DBRS Releases Report on Agnico Eagle Mines Limited

DBRS Limited (DBRS) has today released a report providing further details on the June 12, 2015, confirmation of the Issuer Rating of Agnico Eagle Mines Limited (Agnico or the Company) at BBB (low) with a Stable trend.

Agnico remains a cost-competitive gold producer operating in low-risk political jurisdictions. The Company has expanded its mines from six in 2010 to nine currently, but several mines have short mine lives based on current reserve and production rates, including its largest producer, the Meadowbank mine.

The Company has a relatively modest near-term calendar of active development/expansion projects and its capital expenditures needs are expected to be moderate until its next major mine build is initiated. Gold prices, at about $1,200 per ounce, continue to lack direction (up or down), adding to the uncertainties Agnico Eagle faces.

Accordingly, DBRS expects the Company to continue to be prudent in its commitments to major new expansion/mine development or acquisition projects and their financing in order to maintain its credit strength.

Notes:
The applicable methodology is Rating Companies in the Mining Industry (September 2014), which can be found on our website under Methodologies.

Today’s report and the June 12, 2015, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.