AGNICO EAGLE ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID

Rhea-AI Summary

Agnico Eagle Mines (NYSE: AEM) has received TSX approval to renew its Normal Course Issuer Bid (NCIB), allowing the company to repurchase up to 25,174,240 common shares (5% of outstanding shares) or shares worth up to $1 billion between May 4, 2025, and May 3, 2026. Based on the April 28, 2025 closing price of $119.02, approximately 8,401,949 shares (1.67% of outstanding) would be purchasable.

Daily purchases will be limited to 248,879 shares on the TSX. The buyback will be funded through existing cash resources, and purchased shares will be cancelled. Under the previous NCIB, Agnico Eagle purchased 1,862,133 shares at an average price of $80.56.

The company has established an automatic share purchase plan starting May 7, 2025, to facilitate purchases during blackout periods.

Positive

• Significant buyback program of up to $1 billion demonstrates strong financial position
• Flexible capital return program combining share buybacks with quarterly dividends
• Company has existing cash resources to fund the buyback
• Implementation of automatic share purchase plan increases efficiency of buyback execution

Negative

• Previous NCIB utilized only a small portion of authorized shares (1.86M out of 24.96M)
• Actual share repurchases may be limited by market conditions and share price

Insights

Financial Analyst

Agnico Eagle's $1B share buyback renewal signals financial strength, but limited previous execution and higher current price suggest measured impact.

Agnico Eagle has received approval to renew its share repurchase program, allowing it to buy back up to 25,174,240 common shares (5% of outstanding shares) or $1 billion worth, whichever is less. At the current share price of $119.02, the monetary cap would limit repurchases to approximately 8.4 million shares or 1.67% of outstanding shares.

This program's structure reveals important insights about capital allocation strategy. The company has explicitly framed the buyback as a "flexible and complementary tool" alongside its dividend policy, suggesting an opportunistic rather than committed approach to share repurchases.

Looking at historical execution provides context: under the prior program, Agnico repurchased just 1.86 million shares of the 24.96 million authorized, representing only 7.5% of the maximum allowed. These shares were purchased at a weighted-average price of $80.56 - significantly lower than today's $119.02 price.

The implementation details matter: daily purchases will be limited to 248,879 shares (25% of average daily volume), and the company has established an automatic share purchase plan to facilitate buying during blackout periods. The program will use existing cash resources, and Agnico explicitly states that future repurchase decisions will depend on "market conditions and share price" - reinforcing the selective approach.

The renewed buyback demonstrates financial capacity and management's willingness to return capital to shareholders. However, the significant price increase since previous repurchases and the historical pattern of limited execution suggest the ultimate impact may be more modest than the headline numbers imply. This appears to be a prudent capital allocation tool rather than an aggressive share count reduction strategy.

(All amounts expressed in U.S. dollars unless otherwise noted)

TORONTO, May 1, 2025 /PRNewswire/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle") announced today that further to its news release dated April 24, 2025, it has received approval from the Toronto Stock Exchange (the "TSX") of Agnico Eagle's notice of intention to renew its normal course issuer bid (the "NCIB").

Under the NCIB, Agnico Eagle may purchase for cancellation, on the open market at its discretion, during the period commencing on May 4, 2025 and ending on the earlier of May 3, 2026 and the completion of purchases under the NCIB, up to the lesser of: (i) 25,174,240 common shares of Agnico Eagle ("Common Shares"), which is 5% of the issued and outstanding Common Shares; and (ii) that number of Common Shares that can be purchased by Agnico Eagle under the NCIB for an aggregate purchase price, excluding commissions, of not more than $1,000,000,000, subject to the normal terms and limitations of such bids. Based on the closing share price of $119.02 on April 28, 2025, 8,401,949 Common Shares would be purchasable under the NCIB, representing approximately 1.67% of the issued and outstanding Common Shares as of April 28, 2025. As of April 28, 2025, Agnico Eagle had 503,484,810 issued and outstanding Common Shares.

Daily purchases on the TSX under the NCIB will be limited to 248,879 Common Shares, other than purchases made pursuant to the block purchase exception, which represents 25% of the average daily trading volume of 995,517 on the TSX for six months ending March 31, 2025. The actual number of Common Shares which may be purchased under the NCIB and the timing of any such purchases will be determined by the management of Agnico Eagle, subject to applicable law and the rules of the TSX. Purchases under the NCIB are expected to be made through the facilities of the TSX, the New York Stock Exchange and alternative trading systems in Canada or the United States, at prevailing market prices. The NCIB will be funded using Agnico Eagle's existing cash resources, and any Common Shares repurchased by Agnico Eagle under the NCIB will be cancelled.

