Agnico Eagle Update | Jamie Porter and Jimmy Connor

Agniko 2025 Performance & 2026 Outlook – Detailed Summary

Key Concepts:

• Organic Growth: Expanding production through existing assets and development projects (Detour, Canadian Malartic, Hope Bay, Upper Beaver).
• Fill the Mill Strategy: Maximizing utilization of existing milling capacity at Canadian Malartic through additional feed sources.
• Production per Share: A key metric for Agniko, focusing on increasing gold production relative to outstanding shares.
• Margin Expansion: Increasing profitability by maintaining costs while benefiting from higher gold prices.
• Free Cash Flow (FCF): Cash generated after capital expenditures, used for debt reduction, dividends, and share buybacks.
• Reserves & Resources: Quantified estimates of economically mineable gold deposits. Reserves are proven and economically viable, while resources include potential deposits.
• Net Cash: Total cash and cash equivalents minus total debt.

1. 2025 Performance & Key Drivers

Agniko experienced a record-setting 2025, driven by a significant increase in the gold price and consistent operational execution. The company successfully met production targets while managing costs, resulting in margin expansion and substantial free cash flow. Specifically:

• Gold Price Impact: The gold price increased by over $1,000 compared to the 2025 average, positively impacting financial performance.
• Operational Consistency: Agniko consistently achieved production targets across its operations.
• Cost Management: Costs were maintained relatively flat despite pressure from higher royalty costs associated with the increased gold price, enabling margin expansion.
• Capital Returns: $800 million was returned to shareholders through dividends, and $600 million was allocated to share buybacks, totaling $1.4 billion in shareholder returns.
• Financial Strength: Agniko ended 2025 with over $2.6 billion in net cash after repaying $1 billion in debt.

2. 2026 Priorities & Strategic Focus

As Agniko enters 2026, the primary focus is on sustaining momentum through continued operational delivery and advancing key growth projects. Key priorities include:

• Consistent Execution: Maintaining consistent production and meeting quarterly targets.
• Organic Growth Project Advancement: Progressing development projects to unlock future production increases.
• Hope Bay Construction Decision: A construction decision for the Hope Bay project in Nunavut is expected in May, representing a potential 400,000 ounce per year production addition.
• Canadian Malartic “Fill the Mill” Strategy: Providing detailed plans for increasing gold production at Canadian Malartic to over 1 million ounces annually.

3. Detour Mine – Expansion & Long-Term Potential

Detour, Canada’s largest gold mine, is a cornerstone of Agniko’s growth strategy.

• Current Production: Currently producing 650-700,000 ounces per year.
• Resource Base: Holds 40 million ounces in reserves and resources, a rare characteristic for a gold mine, comparable to base metal mine lifespans. Reserves and resources have doubled in the last 5 years at a discovery cost of $10/ounce.
• Current Operations: Bulk mining operation processing 77,000 tons per day of ore at a grade of 0.9 grams per ton (g/t).
• Expansion Plan (June 2024 Study):
  • Underground Mining: Development of an underground operation sourcing 12,000 tons per day of 2.2 g/t material.
  • Mill Expansion: Increasing mill capacity from 77,000 to 80,000 tons per day.
• Projected Production: Reaching 1 million ounces per year by 2030, sustained for over 14 years. Exploration since the June 2024 study has increased the underground resource, potentially enhancing production further.
• Mine Life: Even without expansion, the mine has a life extending to 2080.

4. Canadian Malartic – “Fill the Mill” Strategy & Underground Transition

Canadian Malartic is transitioning from open-pit to underground mining, with a focus on maximizing mill utilization.

• Transition Status: Transitioning from open-pit to underground mining, with ramp access down to 1.1 km and shaft construction over 2/3 complete (1.3-1.4 km). Full transition expected in 2028.
• Current Operations: Mining and milling 60,000 tons per day at 1 g/t, producing approximately 550-600,000 ounces per year.
• Underground Production: 20,000 tons per day from underground at 3 g/t, maintaining production at 550-600,000 ounces while creating 40,000 tons per day of excess mill capacity.
• “Fill the Mill” Strategy: Plans to utilize the excess mill capacity through:
  • Second Shaft: Potential for an additional 10,000 tons per day of underground production (200,000 ounces/year).
  • Marban Deposit: Trucking 130,000 ounces per year from the Marban deposit (15 km from the mill).
  • Wasamac Deposit: 3,000 tons per day (100,000 ounces/year) from the Wasamac deposit (100 km away).
• Potential Production: Pathway to 47,000 tons per day of mill feed, potentially reaching 1 million ounces per year. Ongoing exploration aims to further increase mill feed and production.

5. Other Growth Projects – Upper Beaver & Hope Bay

• Upper Beaver (Ontario):
  • Project Status: Infrastructure work underway, including bulk sampling and drilling. Construction decision expected in 2027, with production targeted for 2031.
  • Production Profile: 5,000 tons per day underground operation producing 210,000 ounces per year for over 10 years.
  • Financials: Projected to generate US$550 million per year in after-tax free cash flow at current gold prices.
• Hope Bay (Nunavut):
  • Significance: A key catalyst for 2026, representing a potential 400,000 ounce per year producer.
  • Resource Update: The Patch 7 zone has grown to 1.7 million ounces and is expected to increase further with an update later in 2026.
  • Mining Strategy: Mining from Doris, Madrid, and Patch 7 deposits.
  • Strategic Importance: Aligns with Canadian government priorities regarding Arctic sovereignty and Indigenous economic reconciliation.

6. Financial Allocation & M&A Strategy

• Free Cash Flow: Generating significant free cash flow, with quarters approaching $1 billion in 2025.
• Balance Sheet Strength: Ending 2025 with over $2.6 billion in net cash.
• Capital Allocation:
  • Debt Reduction: Repaid $1 billion in debt in 2025.
  • Shareholder Returns: $800 million dividend and $600 million share buyback.
  • Increased Capital Spending: Accelerating capital spending on Hope Bay and exploration.
  • Potential Dividend Increase & Further Buybacks: Considering increased shareholder returns due to strong balance sheet.
• M&A Strategy: Maintaining a selective approach to M&A, prioritizing organic growth projects. A strong balance sheet provides flexibility but doesn’t necessitate acquisitions.

7. Junior Investments

Agniko continues to invest in junior mining companies (Foran, Oiscoco Metals, Maple Gold Mines) to:

• Regional Focus: Invest in projects within Agniko’s key regional centers.
• Exploration Potential: Identify projects with significant long-life potential.
• Optimization Opportunities: Seek opportunities to improve the efficiency and production of existing operations.
• Partnership Approach: Provide technical expertise and resources to help junior companies advance their projects.

8. Production Per Share – A Key Metric

Agniko prioritizes increasing gold production per share as a measure of value creation. Over the past 20 years, Agniko has increased production by a factor of 14, while production per share has increased by a factor of 3, outperforming peers.

Conclusion:

Agniko is well-positioned for continued success, driven by strong operational performance, a robust balance sheet, and a compelling organic growth pipeline. The company’s focus on maximizing existing assets, advancing key projects like Hope Bay and Canadian Malartic, and maintaining financial discipline will be crucial for delivering long-term value to shareholders. Investors can expect updates on 2026 guidance, the Hope Bay construction decision, and the Canadian Malartic “Fill the Mill” strategy in the coming months.