 
resources are presented in the mineral reserve and mineral resource section of this news release.
 
The indicated mineral resource grade declined from the previous inferred resource grade estimate primarily due to the inclusion of a dilution factor in the calculation of the indicated mineral resources, and the impact of a slightly lower cut-off grade (based on parameters from the internal technical study).  Deeper portions of the open pit deposit show higher mineral grades.  The underground inferred mineral resource grade has also slightly declined from the previous estimate given that it is now constrained by preliminary stope blocks.
 
All of the of the indicated mineral resources are contained in the Whale Tail open pit, while approximately 64% (490,000 ounces) of the open pit inferred mineral resources (2.9 million tonnes grading 5.23 g/t gold) are located in the V Zone.  The Whale Tail and V Zone deposits extend to depths of approximately 250 metres and 150 metres, respectively, and both pits are open for expansion.
 
The underground inferred mineral resources are located in the Whale Tail and V Zone deposits.  Mineralization in the Whale Tail deposit has been extended by drilling in two directions; along the east-plunging ore shoot to a depth of approximately 500 metres and locally as deep as 600 metres in the central portion of Whale Tail.  The V Zone has been traced to 542 metres below surface and remains open at depth.
 
In 2016, the Company completed an internal technical study on the Amaruq satellite deposit at Meadowbank.  Based on this study, the Company has approved the project for development pending the receipt of the required permits, which are currently expected to be received by the second quarter of 2018.
 
In the study, a conventional open pit mining operation is forecast to begin on the Whale Tail deposit in the third quarter of 2019.  This mining operation will utilize the existing infrastructure at the Meadowbank mine (mining equipment, mill, tailings, camp and airstrip).  Minimal infrastructure will be built at the Amaruq site (truck shop/warehouse, fuel storage and a small camp facility).  In addition, a new truck fleet will be required for hauling ore to the Meadowbank mill.
 
The project will be accessed by a 64 kilometre road from the Meadowbank site.  This road is expected to be completed as an exploration road by the fourth quarter of 2017, and the expectation is to expand it to a production road once all of the necessary permits are received.  The ore will be hauled to the Meadowbank mill using off-road type trucks and the mill is expected to operate at 9,000 tonnes per day (“tpd”).  The mill will require minor modifications, specifically the addition of a continuous gravity and regrind circuit.
 
The initial plan calls for the production of approximately 2.0 million ounces of gold between 2019 and 2024, with pre-mining activities starting in 2018 at the Whale Tail deposit.  This represents less than 50 percent of the currently known mineral resource base.  All licenses and permits for Phase I (Whale Tail pit) are expected to be received by the third quarter of 2018.
 
17 

 
Metallurgical recoveries are estimated to average approximately 93%, resulting in average annual gold production of approximately 369,000 ounces in years two through six.  The life of mine average total cash costs per ounce from the Amaruq satellite deposit at Meadowbank are expected to be approximately $770.  The life of mine average AISC is expected to be approximately $850 per ounce.  Detailed operating parameters for the project are set out in the table below.
 
Initial capital costs are estimated to be approximately $330 million, while total sustaining capital costs are estimated to be approximately $25 million per year.  Mine closure costs are estimated to be approximately $16 million.
 
The Amaruq satellite deposit extends the Meadowbank mine life which will allow additional time for the Company to develop and implement an exploration strategy to expand the Amaruq deposit and to evaluate additional opportunities on the property.
 
Summary of the Amaruq Project Key Facts and Parameters

Indicated Mineral Resource (Open Pit)	 	16.9 million tonnes of ore grading 3.88 g/t gold (2.1 million oz)	
Inferred Mineral Resource (Open Pit)	 	4.9 million tonnes of ore grading 4.81 g/t gold (763,000 oz)	
Inferred Mineral Resource (Underground)	 	6.8 million tonnes of ore grading 6.22 g/t gold (1.4 million oz)	
 	 	 	
Ounces Produced	 	1,980,000 (Resources)	
Average metallurgical recovery	 	Approximately 93%	
Average Annual gold production	 	Approximately 135,000 ounces based on 4 to 5 months of production (year 1)	
 	 	Approximately 255,000 ounces (year 2)	
 	 	Approximately 300,000 ounces (year 3)	
 	 	Approximately 430,000 ounces (years 4 — 6)	
 	 	 	
Average Annual Mill throughput	 	Approximately 1,279,000 tonnes based on 4 to 5 months of production (year 1)	
 	 	Approximately 2,987,000 tonnes (year 2)	
 	 	Approximately 3,265,000 tonnes (year 3)	
 	 	Approximately 3,285,000 tonnes (years 4 - 6)	
 	 	 	
Minesite costs per tonne	 	Approximately C$110 per tonne milled (Life of Mine)	
 	 	 	
Average total cash costs on a by-product basis	 	Approximately $770 per ounce of gold produced (Life of Mine)	
Average all-in sustaining costs per ounce	 	Approximately $850 per ounce of gold produced (Life of Mine)	
 	 	 	
Mine life	 	Approximately 6 years	
Initial capital costs to the first ounce produced	 	Approximately $330 million	
Sustaining capital costs	 	Approximately $25 million per year	
Reclamation costs	 	Approximately $16 million	
 	 	 	
 	 	Economic Analysis:	
 	 	US$1,200 per ounce gold	
 	 	US$/C$ exchange rate of $1.25	
 	 	Statutory income tax rate: Approximately 26%	
 
2016 Amaruq Work Program — Focus on Conversion and Exploration Drilling
 
In the fourth quarter of 2016, 12 holes (3,452 metres) were drilled at the Amaruq satellite deposit at Meadowbank.  This brought the full year total to 526 holes totaling 127,751 metres.  All of this drilling was included in the December 31, 2016 mineral resource estimates outlined above.
 
18 

 
The 2016 drill program focused primarily on the conversion of mineral resources at Whale Tail and expansion of the IVR Zone.  Work at the IVR Zone successfully delineated a second source of open pit ore, now referred to as the V Zone.
 
At year-end 2016, construction on the 64 kilometre all-weather exploration road reached kilometre 27.5 as planned.  The permit for the Amaruq exploration ramp and bulk sample collection was received on December 1, 2016, approximately two months ahead of schedule.
 
2017 Amaruq Activities - Focus On Infill Drilling The V Zone And Finding Additional Near Surface Deposits
 
Of the initial $330 million capital cost estimate, approximately $73 million will be spent in 2017, and primarily includes completion of the all-weather exploration road, additional technical studies and the procurement of materials and equipment for the 2018 construction season.  This spending is included in the Meadowbank capital cost estimate for 2017.
 
The first phase of a planned 75,000-metre drill program (costing approximately $22 million) commenced in early February 2017.  The goals of this program are to:
 
·                   Infill and expand the known mineral resource at the V Zone
·                   Test for westerly extensions of the Whale Tail deposit
·                   Further evaluate the underground potential of the Whale Tail deposit
·                   Test other favourable targets to potentially outline additional sources of open pit ore
 
The Company is working closely with the Nunavut Impact Review Board (“NIRB”) and the Nunavut Water Board (“NWB”) on the Whale Tail pit joint permitting process, which is progressing along the schedule and process outlined by NIRB in November 2016.  On January 27, 2017, NIRB and NWB announced the start of the project technical review, which will lead to public hearings taking place at the end of third quarter of 2017.  Approval for the project certificate and water license are expected in the third quarter of 2018.
 
The estimated capital budget for the Amaruq satellite deposit at Meadowbank in 2018 is approximately $160 million.  Work will be focused on site development (primarily dykes, and surface infrastructure) and pre-stripping activities ahead of the proposed commencement of mining in 2019.
 
19 

 
Meliadine Project - First Production Forecast to Commence in the Third Quarter of 2019, One Year Ahead of Previous Forecast
 
Located near Rankin Inlet, Nunavut, Canada, the Meliadine project was acquired in July 2010, and is Agnico Eagle’s largest gold deposits in terms of mineral resources.  The Company owns 100% of the 111,757 hectare property.
 
At December 31, 2016, the Meliadine property was estimated to hold proven and probable mineral reserves of 3.4 million ounces (14.5 million tonnes grading 7.32 g/t gold), indicated mineral resources of 3.3 million ounces (20.8 million tonnes grading 4.95 g/t gold) and inferred mineral resources of 3.6 million ounces (14.7 million tonnes grading 7.51 g/t gold).  Further details on the Meliadine mineral resources are presented in the mineral reserve and mineral resource section of this news release.  In addition, there are numerous other known gold occurrences along the 80-kilometre-long greenstone belt that require further evaluation.
 
In 2016, internal studies were carried out to optimize the previous Meliadine mine plan that had been outlined in an updated NI 43-101 technical report dated February 11, 2015 (see Agnico Eagle news release of March 12, 2015).
 
These internal studies evaluated various opportunities to improve the project economics and the after-tax internal rate of return.  The studies looked at:
 
·                   The potential to extract and advance additional ounces of gold into the mine plan from the Tiriganiaq and Wesmeg/Normeg deposits, which could extend the mine life and increase annual production
·                   Optimization of the mine plan (accelerated access to higher grade areas)
·                   Improvements to operating costs and capital costs (rationalization of Phase 1 infrastructure)
·                   Improvement to procurement, logistical and construction schedules (to shorten the project construction timeline)
 
Based on the results of these internal studies, the Company’s Board of Directors has approved the construction of the Meliadine project.  The mine is expected to begin operations in the third quarter of 2019, which is approximately one year ahead of the previous schedule.  The current mine plan will be focused on the Tiriganiaq and nearby Wesmeg mineralized zones that will be accessed from the Tiriganiaq underground infrastructure.
 
Over an estimated 14 year mine life, it is expected that approximately 5.3 million ounces of gold will be produced at Meliadine.  This represents approximately half of the currently known mineral reserve and mineral resource base.
 
The current mine plan outlines a phased approach to the development of the Meliadine operations.  The Phase 1 mill capacity is expected to be approximately 3,750 tpd, with ore being sourced entirely from underground in years one to four.  The mill capacity in
 
20 

 
Phase 2 is expected to increase to approximately 6,000 tpd, with ore being sourced from both the underground and open pits starting in year 5.
 
The ore zones will be mined using both transverse (approximately 60%) and longitudinal (approximately 40%) stoping methods.  The primary stopes will be filled with paste backfill, while secondary stopes will be back filled with cemented waste rock.  The mill will employ conventional carbon-in-leach processing technology.
 
Metallurgical recoveries are estimated to average approximately 96%, resulting in average annual gold production of approximately 400,000 ounces in years two through fourteen.  The life of mine average total cash costs per ounce at Meliadine are expected to be approximately $590.  The life of mine average AISC is expected to be approximately $720 per ounce.  Detailed operating parameters for the project are set out in the table below.
 
Initial capital costs are estimated at approximately $900 million, and consist of approximately $550 million for surface construction and approximately $350 million for underground construction and development, owners costs and drilling.  Sustaining capital costs are forecast to total approximately $48 million per year over the life of mine.  Mine closure costs are estimated to be approximately $49 million.
 
21 

 
Summary of the Meliadine Project Key Facts and Parameters

Proven & Probable Mineral Reserves	 	14.5 million tonnes of ore grading 7.32 g/t gold (3.4 million oz)	
Measured and Indicated Mineral Resources	 	20.8 million tonnes grading 4.95 g/t gold (3.3 million oz)	
Inferred Mineral Resource	 	14.7 million tonnes grading 7.51 g/t gold (3.6 million oz)	
 	 	 	
Ounces produced	 	5,315,000 (Reserves and Resources)	
 	 	 	
Average metallurgical recovery	 	Approximately 96%	
Average annual gold production	 	Approximately 125,000 ounces based on 4 months of production (year 1)*	
 	 	Approximately 375,000 ounces (year 2)	
 	 	Approximately 360,000 ounces (year 3)	
 	 	Approximately 405,000 ounces (years 4 – 14)	
 	 	 	
Average annual Mill throughput	 	Approximately 377,000 tonnes based on 4 months of production (year 1)	
 	 	Approximately 1,182,000 tonnes (year 2)	
 	 	Approximately 1,307,000 tonnes (year 3)	
 	 	Approximately 2,049,000 tonnes (years 4 – 14)	
 	 	 	
Minesite costs per tonne	 	Approximately C$185 per tonne milled (years 1-3)	
 	 	Approximately C$150 per tonne milled (year 4 - 14)	
 	 	 	
Average total cash costs on a by-product basis	 	Approximately $590 per ounce of gold produced (Life of Mine)	
Average all-in sustaining costs per ounce	 	Approximately $720 per ounce of gold produced (Life of Mine)	
 	 	 	
Mine life	 	Approximately 14 years	
Initial capital costs to the first ounce produced	 	Approximately $900 million	
Sustaining capital costs	 	Approximately $48 million per year	
Reclamation costs	 	Approximately $49 million	
 	 	 	
 	 	Economic Analysis:	
 	 	US$1,200 per ounce gold	
 	 	US$/C$ exchange rate of $1.25	
 	 	Statutory income tax rate: Approximately 26%	
 	 	The Meliadine project is subject to a net profits royalty payable in accordance with the Northwest Territories and Nunavut Mining Regulations. The royalties are calculated using a graduated rate to a maximum of 13%	

 	 	*Includes approximately 60,000 pre-production ounces	
 
2016 Meliadine Work Program — Laying the Groundwork for Future Production
 
In 2016, capital expenditures at Meliadine were approximately $131 million.  Work in 2016 included:
 
·                   Approximately 3,800 metres of underground development (approximately 25% more than scheduled).  This work included initial access to ore horizons on the 200 and 400 metre levels
·                   Approximately 6,900 metres of delineation drilling (about 30% of the stopes are fully delineated for 2019, and the grade and tonnage of these stopes has been confirmed)
·                   Mobilization of materials to facilitate the start of construction activities.  Piling installation and camp construction began in August, while dyke construction and installation of a semi-mobile batch plant commenced in November
 
At year-end 2016, approximately 55% of the engineering work was completed.  The target is to complete approximately 80% of the engineering work by the end of August 2017.
 
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2017 Meliadine Work Program and Additional Opportunities to Create Value
 
The estimated capital budget for 2017 is approximately $360 million.  Key elements of this program include:
 
·                   5,600 metres of underground development (including the start of a second ramp system from underground)
·                   Approximately 12,500 metres of conversion drilling and 14,000 metres of underground delineation drilling
·                   Completion of the camp complex in the second quarter of 2017
·                   Installation of underground ventilation and heating by the fourth quarter of 2017
·                   Completion of the fuel farm in Rankin Inlet and onsite in the fourth quarter of 2017
·                   Closing in of the process and power plant buildings by the end of 2017
·                   Construction of second ramp portal in the second to fourth quarters of 2017
 
The estimated capital budget for Meliadine in 2018 is approximately $380 million.
 
The Company believes that there are numerous opportunities to create additional value, both at the mine and on the large land package.  These include:
 
·                   Optimization of the current mine plan (advance Phase 2 pit implementation)
·                   Potential to optimize labour costs once the mine is in operation (via improved use of telecommunications)
·                   Minesite exploration upside through mineral resource conversion and expansion of known ore zones (most zones are open below a vertical depth of 450 metres)
·                   Potential for the discovery of new deposits along the 80 kilometer-long greenstone belt.  Regional exploration programs are expected to restart in 2017 and to recommence in earnest once the mine starts production in 2019
 
LaRonde Zone 5 Project Approved For Mining
 
Following the completion of a positive internal technical study, LaRonde Zone 5 (formerly referred to as Bousquet Zone 5) has been approved for development (subject to permitting approval).  Permits are expected to be received by mid-2018 with mining expected to commence shortly thereafter.
 
The project will be mined from underground access using a longhole open stoping method with paste backfill.  All of the ore will be trucked to the surface before being trucked to the nearby LaRonde mill complex.  The ore will be treated at the Lapa circuit at the LaRonde mill, which will become available after the 2017 Lapa mine closure.
 
At December 31, 2016, LaRonde Zone 5 was estimated to contain mineral reserves of 423,000 ounces (6.3 million tonnes grading 2.10 g/t gold).  Indicated mineral resources were 712,000 ounces (8.9 million tonnes grading 2.49 g/t gold) and inferred mineral resources were 488,000 ounces (2.9 million tonnes grading 5.28 g/t gold).
 
23 

 
Underground development began in 2016, and production is expected to commence in mid-2018, and continue through 2026 (approximately an 8 year mine life).  The daily mining rate will start at approximately 1,900 tpd and average approximately 2,000 tpd starting in 2021.  Average annual production is expected to be approximately 45,000 ounces per year at full capacity.
 
LaRonde Zone 5 gold recovery is estimated at 92% and the average minesite cost per tonne is estimated at approximately C$65.  The life of mine average total cash costs per ounce at LaRonde Zone 5 are expected to be approximately $784.  The life of mine average AISC is expected to be approximately $850 per ounce.
 
The total capital cost for the project is approximately $80 million, which is comprised of four phases; $14 million for a bulk sample (underway), $46 million for initial capital, $14 million in sustaining capital and $6 million in closure costs.
 
LaRonde Zone 5 permitting activities fall under the certificate of approval previously obtained for the production of a bulk sample.  The application for the LaRonde Zone 5 paste plant certificate of approval is currently under review by the Quebec Department of Sustainable Development, Environment and Fight against Climate Change and approval is expected in the second quarter of 2017.  The application for the certificate of approval for production at LaRonde Zone 5 is expected to be submitted in the coming months.
 
The current mining plan is based on the extraction of the current mineral reserves.  The Company is evaluating additional opportunities to create value.  These include:
 
·                   LaRonde Zone 5 is open at depth.  Material at depth could potentially be mined with additional trucks
·                   Additional material may be able to be treated at the LaRonde mill.  This would reduce the current mine life at LaRonde Zone 5, but increase the value of the project
 
Capital Expenditures Expected to Decline Significantly After Startup of Nunavut Operations in 2019; Sustaining Capital Costs Stable through 2020
 
Based on the Company’s budget assumptions, the Company expects to fund this year’s capital expenditures, which are estimated to total approximately $859 million, from operating cash flow and existing cash balances.
 
The estimated capital expenditures for 2017 include approximately $284 million of sustaining capital at the Company’s operating mines and $553 million on development projects, as set out in the table below.  Additionally, approximately $22 million is estimated to be spent on capitalized exploration and approximately $103 million on expensed exploration and project evaluation.
 
24 

 
Estimated 2017 Capital Expenditures
(In thousands of US dollars)

 	 	Sustaining
Capital	 	Development
Capital	 	Capitalized
Exploration	 	
LaRonde mine	 	$	67,700	 	$	—	 	$	1,700	 	
LaRonde zone 5	 	—	 	35,000	 	400	 	
Canadian Malartic mine	 	65,900	 	1,700	 	2,300	 	
Meadowbank mine	 	20,300	 	—	 	—	 	
Amaruq	 	—	 	73,100	 	5,100	 	
Kittila mine	 	52,700	 	24,100	 	3,200	 	
Goldex mine	 	17,000	 	55,800	 	3,800	 	
Lapa mine	 	—	 	—	 	—	 	
Pinos Altos	 	48,400	 	5,800	 	500	 	
Creston Mascota deposit Pinos Altos	 	5,500	 	—	 	—	 	
La India mine	 	6,900	 	—	 	800	 	
Meliadine project	 	—	 	355,800	 	3,900	 	
Other	 	—	 	2,000	 	—	 	
Total Capital Expenditures	 	$	284,400	 	$	553,300	 	$	21,700	 	
 
2017 Exploration Program and Budget — Main Focus on Amaruq, New Zone at LaRonde 3, Barsele, the Sisar Zone at Kittila, Satellite Targets at Pinos Altos and La India, and El Barqueno
 
A large component of the 2017 exploration program will be focused on the Amaruq satellite deposit at Meadowbank in Nunavut, the LaRonde 3 deep deposit, the Barsele project in Sweden, the Sisar Zone at the Kittila mine in Finland, satellite targets at the Pinos Altos and La India mines in Mexico and the El Barqueno project in Jalisco State, Mexico.  The goal of these exploration programs is to delineate mineral reserves and mineral resources that can supplement the Company’s existing production profile.
 
At the Amaruq satellite deposit at Meadowbank,the first phase of a planned 75,000-metre drill program (costing approximately $21.9 million) commenced in early February 2017.  The goals of this program are to:
 
·                   Infill and expand the known mineral resource at the V Zone
·                   Test for westerly extensions of the Whale Tail deposit
·                   Further evaluate the underground potential of the Whale Tail deposit
·                   Test other favourable targets to potentially outline additional sources of open pit ore
 
At the LaRonde 3 deposit, approximately 28,000 metres of drilling is expected for both conversion and exploration drilling.  Exploration expenditures in 2017 are expected to total approximately $3.6 million.
 
