Q3 2011 Summary

Agnico-Eagle Mines Limited  today reported a quarterly net loss of $81.6 million (or a loss of $0.48 per share) for the third quarter of 2011.  This result includes the $161.1 million ($0.95 per share) after-tax write off of the Company’s Goldex operation (as announced on October 19, 2011), a $32.7 million closure provision ($0.19 per share), stock option expense of $7.7 million ($0.05 per share), and the writedown of available for sale securities of $3.4 million ($0.02 per share), partly offset by a non-cash foreign currency translation gain of $21.4 million, or $0.13 per share.  Excluding these items would result in adjusted net income of $101.9 million, or $0.60 per share.  In the third quarter of 2010, the Company reported net income of $121.5 million, or $0.73 per share.  The lower net income in 2011 was largely due to the suspension and write off of the Company’s Goldex operation. 

Third quarter 2011 cash provided by operating activities was a record $197.6 million ($213.5 million before changes in non-cash components of working capital), up from cash provided by operating activities of $156.8 million in the third quarter of 2010 ($170.9 million before changes in non-cash components of working capital). 

The higher cash provided by operating activities in 2011 was primarily due to a 39% higher realized gold price and significantly higher byproduct metal revenue when compared to that realized in the third quarter of 2010.

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Comment by Sean Boyd, Vice Chairman and CEO

 “While the suspension of production at Goldex, one of our lowest cost mines, is extremely disappointing to the Agnico-Eagle team, our strategy remains unchanged and we will continue to focus on improving our business”, said Sean Boyd, Vice-Chairman and Chief Executive Officer. “Although we had continued operating improvements in the quarter at Kittila and Meadowbank, there is still more work to do, particularly at Meadowbank where realized gold grades are still below plan”, added Mr. Boyd.