Mr. Ammar Al-Joundi reports

AGNICO EAGLE REPORTS FIRST QUARTER 2023 RESULTS - STRONG OPERATIONAL RESULTS WITH RECORD SAFETY PERFORMANCE; OPTIMIZATION ACTIVITIES PROGRESSING WELL IN THE ABITIBI GOLD BELT; 2022 SUSTAINABILITY REPORT RELEASED; YAMANA TRANSACTION AND SAN NICOLAS JOINT VENTURE TRANSACTION CLOSED

Agnico Eagle Mines Ltd. has released its financial and operating results for the first quarter of 2023. (All amounts are expressed in United States dollars unless otherwise noted.)

"The year is off to a good start with strong operational results and the best quarterly safety performance in the company's over-65-year history, which positions us well to meet our full year guidance projections. Costs were better than expected, primarily due to the strong operating results, favourable currency movements and a slight easing of inflationary pressures," said Ammar Al-Joundi, Agnico Eagle's president and chief executive officer. "With the completion of the acquisition of Yamana's Canadian assets on March 31, our focus in 2023 continues to be on the optimization of our strategic positions in the Abitibi gold belt, with an aim of increasing annual gold production from this region by approximately 500,000 ounces by the end of the decade. Efforts are ongoing to evaluate several opportunities to leverage existing infrastructure which has the potential to significantly increase future gold production at lower capital intensity and with a reduced environmental footprint. If realized, these opportunities have the potential to deliver increased returns to our shareholders with reduced execution and operating risk," added Mr. Al-Joundi.

First quarter 2023 highlights -- solid operational performance and important strategic consolidations