25 

 
At Barsele, approximately 18,200 metres of drilling (at a budget of $8.8 million) will be carried out with a focus to expand the mineral resources along strike and at depth, and test the gap between the Central and Avan zones.
 
At Kittila, approximately $7.9 million will be spent on further deep drilling at Kittila (which includes the Sisar Zone).  The goal of this program is to expand the mineral resources in the Northern part of the property and demonstrate the economic potential of the Sisar Zone as a new mining horizon at Kittila.
 
Approximately 45,000 metres of additional drilling is expected to be completed by the end of 2017 at the El Barqueno project, principally at the Socorro, Mortero, Carmen, Tierra Blanca, Cuauhtémoc, Peña de Oro, Peña Blanca, San Diego, El Rayo, El Camino, and Cebollas prospects and in the Tecolote-Tortuga areas within the south area of the El Barqueno project.  Exploration expenditures in 2017 are expected to total approximately $16.8 million.
 
2017 Global Exploration program and budget including expenditures and metres of drilling

 	 	Expensed exploration	 	Capitalized exploration	 	
Location/operation	 	US$ millions	 	000 metres	 	US$ millions	 	000 metres	 	
Nunavut	 	 	 	 	 	 	 	 	 	
Amaruq	 	$	21.9	 	75.0	 	$	0.9	 	5.0	 	
Amaruq ramp	 	 	 	 	 	$	4.3	 	 	 	
Meliadine	 	$	0.8	 	5.0	 	$	3.9	 	25.9	 	
Others	 	$	4.5	 	15.0	 	—	 	—	 	
Nunavut subtotal	 	$	27.3	 	95.0	 	$	9.2	 	30.9	 	
Quebec	 	 	 	 	 	 	 	 	 	
LaRonde	 	$	1.9	 	12.9	 	$	1.7	 	15.2	 	
LaRonde Zone 5	 	 	 	 	 	$	0.4	 	5.2	 	
Goldex	 	$	0.2	 	3.0	 	$	3.8	 	51.5	 	
Others	 	$	2.0	 	18.5	 	 	 	 	 	
Quebec subtotal	 	$	4.2	 	34.4	 	$	5.9	 	71.9	 	
Canadian Malartic*	 	 	 	 	 	 	 	 	 	
Canadian Malartic mine	 	$	3.2	 	46.0	 	$	2.3	 	53.7	 	
Kirkland Lake projects, (including Upper Beaver)	 	$	2.9	 	25.8	 	—	 	—	 	
Others	 	$	1.2	 	12.0	 	—	 	—	 	
Canadian Malartic subtotal	 	$	7.3	 	83.8	 	$	2.3	 	53.7	 	
Europe	 	 	 	 	 	 	 	 	 	
Kittila	 	$	7.7	 	30.6	 	$	3.2	 	22.4	 	
Barsele	 	$	4.9	 	18.1	 	—	 	—	 	
Others incl. Kuotko	 	$	1.2	 	8.0	 	 	 	 	 	
Europe subtotal	 	$	13.8	 	56.7	 	$	3.2	 	22.4	 	
USA	 	 	 	 	 	 	 	 	 	
USA subtotal	 	$	2.8	 	—	 	—	 	—	 	
Mexico	 	 	 	 	 	 	 	 	 	
Pinos Altos, Creston Mascota	 	$	6.1	 	34.0	 	$	0.5	 	2.0	 	
La India	 	$	6.9	 	31.0	 	$	0.8	 	5.0	 	
El Barqueno	 	$	9.7	 	39.5	 	—	 	—	 	
Soltoro	 	$	1.4	 	6.0	 	—	 	—	 	
Others	 	$	2.7	 	8.5	 	—	 	—	 	
Mexico subtotal	 	$	26.8	 	119.0	 	$	1.3	 	7.0	 	
G&A, land fees, etc.	 	$	21.1	 	 	 	 	 	 	 	
Totals	 	$	103.2	 	388.9	 	$	21.7	 	185.9	 	
 
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Numbers in table have been rounded and therefore totals may differ slightly from the addition of the numbers.

*For the Canadian Malartic operations, in which Agnico Eagle holds a 50% indirect interest, the expenses in this table represent 50% of the total expenses, but the metres represent 100% of the metres of drilling.
 
Gold Reserves Increase by 0.9M Ounces to Approximately 19.9M Ounces, Successful Conversion at Key Operations and Development Projects
 
At year-end 2016, the Company’s proven and probable mineral reserves (net of 2016 production) totaled 268 million tonnes of ore grading 2.31 g/t gold, containing approximately 19.9 million ounces of gold.  This is an increase of approximately 0.9 million ounces of gold (5%) compared with a year earlier.  The increase in the Company’s mineral reserves is largely the result of new internal economic studies at several operations, the successful conversion of measured and indicated mineral resources to mineral reserves at several operations and development projects, partially offset by the 1,662,888 ounces of payable gold production in 2016 (1,874,000 ounces of in-situ gold mined).  The Company’s overall mineral reserve gold grade is essentially unchanged at 2.31 g/t from 2.37 g/t, despite slightly lower cut-off grades at each operation which was the result of reduced costs at several operations and a small increase in the assumed gold price as well as changes to foreign exchange rate assumptions used for the estimates.  Agnico Eagle has one of the highest mineral reserve grades among its North American peers.
 
Highlights from the December 31, 2016 Mineral Reserve Statement include:
 
·                   At LaRonde Zone 5, mineral reserves of 423,000 ounces of gold based on a internal study; at LaRonde, 200,000 ounces of gold in mineral reserves declared below Level 311
 
·                   At Kittila, conversion drilling in Sisar and Rimpi zones added 338,000 ounces of gold in mineral reserves, before Kittila production of 202,508 ounces of gold
 
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·                   At Goldex, mineral reserves increased by 33% (218,000 ounces of gold) in addition to production of 120,704 ounces, as a result of conversion drilling in Deep 1 Zone
 
·                   At La India, mineral reserves increased by 18% (153,000 ounces of gold) in addition to production of 115,162 ounces of gold, due to successful conversion in the Main Zone extension
 
·                   Initial mineral reserves at Upper Beaver containing 698,000 ounces of gold converted from indicated mineral resources (reflecting Agnico Eagle’s 50% portion) based on an internal technical study
 
The Company’s year-end 2016 gold reserves are set out below:

Gold Mineral Reserves	 	Proven & Probable
Mineral Reserve
(000s gold ounces)	 	Average Gold Mineral
Reserve Grade
(g/t)	 	
By Mine	 	2016	 	2015	 	Change	 	2016	 	2015	 	Change	 	
Northern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
LaRonde	 	3,053	 	3,109	 	-56	 	5.40	 	5.31	 	0.09	 	
LaRonde Zone 5	 	423	 	0	 	423	 	2.10	 	 	 	 	 	
Canadian Malartic (50%)	 	3,548	 	3,863	 	-314	 	1.08	 	1.08	 	0.00	 	
Goldex	 	886	 	668	 	218	 	1.64	 	1.61	 	0.03	 	
Akasaba West	 	142	 	141	 	1	 	0.89	 	0.92	 	-0.03	 	
Lapa	 	38	 	78	 	-40	 	4.58	 	5.49	 	-0.91	 	
Meadowbank	 	711	 	943	 	-232	 	2.69	 	2.72	 	-0.03	 	
Meliadine	 	3,417	 	3,417	 	0	 	7.32	 	7.32	 	-0.00	 	
Upper Beaver (50%)	 	698	 	0	 	698	 	5.43	 	0.00	 	0.00	 	
Kittila	 	4,479	 	4,353	 	126	 	4.64	 	4.80	 	-0.16	 	
Subtotal/Average	 	17,396	 	16,572	 	824	 	2.65	 	2.57	 	0.08	 	
Southern Business	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pinos Altos	 	1,424	 	1,459	 	-35	 	2.55	 	2.88	 	-0.33	 	
Creston Mascota	 	102	 	176	 	-74	 	1.28	 	1.30	 	-0.02	 	
La India	 	1,020	 	867	 	153	 	0.72	 	0.90	 	-0.18	 	
Subtotal/Average	 	2,547	 	2,502	 	44	 	1.24	 	1.56	 	-0.32	 	
Total Mineral Reserves	 	19,943	 	19,075	 	868	 	2.31	 	2.37	 	-0.06	 	
 
Amounts presented in the table and in this news release have been rounded to the nearest thousand.  See “Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2016)” set out at the end of this news release for more details, including the economic parameters used in generating the December 2016 mineral reserve estimates.
 
In prior years, economic parameters used to estimate mineral reserves and mineral resources for all properties were calculated using historic three-year average metals prices and foreign exchange rates in accordance with the U.S. Securities and Exchange Commission (the “SEC”) guidelines.  These guidelines require the use of prices that reflect current economic conditions at the time of mineral reserve estimation, which the SEC has interpreted to mean historic three-year average prices.  Given the current
 
28 

 
commodity price environment, Agnico Eagle has decided to continue to use more conservative gold and silver prices.
 
Assumptions  used for the December 2016 mineral reserves estimate at all mines and advanced projects reported by the Company

 	 	Metal prices	 	Exchange rates	 	
 	 	Gold
(US$/oz)	 	Silver
(US$/oz)	 	Copper
(US$/lb)	 	Zinc
(US$/lb)	 	C$ per
US$1.00	 	Mexican
peso per
US$1.00	 	US$ per
€1.00	 	
Long-life operations and projects — LaRonde, Goldex, Akasaba West, Kittila, Pinos Altos, La India	 	$1,150	 	$16.50	 	$2.15	 	$0.95	 	C$1.20	 	MP16.00	 	US$1.15	 	
Short-life operations — Lapa, Meadowbank, Santos Nino pit and Creston Mascota satellite operation at Pinos Altos	 								 	C$1.30	 	MP16.00	 	Not applicable	 	
Meliadine project	 	$1,100	 	Not applicable	 	Not applicable	 	Not applicable	 	C$1.16	 	Not applicable	 	Not applicable	 	
Canadian Malartic mine* and Upper Beaver project**	 	$1,200	 	Not applicable	 	2.75	 	Not applicable	 	C$1.25	 	Not applicable	 	Not applicable	 	

*The Canadian Malartic mine uses a cut-off grade between 0.33 g/t and 0.37 g/t gold (depending on the deposit)
**The Upper Beaver project has a C$125/tonne net smelter return (NSR)
 
The above metal price assumptions are below the three-year historic gold and silver price averages (from January 1, 2014 to December 31, 2016) of approximately $1,225 per ounce and $17.53 per ounce, respectively.  The mineral resources at all properties are estimated using 75% of the cut-off grades used to estimate the mineral reserves.
 
The increase in the Company’s mineral reserves is largely the result of new internal economic studies at several operations, the successful conversion of measured and indicated mineral resources to mineral reserves at several operations and development projects.  The Upper Beaver project in the Kirkland Lake area of Ontario (all numbers shown for Upper Beaver reflect Agnico Eagle’s 50% ownership in the project.) declared initial probable mineral reserves of 698,000 ounces (4.0 million tonnes grading 5.43 g/t gold and 0.25% copper).  At the LaRonde Zone 5, mineral reserves of 423,000 ounces (6.3 million tonnes grading 2.10 g/t gold) have been converted from indicated mineral resources.  A small decline of 56,000 ounces of gold in mineral reserves was experienced at the LaRonde mine, mainly due to gold production of 305,788 ounces (320,000 ounces of in-situ gold mined), largely offset by the results of conversion drilling on the mineral resources below Level 311 where 200,000 ounces of gold was added in mineral reserves in three levels (a total of 90 metres) below this depth (3,110 metres depth).  These are the first mineral reserves declared below Level 311 at LaRonde.
 
Conversion drilling was also successful in increasing mineral reserves, notably at three operating mines where conversion more than offset the gold that was mined during 2016.
 
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At the Goldex mine, 336,000 ounces of gold were converted to mineral reserves in the Deep 1 Zone, while gold production from the M and E satellite zones totalled 120,704 ounces of gold (131,000 ounces in-situ gold mined).  The result was a 33% increase in mineral reserves at the Goldex mine.  Conversion drilling mainly in the Sisar Zone, as well as the Rimpi Zone, at the Kittila mine added 338,000 ounces of gold in mineral reserves, while production totalled 202,508 ounces of gold (236,000 ounces in-situ gold mined).  These are the initial mineral reserves in the Sisar Zone, where initial inferred mineral resources were declared one year ago.  At the La India mine, conversion drilling in the Main Zone extension resulted in an additional 193,400 ounces of gold in mineral reserves while gold production amounted to 115,162 ounces (152,000 ounces in-situ gold mined).  The mineral reserves increased by 18% (153,000 ounces gold) as a result.
 
A reduction in the cut-off grade because of changing estimation parameters was the third factor that resulted in increased mineral reserves, which had a particularly positive impact on the minerals reserves at the Kittila and La India mines.
 
The Canadian Malartic mine (all numbers shown for Canadian Malartic reflect Agnico Eagle’s 50% ownership in the mine) experienced a decline in mineral reserves that essentially corresponds to the gold mined in 2016.  The mineral reserves decreased by 314,000 ounces of gold, explained by 2016 gold production of 292,514 ounces (328,000 ounces of in-situ gold mined).  The decrease in the mineral reserves at the Meadowbank mine by gold production of 312,214 ounces (340,000 ounces in-situ gold mined) in 2016 was partially offset by the addition of 67,000 ounces of gold in mineral reserves from a new study into an extension of the Portage and Vault pits.  Similarly, at the Lapa mine, gold production of 73,930 ounces (88,000 ounces in-situ gold mined) was partially offset by a new economic study that added mineral reserves of 38,000 ounces of gold, which is expected to extend the mine life into the first quarter of 2017.
 
The gold reserves at the Pinos Altos mine and its satellite Creston Mascota operation declined due to gold production of 192,772 ounces and 47,296 ounces, respectively (202,000 ounces and 76,000 ounces, respectively, of in-situ gold mined).  The Pinos Altos mine depletion was largely offset by an addition of mineral reserves due to conversion drilling in the Cerro Colorado and Santo Nino underground mineral resources as well as the reduced cut-off grade, balanced by a reduction in mineral reserves due to new modelling parameters that affected the Santo Nino pit design.
 
It is the Company’s goal to maintain its global mineral reserves at approximately 10 to 15 times its annual gold production rate.  The current mineral reserves are within this range when compared to the Company’s projected annual 2017 production guidance.
 
In addition to gold, Agnico Eagle’s proven and probable mineral reserves include by-product metals of approximately 54 million ounces of silver at the Pinos Altos, LaRonde, La India and Creston Mascota mines (81.5 million tonnes grading an average of 20.5 g/t silver), plus 153,000 tonnes of zinc and 42,000 tonnes of copper at the LaRonde mine (17.6 million tonnes grading 0.87% zinc and 0.24% copper), 25,000 tonnes of copper at the Akasaba West project (4.9 million tonnes grading 0.50% copper) and 10,000 tonnes of copper at the Upper Beaver project (4.0 million tonnes grading 0.25% copper).
 
30 

 
At a gold price of $1,250 per ounce (leaving all other assumptions unchanged), there would be an approximate 5.3% increase in the gold contained in proven and probable mineral reserves.  Conversely, using a gold price of $1,050 (leaving all other assumptions unchanged), there would be an estimated 5.0% decrease in the gold contained in proven and probable mineral reserves.  For the Meliadine project, the sensitivity was calculated using a $100 variation in the assumed price of $1,100 per ounce gold; for the Canadian Malartic mine only, the sensitivity was calculated using a 10% variation in the assumed price of $1,200 per ounce gold.
 
Measured and Indicated Mineral Resources Increase by 1.3M Ounces Gold and Inferred Mineral Resources Decrease by 0.7M Ounces Gold Due to Conversion
 
Highlights from the December 31, 2016 Mineral Resource Statement include:
 
·                   At the Amaruq satellite deposit at Meadowbank, initial indicated mineral resources of 2.1 million ounces of gold at open pit depths, resulting in a decrease in inferred mineral resources to 2.1 million ounces of gold mainly at depth
·                   At the Odyssey property, initial inferred mineral resources of 714,000 ounces of gold (reflecting Agnico Eagle’s 50% interest)
·                   At the Barsele project in Sweden, initial inferred mineral resources of 661,000 ounces of gold (reflecting Agnico Eagle’s 55% interest)
·                   At the El Barqueno project in Mexico, initial indicated mineral resources of 301,000 ounces of gold and 1.2 million ounces of silver, while inferred mineral resources decreased to 362,000 ounces of gold and 1.0 million ounces of silver; which includes initial inferred mineral resources at Olmeca mineral deposit
 
The Company’s measured and indicated mineral resources now total approximately 333 million tonnes grading 1.53 g/t gold, or 16.4 million ounces of gold.  This represents approximately a 9% increase in ounces of gold (1.3 million ounces), an 8% increase in tonnage (24 million tonnes) and essentially no change in grade compared with the December 2015 measured and indicated mineral resource (see the February 10, 2016 news release for comparison).
 
Most of the additions in the measured and indicated mineral resources were reported from the Company’s development and advanced exploration projects.  At the Amaruq satellite deposit at Meadowbank, initial indicated mineral resources of 2.1 million ounces (16.9 million tonnes grading 3.88 g/t gold) were reported at open pit depths, almost all in the Whale Tail deposit.  Conversion drilling led to an initial indicated mineral resource estimate of 301,000 ounces of gold and 1.2 million ounces of silver (8.5 million tonnes grading 1.11 g/t gold and 4.35 g/t silver) at the El Barqueno project.  Different options are being studied for optimizing the potential processing costs and gold recovery.  Studies at the Kirkland Lake properties allowed for the validation of estimates by previous owners: the Anoki/McBean project (all numbers shown for Anoki/McBean reflect Agnico Eagle’s 50% ownership in the project) has a new indicated mineral resource estimate of 160,000 ounces (0.9 million tonnes grading 5.33 g/t gold).
 
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Successful conversion to mineral reserves resulted in decreases in measured and indicated mineral resources, particularly at LaRonde Zone 5, the LaRonde mine below Level 311 and the Goldex mine’s Deep 1 Zone.
 
At the Meadowbank mine, the measured and indicated mineral resources decreased by 475,000 ounces due to a combination of successful conversion of 67,000 ounces of gold to mineral reserves in the Portage and Vault pit extensions, as well as the removal of former underground indicated mineral resources in the Goose mineral deposit.
 
The Company’s inferred mineral resources now total 221 million tonnes grading 2.23 g/t, or approximately 15.9 million ounces of gold.  This represents an approximate 4% decrease in ounces of gold (0.7 million ounces), a 4% decrease in tonnage (8.5 million tonnes) and essentially no change in grade compared with the December 2015 inferred mineral resources (see the Company’s February 10, 2016 news release for comparison).
 
Recent work by the Company on newly acquired properties to validate mineral resource estimates by previous owners had a large positive impact on the inferred mineral resources.  The Barsele project (all numbers shown for Barsele reflect Agnico Eagle’s 55% interest in the project) reported initial inferred mineral resources of 661,000 ounces (11.9 million tonnes grading 1.72 g/t gold), mostly at depth.  The North and South Odyssey zones declared initial inferred mineral resources of 714,000 ounces (10.3 million tonnes grading 2.15 g/t gold) at depth, the result of exploration drilling in 2016.  Studies at the Anoki/McBean project near Kirkland Lake have resulted in new inferred mineral resources of 191,000 ounces (1.3 million tonnes grading 4.70 g/t gold).  These numbers reflect Agnico Eagle’s 50% ownership of the Odyssey property and the Kirkland Lake properties.
 
While successful exploration drilling increased the inferred mineral reserves at some properties, that was more than offset, overall, by the successful conversion of those mineral resources to indicated mineral resources.  An example is the Amaruq satellite deposit at Meadowbank, where the inferred mineral resources decreased by approximately 1.2 million ounces to 2.1 million ounces (11.7 million tonnes grading 5.63 g/t gold), mainly at depth in the Whale Tail deposit (38%) and IVR Zone (26%), and the rest at open pit depths in the Whale Tail deposit (13%) and the IVR Zone (23%).  A decrease of 209,000 ounces of gold at the El Barqueno project was due to the successful conversion to indicated mineral resources offset by exploration drilling success, leaving inferred mineral resources of 362,000 ounces of gold and 1.0 million ounces of silver (7.2 million tonnes grading 1.56 g/t gold and 4.50 g/t silver); this includes initial inferred mineral resources of 135,000 ounces of gold at the Olmeca mineral deposit.  Successful exploration drilling at the LaRonde mine below Level 311 added inferred mineral resources of 463,000 ounces of gold to the inferred mineral resources below Level 311; the mine’s inferred mineral resources now total 1.7 million ounces (7.7 million tonnes grading 6.68 g/t gold, 14.48 g/t silver, 0.25% copper and 0.60% zinc).
 
