Agnico Eagle Mines Limited: Rating Report

On April 7, 2021, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Senior Unsecured Notes ratings of Agnico Eagle Mines Limited (Agnico or the Company) at BBB with Stable trends. The confirmations are based on the Company’s success in ramping up production at its Nunavut and Québec operations and implementing operational controls to manage the disruptions caused by the Coronavirus Disease (COVID-19) pandemic. The Stable trends are based on the Company’s favourable financial risk profile in the A (high) range that is supported by (1) the repayment of $160 million in debt in April 2020; (2) management guidance of 2.05 million ounces (oz) of payable gold production in 2021, rising to approximately 2.15 million oz in 2024; and (3) Bloomberg consensus gold price forecasts (as of March 24, 2021) that are expected to average $1,818 per oz, $1,776 per oz, and $1,682 per oz in 2021, 2022, and 2023, respectively, compared with $1,773 per oz and $1,406 per oz, respectively, in 2020 and 2019.