• Strong quarterly production and costs with record safety performance -- Payable gold production in the first quarter of 2023 was 812,813 ounces at production costs per ounce of $804, total cash costs per ounce of $832 and all-in sustaining costs (AISC) per ounce of $1,125. These results include only the company's 50 per cent of the production from the Canadian Malartic mine up to March 30, 2023, and 100 per cent thereafter.
• Solid quarterly financial results -- The company reported quarterly net income of $3.87 per share in the first quarter of 2023, with adjusted net income of 58 cents per share. Operating cash flow was $1.30 per share. The quarterly net income of $3.87 per share includes a remeasurement gain of approximately $1.5-billion arising from the acquisition of 50 per cent of the Canadian Malartic complex not previously owned by the company.
• Gold production, cost and capital expenditure guidance reiterated for 2023 -- Expected payable gold production in 2023 remains unchanged at approximately 3.24 million to 3.44 million ounces with total cash costs per ounce expected to be between $840 and $890 and AISC per ounce expected to be between $1,140 and $1,190. Total capital expenditures (excluding capitalized exploration) for 2023 are still estimated to be approximately $1.42-billion. The company's 2023 production, costs and capital expenditure guidance assumes 50-per-cent ownership of Canadian Malartic for the first three months of 2023 and 100-per-cent ownership for the last nine months of the year.
• Update on key value drivers and pipeline projects:
  • Odyssey project -- Good progress was made on underground development and surface construction activities in the first quarter of 2023. Underground development via ramp access has now passed the bottom of the Odyssey South deposit and has reached the level of the first shaft access point. Shaft sinking activities have also commenced. The first production blast occurred at the Odyssey South deposit in late-March, 2023. Drilling activities were focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west.
  • Detour Lake -- In the first quarter of 2023, the mill set a record for first quarter throughput and activities continued to focus on mill process optimization and improving availability with the goal of achieving and potentially exceeding throughput of 28.0 million tonnes per annum (Mtpa). Stepout drilling continued to the west of the resource pit shells and the company is integrating additional drill data into a revised mineral resource model that will be used to evaluate potential underground mining scenarios.
  • Optimization of assets and capital infrastructure in the Abitibi region -- With the company now owning of 100 per cent of Canadian Malartic complex, the company expects to have up to 40,000 tonnes per day (tpd) of excess mill capacity at Canadian Malartic complex starting in 2028. By maximizing the mill throughput in the region, the company believes there is potential to increase future gold production at lower capital costs and with a reduced environmental footprint. Internal evaluations are under way to assess potential production opportunities at the Macassa near-surface deposits and the Amalgamated Kirkland (AK) deposit, Upper Beaver and the Wasamac project. These evaluations are expected to be completed by year-end 2023.
• Continued exploration success at Meliadine, Kittila, LaRonde Zone 5 (LZ5) and Goldex expected to drive future mineral reserve and mineral resource additions:
  • Meliadine -- Drilling has targeted the vertical extensions of the mineralized zones in the central part of the Tiriganiaq and Wesmeg deposits. At Tiriganiaq, a recent intercept yielded 17.2 grams per tonne (g/t) gold over 4.9 metres at 770 metres depth. At Wesmeg, drilling in the eastern part of the deposit continues to return wide, high-grade intersections, with recent results including 8.9 g/t gold over 7.0 metres at 532 metres depth.
  • Kittila -- Drilling has extended the Rimpi Main zone to the north, outside of the current mineral resources, with highlights of up to 5.0 g/t gold over 9.2 metres at 1,141 metres depth. In addition, drilling has extended the Rimpi zone mineralization down-plunge from the Roura area within the Parallel/Sisar zones, with intercepts of up to 5.0 g/t gold over 4.9 metres at 1,199 metres depth.
  • LZ5 -- Drilling continues to expand the mineral resource envelope which now extends to a depth of 950 metres, with highlights including 3.0 g/t gold over 30.0 metres at 671 metres depth and 3.7 g/t gold over 10.1 metres at 840 metres depth. Inferred mineral resources are expected to be added at depths between 770 and 950 metres by year-end 2023.
  • Goldex -- Infill drilling in the South Zone Sector 3 has returned high-grade results, including 9.8 g/t gold over 15.5 metres at 1,246 metres depth and 6.0 g/t gold over 12.0 metres at 1,274 metres depth. Initial drilling in the W zone (approximately 200 metres west of the main Goldex deposit) has returned 1.8 g/t gold over 35.0 metres at 480 metres depth in an area with historical mineralized inventory.
• Acquisition of Yamana's Canadian assets and 50/50 San Nicolas copper-zinc joint venture with Teck completed:
  • Yamana transaction -- The previously announced transaction to acquire the Canadian assets of Yamana Gold Inc. closed on March 31, 2023, and the company now owns 100 per cent of the Canadian Malartic complex, the Wasamac project located in the Abitibi region of Quebec and several other exploration properties located in Ontario and Manitoba. The closing of the Yamana transaction further solidifies the company's presence in the Abitibi gold belt, a region of low political risk and high geological potential, where the company has a strong competitive advantage from having operated in the region for over 50 years.
  • San Nicolas -- The previously announced 50/50 joint venture agreement between Teck Resources Ltd. and Agnico Eagle in respect of the San Nicolas copper-zinc development project located in Zacatecas, Mexico, was entered into on April 6, 2023. Minera San Nicolas SAPI de C.V., the joint venture company that holds the project, is now working to advance permitting and development of the project and is planning to submit an environmental impact assessment and permit application for San Nicolas in 2023 and is targeting completion of a feasibility study in 2024.
• Two thousand twenty-two sustainability report published, illustrating continued commitment to strong ESG (environmental, social and governance) performance and implementation of a climate strategy action plan -- In 2022, Agnico Eagle maintained or improved performance across many key ESG indicators, including safety performance, efficient management of water resources and increased indigenous employment. In addition, efforts were accelerated in 2022 to maintain a climate resilient business by setting an interim reduction target of 30 per cent of absolute Scope 1 and 2 emissions by 2030, and publication of the company's first Climate Action Report.
• A quarterly dividend of 40 cents per share has been declared.

First quarter 2023 results conference call and webcast tomorrow

Agnico Eagle's senior management will host a conference call on Friday, April 28, 2023, at 8:30 a.m. ET to discuss the company's first quarter 2023 financial and operating results.

Via webcast

A live audio webcast of the conference call will be available on the company's website.

Via telephone

For those preferring to listen by telephone, please dial 1-416-764-8659 or toll-free 1-888-664-6392. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay archive:

Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access code 175235 followed by the pound key. The conference call replay will expire on May 28, 2023.

The webcast, along with presentation slides, will be archived for 180 days on the company's website.

Annual meeting

The company will host its annual and special meeting of shareholders (the AGM) on Friday, April 28, 2023, at 11 a.m. ET. During the AGM, management will provide an overview of the company's activities.

Hybrid format

The AGM will be held in person at the Arcadian Court, 401 Bay St., Simpson Tower, eighth floor, Toronto, Ont., M5H 2Y4, and on-line.