New modelling parameters have resulted in a 327,000 ounce of gold decrease in inferred mineral resources at the Meadowbank mine to 115,000 ounces (1.1 million tonnes
 
32 

 
 grading 3.13 g/t gold) due to the removal of inferred mineral resources in the underground portion of the Goose deposit.
 
The distribution of mineral resources by property is set out in the following table.  For full details including tonnage and grade, see the “Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2016)” below.
 
December 31, 2016 Mineral Resources

 	 	Measured & Indicated	 	Inferred	 	
 	 	Mineral Resources	 	Mineral Resources	 	
 	 	(000 oz gold)	 	(000 oz gold)	 	
Northern Business	 	 	 	 	 	
LaRonde	 	598	 	1,655	 	
LaRonde Zone 5	 	712	 	488	 	
Ellison	 	68	 	257	 	
Canadian Malartic (50%)	 	644	 	216	 	
Odyssey (50%)	 	—	 	714	 	
Goldex	 	1,777	 	1,129	 	
Akasaba West	 	53	 	—	 	
Lapa	 	105	 	158	 	
Zulapa	 	—	 	39	 	
Meadowbank	 	246	 	115	 	
Amaruq	 	2,109	 	2,125	 	
Meliadine	 	3,306	 	3,552	 	
Hammond Reef (50%)	 	2,251	 	6	 	
Upper Beaver (Kirkland Lake) (50%)	 	202	 	708	 	
Amalgamated Kirkland (Kirkland Lake) (50%)	 	133	 	203	 	
Anoki/McBean (Kirkland Lake) (50%)	 	160	 	191	 	
Kittila	 	1,946	 	1,442	 	
Barsele (55%)	 	—	 	661	 	
Other (Swanson, Kylmäkangas, Kuotko)	 	31	 	287	 	
Subtotal	 	14.340	 	13,945	 	
Southern Business	 	 	 	 	 	
Pinos Altos	 	730	 	380	 	
Creston Mascota	 	139	 	31	 	
La India	 	869	 	1,132	 	
El Barqueno	 	301	 	362	 	
Subtotal	 	2,038	 	1,905	 	
Total Mineral Resources	 	16,378	 	15,850	 	
 
33 

 
NORTHERN BUSINESS REVIEW
 
ABITIBI REGION, QUEBEC
 
Agnico Eagle is currently Quebec’s largest gold producer with a 100% interest in three mines (LaRonde, Goldex and Lapa) and a 50% interest in the Canadian Malartic mine.  These mines are located within 50 kilometres of each other, which provide operating synergies and allows for the sharing of technical expertise.
 
LaRonde Mine — Higher Grades From Lower Mine Drive Record Quarterly Production; Drilling Indicates Potential Higher Gold Grades at LaRonde 3
 
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
 
LaRonde Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	572	 	563	 	
Tonnes of ore milled per day	 	6,220	 	6,128	 	
Gold grade (g/t)	 	4.75	 	4.22	 	
Gold production (ounces)	 	83,508	 	73,161	 	
Production costs per tonne (C$)	 	$	100	 	$	88	 	
Minesite costs per tonne (C$)	 	$	99	 	$	94	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	528	 	$	438	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	405	 	$	510	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher underground and mill maintenance costs and the timing of unsold concentrate inventory.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher underground and mill maintenance costs.  Total cash costs per ounce in the fourth quarter of 2016 decreased when compared to the prior-year period due to higher gold production from the lower mine and higher by-product metal revenues.
 
LaRonde Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	2,240	 	2,241	 	
Tonnes of ore milled per day	 	6,121	 	6,141	 	
Gold grade (g/t)	 	4.44	 	3.91	 	
Gold production (ounces)	 	305,788	 	267,921	 	
Production costs per tonne (C$)	 	$	106	 	$	98	 	
Minesite costs per tonne (C$)	 	$	106	 	$	99	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	587	 	$	643	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	501	 	$	590	 	
 
Production costs per tonne for the full year 2016 increased when compared to the prior-year period due to increased underground and mill maintenance costs and timing of
 
34 

 
unsold concentrate inventory.  Production costs per ounce for the full year 2016 decreased due to higher gold production from the lower mine.
 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to higher underground and mill maintenance costs.  Total cash costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher gold production from the higher grade lower mine and higher by-product metal revenues.  In 2016, the LaRonde mine produced approximately 4,687 tonnes of zinc (34% more than in 2015), 1.0 million ounces of silver (8% more than in 2015) and 4,416 tonnes of copper (11% less than in 2015).
 
At the LaRonde 3 project, studies are continuing to assess the potential to extend the mineral reserve base and carry out mining activities between the 311 level (a depth of 3.1 kilometres) and the 371 level (a depth of 3.7 kilometres).
 
In 2016, infill drilling successfully upgraded portions of the LaRonde 3 mineral resource base.  In the eastern portion of the deposit, mineral reserves of approximately 200,000 ounces (1.2 million tonnes grading 5.15 g/t gold) have been delineated to the 320 level.  Indicated mineral resources have been outlined to the 340 level, while inferred mineral resources extend to the 370 level.  The western portion of the deposit is entirely inferred mineral resources that extend to the 370 level.
 
An infill drill program is continuing from the 311 to the 371 levels, with a focus on the western portion of the deposit where recent drilling has encountered higher-grade mineralization between the 311 and 340 levels.  Highlights include: 28.1 g/t gold over 9.3 metres in hole LR-290-056A and 13.8 g/t gold over 8.1 metres in hole LR-290-061.
 
These new high-grade intersections are now interpreted as being a distinct lens of massive sulphide mineralization from the main LaRonde 3 horizon.  In 2016, the first mineral reserves were declared in the eastern portion of LaRonde 3 and additional inferred mineral resources were declared in the western portion of LaRonde 3.  Further drilling is being carried out to assess this new potential and the vertical extent of the mineralization.  Studies are ongoing to evaluate the potential to mine below the currently planned 3.1 kilometres at LaRonde
 
Selected recent drill results and the collar coordinates are set out in the table below.  Pierce points for all of these holes are shown on the LaRonde Composite Longitudinal Section.  All intercepts reported for the LaRonde mine show capped grades over estimated true widths.
 
35 

 
Recent exploration and infill drill results from LaRonde 3 (below Level 311)

Drill hole	 	From
(metres)	 	To
(metres)	 	Depth of
midpoint
below
surface
(metres)	 	Estimated
true width
(metres)	 	Gold grade
(g/t)
(uncapped)	 	Gold grade
(g/t)
(capped)	 	Silver
grade
(g/t)
(uncapped)	 	Copper
grade (%)	 	Zinc
grade (%)	 	
LR-290-036A	 	451.3	 	459.8	 	3,205	 	6.8	 	12.4	 	12.4	 	21.3	 	0.48	 	0.01	 	
LR-290-053	 	427.2	 	442.2	 	3,167	 	9.4	 	15.7	 	11.6	 	51.6	 	0.78	 	1.39	 	
LR-290-054	 	542.1	 	554.4	 	3,304	 	7.0	 	6.0	 	6.0	 	15.6	 	0.21	 	0.02	 	
LR-290-054A	 	492.0	 	506.1	 	3,248	 	8.8	 	22.8	 	20.4	 	29.1	 	0.29	 	0.07	 	
LR-290-056	 	639.4	 	660.9	 	3,409	 	9.5	 	18.0	 	15.0	 	16.7	 	0.20	 	0.02	 	
LR-290-056A	 	560.0	 	576.5	 	3,320	 	9.3	 	28.7	 	28.1	 	25.4	 	0.46	 	0.08	 	
LR-290-058A	 	459.2	 	463.2	 	3,207	 	2.8	 	2.4	 	2.4	 	3.7	 	0.25	 	0.00	 	
LR-290-058B	 	578.4	 	590.4	 	3,327	 	5.4	 	9.7	 	8.7	 	8.4	 	0.29	 	0.00	 	
LR-290-060	 	510.7	 	527.0	 	3,255	 	8.9	 	7.8	 	7.8	 	29.9	 	0.29	 	0.48	 	
LR-290-061	 	484.2	 	498.8	 	3,206	 	8.1	 	13.8	 	13.8	 	79.4	 	1.31	 	2.89	 	
LR-293-016	 	333.0	 	347.7	 	3,104	 	12.1	 	10.3	 	10.3	 	18.9	 	0.33	 	0.05	 	

* Holes at LaRonde 3 use a capping factor of 80 g/t gold and 1,000 g/t silver.  None of the silver values in this table were capped
 
LaRonde 3 exploration drill collar coordinates

 	 	Drill collar coordinates*	 	
Drill hole ID	 	UTM North	 	UTM East	 	Elevation (metres
above sea level)	 	Azimuth
(degrees)	 	Dip
(degrees)	 	Length
(metres)	 	
LR-290-036A	 	689537	 	5346891	 	-2,536	 	185	 	-61	 	506	 	
LR-290-053	 	689537	 	5346891	 	-2,536	 	203	 	-54	 	490	 	
LR-290-054	 	689537	 	5346891	 	-2,536	 	196	 	-61	 	595	 	
LR-290-054A	 	689537	 	5346891	 	-2,536	 	196	 	-61	 	532	 	
LR-290-056	 	689508	 	5346892	 	-2,536	 	192	 	-64	 	711	 	
LR-290-056A	 	689508	 	5346892	 	-2,536	 	192	 	-64	 	645	 	
LR-290-058A	 	689670	 	5346890	 	-2,532	 	195	 	-63	 	501	 	
LR-290-058B	 	689670	 	5346890	 	-2,532	 	195	 	-63	 	644	 	
LR-290-060	 	689508	 	5346892	 	-2,536	 	206	 	-56	 	578	 	
LR-290-061	 	689508	 	5346892	 	-2,536	 	212	 	-50	 	521	 	
LR-293-016	 	689576	 	5346881	 	-2,556	 	186	 	-54	 	370	 	

* Coordinate System UTM Nad 83 Zone 17
 
36 

 
[Laronde Mine Composite Longitudinal Section]

 
Canadian Malartic Mine — Record Annual Production and Mill Throughput
 
In June 2014, Agnico Eagle and Yamana Gold Inc. (“Yamana”) acquired all of the issued and outstanding common shares of Osisko Mining Corporation and created the Canadian Malartic General Partnership (the “Partnership”).  The Partnership owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee.  Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership.  All volume numbers in this section reflect the Company’s 50% interest in the Canadian Malartic mine except as noted.
 
Canadian Malartic Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)(100%)	 	4,865	 	4,856	 	
Tonnes of ore milled per day (100%)	 	52,881	 	52,780	 	
Gold grade (g/t)	 	1.01	 	1.06	 	
Gold production (ounces)(50%)	 	69,971	 	72,872	 	
Production costs per tonne (C$)	 	$	27	 	$	25	 	
Minesite costs per tonne (C$)	 	$	25	 	$	25	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	671	 	$	633	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	634	 	$	606	 	
 
37 

 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to the use of additional contractors to maximize stripping activities in the north part of the pit to access higher grades.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 were the same when compared to the prior-year period.  Total cash costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production.
 
Canadian Malartic Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)(100%)	 	19,641	 	19,090	 	
Tonnes of ore milled per day (100%)	 	53,665	 	52,300	 	
Gold grade (g/t)	 	1.04	 	1.05	 	
Gold production (ounces)(50%)	 	292,514	 	285,809	 	
Production costs per tonne (C$)	 	$	25	 	$	23	 	
Minesite costs per tonne (C$)	 	$	25	 	$	23	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	628	 	$	600	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	606	 	$	596	 	
 
Production costs per tonne for the full year 2016 increased when compared to the prior-year period due to unplanned maintenance on the leach tank, ball mill and crusher components in the process plant and additional stripping costs.  In addition, extra contractors were employed to maximize stripping activities in the north part of the pit to access higher grades.  Production costs per ounce for the full year 2016 increased when compared to the prior-year period due to the reasons described above.
 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to higher throughput levels and unplanned maintenance on the leach tank, ball mill and crusher components in the process plant.  In addition, extra contractors were employed to maximize stripping activities in the north part of the pit to access higher grades and increased royalty costs as a result of the higher production levels.  Total cash costs per ounce for the full year 2016 increased when compared to the prior-year period due to the reasons described above.
 
At the Canadian Malartic mine, exploration programs are ongoing to evaluate a number of near pit/underground targets.  In addition, the Partnership continues to explore the Odyssey property, which is located to the east of the Canadian Malartic open pit.  Both of these opportunities have the potential to provide new sources of ore for the Canadian Malartic mill.
 
Following the Quebec Bureau des Audiences Publiques sur l’Environnement (“BAPE”) public hearings in June and July 2016, permitting of the Canadian Malartic extension project and Highway 117 deviation reached an important milestone with the issue of the BAPE report on October 5, 2016.  The BAPE report concluded that the project is
 
38 

 
acceptable and provides several recommendations intended to enhance social acceptability.
 
Since the spring of 2015, the Partnership has been working collaboratively with the community of Malartic and its citizens to develop a “Good Neighbour Guide” that addresses impacts caused by the activities at the Canadian Malartic mine.  Implementation of the recommendations in the Good Neighbour Guide began on September 1, 2016.  As of November 30, 2016, which was the end of the claim period for citizens of Malartic to request compensation for the period from June 2013 through June 2016, approximately 94% of Malartic citizens had registered for the program.
 
The next step in the permitting process is for the Minister of Sustainable Development, Environment and the Fight against Climate Change to review the report and present his decision to Cabinet for approval.  No date for the approval has been set, but the Company anticipates that this may occur in the first half of 2017.  Production activities at Barnat are currently forecast to begin in late 2018 , depending on the timing of the start of construction of the road deviation.
 
Initial Mineral Resource declared at Odyssey
 
The Odyssey property lies on the east side of the Canadian Malartic property, approximately 1.5 kilometres east of the current limit of the Canadian Malartic open pit.
 
The Odyssey property is composed of multiple mineralized bodies spatially associated with a porphyritic intrusion close to the contact of the Pontiac Group sediments and the Piché Group of volcanic rocks.  They are grouped into two elongated zones, the Odyssey North and Odyssey South zones, that strike east-southeast and dip steeply south.  Odyssey North has been traced from a depth of 600 to 1,300 metres below surface along a strike length of approximately 1.5 kilometres.  Odyssey South currently has a strike length of 0.5 kilometres and has been located between approximately 200 and 550 metres below surface.
 
During 2016, a total of 155 holes (119,396 metres) were completed at the Odyssey property.  The 2016 results have been incorporated with previous work to estimate an initial mineral resource for the Odyssey property (inclusive of the North and South zones).  Inferred mineral resources (on a 100% basis) are estimated at 1.43 million ounces (20.7 million tonnes grading 2.15 g/t gold).   Further details on mineral resources at the Odyssey property are presented in the mineral reserve and mineral resource section of this news release.
 
The inferred mineral resource does not include drill results from internal zones that extend from the Odyssey North Zone.  Drilling carried out to date suggests that these internal zones could increase mineral resources and enhance the economics of the project by adding higher grade ounces that would require minimal additional infrastructure to access.
 
39 

 
Recent drilling on the internal zones returned several significant intersections including: 3.10 g/t gold over 91.5 metres in hole ODY11-5055, 4.24 g/t gold over 12.5 metres in hole ODY16-5099 and 3.23 g/t gold over 10.5 metres in hole ODY16-5105.  Selected recent drill results and the collar coordinates are set out in the table below.  All intercepts reported for the Odyssey property show capped grades over core lengths.  In the first half of 2017, drilling activities at the Odyssey property will focus on further defining these internal zones and expanding the mineral resources in Odyssey North and South.
 
Recent exploration drill results from the Internal Lode at Odyssey

Drill hole	 	Location	 	From
(metres)	 	To
(metres)	 	Depth of
midpoint
below
surface
(metres)	 	Core
length
(metres)**	 	Gold grade
(g/t)
(uncapped)	 	Gold
grade (g/t)
(capped)*	 	
ODY11-2404B	 	Internal Lode	 	930.0	 	937.3	 	831	 	7.3	 	23.59	 	7.04	 	
ODY14-2492	 	Internal Lode	 	827.6	 	929.5	 	734	 	101.9	 	3.78	 	3.47	 	
including	 	 	 	850.3	 	863.2	 	 	 	12.9	 	12.53	 	10.06	 	
ODY16-5033	 	Internal Lode	 	1,038.5	 	1,052.0	 	903	 	13.5	 	2.24	 	2.24	 	
ODY16-5055	 	Internal Lode	 	1,035.5	 	1,127.0	 	917	 	91.5	 	4.03	 	3.10	 	
including	 	 	 	1,063.7	 	1,078.0	 	 	 	14.3	 	14.90	 	9.36	 	
ODY16-5064	 	Internal Lode	 	978.5	 	1,019.5	 	814	 	41.0	 	1.89	 	1.89	 	
and	 	Internal Lode	 	1,107.1	 	1,120.2	 	586	 	13.1	 	5.00	 	5.00	 	
ODY16-5075	 	Internal Lode	 	1,074.5	 	1,102.5	 	904	 	28.0	 	1.92	 	1.92	 	
including	 	 	 	1,080.5	 	1,085.0	 	 	 	4.5	 	6.11	 	6.11	 	
ODY16-5078	 	ND	 	1,000.0	 	1,027.5	 	866	 	27.5	 	1.97	 	1.97	 	
ODY16-5087	 	ND	 	759.0	 	767.2	 	697	 	8.2	 	3.17	 	3.17	 	
and	 	Internal Lode	 	940.5	 	948.0	 	552	 	7.5	 	2.84	 	2.84	 	
and	 	Internal Lode	 	971.5	 	985.5	 	582	 	14.0	 	2.33	 	2.33	 	
and	 	Internal Lode	 	1,011.0	 	1,049.0	 	628	 	38.0	 	1.59	 	1.59	 	
including	 	 	 	1,029.6	 	1,034.0	 	 	 	4.4	 	6.92	 	6.92	 	
ODY16-5087A	 	Internal Lode	 	952.0	 	962.5	 	867	 	10.5	 	2.26	 	2.26	 	
and	 	Internal Lode	 	1,038.5	 	1,046.0	 	634	 	7.5	 	1.81	 	1.81	 	
ODY16-5099	 	Internal Lode	 	723.5	 	731.5	 	682	 	8.0	 	7.24	 	5.99	 	
including	 	 	 	727.7	 	731.5	 	 	 	3.8	 	13.11	 	10.48	 	
and	 	Internal Lode	 	780.5	 	793.0	 	431	 	12.5	 	4.24	 	4.24	 	
ODY16-5105	 	Internal Lode	 	647.0	 	653.5	 	562	 	6.5	 	11.23	 	8.63	 	
and	 	Internal Lode	 	895.0	 	930.5	 	469	 	35.5	 	2.76	 	2.00	 	
and	 	Internal Lode	 	1,107.5	 	1,118.0	 	630	 	10.5	 	3.23	 	3.23	 	

* Holes at the Odyssey prospect use a capping factor of 20 g/t gold.
** True thickness not determined; these values are core length.
 
40 

 
Odyssey prospect exploration drill collar coordinates of selected holes

 	 	Drill collar coordinates*	 	
Drill hole ID	 	UTM
North	 	UTM East	 	Elevation
(metres above
sea level)	 	Azimuth	 	Dip
(degrees)	 	Length
(metres)	 	
ODY11-2404B	 	5333934	 	717976	 	311	 	022	 	-63	 	1,473	 	
ODY14-2492	 	5333880	 	718295	 	312	 	014	 	-61	 	1,323	 	
ODY16-5033	 	5333962	 	718400	 	311	 	012	 	-65	 	1,256	 	
ODY16-5055	 	5333874	 	718294	 	314	 	012	 	-63	 	1,326	 	
ODY16-5064	 	5333767	 	718276	 	315	 	002	 	-61	 	1,344	 	
ODY16-5075	 	5333766	 	718277	 	315	 	004	 	-62	 	1,378	 	
ODY16-5078	 	5333984	 	718168	 	312	 	012	 	-66	 	1,140	 	
ODY16-5087	 	5334297	 	718706	 	308	 	283	 	-67	 	1,185	 	
ODY16-5087A	 	5334297	 	718706	 	308	 	283	 	-67	 	1,305	 	
ODY16-5099	 	5334643	 	718500	 	307	 	202	 	-70	 	1,014	 	
ODY16-5105	 	5333955	 	718501	 	311	 	003	 	-62	 	1,194	 	

* Coordinate System UTM Nad 83 zone 17
 
41 

 
[Odyssey Prospect — Local Geology Map]

 
Canadian Malartic Corporation
 
In addition to the Partnership, each of Agnico Eagle and Yamana have an indirect 50% interest in Canadian Malartic Corporation (“CMC”),, which holds a portfolio of exploration properties that includes properties in the Kirkland Lake area of Ontario and the Pandora property in the Abitibi region of Quebec.
 
