DBRS Releases Report on Agnico Eagle Mines Limited

DBRS has today released a report providing further details on the June 20, 2014, confirmation of the Issuer Rating of Agnico Eagle Mines Limited (Agnico or the Company) at BBB (low) with a Stable trend and removal of the rating from Under Review with Developing Implications following the completion of the Company’s CAD 2.0 billion acquisition of a 50% interest in Osisko Mining Corporation (Osisko) on June 16, 2014.

Agnico has stabilized its production profile at about 1.1 million ounces per year, but its biggest producer, Meadowbank Mine has less than five years of production remaining. The addition of a 50% interest in the Canadian Malartic Mine through the Company’s Osisko acquisition will help offset the increased importance of the short-lived Meadowbank Mine.

With the Osisko integration on its plate and DBRS’s expectation that gold prices will remain volatile (and perhaps go potentially lower), DBRS expects the Company to be cautious in its commitments to major new expansion/mine development projects while Osisko integration is underway.

Notes:
The applicable methodology is Rating Companies in the Mining Industry (June 2011), which can be found on our website under Methodologies.

Today’s report and the June 20, 2014, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.