The company is conducting a hybrid meeting that will allow registered shareholders and duly appointed proxyholders to participate both on-line and in person. The company is providing the virtual format in order to provide shareholders with an equal opportunity to attend and participate at the AGM.

For details explaining how to attend, communicate and vote virtually at the AGM please see the company's management information circular dated March 21, 2023, filed under the company's profile on SEDAR and on EDGAR. Shareholders who have questions about voting their shares or attending the AGM may contact investor relations by telephone at 416-947-1212, by toll-free telephone at 1-888-822-6714 or by e-mail at info@agnicoeagle.com or the company's strategic shareholder adviser and proxy solicitation agent, Laurel Hill Advisory Group, at 1-877-452-7184 (toll-free in North America), at 1-416-304-0211 (for collect calls outside of North America) or by e-mail at assistance@laurelhill.com.

First quarter 2023 financial and production results

In the first quarter of 2023, net income was $1,816.9-million ($3.87 per share). This result includes the following items (net of tax): a remeasurement gain arising from the acquisition of the remaining 50 per cent of the Canadian Malartic complex of $1,543.4-million ($3.29 per share), transaction costs relating to the acquisition of the Canadian assets of Yamana of $12.5-million (three cents per share), foreign currency translation gains on deferred tax liabilities of $10.6-million (two cents per share) and mark-to-market gains on the company's investment portfolio of $4.1-million (one cent per share).

Excluding the items mentioned herein results in adjusted net income of $271.3-million or 58 cents per share for the first quarter of 2023. For the first quarter of 2022, the company reported net income of $119.1-million (31 cents per share).

Included in the first quarter of 2023 net income, and not adjusted herein, is a non-cash stock option expense of $4.7-million (one cent per share).

The increase in net income in the first quarter of 2023 compared with the prior-year period is primarily due to the remeasurement gain. This gain is a result of the application of purchase accounting relating to a business combination attained in stages, which requires the remeasurement on the subsequent acquisition of the company's previously held 50-per-cent interest in the Canadian Malartic complex to fair value.

The fair value of the company's previously held 50-per-cent interest and the resulting gain on remeasurement, along with the fair values allocated to assets acquired and liabilities assumed are preliminary, and are subject to adjustment based on further analysis and evaluation over the course of the measurement period which may not exceed 12 months from the acquisition date.

Additionally, higher mine operating margins from higher sales volumes (see discussion herein) and lower other expenses from lower transaction costs were partially offset by higher amortization and higher income and mining taxes.

In the first quarter of 2023, cash provided by operating activities was $649.6-million ($608.8-million before changes in non-cash components of working capital), compared with the first quarter of 2022 when cash provided by operating activities was $507.4-million ($366.0-million before changes in non-cash components of working capital).

Cash provided by operating activities (before changes in non-cash components of working capital) increased in the first quarter of 2023 when compared with the prior-year period primarily due to higher sales volumes following the merger between Agnico Eagle and Kirkland Lake Gold Ltd. as opposed to the 58 days of production that followed the merger in 2022.

In the first quarter of 2023, the company's payable gold production was 812,813 ounces. This compares with quarterly payable gold production of 660,604 ounces in the prior-year period. Including the entire quarter's production from the premerger Kirkland Lake Gold mines, pro forma total gold production in the first quarter of 2022 was 806,329 ounces.

Payable gold production increased in the first quarter of 2023 when compared with the prior-year period, primarily due to the inclusion of additional days of production in the 2023 period as described herein at the Detour Lake, Fosterville and Macassa mines.

In the first quarter of 2023, production costs per ounce were $804, compared with $1,002 in the prior-year period. In the first quarter of 2023, total cash costs per ounce were $832, compared with $811 in the prior-year period.

Production costs per ounce decreased in the first quarter of 2023 when compared with the prior-year period primarily as a result of the revaluation of gold inventory held by Kirkland Lake Gold on Feb. 8, 2022. A detailed description of the mine site costs per tonne at each mine is set out herein. Total cash costs per ounce increased in the first quarter of 2023 when compared with the prior-year period primarily due to higher inventory adjustments and lower byproduct revenues from the LaRonde mine and Pinos Altos mine.

In the first quarter of 2023, AISC per ounce were $1,125, compared with $1,079 in the prior-year period. AISC per ounce increased in the first quarter of 2023 when compared with the prior-year period primarily due to higher total cash costs per ounce and higher sustaining capital expenditures, partially offset by lower general and administrative expenses.