Agnico Eagle believes that its NCIB is a flexible and complementary tool that, together with its quarterly dividend, is part of Agnico Eagle's overall capital allocation program and generates value for shareholders. Decisions regarding any future repurchases will depend on certain factors, including market conditions and share price. Agnico Eagle may elect to suspend or discontinue share repurchases at any time, in accordance with applicable laws.

Agnico Eagle has established an automatic share purchase plan in connection with its NCIB to facilitate the purchase of Common Shares during times when Agnico Eagle would ordinarily not be permitted to purchase Common Shares due to regulatory restrictions or self-imposed black-out periods. Before entering a black-out period, Agnico Eagle may, but is not required to, instruct the broker to make purchases under the NCIB based on parameters set by Agnico Eagle in accordance with the share purchase plan, TSX rules and applicable securities laws. The plan has been pre-cleared by the TSX and will be effective May 7, 2025.

Under Agnico Eagle's prior NCIB, which commenced on May 4, 2024 and ends on May 3, 2025, Agnico Eagle obtained approval to purchase up to a total of 24,961,914 Common Shares, of which 1,862,133 Common Shares were purchased through the facilities of the TSX and the New York Stock Exchange at a weighted-average price of approximately $80.5585 (excluding commissions) per Common Share.

About Agnico Eagle

Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in Canada, Australia, Finland and Mexico, with a pipeline of high-quality exploration and development projects. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading sustainability practices. Agnico Eagle was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.

Forward-Looking Statements

The information in this news release has been prepared as at May 1, 2025. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws. These forward-looking statements can be identified by the use of words such as "believes", "expected", "may", "will" or similar terms. In particular, such forward-looking statements include, but are not limited to, statements relating to Agnico Eagle's intention to commence the NCIB and the timing, methods and quantity of any purchases of Common Shares under the NCIB, the availability of cash for repurchases of Common Shares under the NCIB, compliance with applicable laws and regulations pertaining to the NCIB, Agnico Eagle's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These assumptions include, but are not limited to, the following assumptions made as at the date of this news release: that there are no significant disruptions affecting operations; that production, permitting, development, expansion and the ramp up of operations at each of Agnico Eagle's properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, foreign exchange rates and prices for key mining and construction supplies will be consistent with Agnico Eagle's expectations; the availability and sources of capital; operating costs, ongoing utilization and future expansions, the ability to reach required commercial agreements, and the ability to obtain required regulatory approvals; and that there are no material variations in the current tax and regulatory environment.

Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by the forward-looking statements included in this news release. These risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of future production, project development, capital expenditures and other costs; foreign exchange rate fluctuations; financing of additional capital requirements; mining risks; community protests, including by First Nations groups; governmental and environmental regulation; the behavior of the financial markets, including the volatility of Agnico Eagle's stock price; and certain other risks set out in Agnico Eagle's public disclosure documents. For a more detailed discussion of such risks and other factors that may affect Agnico Eagle's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see Agnico Eagle's Annual Information Form and management's discussion and analysis for the year ended December 31, 2024, each filed on SEDAR+ at www.sedarplus.ca and included in the Annual Report on Form 40-F for the year ended December 31, 2024, which is filed on EDGAR at www.sec.gov, as well as Agnico Eagle's other filings with the Canadian securities regulators and the US Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on a forward-looking statements, which speak only as of the date made. Other than as required by law, Agnico Eagle does not intend, and does not assume any obligation, to update these forward-looking statements.

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SOURCE Agnico Eagle Mines Limited

FAQ

What is the size of Agnico Eagle's new share buyback program in 2025?

Agnico Eagle's new buyback program allows for repurchasing up to 25,174,240 common shares (5% of outstanding shares) or up to $1 billion worth of shares, whichever is less, between May 4, 2025, and May 3, 2026.

How many AEM shares were repurchased under the previous buyback program?

Under the previous NCIB, Agnico Eagle purchased 1,862,133 common shares at a weighted-average price of approximately $80.56 per share.

What is the daily purchase limit for AEM's 2025 buyback program on the TSX?

Daily purchases on the TSX are limited to 248,879 common shares, representing 25% of the average daily trading volume.

When does Agnico Eagle's new share buyback program start and end?

The new buyback program runs from May 4, 2025, to May 3, 2026, or until the purchase limit is reached.

How will Agnico Eagle fund its 2025 share buyback program?

The buyback program will be funded using Agnico Eagle's existing cash resources, and all repurchased shares will be cancelled.