DBRS Releases Report on Agnico-Eagle Mines Limited

DBRS has today released a report providing further details on the March 21, 2013, confirmation of the Issuer Rating of Agnico-Eagle Mines Limited (Agnico or the Company) at BBB (low) with a Stable trend.

Agnico has stabilized its production profile following the build of five new mines in the 2008-2011 period and the unexpected loss of production from the Goldex underground mine due to serious rock subsidence and water inflow problems in Q4 2011.

With a relatively modest calendar of expansion projects underway, Agnico was able to reduce net debt by $213 million in 2012, and with high gold prices and improving operating performance, credit metrics remained strong for the rating.

DBRS expects Agnico’s credit metrics to remain solid. Nonetheless, the Company faces a major investment decision related to its large Meliadine project, meaning that uncertainty will remain until the scale of that project is better quantified. DBRS also expects the Company to continue its hunt for acquisitions, requiring ongoing fiscal discipline.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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 March 21, 2013, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.