Financial flexibility remains strong after acquisition of Yamana's Canadian assets

Cash and cash equivalents increased to $744.6 million at March 31, 2023, from the Dec. 31, 2022, balance of $658.6-million, primarily due to improved operating margins. On March 30, 2023, the company drew down $1.0-billion from its unsecured revolving bank credit facility and financed the approximately $1.0-billion of cash consideration payable in connection with the Yamana transaction.

In addition to the quarterly dividend, the company contributed to shareholder returns through its normal course issuer bid (NCIB). In the first quarter of 2023, under the NCIB, the company repurchased 100,000 common shares for $4.8-million. From the commencement of the NCIB on May 4, 2022, until March 31, 2023, under the NCIB, the company repurchased 1,669,620 common shares for an aggregate of $74.6-million. The NCIB permits the company to purchase up to $500.0-million of its common shares (up to a maximum of 5 per cent of its issued and outstanding common shares). Purchases under the NCIB may continue for up to one year from the commencement day of May 4, 2022.

The company intends to seek approval from the Toronto Stock Exchange to renew the NCIB, pursuant to which the company would be permitted to purchase up to the lessor of (i) 5 per cent of its issued and outstanding common shares and (ii) the number of common shares that may be purchased by the company for an aggregate purchase price, excluding commissions of $500.0-million. Purchases under the NCIB may continue for up to one year from the expected commencement date of May 3, 2023. If approved, purchases under the NCIB will be made through the facilities of the TSX, the New York Stock Exchange or other designated exchanges and alternative trading systems in Canada and the United States in accordance with applicable regulatory requirements. All common shares purchased under the NCIB will be cancelled.

Subsequent to quarter end, on April 7, 2023, Moody's upgraded its credit rating outlook for the company to "positive" from "stable," while affirming the credit rating at Baa2, reflecting the company's strong business and credit profile, while maintaining low leverage and conservative financial policies. On April 20, 2023, the company entered into a credit agreement with a group of financial institutions that provides a $600-million unsecured term credit facility. The company expects to draw down in full on the term credit facility on April 28, 2023, and will use the proceeds to partially repay the amounts drawn on the unsecured revolving bank credit facility. The term credit facility matures and all indebtedness thereunder is due and payable on April 21, 2025. The term credit facility is available as a single advance in United States dollars through SOFR and base rate advances, priced at the applicable rate plus a margin that ranges from 0.00 per cent to 2.00 per cent depending on the company's credit rating. The term credit facility may be prepaid without penalty. At March 31, 2023, the company's net debt totalled $1,597.9-million.

Approximately 57 per cent of the company's remaining 2023 estimated Canadian dollar exposure is hedged at an average floor price above 1.32 Canadian dollar/U.S. dollar. Approximately 29 per cent of the company's remaining 2023 estimated euro exposure is hedged at an average floor price of approximately 1.03 U.S. dollar/euro. Approximately 59 per cent of the company's remaining 2023 estimated Australian dollar exposure is hedged at an average floor price above 1.45 Australian dollar/U.S. dollar. Approximately 33 per cent of the company's remaining 2023 estimated Mexican peso exposure is hedged at an average floor price above 20.70 Mexican peso/U.S. dollar. The company's full year 2023 cost guidance is based on assumed exchange rates of 1.32 Canadian dollar/U.S. dollar, 1.10 U.S. dollar/euro, 1.40 Australian dollar/U.S. dollar and 20.00 Mexican peso/U.S. dollar.

Including the remaining diesel purchased for the company's Nunavut operations on the 2022 sealift (consumed to mid-year 2023), approximately 50 per cent of the company's diesel exposure for 2023 is hedged at an average price of 80 cents per litre, compared with the 2023 cost guidance assumption of 93 cents per litre. These hedges have partially mitigated the effect of inflationary pressures to date and are expected to provide some protection against inflation going forward.

The company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2023 and future guidance.

Dividend record and payment dates for the second quarter of 2023

Agnico Eagle's board of directors has declared a quarterly cash dividend of 40 cents per common share, payable on June 15, 2023, to shareholders of record as of June 1, 2023. Agnico Eagle has declared a cash dividend every year since 1983.

Expected dividend record and payment dates for the 2023 fiscal year

About Agnico Eagle Mines Ltd.

Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries, as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. Agnico Eagle was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.

We seek Safe Harbor.