At the Pandora property, 23 diamond drill holes (15,767 metres) were completed in 2016, with a focus on the western portion of the property.  A supplemental program consisting of three holes (3,000 metres) is underway.  Additional exploration work at the Pandora property will depend on the results from the 2017 supplemental program.
 
At Kirkland Lake, an internal technical study was completed in 2016, which allowed a total of 1.4 million ounces of gold and 10,000 tonnes of copper to be classified as mineral reserves (8.0 million tonnes grading 5.43 g/t gold and 0.25% copper) (on a 100% basis).  Mineral resources were also expanded at the Anoki and McBean deposits.
 
42 

 
The 2017 exploration program will consist of 25,750 metres of drilling at an estimated cost of C$7.3 million (on a 100% basis).  Drilling activities will be focused on regional targets around the Upper Beaver project and elsewhere in the camp and depth extensions of the Amalgamated Kirkland mineral resource.
 
Lapa — Strong 2016 Performance, Additional Production Forecast in 2017
 
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.
 
Lapa Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	130	 	136	 	
Tonnes of ore milled per day	 	1,410	 	1,478	 	
Gold grade (g/t)	 	3.90	 	5.45	 	
Gold production (ounces)	 	14,065	 	19,929	 	
Production costs per tonne (C$)	 	$	133	 	$	123	 	
Minesite costs per tonne (C$)	 	$	135	 	$	111	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	941	 	$	635	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	935	 	$	620	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher costs associated with development work in the new zones that had been previously excluded from the mine plan and the timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher costs associated with development work in the new zones that had been previously excluded from the mine plan.  Total cash costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
Lapa Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	593	 	560	 	
Tonnes of ore milled per day	 	1,619	 	1,534	 	
Gold grade (g/t)	 	4.64	 	5.83	 	
Gold production (ounces)	 	73,930	 	90,967	 	
Production costs per tonne (C$)	 	$	118	 	$	119	 	
Minesite costs per tonne (C$)	 	$	121	 	$	117	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	717	 	$	578	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	732	 	$	590	 	
 
Production costs per tonne for the full year 2016 decreased when compared to the prior-year period due to higher throughput levels and the timing of unsold inventory.  Production costs per ounce for the full year 2016 increased due to lower production and higher costs associated with development work in the new zones that had been previously excluded from the mine plan and the timing of unsold inventory.
 
43 

 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to higher throughput levels and the processing of surface stockpiles.  Total cash costs per ounce for the full year 2016 increased when compared to the prior-year period due to lower production and higher costs associated with development work in the new zones that had been previously excluded from the mine plan.
 
Under the current life of mine plan, Lapa is only expected to operate until the end of the first quarter of 2017 with production coming from the Zone Deep East and Zone 7 Deep areas.  The Company is evaluating opportunities to continue production into the second quarter of 2017.
 
Goldex — Continued Strong Operating Performance; Deep 1 Construction Remains on Schedule and Budget
 
The 100% owned Goldex mine in northwestern Quebec began operation from the M and E satellite zones in September 2013.
 
Goldex Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	580	 	572	 	
Tonnes of ore milled per day	 	6,304	 	6,213	 	
Gold grade (g/t)	 	1.39	 	1.60	 	
Gold production (ounces)	 	24,170	 	27,646	 	
Production costs per tonne (C$)	 	$	35	 	$	31	 	
Minesite costs per tonne (C$)	 	$	37	 	$	31	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	632	 	$	484	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	657	 	$	513	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher development costs from the acceleration of mining in the M and E satellite zones and the timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and lower flexibility from mining smaller stopes and the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher development costs from the acceleration of mining in the M and E satellite zones.  Total cash costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
44 

 
Goldex Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	2,545	 	2,313	 	
Tonnes of ore milled per day	 	6,954	 	6,336	 	
Gold grade (g/t)	 	1.60	 	1.66	 	
Gold production (ounces)	 	120,704	 	115,426	 	
Production costs per tonne (C$)	 	$	33	 	$	34	 	
Minesite costs per tonne (C$)	 	$	33	 	$	33	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	525	 	$	531	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	532	 	$	538	 	
 
Production costs per tonne for the full year 2016 decreased when compared to the prior-year period due to higher throughput levels and timing of unsold inventory.  Production costs per ounce for the full year 2016 decreased due to higher production and timing of unsold inventory.
 
Minesite costs per tonne for the full year 2016 were the same when compared to the prior-year period.  Total cash costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher production.
 
Commissioning of the Deep 1 project remains on budget and schedule for early 2018.  Approximately 92% of the underground excavation for the Rail-Veyor has been completed and installation is progressing as planned.  Underground development of the sublevels needed for mining is continuing.  The surface power infrastructure has been upgraded and a new booster fan has been installed and commissioning is underway.
 
Studies are ongoing to evaluate the potential to increase throughput from the Deep 1 Zone and the potential to mine a portion of the Deep 2 Zone, both of which could enhance production levels or extend the current mine life at Goldex and reduce operating costs.
 
Agnico Eagle acquired the Akasaba West gold-copper deposit in January 2014.  Located less than 30 kilometres from Goldex, the Akasaba West deposit could create flexibility and synergies for the Company’s operations in the Abitibi region by utilizing extra milling capacity at both Goldex and LaRonde, while reducing overall costs.  The BAPE process has commenced at Akasaba and permitting activities are expected to continue until 2018.  The Company expects to begin sourcing open pit ore from Akasaba West in 2019.
 
The Quebec BAPE is currently holding public hearings on the Akasaba project.  The first part of the hearings was held at the end of January 2017 and the second part is scheduled for the end of February 2017.  The project is also under review by Environment Canada (“EC”).  Responses to the third series of questions received from EC in January 2017, will be submitted by the end of February 2017.  Both processes are expected to be completed in the second half of 2017.
 
45 

 
NUNAVUT REGION
 
Agnico Eagle has identified Nunavut as a politically attractive and stable jurisdiction with enormous geological potential.  With t he Company’s largest producing mine (Meadowbank) and two significant development assets (Meliadine and the Amaruq satellite deposit at Meadowbank) and other exploration projects, Nunavut has the potential to be a strategic operating platform with the ability to generate strong production and cash flows over several decades.
 
Meadowbank — Evaluating Options to Extend Production through year-end 2018
 
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in March 2010.
 
Meadowbank Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	1,015	 	1,028	 	
Tonnes of ore milled per day	 	11,029	 	11,168	 	
Gold grade (g/t)	 	3.14	 	3.31	 	
Gold production (ounces)	 	94,770	 	102,580	 	
Production costs per tonne (C$)	 	$	66	 	$	63	 	
Minesite costs per tonne (C$)	 	$	72	 	$	62	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	551	 	$	479	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	579	 	$	526	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to a lower amount of stripping costs being capitalized and timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to a lower amount of stripping costs being capitalized.  Total cash costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reason described above.
 
Meadowbank Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	3,915	 	4,033	 	
Tonnes of ore milled per day	 	10,697	 	11,049	 	
Gold grade (g/t)	 	2.70	 	3.16	 	
Gold production (ounces)	 	312,214	 	381,804	 	
Production costs per tonne (C$)	 	$	73	 	$	71	 	
Minesite costs per tonne (C$)	 	$	74	 	$	70	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	701	 	$	604	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	715	 	$	613	 	
 
Production costs per tonne for the full year 2016 increased when compared to the prior-year period due to lower throughput, a lower amount of stripping costs being capitalized
 
46 

 
and timing of unsold inventory.  Production costs per ounce for the full year 2016 increased due to lower production and the reasons described above.
 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to lower throughput and a lower amount of stripping costs being capitalized.  Total cash costs per ounce for the full year 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
At Meadowbank, opportunities are being investigated to potentially extend production at the Vault pit through year-end 2018.
 
Acquisition of New Properties in Nunavut
 
Agnico Eagle is currently studying options and alternatives in Nunavut to capitalize on the large and growing mineral resource in the region.  As part of this initiative, the Company has staked or optioned approximately 440,000 hectares of mineral claims covering three major geological belts between Meadowbank and Meliadine.
 
The new properties appear to be geologically similar to the Meadowbank and Meliadine projects where the Company’s exploration team has demonstrated the effectiveness of a systematic exploration approach and the strong mineral potential of this part of Nunavut.  Assembling and analyzing the data collected in 2016 covering the Amaruq and Meadowbank region will assist in preparing a drill program for 2017 to further investigate the higher potential areas on the new properties.
 
FINLAND AND SWEDEN
 
Agnico Eagle’s Kittila mine in Finland is the largest primary gold producer in Europe and hosts the Company’s largest mineral reserves.  Exploration activities continue to expand the mineral resources and studies are underway to evaluate the potential to cost-effectively increase production.
 
Kittila — Record Annual Production and Mill Throughput
 
The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.
 
Kittila Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	401	 	377	 	
Tonnes of ore milled per day	 	4,355	 	4,100	 	
Gold grade (g/t)	 	4.84	 	4.28	 	
Gold production (ounces)	 	53,337	 	44,279	 	
Production costs per tonne (EUR)	 	$	80	 	$	77	 	
Minesite costs per tonne (EUR)	 	$	83	 	$	80	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	644	 	$	727	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	664	 	$	747	 	
 
47 

 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher contractor and mill maintenance costs and timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 decreased when compared to the prior-year period due to higher production and timing of unsold inventory.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due higher contractor and mill maintenance costs.  Total cash costs per ounce in the fourth quarter of 2016 decreased when compared to the prior-year period due to higher production.
 
Kittila Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore milled (thousands of tonnes)	 	1,667	 	1,464	 	
Tonnes of ore milled per day	 	4,554	 	4,011	 	
Gold grade (g/t)	 	4.41	 	4.44	 	
Gold production (ounces)	 	202,508	 	177,374	 	
Production costs per tonne (EUR)	 	$	77	 	$	77	 	
Minesite costs per tonne (EUR)	 	$	77	 	$	76	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	701	 	$	711	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	699	 	$	709	 	
 
Production costs per tonne for the full year 2016 were the same when compared to the prior-year period.  Production costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher production and timing of unsold inventory.
 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to higher contractor and mill maintenance costs.  Total cash costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher production.
 
The Company is carrying out studies to evaluate the economics of increasing throughput rates at Kittila to 2.0 million tonnes per annum.  This increased mining rate scenario could be supported by the development of the Rimpi and Sisar zones.  Drilling is ongoing to further evaluate the Sisar Zone, where mineralization has now been outlined to a depth of 2.0 kilometres below surface.
 
Barsele Project — Resources Update & Drilling Extends Central, Avan & Skiråsen Zones
 
On June 11, 2015, Agnico Eagle acquired a 55% interest in the Barsele project in Sweden.  The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study.  The Barsele property is known to contain intrusive-hosted gold mineralization (the Central, Avan and Skiråsen zones), which appears to be similar to the Goldex deposit.  The property also hosts gold-rich polymetallic volcanogenic massive sulphide mineralization (the Norra Zone).
 
48 

 
In 2016, a total of 85 diamond drill holes were completed for 33,477 metres.  Drilling focused on expanding the mineral resources on the Central, Avan and Skiråsen zones that are now interpreted to be part of the same mineralized system extending over 2.6 kilometres of strike length.  These zones occur within a granodiorite that ranges in width from 200 to 500 metres over a strike length of more than eight kilometres.  Gold is generally associated with arsenopyrite and low base metal content, but also occurs as native metal locally.
 
In 2016, Agnico Eagle completed an initial mineral resource estimate for the Barsele project that outlined total inferred mineral resources (on a 100% basis) of 1.2 million ounces (21.7 million tonnes grading 1.72 g/t gold).  The mineral resource can be subdivided into open pit inferred mineral resources of 242,000 ounces ( 7.4 million tonnes grading 1.02 g/t gold) and an underground inferred mineral resource of 960,000 ounces (14.3 million tonnes grading 2.08 g/t gold).
 
Recent drill results indicate that the gap between the Central and Avan zones may be mineralized.
 
In 2017, approximately 18,200 metres of drilling (at a budget of $8.8 million) will be carried out with a focus to expand the mineral resources along strike and at depth, and test the gap between the Central and Avan zones.
 
SOUTHERN BUSINESS REVIEW
 
Agnico Eagle’s Southern Business operations are focused in Mexico.  These operations have been the source of growing precious metals production (gold and silver), stable operating costs and strong free cash flow since 2009.  In the fourth quarter of 2016, the Mexican operations established a new quarterly record for silver production of approximately 829,000 ounces.
 
Pinos Altos — Strong Performance Driven by Record Annual Silver Production
 
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009.
 
Pinos Altos Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore processed (thousands of tonnes)	 	556	 	600	 	
Tonnes of ore processed per day	 	6,050	 	6,529	 	
Gold grade (g/t)	 	2.70	 	2.53	 	
Gold production (ounces)	 	46,685	 	44,496	 	
Production costs per tonne (USD)	 	$	48	 	$	41	 	
Minesite costs per tonne (USD)	 	$	51	 	$	44	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	567	 	$	547	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	390	 	$	417	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to lower throughput, higher consumable costs (energy), variations
 
49 

 
in the proportion of heap leach ore to milled ore and open pit ore to underground ore, routine fluctuations in the waste to ore stripping ratio in the open pit mines and timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to lower throughput, higher consumable costs (energy), variations in the proportion of heap leach ore to milled ore and open pit ore to underground ore and routine fluctuations in the waste to ore stripping ratio in the open pit mines.  Total cash costs per ounce in the fourth quarter of 2016 decreased when compared to the prior-year period due to higher gold and silver production and favourable foreign exchange rates.
 
Pinos Altos Mine - Operating Statistics

 	 	Twelve Months Ended
December 31, 2016	 	Twelve Months Ended
December 31, 2015	 	
Tonnes of ore processed (thousands of tonnes)	 	2,260	 	2,378	 	
Tonnes of ore processed per day	 	6,175	 	6,516	 	
Gold grade (g/t)	 	2.78	 	2.68	 	
Gold production (ounces)	 	192,772	 	192,974	 	
Production costs per tonne (USD)	 	$	51	 	$	44	 	
Minesite costs per tonne (USD)	 	$	49	 	$	45	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	594	 	$	545	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	356	 	$	387	 	
 
Production costs per tonne for the full year 2016 increased when compared to the prior-year period due to lower throughput, higher consumable costs (energy), variations in the proportion of heap leach ore to milled ore and open pit ore to underground ore, routine fluctuations in the waste to ore stripping ratio in the open pit mines and timing of unsold inventory.  Production costs per ounce for the full year 2016 increased when compared to the prior-year period due to the reasons described above.
 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to lower throughput, a lower amount of stripping costs being capitalized, higher consumable costs (energy), variations in the proportion of heap leach ore to milled ore and open pit ore to underground ore and routine fluctuations in the waste to ore stripping ratio in the open pit mines.  Total cash costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher gold and silver production and favourable foreign exchange rates.
 
Top soil recovery and earth moving work has commenced on the Phase III heap leach pad.  This work is expected to be finished by the end of the first quarter of 2017.  Plans are being evaluated to divide the pad into two individual cells to facilitate faster stacking.
 
In 2016, drilling at Pinos Altos successfully replaced the mineral reserves that were mined.  Exploration at the Cerro Colorado Zone outlined additional mineralization on the boundaries of the zone, and further drilling will be carried out in 2017 to evaluate this potential.
 
50 

 
Creston Mascota — Exploration at Neighbouring Bravo and Madrono Zones Could Extend Mine Life
 
The Creston Mascota heap leach has been operating as a satellite operation to the Pinos Altos mine since late 2010.
 
Creston Mascota deposit at Pinos Altos - Operating Statistics

 	 	Three Months Ended	 	Three Months Ended	 	
 	 	December 31, 2016	 	December 31, 2015	 	
Tonnes of ore processed (thousands of tonnes)	 	524	 	529	 	
Tonnes of ore processed per day	 	5,694	 	5,750	 	
Gold grade (g/t)	 	1.18	 	1.23	 	
Gold production (ounces)	 	11,213	 	13,933	 	
Production costs per tonne (USD)	 	$	15	 	$	13	 	
Minesite costs per tonne (USD)	 	$	15	 	$	13	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	707	 	$	507	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	649	 	$	445	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to lower tonnes processed, higher re-handling costs and timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to lower production and the reasons described above.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to lower tonnes processed and higher re-handling costs.  Total cash costs per ounce in the fourth quarter of 2016 increased when compared to the prior-year period due to reasons described above.
 
Creston Mascota deposit at Pinos Altos - Operating Statistics

 	 	Twelve Months Ended	 	Twelve Months Ended	 	
 	 	December 31, 2016	 	December 31, 2015	 	
Tonnes of ore processed (thousands of tonnes)	 	2,119	 	2,099	 	
Tonnes of ore processed per day	 	5,790	 	5,750	 	
Gold grade (g/t)	 	1.12	 	1.34	 	
Gold production (ounces)	 	47,296	 	54,703	 	
Production costs per tonne (USD)	 	$	13	 	$	13	 	
Minesite costs per tonne (USD)	 	$	13	 	$	12	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	578	 	$	480	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	516	 	$	430	 	
 
Production costs per tonne for the full year 2016 were the same when compared to the prior-year period.  Production costs per ounce for the full year 2016 increased when compared to the prior-year period due to lower production and timing of unsold inventory.
 
Minesite costs per tonne for the full year 2016 increased when compared to the prior-year period due to higher re-handling costs.  Total cash costs per ounce for the full year 2016 increased when compared to the prior-year period due to lower production.
 
In the fourth quarter of 2016, work on the Phase IV leach pad was completed with stacking of material expected to begin in the first quarter of 2017.
 
51 

 
Exploration drilling in 2016 yielded favorable results from the Bravo and Madrono zones, which are both located close to the Creston Mascota open pit.  Highlights from recent drilling at the Bravo Zone include: 6.1 metres grading 8.8 g/t gold and 106 g/t silver in hole BRV-16-086; 9.8 metres grading 4.5 g/t gold and 75 g/t silver in hole BRV-16-120; and 11.1 metres grading 7.9 g/t gold and 282 g/t silver in hole BRV-16-133.
 
Highlights from recent drilling at the Madrono Zone include: 19.2 metres grading 2.2 g/t gold and 17 g/t silver in hole MAD-16-035; and 5.1 metres grading 2.0 g/t gold and 4.7 g/t silver in hole MAD-16-034.
 
Selected recent drill results from the Bravo and Madrono zones and the collar coordinates are set out in the table below.  Hole locations are also shown on the Creston Mascota Plan map.  All intercepts reported for the Bravo and Madrono zones show uncapped grades over estimated true widths.
 
