(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS - THREE-YEAR GUIDANCE OUTLINES GROWING PRODUCTION WITH STABLE TO DECLINING UNIT COSTS; MELIADINE MILL COMMISSIONING UNDERWAY WITH PROJECT AHEAD OF SCHEDULE AND UNDER BUDGET; YEAR-OVER-YEAR INCREASE IN MINERAL RESERVES AND MINERAL RESOURCES; QUARTERLY DIVIDEND INCREASED
Toronto (February 14, 2019) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported quarterly net loss of $393.7 million, or a loss of $1.68 per share, for the fourth quarter of 2018. This result includes impairment losses of $389.7 million ($1.66 per share), non-cash foreign currency translation losses on deferred tax liabilities and non-recurring tax adjustments of $14.4 million ($0.06 per share), losses due to change of reclamation estimates relating to closed sites (net of tax) of $12.4 million ($0.05 per share), derivative losses on financial instruments, mark-to-market and other adjustments of $8.3 million ($0.04 per share) and non-cash foreign currency translation losses of $2.7 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $33.8 million or $0.14 per share for the fourth quarter of 2018. For the fourth quarter of 2017, the Company reported net income of $37.5 million or $0.16 per share.
The impairment losses of $389.7 million ($1.66 per share) include an impairment of goodwill relating to the Canadian Malartic mine of $250.0 million ($1.07 per share), an asset impairment relating to the El Barqueno project of $100.7 million ($0.43 per share) and an impairment of goodwill relating to the La India mine of $39.0 million ($0.16 per share).
Included in the fourth quarter of 2018 net income, and not adjusted above, is non-cash stock option expense of $3.9 million ($0.02 per share).
1 Adjusted net income is a non-GAAP measure. For a discussion regarding the Company's use of non-GAAP measures, please see "Note Regarding Certain Measures of Performance".

For the full year 2018, the Company reported net loss of $326.7 million, or a loss of $1.40 per share. This compares with the full year 2017, when net income was $240.8 million, or $1.05 per share.
In the fourth quarter of 2018, cash provided by operating activities was $140.3 million ($150.4 million before changes in non-cash components of working capital), as compared with the fourth quarter of 2017 when cash provided by operating activities was $166.9 million ($209.5 million before changes in non-cash components of working capital).
For the full year 2018, cash provided by operating activities was $605.7 million ($645.5 million before changes in non-cash components of working capital), as compared with the full year 2017 when cash provided by operating activities was $767.6 million ($839.4 million before changes in non-cash components of working capital).
The decrease in cash provided by operating activities during the fourth quarter of 2018 compared to the prior year period was mainly due to lower gold sales volumes, lower realized gold prices, lower by-product revenue and expected higher costs at several operations, principally at LaRonde, Meadowbank and the Company's Mexican operations. Lower gold sales were mainly as a result of the expected lower gold production in the period primarily due to reduced throughput levels at Meadowbank as the mine transitions through the last full year of mining at site.
The decrease in cash provided by operating activities for the full year 2018 compared to the prior year period was mainly due to lower gold sales volumes, lower by-product revenue and expected higher costs at several operations, principally at Meadowbank, Kittila and the Company's Mexican operations, partially offset by slightly higher realized gold prices. Lower gold sales were largely as a result of the expected lower gold production in the period primarily due to reduced throughput levels at Meadowbank as described above.
"From an operational standpoint, 2018 was another strong year as we exceeded production forecasts at lower than expected unit costs for a seventh consecutive year while growing gold reserves and successfully advancing our Nunavut development projects", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "With the start of new operations at both Meliadine and Amaruq this year, we anticipate record gold production in 2019 with further production growth in 2020 and beyond. This growing production platform should result in increased cash flow allowing us to advance our project pipeline, reduce debt and increase dividends", added Mr. Boyd.
Fourth quarter of 2018 and full year 2018 highlights include:
• Strong quarterly operational performance; annual gold production and costs better than forecast for seventh consecutive year - Payable gold production 2 in
the fourth quarter of 2018 was 410,712 ounces at production costs per ounce of $693, total cash costs per ounce3 of $608 and all-in sustaining costs per ounce4 ("AISC") of $852. Payable gold production for the full year 2018 was 1,626,669 ounces at production costs per ounce of $713, with total cash costs per ounce of $637, compared to the most recent guidance of 1,600,000 ounces of gold at total cash costs per ounce of $650. AISC for the full year 2018 were $877, compared to the most recent guidance of $915 per ounce
• Increased gold production guidance in 2019 with further gold production growth forecast through 2021 - The gold production forecast for 2019 is now 1.75 million ounces, compared to the most recent guidance of 1.70 million ounces. The mid-point of gold production guidance for 2020 is unchanged at 2.0 million ounces, and the mid-point of gold production guidance for 2021 is 2.05 million ounces
• Unit costs expected to be stable to declining through 2021 as gold production increases - In 2019, total cash costs per ounce are forecast to be between $620 and $670 and AISC are forecast to be between $875 and $925 per ounce as the Nunavut business transitions from the Meadowbank deposit to Amaruq and Meliadine. With much higher gold production expected in 2020, total cash costs per ounce are forecast to decline to between $600 and $650, while AISC are forecast to decline to between $840 and $890 per ounce. The Company expects total cash costs per ounce and AISC to decline further in 2021
• Meliadine project ahead of schedule and under budget with commissioning of the mill now underway; Amaruq project remains on track for production start-up in the third quarter of 2019 - Commercial production at Meliadine is now expected to be achieved early in the second quarter of 2019 (compared to previous guidance of late in the second quarter of 2019). Development activities at Amaruq are progressing as planned. Open pit mining has commenced at the Whale Tail pit and commissioning of the long-haul truck fleet is underway
• Year over year increase in gold reserves and average grade - 2018 gold mineral reserves, net of 2018 gold production, increased by 7% to 22.0 million ounces of gold (254 million tonnes grading 2.70 grams per tonne ("g/t") gold), while the gold reserve grade increased by approximately 8% from the previous year. A large portion of the increase comes from LaRonde 3, the Kittila shaft expansion, the acquisition of the remaining 50% interest in the Kirkland Lake assets and a new open pit mine plan at Amaruq. Gold contained in measured and indicated mineral resources and inferred


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2 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.

3 Total cash costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for total cash costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
4 All-in-sustaining costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for all-in sustaining costs on a co-product
basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".