Agnico Eagle Mines Limited source document

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# aem 20241231xex99d3

Source: https://www.sec.gov/Archives/edgar/data/2809/000110465925017551/aem-20241231xex99d3.htm
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# aem 20241231xex99d3
EX-99.3
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aem-20241231xex99d3.htm
EXHIBIT 99.3
Table of Contents Exhibit 99.3 ​ ​ Management’s Discussion and Analysis ​ For the year ended December 31, 2024 ​ ​ ​ ​ ​ Table of Contents AGNICO EAGLE MINES LIMITED MANAGEMENT’S DISCUSSION AND ANALYSIS Table of Contents ​ Page Executive Summary 1 Strategy 2 2024 and 2025 Developments 2 Portfolio Overview 3 Key Performance Drivers 9 Spot Price of Gold and Silver 9 Production Volumes and Costs 10 Foreign Exchange Rates (Ratio to US$) 10 Results of Operations 11 Revenues from Mining Operations 12 Production Costs 12 Exploration and Corporate Development Expense 14 Amortization of Property, Plant and Mine Development 14 General and Administrative Expense 14 Finance Costs 14 Derivative Financial Instruments 15 Impairment Loss 15 Foreign Currency Translation Loss (Gain) 15 Other Expenses 16 Income and Mining Taxes Expense 16 Balance Sheet Review 16 Liquidity and Capital Resources 17 Operating Activities 17 Investing Activities 17 Financing Activities 17 Off-Balance Sheet Arrangements 19 Contractual Obligations 20 2025 Liquidity and Capital Resources Analysis 20 Quarterly Results Review 21 Minesite Discussion 21 Fourth Quarter 2024 vs. Fourth Quarter 2023 34 Fourth Quarter 2024 vs. Third Quarter 2024 34 Outlook 35 2024 Results Comparison to 2024 Outlook 35 2025 to 2026 Outlook Production Update 35 Operations Outlook 36 Risk Profile 41 Financial Instruments 41 Interest Rates 42 Commodity Prices and Foreign Currencies 42 Cost Inputs 43 Operational Risk 43 Regulatory Risk 43 Controls Evaluation 43 Outstanding Securities 44 Critical IFRS Accounting Policies and Accounting Estimates 44 Mineral Reserve Data 45 Non-GAAP Financial Performance Measures 47 Adjusted Net Income and Adjusted Net Income Per Share 47 EBITDA and Adjusted EBITDA 48 Free Cash Flow and Free Cash Flow before Changes in Non-Cash Components of Working Capital 49 Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne 50 All-in Sustaining Costs per Ounce of Gold Produced 56 Operating Margin 58 Sustaining and Development Capital Expenditures by Mine 58 Note to Investors Concerning Forward-Looking Information 59 Scientific and Technical Information 61 Note to Investors Concerning Estimates of Mineral Reserves and Mineral Resources 61 Summarized Quarterly Data 62 Three Year Financial and Operating Summary 66 ​ ​ ​ Table of Contents This Management’s Discussion and Analysis (“MD&A”) dated February 13, 2025 of Agnico Eagle Mines Limited (“Agnico Eagle” or the “Company”) should be read in conjunction with the Company’s consolidated annual financial statements for the year ended December 31, 2024 that were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) (the “Annual Financial Statements”). The Annual Financial Statements and this MD&A are presented in United States dollars (“US dollars”, “$” or “US$”) and all units of measurement are expressed using the metric system unless otherwise specified. Certain information in this MD&A is presented in Canadian dollars (“C$”), Mexican pesos, European Union euros (“Euros” or “€”) or Australian dollars (“A$”). Additional information relating to the Company, including the Company’s Annual Information Form for the year ended December 31, 2023 (the ”AIF”), is available on the Canadian Securities Administrators’ (the ”CSA”) SEDAR+ website at www.sedarplus.ca and the Form 40-F is on file with the Securities and Exchange Commission (“SEC”) at www.sec.gov/edgar. Certain statements contained in this MD&A, referred to herein as “forward-looking statements”, constitute “forward-looking information” under the provisions of Canadian provincial securities laws and constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “ Forward-Looking Statements ” in this MD&A. This MD&A discloses certain financial performance measures, including “total cash costs per ounce”, “all-in sustaining costs per ounce” (also referred to as “AISC per ounce”), “minesite costs per tonne”, “adjusted net income”, “adjusted net income per share”, “earnings before interest, taxes, depreciation and amortization” (also referred to as “EBITDA”), “adjusted earnings before interest, taxes, depreciation and amortization” (also referred to as “adjusted EBITDA”), “free cash flow”, “free cash flow before changes in non-cash components of working capital”, “sustaining capital expenditures”, “development capital expenditures” and “operating margin” that are not standardized measures under IFRS. These measures may not be comparable to similar measures reported by other gold producers. For a discussion of the composition and usefulness of these measures and reconciliation of each of them to the most directly comparable financial information presented in the annual consolidated financial statements prepared in accordance with IFRS, see “ Non-GAAP Financial Performance Measures ” in this MD&A. This MD&A also contains information as to estimated future total cash costs per ounce, AISC per ounce and minesite costs per tonne. The estimates are based upon the total cash costs per ounce, AISC per ounce and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to below under “ Non-GAAP Financial Performance Measures ”, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure. Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that have been or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period. Unless otherwise stated per ounce measures such as “production costs per ounce”, “total cash costs per ounce” and “AISC per ounce” are reported on a “per ounce of gold produced” basis. The mineral reserve and mineral resource estimates contained in this MD&A have been prepared in accordance with the Canadian Securities Administrators’ (the “CSA”) National Instrument 43-101 “Standards of Disclosure for Mineral Projects ” (“NI 43-101”). See “Note to Investors Concerning Estimates of Mineral Reserves and Mineral Resources ” . Unless otherwise stated, references to “LaRonde”, “Canadian Malartic”, “Meadowbank” and “Goldex” are to the Company’s operations at the LaRonde complex, the Canadian Malartic complex, the Meadowbank complex and the Goldex complex, respectively. The LaRonde complex consists of the mill and processing operations at the LaRonde mine and the LaRonde Zone 5 mine (“LZ5”). The Canadian Malartic complex consists of the mill and processing operations at the Canadian Malartic mine and the Odyssey mine. The Meadowbank complex consists of the mill and processing operations at the Meadowbank mine and the Amaruq mine. The Goldex complex consists of the mill and processing operations at the Goldex mine and the Akasaba West open pit mine (the “Akasaba West mine”). References to other operations are to the relevant mines, projects or properties, as applicable. On March 31, 2023, Agnico Eagle closed the transaction (the “Yamana Transaction”) with Pan American Silver Corp. and Yamana Gold Inc. (“Yamana”) pursuant to which, among other things, Agnico Eagle acquired all of Yamana’s Canadian assets including the 50% of the Canadian Malartic that Agnico Eagle did not then hold. Accordingly, contributions from the 100% interest in Canadian Malartic have been included in the consolidated statements of income for the year ended December 31, 2024 while the comparative period reflects the previously held 50% interest in Canadian Malartic up to and including March 30, 2023. Meaning of “including” and “such as” : When used in this MD&A the terms “including” and “such as” mean including and such as, without limitation, respectively. ​ ​ Table of Contents Executive Summary Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since its formation in 1972. The Company’s mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in these countries as well as the United States. The Company and its shareholders have full exposure to gold prices due to the Company’s long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983. Agnico Eagle earns a significant proportion of its revenue and cash flow from the production and sale of gold in both doré bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of by-product metals, primarily silver, zinc and copper. In 2024, Agnico Eagle recorded production costs per ounce of $885 and total cash costs per ounce (i)  of $903 on a by-product basis and $940 on a co-product basis on payable production of 3,485,336 ounces of gold. The average realized price of gold increased by 22.5% from $1,946 per ounce in 2023 to $2,384 per ounce of payable production in 2024. Agnico Eagle’s operating mines and development projects are located in what the Company believes to be politically stable countries that are supportive of the mining industry. The political stability of the regions in which Agnico Eagle operates helps to provide confidence in its current and future prospects and profitability. This is important for Agnico Eagle as it believes that many of its new mines and recently acquired mining projects have long-term mining potential. Highlights ● Strong operational performance with payable production of 3,485,336 ounces of gold and production costs per ounce of gold of $885 during 2024. ● Total cash costs per ounce in 2024 of $903 on a by-product basis and $940 on a co-product basis. ● All-in sustaining costs (ii)  in 2024 of $1,239 on a by-product basis and $1,276 on a co-product basis. ● Proven and probable gold mineral reserves totaled 54.3 million ounces at December 31, 2024, a 0.9% increase compared with 53.8 million ounces at December 31, 2023. ● As at December 31, 2024, Agnico Eagle had strong liquidity with $933.7 million in cash and cash equivalents and short-term investments along with approximately $2.0 billion in undrawn credit lines. ● During the year ended December 31, 2024, the Company repaid $700.0 million in debt. As

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