Recent exploration drill results Bravo and Madrono zones

Drill hole	 	Zone	 	From 
(metres)	 	To 
(metres)	 	Depth of 
midpoint
 below 
surface 
(metres)	 	Estimated 
true 
width 
(metres)	 	Gold
 grade (g/t)
 (uncapped)	 	Silver 
grade (g/t)
 (uncapped)	 	
BRV-16-077	 	Bravo	 	63.7	 	81.8	 	85	 	13.9	 	7.3	 	166.0	 	
BRV-16-078	 	Bravo	 	68.3	 	80.8	 	83	 	9.6	 	4.5	 	166.1	 	
BRV-16-086	 	Bravo	 	84.2	 	92.1	 	109	 	6.1	 	8.8	 	105.7	 	
BRV-16-104	 	Bravo	 	24.5	 	31.5	 	38	 	5.4	 	1.5	 	27.0	 	
and	 	 	 	67.5	 	81.1	 	95	 	10.5	 	2.2	 	29.9	 	
BRV-16-120	 	Bravo	 	65.3	 	78.2	 	83	 	9.8	 	4.5	 	74.8	 	
BRV-16-122	 	Bravo	 	66.9	 	78.5	 	87	 	8.9	 	11.9	 	149.4	 	
BRV-16-133	 	Bravo	 	59.3	 	64.0	 	70	 	3.6	 	0.7	 	1.8	 	
and	 	 	 	69.1	 	83.6	 	79	 	11.1	 	7.9	 	282.2	 	
including	 	 	 	79.0	 	83.6	 	86	 	3.5	 	19.6	 	642.8	 	
MAD-16-034	 	Madroño	 	63.2	 	70.0	 	70	 	4.8	 	0.7	 	11.6	 	
and	 	 	 	79.5	 	85.5	 	92	 	4.2	 	0.4	 	3.5	 	
and	 	 	 	212.3	 	219.5	 	211	 	5.1	 	2.0	 	4.7	 	
MAD-16-035	 	Madroño	 	80.9	 	108.0	 	100	 	19.2	 	2.2	 	17.1	 	
and	 	 	 	146.4	 	150.9	 	120	 	3.2	 	0.3	 	1.7	 	
and	 	 	 	223.2	 	237.3	 	235	 	9.9	 	9.9	 	8.8	 	
 
Cut-off value 0.30 g/t gold, maximum 3.0-m internal dilution

52 

 
Bravo and Madrono prospect drill collar coordinates

 	 	Drill collar coordinates*	 	
Drill hole ID	 	UTM North	 	UTM East	 	Elevation 
(metres 
above sea
 level)	 	Azimuth 
(degrees)	 	Dip 
(degrees)	 	Length 
(metres)	 	
BRV-16-077	 	3135203	 	760174	 	1,629	 	090	 	-43	 	111	 	
BRV-16-078	 	3135151	 	760165	 	1,616	 	088	 	-48	 	129	 	
BRV-16-086	 	3135292	 	760194	 	1,651	 	091	 	-45	 	111	 	
BRV-16-104	 	3135278	 	760218	 	1,667	 	089	 	-45	 	144	 	
BRV-16-120	 	3135181	 	760175	 	1,625	 	088	 	-44	 	117	 	
BRV-16-122	 	3135124	 	760172	 	1,611	 	089	 	-45	 	123	 	
BRV-16-133	 	3135152	 	760137	 	1,599	 	090	 	-45	 	123	 	
MAD-16-034	 	3134992	 	761464	 	2,014	 	359	 	-43	 	243	 	
MAD-16-035	 	3134975	 	761498	 	2,045	 	003	 	-47	 	265	 	

*Coordinate System UTM Nad 27 Zone
 
[Creston Mascota — Local Geology Map]

 
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The Company believes that these two zones could potentially extend the life of the Creston Mascota heap leach facility.  In addition, the Company believes that the Bravo, Madrono and Cubiro zones may have higher grade areas that could potentially provide additional feed to the Pinos Altos mill.  Additional drilling is planned for 2017.
 
La India — Increased Mineral Reserves and Mineral Resources at Year-End 2016
 
The La India mine in Sonora, Mexico, located approximately 70 kilometres from the Company’s Pinos Altos mine, achieved commercial production in February 2014.
 
La India Mine - Operating Statistics

 	 	Three Months Ended
December 31, 2016	 	Three Months Ended
December 31, 2015	 	
Tonnes of ore processed (thousands of tonnes)	 	1,540	 	1,439	 	
Tonnes of ore processed per day	 	16,744	 	15,647	 	
Gold grade (g/t)	 	0.87	 	0.84	 	
Gold production (ounces)	 	28,714	 	23,432	 	
Production costs per tonne (USD)	 	$	10	 	$	9	 	
Minesite costs per tonne (USD)	 	$	9	 	$	8	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	510	 	$	549	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	437	 	$	485	 	
 
Production costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher chemical reagent costs and timing of unsold inventory.  Production costs per ounce in the fourth quarter of 2016 decreased when compared to the prior-year period due to higher production.
 
Minesite costs per tonne in the fourth quarter of 2016 increased when compared to the prior-year period due to higher chemical reagent costs.  Total cash costs per ounce in the fourth quarter of 2016 decreased when compared to the prior-year period due to higher gold and silver production.
 
La India Mine - Operating Statistics

 	 	Twelve Months Ended
 December 31, 2016	 	Twelve Months Ended
 December 31, 2015	 	
Tonnes of ore processed (thousands of tonnes)	 	5,837	 	5,371	 	
Tonnes of ore processed per day	 	15,949	 	14,716	 	
Gold grade (g/t)	 	0.81	 	0.95	 	
Gold production (ounces)	 	115,162	 	104,362	 	
Production costs per tonne (USD)	 	$	9	 	$	9	 	
Minesite costs per tonne (USD)	 	$	9	 	$	9	 	
Production costs per ounce of gold produced ($ per ounce):	 	$	432	 	$	475	 	
Total cash costs per ounce of gold produced ($ per ounce):	 	$	395	 	$	436	 	
 
Production costs per tonne for the full year 2016 were the same when compared to the prior-year period.  Production costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher production and timing of unsold inventory.
 
54 

 
Minesite costs per tonne for the full year 2016 were the same when compared to the prior-year period.  Total cash costs per ounce for the full year 2016 decreased when compared to the prior-year period due to higher gold and silver production.
 
Additional drilling was carried out at La India in 2016, with a focus on extending mineralization in the Main Zone and the La India Zone and conversion of sulfide mineralization into mineral reserves and mineral resources.  The 2016 exploration program resulted in a 18% increase in mineral reserves and a 5% increase in measured and indicated mineral resources.  Further details on the La India mineral reserves and mineral resources are presented in the mineral reserve and mineral resource section of this news release.
 
Step out drilling in 2016 at the nearby El Realito project also yielded encouraging results.  Additional exploration work is planned at El Realito and the Cerro de Oro areas in 2017.  Geological work is continuing at Los Tubos to also define drill targets for 2017.   With the increased mineral reserves and mineral resources, and potential for future additions at other satellite zones, studies are underway to look at potential expansion options at La India.
 
El Barqueno — 2016 Program Focused on Infill Drilling and Testing New Targets
 
Agnico Eagle acquired its 100% interest in the El Barqueno project in November 2014 with the acquisition of Cayden Resources Inc.  The 32,840-hectare property is in the Guachinango gold-silver mining district of Jalisco State in west-central, Mexico, approximately 150 kilometres west of the state capital of Guadalajara.
 
The El Barqueno project contains a number of known mineralized zones and several prospects.  In 2016, a total of 325 diamond drill holes (74,503 metres) were completed.  Drilling in 2016 was primarily focused on:
 
·                   Infill drilling on the Azteca-Zapoteca and Pena de Oro zones that allowed the conversion of 301,000 ounces of gold (8.5 million tonnes grading 1.11 g/t gold) into indicated mineral resource category
·                   Testing the recently discovered Socorro Vein, at Olmeca  on an 80 metre by 80 metre drill pattern to produce an initial inferred mineral resource estimate of 135,300 ounces (1.5 million tonnes grading 2.73 g/t gold)
 
El Barqueno contains a total of 362,000 ounces of gold in inferred mineral resources (7.2 million tonnes grading 1.56 g/t gold), including an initial inferred mineral resource at Olmeca. The significant increase in average grade is due to new Socorro resources and the utilization of a higher cut-off grade, reflecting more conservative assumptions for heap leach recoveries than previously used.  Additional metallurgical test work is ongoing.
 
55 

 
[El Barqueno Project — Local Geology Map]

 
Gold and silver grades of recent intercepts from the recently discovered Socorro and Mortero zones in the Olmeca area are set out in the table below and the drill collars are located in the accompanying table as well as on the project geology map.  All intercepts reported for the El Barqueno project show capped or uncapped grades (depending on the zone) over estimated true widths, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.
 
Selected recent exploration drill results from the El Barqueno project

Drill Hole	 	Zone	 	From
(metres)	 	To
(metres)	 	Depth of
midpoint
below surface
(metres)	 	Estimated
true width
(metres)	 	Gold grade
(g/t)
(uncapped)	 	Gold
grade
(g/t)
(capped)*	 	Silver grade
(g/t)
(uncapped)**	 	
OLM-16-022	 	MORTERO	 	87.3	 	133.0	 	80	 	39.6	 	NSV	 	NA	 	50.8	 	
OLM-16-026	 	MORTERO	 	16.0	 	66.0	 	39	 	41.0	 	NSV	 	NA	 	73.2	 	
including	 	MORTERO	 	22.0	 	25.0	 	23	 	2.5	 	NSV	 	NA	 	382.5	 	
OLM-16-066	 	MORTERO	 	169.5	 	189.5	 	124	 	16.4	 	NSV	 	NA	 	1,111.1	 	
including	 	MORTERO	 	179.3	 	188.0	 	127	 	7.1	 	NSV	 	NA	 	2,469.0	 	
including	 	MORTERO	 	179.3	 	183.5	 	125	 	3.4	 	NSV	 	NA	 	4,194.8	 	
OLM-16-003	 	SOCORRO	 	123.0	 	129.0	 	69	 	5.2	 	19.09	 	11.86	 	14.1	 	
including	 	SOCORRO	 	126.0	 	128.0	 	70	 	1.7	 	47.95	 	26.25	 	33.7	 	
OLM-16-008	 	SOCORRO	 	160.0	 	165.0	 	96	 	4.3	 	2.83	 	 	 	4.8	 	
OLM-16-010	 	SOCORRO	 	131.0	 	145.0	 	84	 	12.1	 	6.97	 	6.52	 	4.7	 	
including	 	SOCORRO	 	132.0	 	133.1	 	81	 	1.0	 	40.70	 	35.00	 	18.5	 	
including	 	SOCORRO	 	137.0	 	138.0	 	84	 	0.9	 	31.00	 	31.00	 	7.2	 	
OLM-16-013	 	SOCORRO	 	167.5	 	179.5	 	155	 	6.9	 	7.29	 	6.51	 	13.2	 	
including	 	SOCORRO	 	167.5	 	173.0	 	152	 	3.2	 	15.28	 	13.59	 	16.9	 	
OLM-16-020	 	SOCORRO	 	65.0	 	69.0	 	74	 	3.3	 	0.84	 	0.84	 	22.4	 	
OLM-16-023	 	SOCORRO	 	44.1	 	48.6	 	31	 	3.9	 	4.12	 	4.12	 	9.2	 	
OLM-16-051	 	SOCORRO	 	20.4	 	24.3	 	15	 	3.2	 	3.14	 	3.14	 	8.7	 	
OLM-16-054	 	SOCORRO	 	40.9	 	46.0	 	43	 	4.2	 	1.00	 	1.00	 	0.4	 	
 
56 

 

* Holes at the Socorro vein use a capping factor of 35 g/t gold. Holes at the Mortero vein do not use a capping factor.
 
** Holes at the Socorro vein use a capping factor of 90 g/t silver, but all reported grades were below this level. Holes at the Mortero vein do not use a capping factor.
 
El Barqueno project exploration drill hole collar coordinates

 	 	Drill Hole Collar Coordinates*	 	
Drill Hole ID	 	UTM North	 	UTM East	 	Elevation
(metres above
sea level)	 	Azimuth
(degrees)	 	Dip
(degrees)	 	Length
(metres)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
OLM-16-003	 	560,672	 	2,280,468	 	1,384	 	155	 	-50.0	 	488.0	 	
OLM-16-008	 	561,195	 	2,280,600	 	1,392	 	155	 	-50.0	 	323.3	 	
OLM-16-010	 	561,386	 	2,280,658	 	1,402	 	155	 	-50.0	 	286.7	 	
OLM-16-013	 	560,672	 	2,280,469	 	1,383	 	155	 	-75.0	 	396.5	 	
OLM-16-020	 	560,838	 	2,280,406	 	1,352	 	155	 	-55.0	 	183.0	 	
OLM-16-022	 	558,359	 	2,279,716	 	1,585	 	0	 	-50.0	 	146.4	 	
OLM-16-023	 	561,325	 	2,280,560	 	1,372	 	155	 	-50.0	 	164.7	 	
OLM-16-026	 	558,407	 	2,279,757	 	1,549	 	0	 	-55.0	 	454.5	 	
OLM-16-051	 	561,386	 	2,280,554	 	1,374	 	155	 	-55.0	 	175.4	 	
OLM-16-054	 	561,787	 	2,280,744	 	1,403	 	155	 	-55.0	 	160.1	 	
OLM-16-066	 	558,310	 	2,279,660	 	1,635	 	0	 	-55.0	 	364.5	 	

* Coordinate System UTM WGS84 13N Zone
 
Olmeca Area
 
In 2016, a total of 40 drill holes (10,653 metres) were completed mainly on Socorro and Mortero veins in the Olmeca area. There are currently two drills on the Olmeca prospect with a third drill expected to be added later in February 2017.
 
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The Socorro Vein has been defined as a 1,600-metre long, east-northeast-striking, and steeply north-dipping, gold-bearing structure that includes high-grade gold values. Initial intercepts from the Socorro Vein were reported by the Company in 2016. The Socorro Vein remains open to the east, to the west and at depth.  Additional drilling is planned in the first half of 2017 to test for extensions to this structure and to test for additional subparallel structures.
 
The Mortero Vein, located some 2.0 kilometres west of the Socorro Vein, has been delineated over a 300-metre strike length and to a depth of approximately 300 metres. High grade silver values have been found such as in hole OLM16-066 that intersected 1,111 g/t silver over 16.4 metres at 124 metres depth, including 4,195 g/t silver over 3.4 metres at 125 metres depth.  Gold values have generally been low in this part of the system and additional drilling is required at depth to test for a potentially higher grade gold zone. The Mortero Vein is open in all directions with drilling continuing at depth and along strike both to the east and west.
 
It is unclear whether the Socorro and Mortero veins form part of the same mineralized structure.  The Company believes there is strong potential for additional structures.
 
Five additional subparallel gold-bearing structures with extensive alteration zones have been located within the Olmeca area through prospecting, and geological mapping as well as soil, rock, and hyperspectral surveys.  Drilling commenced on both the Tierra Blanca and Carmen targets in late 2016 and will continue into the first quarter of 2017.
 
Cuauhtémoc Area
 
Drilling will begin in this area shortly, initially with two drills tracing thesouthwest  extent of the Azteca-Zapoteca Zone. A gold-bearing structure has been defined over a length of approximately 2,000 metres from surface mapping.
 
Additional Target Areas
 
Approximately 45,000 metres of additional drilling is expected to be completed by the end of 2017 at the El Barqueno project, principally at the Socorro, Mortero, Tierra Blanca, Cuauhtémoc, Peña de Oro, Peña Blanca, San Diego, and El Rayoprospects and in the Tecolote-Tortuga areas, within the south area of the El Barqueno project.  Exploration expenditures in 2017 are expected to total approximately $16.8 million.
 
While it is too early to estimate the full extent of the mineral resources and the number of deposits with economic potential at El Barqueno, the Company has the experience of developing cost-efficient mining operations in Mexico and increasing their size through successful exploration as well as metallurgical innovation.  This experience will be applied as El Barqueno continues to be explored and studied.
 
Agnico Eagle believes that El Barqueno ultimately has the potential to be developed into a series of open pits utilizing heap leach and/or mill processing, similar to the Pinos Altos
 
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mine.  Conceptual design studies and additional metallurgical testing are ongoing at El Barqueno.
 
Senior Management Changes
 
Tim Haldane, Senior Vice-President Operations - USA & Latin America retired in early February this year.  Tim was instrumental in the acquisition and development of the Company’s Mexican mining operations and greatly contributed to the Company’s excellent operating performance.  He will continue to serve the Company as an advisor to senior management.
 
Additional changes to Agnico Eagle’s senior management team include:
 
Marc Legault has moved into a new role as Senior Vice-President Operations -USA, Mexico & Latin America.  In this role Marc will manage Agnico Eagle’s Southern Business operations.
 
Alain Blackburn, Senior Vice-President, Exploration, will now manage the Company’s project evaluation team and work closely with the corporate development team while continuing to be responsible for the exploration group.
 
Annual General Meeting
 
Friday, April 28, 2017 at 11:00 am (E.D.T.)
Sheraton Centre Toronto Hotel (Grand Ballroom)
123 Queen Street West
Toronto, ON M5H 2M9
 
About Agnico Eagle
 
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957.  Its eight 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.  The Company 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.
 
Further Information
 
For further information regarding Agnico Eagle, contact Investor Relations at info@agnicoeagle.com or call (416) 947-1212.
 
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Note Regarding Certain Measures of Performance
 
This news release discloses certain measures, including “total cash costs per ounce”, “all-in sustaining costs per ounce”, “minesite costs per tonne”, “net debt” and “adjusted net income” that are not standardized measures under IFRS.  These data may not be comparable to data reported by other issuers.  For a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS, other than adjusted net income, see “Reconciliation of Non-GAAP Financial Performance Measures” below.  The total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues).  The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced.  The total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis except that no adjustment is made for by-product metal revenues.  Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals.  The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Company’s mining operations.  Management also uses these measures to monitor the performance of the Company’s mining operations.  As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine’s cash-generating capabilities at various gold prices.
 
The Company calculates all-in sustaining costs per ounce of gold produced on a by-product basis as the aggregate of total cash costs per ounce on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options) and reclamation expenses, and then dividing by the number of ounces of gold produced.  The all-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as the all-in sustaining costs per ounce of gold produced on a by-product basis, except that the total cash costs per ounce on a co-product basis are used, meaning no adjustment is made for by-product metal revenues.  All-in sustaining costs per ounce is used to show the full cost of gold production from current operations.  Management is aware that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of total cash costs per ounce of gold produced on a by-product basis, by-product metal prices.  Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS.
 
Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income for unsold concentrate inventory production costs, and then dividing by tonnes of ore processed.  As the total cash costs per ounce of gold
 
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produced can be affected by fluctuations in by-product metal prices and foreign exchange rates, management believes that minesite costs per tonne provides additional information regarding the performance of mining operations, eliminating the impact of 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 of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS.
 
Net debt is calculated by adjusting the total of the current portion of long-term debt and non-current long-term debt as recorded on the consolidated balance sheet for deferred financing costs, cash and cash equivalents and short-term investments.  Management uses net debt to determine the overall debt position and to evaluate future debt capacity of the Company.
 
Adjusted net income is calculated by adjusting the basic net income per share as recorded in the consolidated statements of income for foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses and unrealized gains and losses on financial instruments.  Management uses adjusted net income to evaluate the underlying operating performance of the Company and to assist with the planning and forecasting of future operating results.  Management believes that adjusted net income is a useful measure of performance because foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses and unrealized gains and losses on financial instruments do not reflect the underlying operating performance of the Company and may not be indicative of future operating results.
 
Management also performs sensitivity analyses in order to quantify the effects of fluctuating foreign exchange rates and metal prices.  This news release also contains information as to estimated future total cash costs per ounce, all-in sustaining costs per ounce and minesite costs per tonne.  The estimates are based upon the total cash costs per ounce, all-in sustaining costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined.  It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
 
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Forward-Looking Statements
 
The information in this news release has been prepared as at February 15, 2017.  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 news release, the words “anticipate”, “could”, “estimate”, “expect”, “forecast”, “future”, “plan”, “possible”, “potential”, “will” 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, metal production, life of mine estimates, total cash costs per ounce, all-in sustaining costs per ounce, minesite costs per tonne, other expenses and cash flows; the estimated timing and conclusions of technical reports and other studies; the methods by which ore will be extracted or processed; statements concerning the Company’s plans to build operations at Meliadine, Amaruq and LaRonde Zone 5, including the timing and funding thereof; statements concerning other expansion projects, recovery rates, mill throughput, optimization and projected exploration expenditures, including costs and other estimates upon which such projections are based; statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future mineral reserves, mineral resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of mineral reserves and mineral resources; statements regarding the Company’s ability to obtain the necessary permits and authorizations in connection with its exploration, development and mining operations and the anticipated timing thereof; statements regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statements regarding the sufficiency of the Company’s cash resources and other statements 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, 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, 2015 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2015 (“Form 40-F”) filed with the U.S. Securities and Exchange Commission (the “SEC”) as well as: that there are no significant disruptions affecting operations; that production, permitting, development and expansion at each of
 
62 

 
Agnico Eagle’s properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, foreign exchange rates and prices for key mining and construction supplies will be consistent with Agnico Eagle’s 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 mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; foreign exchange rate fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; the unfavorable outcome of litigation involving the Partnership; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s currency, fuel and by-product metal derivative strategies.  For a more detailed discussion of such risks and other 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.  Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
 
Notes to Investors Regarding the Use of Mineral Resources
 
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Mineral Resources
 
This news release uses the terms “measured mineral resources” and “indicated mineral resources”.  Investors are advised that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them.   Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into mineral reserves .
 
Cautionary Note to Investors Concerning Estimates of Inferred Mineral Resources
 
This news release also uses the term “inferred mineral resources”.  Investors are advised that while this term is recognized and required by Canadian regulations, the SEC does not recognize it.  “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is economically or legally mineable.
 
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Scientific and Technical Data
 
The scientific and technical information contained in this news release relating to Quebec operations has been approved by Christian Provencher, Eng., Vice-President, Canada; relating to Nunavut operations has been approved by Dominique Girard, Eng., Vice-President, Nunavut Operations; relating to the Finland operations has been approved by Francis Brunet, Eng., Corporate Director Mining; relating to Southern Business operations has been approved by Carol Plummer, Eng., Vice-President, Project Development, Southern Business; and relating to exploration has been approved by Alain Blackburn, Eng., Senior Vice-President, Exploration and Guy Gosselin, Eng. and P.Geo., Vice-President, Exploration.  Each of them is a “Qualified Person” for the purposes of NI 43-101.
 
The scientific and technical information relating to Agnico Eagle’s mineral reserves and mineral resources contained herein (other than the Canadian Malartic mine) has been approved by Daniel Doucet, Eng., Senior Corporate Director, Reserve Development; and relating to mineral reserves and mineral resources at the Canadian Malartic mine contained herein has been approved by Donald Gervais, P.Geo., Director of Technical Services at CMC.  Each of them is a “Qualified Person” for the purposes of NI 43-101.
 
AGNICO EAGLE MINES LIMITED DETAILED MINERAL RESERVES AND RESOURCES DATA
As of December 31, 2016

OPERATIONS	 	MINERAL RESERVES	 	
 	 	 	 	
 	 	 	 	PROVEN	 	PROBABLE	 	PROVEN & PROBABLE	 	
GOLD	 	OWNERSHIP	 	000 tonnes	 	g/t	 	000 oz Au	 	000 tonnes	 	g/t	 	000 oz Au	 	000 tonnes	 	g/t	 	000 oz Au	 	
LaRonde (underground)	 	100	%	5,833	 	4.91	 	921	 	11,758	 	5.64	 	2,132	 	17,591	 	5.40	 	3,053	 	
LaRonde Zone 5 (underground)	 	100	%	2,836	 	2.12	 	194	 	3,429	 	2.08	 	230	 	6,265	 	2.10	 	423	 	
Canadian Malartic (open pit)	 	50	%	25,560	 	0.95	 	785	 	76,274	 	1.13	 	2,764	 	101,834	 	1.08	 	3,548	 	
Goldex (underground)	 	100	%	294	 	1.47	 	14	 	16,507	 	1.64	 	872	 	16,801	 	1.64	 	886	 	
Akasaba West (open pit)	 	100	%	—	 	—	 	—	 	4,942	 	0.89	 	142	 	4,942	 	0.89	 	142	 	
Lapa (underground)	 	100	%	259	 	4.58	 	38	 	—	 	—	 	—	 	259	 	4.58	 	38	 	
Meadowbank (open pit)	 	100	%	1,704	 	1.75	 	96	 	6,515	 	2.94	 	615	 	8,219	 	2.69	 	711	 	
Meliadine (open pit)	 	 	 	34	 	7.31	 	8	 	4,001	 	5.00	 	644	 	4,035	 	5.02	 	652	 	
Meliadine (underground)	 	 	 	—	 	—	 	—	 	10,494	 	8.20	 	2,766	 	10,494	 	8.20	 	2,766	 	
Meliadine Total	 	100	%	34	 	7.31	 	8	 	14,495	 	7.32	 	3,410	 	14,529	 	7.32	 	3,417	 	
Upper Beaver (underground)	 	50	%	—	 	—	 	—	 	3,996	 	5.43	 	698	 	3,996	 	5.43	 	698	 	
Kittila (underground)	 	100	%	1,148	 	4.19	 	155	 	28,907	 	4.65	 	4,325	 	30,055	 	4.64	 	4,479	 	
Pinos Altos (open pit)	 	 	 	180	 	0.85	 	5	 	2,525	 	2.07	 	168	 	2,705	 	1.99	 	173	 	
Pinos Altos (underground)	 	 	 	3,331	 	2.79	 	299	 	11,364	 	2.61	 	953	 	14,696	 	2.65	 	1,251	 	
Pinos Altos Total	 	100	%	3,512	 	2.69	 	304	 	13,889	 	2.51	 	1,120	 	17,401	 	2.55	 	1,424	 	
Creston Mascota (open pit)	 	100	%	65	 	0.94	 	2	 	2,426	 	1.29	 	100	 	2,491	 	1.28	 	102	 	
La India (open pit)	 	100	%	213	 	0.61	 	4	 	43,756	 	0.72	 	1,016	 	43,969	 	0.72	 	1,020	 	
Total	 	 	 	41,458	 	1.89	 	2,520	 	226,895	 	2.39	 	17,423	 	268,353	 	2.31	 	19,943	 	

SILVER	 	OWNERSHIP	 	000 tonnes	 	g/t	 	000 oz Ag	 	000 tonnes	 	g/t	 	000 oz Ag	 	000 tonnes	 	g/t	 	000 oz Ag	 	
LaRonde (underground)	 	100	%	5,833	 	18.31	 	3,434	 	11,758	 	19.56	 	7,393	 	17,591	 	19.14	 	10,827	 	
Pinos Altos (open pit)	 	 	 	180	 	67.77	 	393	 	2,525	 	59.81	 	4,856	 	2,705	 	60.34	 	5,249	 	
Pinos Altos (underground)	 	 	 	3,331	 	75.26	 	8,061	 	11,364	 	67.92	 	24,817	 	14,696	 	69.59	 	32,878	 	
Pinos Altos Total	 	100	%	3,512	 	74.88	 	8,454	 	13,889	 	66.45	 	29,673	 	17,401	 	68.15	 	38,127	 	
Creston Mascota (open pit)	 	100	%	65	 	8.07	 	17	 	2,426	 	11.44	 	892	 	2,491	 	11.35	 	909	 	
La India (open pit)	 	100	%	213	 	14.67	 	100	 	43,756	 	2.57	 	3,615	 	43,969	 	2.63	 	3,716	 	
Total	 	 	 	—	 	—	 	12,006	 	—	 	—	 	41,573	 	—	 	—	 	53,579	 	

COPPER	 	OWNERSHIP	 	000 tonnes	 	%	 	tonnes Cu	 	000 tonnes	 	%	 	tonnes Cu	 	000 tonnes	 	%	 	tonnes Cu	 	
LaRonde (underground)	 	100	%	5,833	 	0.24	 	13,736	 	11,758	 	0.24	 	28,589	 	17,591	 	0.24	 	42,325	 	
Akasaba West (open pit)	 	100	%	—	 	—	 	—	 	4,942	 	0.50	 	24,851	 	4,942	 	0.50	 	24,851	 	
Upper Beaver (underground)	 	50	%	—	 	—	 	—	 	3,996	 	0.25	 	9,990	 	 	 	 	 	 	 	
Total	 	 	 	—	 	—	 	13,736	 	—	 	—	 	63,430	 	—	 	—	 	77,166	 	

ZINC	 	OWNERSHIP	 	000 tonnes	 	%	 	tonnes Zn	 	000 tonnes	 	%	 	tonnes Zn	 	000 tonnes	 	%	 	tonnes Zn	 	
LaRonde (underground)	 	100	%	5,833	 	0.41	 	23,706	 	11,758	 	1.10	 	128,864	 	17,591	 	0.87	 	152,569	 	
Total	 	 	 	—	 	—	 	23,706	 	—	 	—	 	128,864	 	—	 	—	 	152,569	 	
 
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OPERATIONS	 	MINERAL RESOURCES	 	
 	 	 	 	
 	 	 	 	MEASURED	 	INDICATED	 	MEASURED AND INDICATED	 	INFERRED	 	
GOLD	 	OWNERSHIP	 	000 tonnes	 	g/t	 	000 oz Au	 	000 tonnes	 	g/t	 	000 oz Au	 	000 tonnes	 	g/t	 	000 oz Au	 	000 tonnes	 	g/t	 	000 oz Au	 	
LaRonde (underground)	 	100	%	—	 	—	 	—	 	5,688	 	3.27	 	598	 	5,688	 	3.27	 	598	 	7,701	 	6.68	 	1,655	 	
LaRonde Zone 5 (underground)	 	100	%	—	 	—	 	—	 	8,897	 	2.49	 	712	 	8,897	 	2.49	 	712	 	2,873	 	5.28	 	488	 	
Ellison (underground)	 	100	%	—	 	—	 	—	 	653	 	3.25	 	68	 	653	 	3.25	 	68	 	2,346	 	3.41	 	257	 	
Canadian Malartic (open pit)	 	50	%	2,001	 	1.34	 	86	 	11,121	 	1.56	 	559	 	13,122	 	1.53	 	644	 	4,599	 	1.46	 	216	 	
Odyssey (underground)	 	50	%	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	10,343	 	2.15	 	714	 	
Goldex (underground)	 	100	%	12,360	 	1.86	 	739	 	17,949	 	1.80	 	1,038	 	30,309	 	1.82	 	1,777	 	21,882	 	1.60	 	1,129	 	
Akasaba West (open pit)	 	100	%	—	 	—	 	—	 	2,484	 	0.66	 	53	 	2,484	 	0.66	 	53	 	—	 	—	 	—	 	
Lapa (underground)	 	100	%	85	 	5.29	 	14	 	693	 	4.09	 	91	 	778	 	4.22	 	105	 	652	 	7.55	 	158	 	
Zulapa (open pit)	 	100	%	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	391	 	3.14	 	39	 	
Swanson (open pit)	 	100	%	—	 	—	 	—	 	504	 	1.93	 	31	 	504	 	1.93	 	31	 	—	 	—	 	—	 	
Meadowbank (open pit)	 	100	%	587	 	1.00	 	19	 	3,099	 	2.28	 	227	 	3,686	 	2.07	 	246	 	1,142	 	3.13	 	115	 	
Amaruq (open pit)	 	 	 	—	 	—	 	—	 	16,925	 	3.88	 	2,109	 	16,925	 	3.88	 	2,109	 	4,931	 	4.81	 	763	 	
Amaruq (underground)	 	 	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	6,814	 	6.22	 	1,362	 	
Amaruq Total	 	100	%	—	 	—	 	—	 	16,925	 	3.88	 	2,109	 	16,925	 	3.88	 	2,109	 	11,745	 	5.63	 	2,125	 	
Meliadine (open pit)	 	 	 	—	 	—	 	—	 	7,867	 	4.24	 	1,072	 	7,867	 	4.24	 	1,072	 	1,054	 	5.35	 	181	 	
Meliadine (underground)	 	 	 	—	 	—	 	—	 	12,911	 	5.38	 	2,234	 	12,911	 	5.38	 	2,234	 	13,656	 	7.68	 	3,371	 	
Meliadine Total	 	100	%	—	 	—	 	—	 	20,778	 	4.95	 	3,306	 	20,778	 	4.95	 	3,306	 	14,710	 	7.51	 	3,552	 	
Hammond Reef (open pit)	 	50	%	82,831	 	0.70	 	1,862	 	21,377	 	0.57	 	389	 	104,208	 	0.67	 	2,251	 	251	 	0.74	 	6	 	
Upper Beaver (underground)	 	50	%	—	 	—	 	—	 	1,818	 	3.45	 	202	 	1,818	 	3.45	 	202	 	4,344	 	5.07	 	708	 	
AK (underground)	 	50	%	—	 	—	 	—	 	634	 	6.51	 	133	 	634	 	6.51	 	133	 	1,187	 	5.32	 	203	 	
Anoki/McBean (underground)	 	50	%	—	 	—	 	—	 	934	 	5.33	 	160	 	934	 	5.33	 	160	 	1,263	 	4.70	 	191	 	
Kittila (open pit)	 	 	 	—	 	—	 	—	 	229	 	3.41	 	25	 	229	 	3.41	 	25	 	373	 	3.89	 	47	 	
Kittila (underground)	 	 	 	1,607	 	2.45	 	127	 	18,885	 	2.95	 	1,794	 	20,492	 	2.91	 	1,920	 	10,686	 	4.06	 	1,395	 	
Kittila Total	 	100	%	1,607	 	2.45	 	127	 	19,114	 	2.96	 	1,819	 	20,721	 	2.92	 	1,946	 	11,059	 	4.05	 	1,442	 	
Kuotko, Finland (open pit)	 	100	%	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	396	 	2.88	 	37	 	
Kylmäkangas, Finland (underground)	 	100	%	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	1,896	 	4.11	 	250	 	
Barsele, Sweden (open pit)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,057	 	1.02	 	133	 	
Barsele, Sweden (underground)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7,887	 	2.08	 	528	 	
Barsele Total	 	55	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	11,944	 	1.72	 	661	 	
Pinos Altos (open pit)	 	 	 	—	 	—	 	—	 	236	 	1.07	 	8	 	236	 	1.07	 	8	 	5,984	 	0.61	 	117	 	
Pinos Altos (underground)	 	 	 	—	 	—	 	—	 	13,751	 	1.63	 	721	 	13,751	 	1.63	 	721	 	3,241	 	2.52	 	262	 	
Pinos Altos Total	 	100	%	—	 	—	 	—	 	13,988	 	1.62	 	730	 	13,988	 	1.62	 	730	 	9,225	 	1.28	 	380	 	
Creston Mascota (open pit)	 	100	%	—	 	—	 	—	 	4,292	 	1.01	 	139	 	4,292	 	1.01	 	139	 	1,332	 	0.72	 	31	 	
La India (open pit)	 	100	%	11,127	 	0.24	 	85	 	63,081	 	0.39	 	783	 	74,208	 	0.36	 	869	 	92,631	 	0.38	 	1,132	 	
El Barqueno (open pit)	 	100	%	—	 	—	 	—	 	8,469	 	1.11	 	301	 	8,469	 	1.11	 	301	 	7,210	 	1.56	 	362	 	
Total	 	 	 	110,598	 	0.82	 	2,933	 	222,497	 	1.88	 	13,446	 	333,095	 	1.53	 	16,378	 	221,119	 	2.23	 	15,850	 	

SILVER	 	OWNERSHIP	 	000 tonnes	 	g/t	 	000 oz Ag	 	000 tonnes	 	g/t	 	000 oz Ag	 	000 tonnes	 	g/t	 	000 oz Ag	 	000 tonnes	 	g/t	 	000 oz Ag	 	
LaRonde (underground)	 	100	%	—	 	—	 	—	 	5,688	 	20.51	 	3,751	 	5,688	 	20.51	 	3,751	 	7,701	 	14.48	 	3,584	 	
Kylmäkangas, Finland (underground)	 	100	%	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	1,896	 	31.11	 	1,896	 	
Pinos Altos (open pit)	 	 	 	—	 	—	 	—	 	236	 	20.40	 	155	 	236	 	20.40	 	155	 	5,984	 	20.94	 	4,029	 	
Pinos Altos (underground)	 	 	 	—	 	—	 	—	 	13,751	 	40.57	 	17,935	 	13,751	 	40.57	 	17,935	 	3,241	 	41.87	 	4,363	 	
Pinos Altos Total	 	100	%	—	 	—	 	—	 	13,988	 	40.22	 	18,090	 	13,988	 	40.22	 	18,090	 	9,225	 	28.30	 	8,392	 	
Creston Mascota (open pit)	 	100	%	—	 	—	 	—	 	4,292	 	16.98	 	2,343	 	4,292	 	16.98	 	2,343	 	1,332	 	11.54	 	494	 	
La India (open pit)	 	100	%	11,127	 	2.37	 	847	 	63,081	 	0.70	 	1,421	 	74,208	 	0.95	 	2,267	 	92,631	 	0.39	 	1,153	 	
El Barqueno (open pit)	 	100	%	—	 	—	 	—	 	8,469	 	4.35	 	1,183	 	8,469	 	4.35	 	1,183	 	7,210	 	4.50	 	1,043	 	
Total	 	 	 	—	 	—	 	847	 	—	 	—	 	26,787	 	—	 	—	 	27,634	 	—	 	—	 	16,561	 	

COPPER	 	OWNERSHIP	 	000 tonnes	 	%	 	tonnes Cu	 	000 tonnes	 	%	 	tonnes Cu	 	000 tonnes	 	%	 	tonnes Cu	 	000 tonnes	 	%	 	tonnes Cu	 	
LaRonde (underground)	 	100	%	—	 	—	 	—	 	5,688	 	0.21	 	11,676	 	5,688	 	0.21	 	11,676	 	7,701	 	0.25	 	19,589	 	
Akasaba West (open pit)	 	100	%	—	 	—	 	—	 	2,484	 	0.40	 	9,941	 	2,484	 	0.40	 	9,941	 	—	 	—	 	—	 	
Upper Beaver (underground)	 	50	%	—	 	—	 	—	 	1,818	 	0.14	 	2,567	 	1,818	 	0.14	 	2,567	 	4,344	 	0.20	 	8,642	 	
Total	 	 	 	—	 	—	 	—	 	—	 	—	 	24,184	 	—	 	—	 	24,184	 	—	 	—	 	28,231	 	

ZINC	 	OWNERSHIP	 	000 tonnes	 	%	 	tonnes Zn	 	000 tonnes	 	%	 	tonnes Zn	 	000 tonnes	 	%	 	tonnes Zn	 	000 tonnes	 	%	 	tonnes Zn	 	
LaRonde (underground)	 	100	%	—	 	—	 	—	 	5,688	 	0.93	 	52,850	 	5,688	 	0.93	 	52,850	 	7,701	 	0.60	 	46,358	 	
Total	 	 	 	—	 	—	 	—	 	—	 	—	 	52,850	 	—	 	—	 	52,850	 	—	 	—	 	46,358	 	
 
Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest thousand, so aggregate amounts may differ from column totals.
 
Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce.  Agnico Eagle reports mineral reserve and mineral resource estimates in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Best Practice Guidelines for Exploration and Best Practice Guidelines for Estimation of Mineral Resources and Mineral Reserves , in accordance with NI 43-101.  These standards are similar to those used by the SEC’s Industry Guide No. 7, as interpreted by Staff at the SEC (“Guide 7”).  However, the definitions in NI 43-101 differ in certain respects from those under Guide 7.  Accordingly, mineral reserve information contained herein may not be comparable to similar information disclosed by U.S. companies.  Under the requirements of the SEC, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization
 
65 

 
could be economically and legally produced or extracted at the time the reserve determination is made.  A “final” or “bankable” feasibility study is required to meet the requirements to designate mineral reserves under Industry Guide 7.  Agnico Eagle uses certain terms in this news release, such as “measured”, “indicated”, “inferred” and “resources” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.
 
In prior periods, mineral reserves for all properties were typically estimated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC guidelines.  These guidelines require the use of prices that reflect current economic conditions at the time of mineral reserve determination, which the Staff of the SEC has interpreted to mean historic three-year average prices.  Given the current commodity price environment, Agnico Eagle has decided to use price assumptions that are below the three-year averages.
 
The assumptions used for the December 2016 mineral reserves estimate at all longer life mines and advanced projects reported by the Company (other than the Meliadine project, the Canadian Malartic mine and the Upper Beaver project) were $1,150 per ounce gold, $16.50 per ounce silver, $0.95 per pound zinc, $2.15 per pound copper and foreign exchange rates of C$1.20 per $1.00, 16.00 Mexican pesos per $1.00 and $1.15 per €1.00 for all mines and projects other than the Lapa and Meadowbank mines in Canada, and the Creston Mascota mine and Santo Niño pit at the Pinos Altos mine in Mexico; due to the shorter remaining mine life for the Lapa and Meadowbank mines in Canada, and the Creston Mascota mine and Santo Niño pit at the Pinos Altos mine in Mexico, the foreign exchange rates used were C$1.30 per $1.00 and 16.00 Mexican pesos per $1.00 (other assumptions unchanged).  At the Meliadine project, the same assumptions at December 2015 were used to estimate the December 2016 mineral reserves, which were $1,100 per ounce gold and an foreign exchange rate of C$1.16 per $1.00.
 
The Canadian Malartic General Partnership (the “Partnership”), owned by Agnico Eagle (50%) and Yamana Gold Inc. (“Yamana”) (50%), which owns and operates the Canadian Malartic mine, and the Canadian Malartic Corporation (“CMC”), owned by Agnico Eagle (50%) and Yamana (50%), which owns and manages the Upper Beaver project in Kirkland Lake, have estimated the December 2016 mineral reserves of the Canadian Malartic mine and the Upper Beaver project using the following assumptions: $1,200 per ounce gold; a cut-off grade at the Canadian Malartic mine between 0.33 g/t and 0.37 g/t gold (depending on the deposit); a C$125/tonne net smelter return (NSR) for the Upper Beaver project; and an foreign exchange rate of C$1.25 per $1.00.
 
NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.
 
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource.  It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility
 
66 

 
or feasibility level as appropriate that include application of modifying factors.  Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.  The mineral reserves presented in this news release are separate from and not a portion of the mineral resources.
 
Modifying factors are considerations used to convert mineral resources to mineral reserves.  These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
 
A proven mineral reserve is the economically mineable part of a measured mineral resource.  A proven mineral reserve implies a high degree of confidence in the modifying factors.  A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource.  The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
 
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction.  The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
 
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit.  Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.  An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.  Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.  An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
 
Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
 
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors, together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of
 
67 

 
reporting, that extraction is reasonably justified (economically mineable).  The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project.  The confidence level of the study will be higher than that of a pre-feasibility study.
 
Additional Information
 
Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d) can be found in Technical Reports, which may be found at www.sedar.com.  Other important operating information can be found in the Company’s AIF, MD&A and Form 40-F.

Property/Project name
and location	 	Date of most recent
Technical Report (NI
43-101) filed on
SEDAR	
LaRonde, Bousquet &	 	March 23, 2005	
Ellison, Quebec, Canada	 	 	
Canadian Malartic, Quebec, Canada	 	June 16, 2014	
Kittila, Kuotko and	 	March 4, 2010	
Kylmakangas, Finland	 	 	
Meadowbank, Nunavut, Canada	 	February 15, 2012	
Goldex, Quebec, Canada	 	October 14, 2012	
Lapa, Quebec, Canada	 	June 8, 2006	
Meliadine, Nunavut, Canada	 	February 11, 2015	
Hammond Reef, Ontario, Canada	 	July 2, 2013	
Upper Beaver (Kirkland Lake property), Ontario, Canada	 	November 5, 2012	
Pinos Altos and Creston Mascota, Mexico	 	March 25, 2009	
La India, Mexico	 	August 31, 2012	
 
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AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
(Unaudited)

 	 	Three Months Ended
December 31,	 	Year Ended
December 31,	 	
 	 	2016	 	2015	 	2016	 	2015	 	
 	 	 	 	 	 	 	 	 	 	
Operating margin (i)  by mine:	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	$	44,058	 	$	50,667	 	$	208,684	 	$	145,924	 	
Lapa mine	 	3,762	 	12,363	 	39,186	 	52,214	 	
Goldex mine	 	13,506	 	17,108	 	86,420	 	72,567	 	
Meadowbank mine	 	50,807	 	64,664	 	165,060	 	216,334	 	
Canadian Malartic mine (ii)	 	40,430	 	38,059	 	188,285	 	161,807	 	
Kittila mine	 	27,596	 	15,174	 	110,475	 	80,262	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	34,909	 	29,327	 	179,820	 	145,734	 	
Creston Mascota deposit at Pinos Altos	 	6,470	 	9,919	 	35,626	 	40,194	 	
La India mine	 	22,560	 	15,832	 	92,784	 	75,101	 	
Total operating margin (i)	 	244,098	 	253,113	 	1,106,340	 	990,137	 	
Gain on impairment reversal	 	(120,161	)	—	 	(120,161	)	—	 	
Amortization of property, plant and mine development	 	151,399	 	157,129	 	613,160	 	608,609	 	
Exploration, corporate and other	 	97,447	 	76,963	 	344,880	 	298,900	 	
Income before income and mining taxes	 	115,413	 	19,021	 	268,461	 	82,628	 	
Income and mining taxes	 	52,759	 	34,558	 	109,637	 	58,045	 	
Net income (loss) for the period	 	$	62,654	 	$	(15,537	)	$	158,824	 	$	24,583	 	
Net income (loss) per share — basic (US$)	 	$	0.28	 	$	(0.07	)	$	0.71	 	$	0.11	 	
Net income (loss) per share — diluted (US$)	 	$	0.28	 	$	(0.07	)	$	0.70	 	$	0.11	 	
Cash flows:	 	 	 	 	 	 	 	 	 	
Cash provided by operating activities	 	$	120,601	 	$	140,747	 	$	778,617	 	$	616,238	 	
Cash used in investing activities	 	$	(180,543	)	$	(115,786	)	$	(553,490	)	$	(374,519	)	
Cash (used in) provided by financing activities	 	$	(19,360	)	$	(100,460	)	$	190,386	 	$	(280,760	)	
Realized prices (US$):	 	 	 	 	 	 	 	 	 	
Gold (per ounce)	 	$	1,196	 	$	1,094	 	$	1,249	 	$	1,156	 	
Silver (per ounce)	 	$	16.76	 	$	14.56	 	$	17.28	 	$	15.63	 	
Zinc (per tonne)	 	$	2,346	 	$	1,602	 	$	2,047	 	$	1,875	 	
Copper (per tonne)	 	$	5,578	 	$	4,568	 	$	4,827	 	$	5,023	 	
Payable production (iii) :	 	 	 	 	 	 	 	 	 	
Gold (ounces):	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	83,508	 	73,161	 	305,788	 	267,921	 	
Lapa mine	 	14,065	 	19,929	 	73,930	 	90,967	 	
Goldex mine	 	24,170	 	27,646	 	120,704	 	115,426	 	
Meadowbank mine	 	94,770	 	102,580	 	312,214	 	381,804	 	
Canadian Malartic mine (ii)	 	69,971	 	72,872	 	292,514	 	285,809	 	
Kittila mine	 	53,337	 	44,279	 	202,508	 	177,374	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	46,685	 	44,496	 	192,772	 	192,974	 	
Creston Mascota deposit at Pinos Altos	 	11,213	 	13,933	 	47,296	 	54,703	 	
La India mine	 	28,714	 	23,432	 	115,162	 	104,362	 	
Total gold (ounces)	 	426,433	 	422,328	 	1,662,888	 	1,671,340	 	
Silver (thousands of ounces):	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	272	 	296	 	988	 	916	 	
Lapa mine	 	1	 	1	 	5	 	4	 	
Goldex mine	 	—	 	—	 	1	 	—	 	
Meadowbank mine	 	54	 	29	 	221	 	221	 	
Canadian Malartic mine (ii)	 	80	 	83	 	340	 	300	 	
Kittila mine	 	3	 	4	 	12	 	11	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	642	 	640	 	2,505	 	2,384	 	
Creston Mascota deposit at Pinos Altos	 	49	 	50	 	201	 	159	 	
La India mine	 	138	 	55	 	486	 	263	 	
Total silver (thousands of ounces)	 	1,239	 	1,158	 	4,759	 	4,258	 	
Zinc (tonnes)	 	1,745	 	999	 	4,687	 	3,501	 	
Copper (tonnes)	 	944	 	1,335	 	4,416	 	4,941	 	
 
69 

 

Payable metal sold:	 	 	 	 	 	 	 	 	 	
Gold (ounces):	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	67,803	 	65,067	 	293,161	 	254,529	 	
Lapa mine	 	14,621	 	23,278	 	74,219	 	90,877	 	
Goldex mine	 	24,059	 	27,875	 	119,894	 	116,092	 	
Meadowbank mine	 	85,318	 	103,667	 	305,638	 	385,757	 	
Canadian Malartic mine (ii)(iv)	 	67,900	 	71,982	 	278,194	 	271,416	 	
Kittila mine	 	51,687	 	43,499	 	202,702	 	178,936	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	43,410	 	41,418	 	199,462	 	186,580	 	
Creston Mascota deposit at Pinos Altos	 	11,695	 	14,997	 	48,312	 	55,844	 	
La India mine	 	29,320	 	25,366	 	109,283	 	105,050	 	
Total gold (ounces)	 	395,813	 	417,149	 	1,630,865	 	1,645,081	 	
Silver (thousands of ounces):	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	257	 	308	 	981	 	958	 	
Lapa mine	 	1	 	—	 	2	 	—	 	
Goldex mine	 	—	 	—	 	1	 	—	 	
Meadowbank mine	 	59	 	32	 	222	 	225	 	
Canadian Malartic mine (ii)(iv)	 	76	 	98	 	312	 	285	 	
Kittila mine	 	3	 	3	 	11	 	10	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	598	 	607	 	2,587	 	2,289	 	
Creston Mascota deposit at Pinos Altos	 	59	 	49	 	193	 	156	 	
La India mine	 	151	 	56	 	452	 	261	 	
Total silver (thousands of ounces)	 	1,204	 	1,153	 	4,761	 	4,184	 	
Zinc (tonnes)	 	902	 	949	 	3,554	 	3,596	 	
Copper (tonnes)	 	1,001	 	1,354	 	4,522	 	4,947	 	
 	 	 	 	 	 	 	 	 	 	
Total cash costs per ounce of gold produced - co-product basis (US$) (v) :	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	$	589	 	$	668	 	$	668	 	$	760	 	
Lapa mine	 	935	 	622	 	732	 	591	 	
Goldex mine	 	657	 	513	 	532	 	538	 	
Meadowbank mine	 	589	 	530	 	727	 	623	 	
Canadian Malartic mine (ii)	 	655	 	623	 	626	 	613	 	
Kittila mine	 	665	 	748	 	700	 	710	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	616	 	623	 	585	 	578	 	
Creston Mascota deposit at Pinos Altos	 	708	 	496	 	588	 	474	 	
La India mine	 	515	 	518	 	468	 	475	 	
Weighted average total cash costs per ounce of gold produced	 	$	626	 	$	604	 	$	643	 	$	626	 	
 	 	 	 	 	 	 	 	 	 	
Total cash costs per ounce of gold produced - by-product basis (US$) (v) :	 	 	 	 	 	 	 	 	 	
Northern Business	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	$	405	 	$	510	 	$	501	 	$	590	 	
Lapa mine	 	935	 	620	 	732	 	590	 	
Goldex mine	 	657	 	513	 	532	 	538	 	
Meadowbank mine	 	579	 	526	 	715	 	613	 	
Canadian Malartic mine (ii)	 	634	 	606	 	606	 	596	 	
Kittila mine	 	664	 	747	 	699	 	709	 	
Southern Business	 	 	 	 	 	 	 	 	 	
Pinos Altos mine	 	390	 	417	 	356	 	387	 	
Creston Mascota deposit at Pinos Altos	 	649	 	445	 	516	 	430	 	
La India mine	 	437	 	485	 	395	 	436	 	
Weighted average total cash costs per ounce of gold produced	 	$	552	 	$	547	 	$	573	 	$	567	 	

Notes:
 
(i)              Operating margin is calculated as revenues from mining operations less production costs.
 
(ii)           On June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by way of a statutory plan of arrangement (the “Arrangement”). As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of CMC and the Partnership, which now holds the Canadian Malartic mine. The information set out in this table reflects the Company’s 50.0% interest in the Canadian Malartic mine.
 
70 

 
(iii)        Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period.
 
(iv)       The Canadian Malartic mine’s payable metal sold excludes the 5.0% net smelter royalty transferred to Osisko Gold Royalties Ltd., pursuant to the Arrangement.
 
(v)          Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in theconsolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company’s mining operations. Management also uses these measures to monitor the performance of the Company’s mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine’s cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
 
71 

 
AGNICO EAGLE MINES LIMITED
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, except share amounts, IFRS basis)
(Unaudited)

 	 	As at December 31,
2016	 	As at December 31,
2015	 	
 	 	 	 	 	 	
ASSETS	 	 	 	 	 	
Current assets:	 	 	 	 	 	
Cash and cash equivalents	 	$	539,974	 	$	124,150	 	
Short-term investments	 	8,424	 	7,444	 	
Restricted cash	 	398	 	685	 	
Trade receivables	 	8,185	 	7,714	 	
Inventories	 	443,714	 	461,976	 	
Income taxes recoverable	 	—	 	817	 	
Available-for-sale securities	 	92,310	 	31,863	 	
Fair value of derivative financial instruments	 	364	 	87	 	
Other current assets	 	136,810	 	194,689	 	
Total current assets	 	1,230,179	 	829,425	 	
Non-current assets:	 	 	 	 	 	
Restricted cash	 	764	 	741	 	
Goodwill	 	696,809	 	696,809	 	
Property, plant and mine development	 	5,106,036	 	5,088,967	 	
Other assets	 	74,163	 	67,238	 	
Total assets	 	$	7,107,951	 	$	6,683,180	 	
LIABILITIES AND EQUITY	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	
Accounts payable and accrued liabilities	 	$	228,566	 	$	243,786	 	
Reclamation provision	 	9,193	 	6,245	 	
Interest payable	 	14,242	 	14,526	 	
Income taxes payable	 	35,070	 	14,852	 	
Finance lease obligations	 	5,535	 	9,589	 	
Current portion of long-term debt	 	129,896	 	14,451	 	
Fair value of derivative financial instruments	 	1,120	 	8,073	 	
Total current liabilities	 	423,622	 	311,522	 	
Non-current liabilities:	 	 	 	 	 	
Long-term debt	 	1,072,790	 	1,118,187	 	
Reclamation provision	 	265,308	 	276,299	 	
Deferred income and mining tax liabilities	 	819,562	 	802,114	 	
Other liabilities	 	34,195	 	34,038	 	
Total liabilities	 	2,615,477	 	2,542,160	 	
EQUITY	 	 	 	 	 	
Common shares:	 	 	 	 	 	
Outstanding — 225,465,654 common shares issued, less 500,514 shares held in trust	 	4,987,694	 	4,707,940	 	
Stock options	 	179,852	 	216,232	 	
Contributed surplus	 	37,254	 	37,254	 	
Deficit	 	(744,453	)	(823,734	)	
Accumulated other comprehensive income	 	32,127	 	3,328	 	
Total equity	 	4,492,474	 	4,141,020	 	
Total liabilities and equity	 	$	7,107,951	 	$	6,683,180	 	
 
72 

 
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(thousands of United States dollars, IFRS basis, except per share amounts)
(Unaudited)

 	 	Three Months Ended
December 31,	 	Year Ended
December 31,	 	
 	 	2016	 	2015	 	2016	 	2015	 	
REVENUES	 	 	 	 	 	 	 	 	 	
Revenues from mining operations	 	$	499,210	 	$	482,932	 	$	2,138,232	 	$	1,985,432	 	
COSTS, EXPENSES AND OTHER INCOME	 	 	 	 	 	 	 	 	 	
Productional (i)	 	255,112	 	229,819	 	1,031,892	 	995,295	 	
Exploration and corporate development	 	35,846	 	26,001	 	146,978	 	110,353	 	
Amortization of property, plant and mine development	 	151,399	 	157,129	 	613,160	 	608,609	 	
General and administrative	 	32,147	 	22,505	 	102,781	 	96,973	 	
Impairment loss on available-for-sale securities	 	—	 	3,929	 	—	 	12,035	 	
Finance costs	 	19,795	 	17,887	 	74,641	 	75,228	 	
(Gain) loss on derivative financial instruments	 	(9	)	3,318	 	(9,468	)	19,608	 	
Gain on sale of available-for-sale securities	 	—	 	(1	)	(3,500	)	(24,600	)	
Environmental remediation	 	(1,597	)	1,666	 	4,058	 	2,003	 	
Gain on impairment reversal	 	(120,161	)	—	 	(120,161	)	—	 	
Foreign currency translation (gain) loss	 	(1,661	)	1,281	 	13,157	 	(4,728	)	
Other expenses	 	12,926	 	377	 	16,233	 	12,028	 	
Income before income and mining taxes	 	115,413	 	19,021	 	268,461	 	82,628	 	
Income and mining taxes expense	 	52,759	 	34,558	 	109,637	 	58,045	 	
Net income (loss) for the period	 	$	62,654	 	$	(15,537	)	$	158,824	 	$	24,583	 	
Net income (loss) per share -basic	 	$	0.28	 	$	(0.07	)	$	0.71	 	$	0.11	 	
Net income (loss) per share - diluted	 	$	0.28	 	$	(0.07	)	$	0.70	 	$	0.11	 	
Weighted average number of common shares outstanding (in thousands):	 	 	 	 	 	 	 	 	 	
Basic	 	224,785	 	217,484	 	222,737	 	216,168	 	
Diluted	 	227,444	 	217,484	 	225,754	 	217,101	 	

Note:
(i)  Exclusive of amortization, which is shown separately.
 
73 

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

 	 	Three Months Ended
December 31.	 	Year Ended
December 31,	 	
 	 	2016	 	2015	 	2016	 	2015	 	
OPERATING ACTIVITIES	 	 	 	 	 	 	 	 	 	
Net income (loss) for the period	 	$	 62,654	 	$	 (15,537	)	$	 158,824	 	$	 24,583	 	
Add (deduct) items not affecting cash:	 	 	 	 	 	 	 	 	 	
Amortization of property, plant and mine development	 	151,399	 	157,129	 	613,160	 	608,609	 	
Deferred income and mining taxes	 	9,678	 	(36,853	)	7,609	 	6,550	 	
Gain on sale of available-for-sale securities	 	—	 	(1	)	(3,500	)	(24,600	)	
Stock-based compensation	 	8,731	 	7,045	 	33,804	 	35,822	 	
Impairment loss on available-for-sale securities	 	—	 	3,929	 	—	 	12,035	 	
Gain on impairment reversal	 	(120,161	)	—	 	(120,161	)	—	 	
Foreign currency translation (gain) loss	 	(1,661	)	1,281	 	13,157	 	(4,728	)	
Other	 	10,413	 	(3,862	)	14,012	 	3,145	 	
Adjustment for settlement of reclamation provision	 	(788	)	(533	)	(2,719	)	(1385	)	
Changes in non-cash working capital balances:	 	 	 	 	 	 	 	 	 	
Trade receivables	 	(286	)	(1,815	)	(471	)	52,019	 	
Income taxes	 	26,433	 	64,315	 	28,082	 	(2,333	)	
Inventories	 	(12	)	8,928	 	20,355	 	(40,547	)	
Other current assets	 	32,583	 	(25,322	)	53,009	 	(74,106	)	
Accounts payable and accrued liabilities	 	(46,950	)	(11,348	)	(35,408	)	20,464	 	
Interest payable	 	(11,432	)	(6,609	)	(1,136	)	710	 	
Cash provided by operating activities	 	120,601	 	140,747	 	778,617	 	616,238	 	
 	 	 	 	 	 	 	 	 	 	
INVESTING ACTIVITIES	 	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	(166,567	)	(132,958	)	(516,050	)	(449,758	)	
Acquisitions, net of cash and cash equivalents acquired	 	—	 	—	 	(12,434	)	(12,983	)	
Net sales (purchases) of short-term investments	 	378	 	(1,300	)	(980	)	(2,823	)	
Net proceeds from sale of available-for-sale securities and other investments	 	—	 	40	 	9,461	 	61,075	 	
Purchases of available-for-sale securities and other investments	 	(14,408	)	(382	)	(33,774	)	(19,815	)	
Decrease in restricted cash	 	54	 	18,814	 	287	 	49,785	 	
Cash used in investing activities	 	(180,543	)	(115,786	)	(553,490	)	(374,519	)	
 	 	 	 	 	 	 	 	 	 	
FINANCING ACTIVITIES	 	 	 	 	 	 	 	 	 	
Dividends paid	 	(20,281	)	(14,940	)	(71,375	)	(59,512	)	
Repayment of finance lease obligations	 	(2,375	)	(6,122	)	(10,004	)	(23,657	)	
Proceeds from long-term debt	 	—	 	111,000	 	125,000	 	436,000	 	
Repayment of long-term debt	 	—	 	(196,000	)	(405,374	)	(697,086	)	
Notes issuance	 	—	 	—	 	350,000	 	50,000	 	
Long-term debt financing	 	(920	)	(196	)	(3,415	)	(1,689	)	
Repurchase of common shares for stock-based compensation plans	 	(34	)	—	 	(15,576	)	(11,899	)	
Proceeds on exercise of stock options	 	1,552	 	3,662	 	192,103	 	17,672	 	
Common shares issued	 	2,698	 	2,136	 	29,027	 	9,411	 	
Cash (used in) provided by financing activities	 	(19,360	)	(100,460	)	190,386	 	(280,760	)	
Effect of exchange rate changes on cash and cash equivalents	 	715	 	(2,315	)	311	 	(14,346	)	
Net (decrease) increase in cash and cash equivalents during the period	 	(78,587	)	(77,814	)	415,824	 	(53,387	)	
Cash and cash equivalents, beginning of period	 	618,561	 	201,964	 	124,150	 	177,537	 	
Cash and cash equivalents, end of period	 	$	 539,974	 	$	 124,150	 	$	 539,974	 	$	 124,150	 	
 	 	 	 	 	 	 	 	 	 	
SUPPLEMENTAL CASH FLOW INFORMATION	 	 	 	 	 	 	 	 	 	
Interest paid	 	$	 31,353	 	$	 23,158	 	$	 71,401	 	$	 69,414	 	
Income and mining taxes paid	 	$	 20,681	 	$	33,756	 	$	 105,184	 	$	 81,112	 	
 
74 

 
AGNICO EAGLE MINES LIMITED
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES
(thousands of United States dollars, except where noted)
(Unaudited)
 
Total Production Costs by Mine
(thousands of United States dollars)

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
 	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
 	 	 	 	 	 	 	 	 	 	
LaRonde mine	 	$	44,056	 	$	32,041	 	$	179,496	 	$	172,283	 	
Lapa mine	 	13,233	 	12,652	 	52,974	 	52,571	 	
Goldex mine	 	15,284	 	13,378	 	63,310	 	61,278	 	
Meadowbank mine	 	52,246	 	49,177	 	218,963	 	230,564	 	
Canadian Malartic mine (i)	 	46,930	 	46,093	 	183,635	 	171,473	 	
Kittila mine	 	34,352	 	32,203	 	141,871	 	126,095	 	
Pinos Altos mine	 	26,450	 	24,351	 	114,557	 	105,175	 	
Creston Mascota deposit at Pinos Altos	 	7,923	 	7,070	 	27,341	 	26,278	 	
La India mine	 	14,638	 	12,854	 	49,745	 	49,578	 	
Production costs per the consolidated statements of income (loss)	 	$	255,112	 	$	229,819	 	$	1,031,892	 	$	995,295	 	
 
Reconciliation of Production Costs to Per Ounce of Gold Produced Metrics(ii) by Mine and Reconciliation of Production Costs to Per Tonne Metrics(iii) by Mine
(thousands of United States dollars, except as noted)

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
LaRonde Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	83,508	 	 	 	73,161	 	 	 	305,788	 	 	 	267,921	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	44,056	 	$	528	 	$	32,041	 	$	438	 	$	179,496	 	$	587	 	$	172,283	 	$	643	 	
Inventory and other adjustments (iv )	 	5,171	 	61	 	16,847	 	230	 	24,914	 	81	 	31,417	 	117	 	
Cash operating costs (co-product basis)	 	$	49,227	 	$	589	 	$	48,888	 	$	668	 	$	204,410	 	$	668	 	$	203,700	 	$	760	 	
By-product metal revenues	 	(15,403	)	(184	)	(11,553	)	(158	)	(51,136	)	(167	)	(45,678	)	(170	)	
Cash operating costs (by-product basis)	 	$	33,824	 	$	405	 	$	37,335	 	$	510	 	$	153,274	 	$	501	 	$	158,022	 	$	590	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
LaRonde Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore milled (thousands of tonnes)	 	 	 	572	 	 	 	563	 	 	 	2,240	 	 	 	2,241	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	44,056	 	$	77	 	$	32,041	 	$	57	 	$	179,496	 	$	80	 	$	172,283	 	$	77	 	
Production costs (C$)	 	C$	57,302	 	C$	100	 	C$	49,807	 	C$	88	 	C$	237,934	 	C$	106	 	C$	218,649	 	C$	98	 	
Inventory and other adjustments (C$) (v )	 	(517	)	(1	)	3,312	 	6	 	(1,447	)	—	 	4,150	 	1	 	
Minesite operating costs (C$)	 	C$	56,785	 	C$	99	 	C$	53,119	 	C$	94	 	C$	236,487	 	C$	106	 	C$	222,799	 	C$	99	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Lapa Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	14,065	 	 	 	19,929	 	 	 	73,930	 	 	 	90,967	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	13,233	 	$	941	 	$	12,652	 	$	635	 	$	52,974	 	$	717	 	$	52,571	 	$	578	 	
Inventory and other adjustments (iv )	 	(82	)	(6	)	(247	)	(13	)	1,173	 	15	 	1,161	 	13	 	
Cash operating costs (co-product basis)	 	$	13,151	 	$	935	 	$	12,405	 	$	622	 	$	54,147	 	$	732	 	$	53,732	 	$	591	 	
By-product metal revenues	 	(6	)	—	 	(42	)	(2	)	(28	)	—	 	(62	)	(1	)	
Cash operating costs (by-product basis)	 	$	13,145	 	$	935	 	$	12,363	 	$	620	 	$	54,119	 	$	732	 	$	53,670	 	$	590	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Lapa Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore milled (thousands of tonnes)	 	 	 	130	 	 	 	136	 	 	 	593	 	 	 	560	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	13,233	 	$	102	 	$	12,652	 	$	93	 	$	52,974	 	$	89	 	$	52,571	 	$	94	 	
Production costs (C$)	 	C$	17,335	 	C$	133	 	C$	16,707	 	C$	123	 	C$	69,941	 	C$	118	 	C$	66,396	 	C$	119	 	
Inventory and other adjustments (C$) (v )	 	 	198	 	 	2	 	 	(1,631	)	 	(12	)	 	1,580	 	 	3	 	 	(710	)	 	(2	)	
Minesite operating costs (C$)	 	C$	17,533	 	C$	135	 	C$	15,076	 	C$	111	 	C$	71,521	 	C$	121	 	C$	65,686	 	C$	117	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Goldex Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	24,170	 	 	 	27,646	 	 	 	120,704	 	 	 	115,426	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	15,284	 	$	632	 	$	13,378	 	$	484	 	$	63,310	 	$	525	 	$	61,278	 	$	531	 	
Inventory and other adjustments (iv )	 	598	 	25	 	812	 	29	 	912	 	7	 	878	 	7	 	
Cash operating costs (co-product basis)	 	$	15,882	 	$	657	 	$	14,190	 	$	513	 	$	64,222	 	$	532	 	$	62,156	 	$	538	 	
By-product metal revenues	 	(5	)	—	 	(8	)	—	 	(26	)	—	 	(23	)	—	 	
Cash operating costs (by-product basis)	 	$	15,877	 	$	657	 	$	14,182	 	$	513	 	$	64,196	 	$	532	 	$	62,133	 	$	538	 	
 
75 

 

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Goldex Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore milled (thousands of tonnes)	 	 	 	580	 	 	 	572	 	 	 	2,545	 	 	 	2,313	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	15,284	 	$	26	 	$	13,378	 	$	23	 	$	63,310	 	$	25	 	$	61,278	 	$	26	 	
Production costs (C$)	 	C$	20,379	 	C$	35	 	C$	17,802	 	C$	31	 	C$	83,835	 	C$	33	 	C$	77,589	 	C$	34	 	
Inventory and other adjustments (C$) (v )	 	 	896	 	 	2	 	 	(197	)	 	—	 	 	1,231	 	 	—	 	 	(1,181	)	 	(1	)	
Minesite operating costs (C$)	 	C$	21,275	 	C$	37	 	C$	17,605	 	C$	31	 	C$	85,066	 	C$	33	 	C$	76,408	 	C$	33	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Meadowbank Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	94,770	 	 	 	102,580	 	 	 	312,214	 	 	 	381,804	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	52,246	 	$	551	 	$	49,177	 	$	479	 	$	218,963	 	$	701	 	$	230,564	 	$	604	 	
Inventory and other adjustments (iv )	 	3,608	 	38	 	5,194	 	51	 	8,105	 	26	 	7,282	 	19	 	
Cash operating costs (co-product basis)	 	$	55,854	 	$	589	 	$	54,371	 	$	530	 	$	227,068	 	$	727	 	$	237,846	 	$	623	 	
By-product metal revenues	 	(1,021	)	(10	)	(455	)	(4	)	(3,837	)	(12	)	(3,665	)	(10	)	
Cash operating costs (by-product basis)	 	$	54,833	 	$	579	 	$	53,916	 	$	526	 	$	223,231	 	$	715	 	$	234,181	 	$	613	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Meadowbank Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore milled (thousands of tonnes)	 	 	 	1,015	 	 	 	1,028	 	 	 	3,915	 	 	 	4,033	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	52,246	 	$	51	 	$	49,177	 	$	48	 	$	218,963	 	$	56	 	$	230,564	 	$	57	 	
Production costs (C$)	 	C$	67,309	 	C$	66	 	C$	64,289	 	C$	63	 	C$	284,748	 	C$	73	 	C$	285,023	 	C$	71	 	
Inventory and other adjustments (C$) (v )	 	5,371	 	6	 	 	(775	)	 	(1	)	 	5,681	 	 	1	 	 	(4,073	)	 	(1	)	
Minesite operating costs (C$)	 	C$	72,680	 	C$	72	 	C$	63,514	 	C$	62	 	C$	290,429	 	C$	74	 	C$	280,950	 	C$	70	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Canadian Malartic Mine(i)	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	69,971	 	 	 	72,872	 	 	 	292,514	 	 	 	285,809	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	46,930	 	$	671	 	$	46,093	 	$	633	 	$	183,635	 	$	628	 	$	171,473	 	$	600	 	
Inventory and other adjustments (iv )	 	(1,116	)	(16	)	(705	)	(10	)	(553	)	(2	)	3,630	 	13	 	
Cash operating costs (co-product basis)	 	$	45,814	 	$	655	 	$	45,388	 	$	623	 	$	183,082	 	$	626	 	$	175,103	 	$	613	 	
By-product metal revenues	 	(1,468	)	(21	)	(1,236	)	(17	)	(5,821	)	(20	)	(4,689	)	(17	)	
Cash operating costs (by-product basis)	 	$	44,346	 	$	634	 	$	44,152	 	$	606	 	$	177,261	 	$	606	 	$	170,414	 	$	596	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Canadian Malartic Mine(i)	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore milled (thousands of tonnes)	 	 	 	2,433	 	 	 	2,428	 	 	 	9,821	 	 	 	9,545	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	46,930	 	$	19	 	$	46,093	 	$	19	 	$	183,635	 	$	19	 	$	171,473	 	$	18	 	
Production costs (C$)	 	C$	66,395	 	C$	27	 	C$	61,602	 	C$	25	 	C$	244,333	 	C$	25	 	C$	219,346	 	C$	23	 	
Inventory and other adjustments (C$) (v )	 	 	(5,747	)	 	(2	)	 	(2,024	)	 	—	 	 	(3,399	)	 	—	 	 	368	 	 	—	 	
Minesite operating costs (C$)	 	C$	60,648	 	C$	25	 	C$	59,578	 	C$	25	 	C$	240,934	 	C$	25	 	C$	219,714	 	C$	23	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Kittila Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	53,337	 	 	 	44,279	 	 	 	202,508	 	 	 	177,374	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	34,352	 	$	644	 	$	32,203	 	$	727	 	$	141,871	 	$	701	 	$	126,095	 	$	711	 	
Inventory and other adjustments (iv )	 	1,101	 	21	 	901	 	21	 	(26	)	(1	)	(187	)	(1	)	
Cash operating costs (co-product basis)	 	$	35,453	 	$	665	 	$	33,104	 	$	748	 	$	141,845	 	$	700	 	$	125,908	 	$	710	 	
By-product metal revenues	 	(59	)	(1	)	(39	)	(1	)	(200	)	(1	)	(155	)	(1	)	
Cash operating costs (by-product basis)	 	$	35,394	 	$	664	 	$	33,065	 	$	747	 	$	141,645	 	$	699	 	$	125,753	 	$	709	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Kittila Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore milled (thousands of tonnes)	 	 	 	401	 	 	 	377	 	 	 	1,667	 	 	 	1,464	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	34,352	 	$	86	 	$	32,203	 	$	85	 	$	141,871	 	$	85	 	$	126,095	 	$	86	 	
Production costs (€)	 	€	32,221	 	€	80	 	€	29,176	 	€	77	 	€	128,599	 	€	77	 	€	112,285	 	€	77	 	
Inventory and other adjustments (€) (v )	 	1,011	 	3	 	984	 	3	 	(505	)	—	 	(956	)	(1	)	
Minesite operating costs (€)	 	€	33,232	 	€	83	 	€	30,160	 	€	80	 	€	128,094	 	€	77	 	€	111,329	 	€	76	 	
 
76 

 

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Pinos Altos Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	46,685	 	 	 	44,496	 	 	 	192,772	 	 	 	192,974	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	26,450	 	$	567	 	$	24,351	 	$	547	 	$	114,557	 	$	594	 	$	105,175	 	$	545	 	
Inventory and other adjustments (iv )	 	2,285	 	49	 	3,374	 	76	 	(1,840	)	(9	)	6,458	 	33	 	
Cash operating costs (co-product basis)	 	$	28,735	 	$	616	 	$	27,725	 	$	623	 	$	112,717	 	$	585	 	$	111,633	 	$	578	 	
By-product metal revenues	 	(10,532	)	(226	)	(9,188	)	(206	)	(44,118	)	(229	)	(37,030	)	(191	)	
Cash operating costs (by-product basis)	 	$	18,203	 	$	390	 	$	18,537	 	$	417	 	$	68,599	 	$	356	 	$	74,603	 	$	387	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Pinos Altos Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore processed (thousands of tonnes)	 	 	 	556	 	 	 	600	 	 	 	2,260	 	 	 	2,378	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	26,450	 	$	48	 	$	24,351	 	$	41	 	$	114,557	 	$	51	 	$	105,175	 	$	44	 	
Inventory and other adjustments (v )	 	1,728	 	3	 	2,031	 	3	 	(3,698	)	(2	)	2,481	 	1	 	
Minesite operating costs	 	$	28,178	 	$	51	 	$	26,382	 	$	44	 	$	110,859	 	$	49	 	$	107,656	 	$	45	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Creston Mascota deposit at Pinos Altos	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	11,213	 	 	 	13,933	 	 	 	47,296	 	 	 	54,703	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	7,923	 	$	707	 	$	7,070	 	$	507	 	$	27,341	 	$	578	 	$	26,278	 	$	480	 	
Inventory and other adjustments (iv )	 	15	 	1	 	(156	)	(11	)	472	 	10	 	(328	)	(6	)	
Cash operating costs (co-product basis)	 	$	7,938	 	$	708	 	$	6,914	 	$	496	 	$	27,813	 	$	588	 	$	25,950	 	$	474	 	
By-product metal revenues	 	(657	)	(59	)	(720	)	(51	)	(3,426	)	(72	)	(2,412	)	(44	)	
Cash operating costs (by-product basis)	 	$	7,281	 	$	649	 	$	6,194	 	$	445	 	$	24,387	 	$	516	 	$	23,538	 	$	430	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
Creston Mascota deposit at Pinos Altos	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore processed (thousands of tonnes)	 	 	 	524	 	 	 	529	 	 	 	2,119	 	 	 	2,099	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	7,923	 	$	15	 	$	7,070	 	$	13	 	$	27,341	 	$	13	 	$	26,278	 	$	13	 	
Inventory and other adjustments (v )	 	(191	)	—	 	(328	)	—	 	(77	)	—	 	(757	)	(1	)	
Minesite operating costs	 	$	7,732	 	$	15	 	$	6,742	 	$	13	 	$	27,264	 	$	13	 	$	25,521	 	$	12	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
La India Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Ounce of Gold Produced Metrics(ii)	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	(thousands)	 	($ per ounce )	 	
Gold production (ounces)	 	 	 	28,714	 	 	 	23,432	 	 	 	115,162	 	 	 	104,362	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	14,638	 	$	510	 	$	12,854	 	$	549	 	$	49,745	 	$	432	 	$	49,578	 	$	475	 	
Inventory and other adjustments (iv )	 	142	 	5	 	(725	)	(31	)	4,189	 	36	 	(28	)	—	 	
Cash operating costs (co-product basis)	 	$	14,780	 	$	515	 	$	12,129	 	$	518	 	$	53,934	 	$	468	 	$	49,550	 	$	475	 	
By-product metal revenues	 	(2,224	)	(78	)	(772	)	(33	)	(8,453	)	(73	)	(4,058	)	(39	)	
Cash operating costs (by-product basis)	 	$	12,556	 	$	437	 	$	11,357	 	$	485	 	$	45,481	 	$	395	 	$	45,492	 	$	436	 	

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
La India Mine	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Per Tonne Metrics(iii)	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	(thousands)	 	($ per tonne )	 	
Tonnes of ore processed (thousands of tonnes)	 	 	 	1,540	 	 	 	1,439	 	 	 	5,837	 	 	 	5,371	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	$	14,638	 	$	10	 	$	12,854	 	$	9	 	$	49,745	 	$	9	 	$	49,578	 	$	9	 	
Inventory and other adjustments (v )	 	(231	)	(1	)	(859	)	(1	)	2,909	 	—	 	(657	)	—	 	
Minesite operating costs	 	$	14,407	 	$	9	 	$	11,995	 	$	8	 	$	52,654	 	$	9	 	$	48,921	 	$	9	 	

Notes:
(i)              On June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by way of the Arrangement. As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of CMC and the Partnership, which now holds the Canadian Malartic mine. The information set out in this table reflects the Company’s 50.0% interest in the Canadian Malartic mine.
 
(ii)           Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a  by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and
 
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provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company’s mining operations. Management also uses these measures to monitor the performance of the Company’s mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine’s cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
 
(iii)        Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. This measure is calculated by adjusting production costs as shown in the consolidated statements of income (loss) for unsold concentrate inventory production costs, and then dividing by tonnes of ore milled. As the total cash costs per ounce of gold produced measure can be affected by fluctuations in by-product metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of 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 of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS.
 
(iv)       Under the Company’s revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the sales margin on the portion of concentrate production not yet recognized as revenue. Other adjustments include the addition of smelting, refining and marketing charges to production costs.
 
(v)          This inventory and other adjustment reflects production costs associated with unsold concentrates.

Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced

 	 	Three Months Ended	 	Three Months Ended	 	Year Ended	 	Year Ended	 	
(United States dollars per ounce of gold produced, except where noted)	 	December 31, 2016	 	December 31, 2015	 	December 31, 2016	 	December 31, 2015	 	
Production costs per the consolidated statements of income (loss) (thousands of United States dollars)	 	$	255,112	 	$	229,819	 	$	1,031,892	 	$	995,295	 	
Gold production (ounces)	 	426,433	 	422,328	 	1,662,888	 	1,671,340	 	
Production costs per ounce of gold production	 	$	598	 	$	544	 	$	621	 	$	596	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Inventory and other adjustments (i)	 	28	 	60	 	22	 	30	 	
Total cash costs per ounce of gold produced (co-product basis) (ii)	 	$	626	 	$	604	 	$	643	 	$	626	 	
By-product metal revenues	 	(74	)	(57	)	(70	)	(59	)	
Total cash costs per ounce of gold produced (by-product basis) (ii)	 	$	552	 	$	547	 	$	573	 	$	567	 	
Adjustments:	 	 	 	 	 	 	 	 	 	
Sustaining capital expenditures (including capitalized exploration)	 	203	 	214	 	187	 	183	 	
General and administrative expenses (including stock options)	 	75	 	53	 	62	 	58	 	
Non-cash reclamation provision and other	 	2	 	3	 	2	 	2	 	
All-in sustaining costs per ounce of gold produced (by-product basis)	 	$	832	 	$	817	 	$	824	 	$	810	 	
By-product metal revenues	 	74	 	57	 	70	 	59	 	
All-in sustaining costs per ounce of gold produced (co-product basis)	 	$	906	 	$	874	 	$	894	 	$	869	 	

Notes :
(i)                                      Under the Company’s revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, this inventory adjustment reflects the sales margin on the portion of concentrate production not yet recognized as revenue.
 
(ii)                                   Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals.  The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company’s mining operations. Management also uses these measures to monitor the performance of the Company’s mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine’s cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
 
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RECONCILIATION OF LONG-TERM DEBT TO NET DEBT

(thousands of United States dollars)	 	As at December
31, 2016	 	As at December
31, 2015	 	
Current portion of long-term debt per the consolidated balance sheets	 	$	129,896	 	$	14,451	 	
Non-Current portion of long-term debt	 	1,072,790	 	1,118,187	 	
Long-term debt	 	$	1,202,686	 	$	1,132,638	 	
Adjustments:	 	 	 	 	 	
Deferred financing costs	 	$	12,210	 	$	11,264	 	
Cash and cash equivalents	 	(539,974	)	(124,150	)	
Short-term investments	 	(8,424	)	(7,444	)	
Net Debt	 	$	666,498	 	$	1,012,308	 	
 
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