Agnico-Eagle reports strong second quarter 2007 operating and financial performance



    Stock Symbol: AEM (NYSE and TSX)

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

    TORONTO, Aug. 1 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or the
"Company") today reported second quarter net income of $37.8 million, or $0.28
per share, and second quarter cash provided by operating activities of
$79.8 million. Second quarter 2007 net income included a non-cash foreign
currency translation loss of $8.0 million, or $0.06 per share. In the
comparable 2006 quarter, the Company reported net income of $37.1 million, or
$0.32 per share, and cash provided by operating activities of $48.1 million.
    Cash provided by operating activities increased by $31.7 million in the
second quarter of 2007 compared to the second quarter of 2006, largely due to
working capital movements. Net income was essentially unchanged, while
earnings per share were negatively impacted by the issuance of approximately
12.5 million common shares upon the acquisition of Cumberland Resources Ltd.
("Cumberland") in April 2007.

    
    Second quarter 2007 highlights include:

    -   The acquisition of Cumberland and its 100% owned Meadowbank gold
        project
    -   A 66% increase in cash provided by operating activities to
        $79.8 million versus Q2, 2006
    -   Strong earnings of $37.8 million, or $0.28 per share
    -   Low total cash costs per ounce(1) at LaRonde of minus $699
    -   A record 30 consecutive months without a lost time accident
        underground at LaRonde
    -   LaRonde wins its third consecutive Quebec Mine Rescue championship
    

    In the first half of 2007, the Company recorded net income of
$62.7 million, or $0.49 per share, and cash provided by operating activities
of $135.9 million. In the first half of 2006, Agnico-Eagle recorded net income
of $74.3 million, or $0.67 per share, and cash provided by operating
activities of $67.8 million.
    With the increase in operating cash flows and the acquisition of
Cumberland in the second quarter of 2007, the Company's financial position
remains strong. Cash and cash equivalents totaled $495.3 million at June 30,
2007, an increase of $67.7 million during the second quarter. The Company's
financial position continued to strengthen despite $106.4 million in capital
expenditures during the second quarter of 2007.
    Payable gold production(1) in the second quarter of 2007 was 56,392
ounces at total cash costs per ounce of minus $699. This compares with payable
gold production of 55,966 ounces, at total cash costs per ounce of minus $975,
in the second quarter of 2006. The increase in total cash costs per ounce in
the second quarter of 2007 versus the prior period is mainly due to a stronger
Canadian dollar, increased minesite costs and lower byproduct copper revenues.
    "With another strong quarter of cash flows and earnings, Agnico-Eagle
remains solidly positioned for significant gold production and reserve growth.
With our next new gold mines, Goldex and Kittila, expected to begin production
within a year, we are poised to begin a period in which we expect to see
five-fold growth in gold output by 2010, while maintaining our low political
risk profile, strong balance sheet and significant exploration upside" said
Sean Boyd, Vice-Chairman and Chief Executive Officer. "Additionally, over the
next 18 months, we anticipate gold reserves at our existing projects to grow
from the current 15.4 million ounces to 18 to 20 million ounces. We also
believe that we are in a very good position to potentially exceed this gold
reserve target with additional drilling at our current projects" added Mr.
Boyd.

    Conference Call Tomorrow

    The Company will host its quarterly conference call tomorrow, Thursday
August 2 at 11:00am E.D.T. Management will review the Company's operating and
financial results for the second quarter of 2007 and provide an update of its
exploration and development activities.

    Via Telephone:

    To listen on the telephone, please dial (416) 644-3417 or 1 (800)
732-6179 toll free, at least five minutes before the scheduled start of the
presentation.

    Via Webcast:

    Additionally, a live audio webcast of the presentation will be available
on the Company's website homepage at www.agnico-eagle.com. The webcast along
with presentation slides will be archived for 180 days on the website.

    Replay archive:

    The access phone number for the archived audio replay is 1 (877)
289-8525, passcode 21234830 followed by the number sign. It will be available
from Thursday, August 2, 2007 at 1:00 pm until Thursday, August 9, 2007 at
11:59 pm.

    LaRonde Mine - Strong Performance Continues

    The LaRonde mill processed an average of 7,470 tonnes of ore per day in
the second quarter of 2007, compared with an average of 7,220 tonnes per day
in the corresponding period of 2006. LaRonde has now been operating at an
average of approximately 7,300 tonnes per day for over three and a half years,
continuing to demonstrate the reliability of this world class mine.
    Minesite costs per tonne(2) were C$71 in the second quarter. These costs
are higher than the C$61 per tonne experienced in the second quarter of 2006.
The increase in costs was partly due to the processing of approximately 30,000
tonnes of ore from the adjacent Bousquet mine (which has minesite costs of
over C$100 per tonne), partly due to accelerated lateral development and also
industry-wide cost escalation for inputs including fuel, reagents, steel and
cement.
    Minesite costs per tonne are expected to be approximately C$65 for the
full year 2007, five percent higher than 2006, due to the expected cost
escalation mentioned above, offset somewhat by lower reagent consumption in
the mill due to improvements in the copper-zinc circuit. Second half 2007
minesite costs per tonne are expected to decrease somewhat as the benefit of
the accelerated development undertaken over the past several quarters is
realized.
    On a per ounce basis, net of byproduct credits, LaRonde's total cash
costs per ounce remained very low by industry standards, at minus $699 in the
second quarter. This compares with the results of the second quarter of 2006
when total cash costs per ounce were minus $975. The increase in total cash
costs is due to a stronger Canadian dollar, increased minesite costs and lower
byproduct copper revenues.
    LaRonde's full year 2007 production forecast is an estimated 240,000
ounces of gold, the same as the prior estimate. Byproduct production is now
estimated at 4.9 million ounces of silver, up 4%, 71,000 tonnes of zinc, down
7%, and 7,800 tonnes of copper, down 10%. The change in byproduct estimates is
largely due to the mining of lower grade ore which is economic at current
prices. As a result, the mine life of LaRonde could be extended. Total cash
costs per ounce of gold production for the year are expected to be
significantly less than nil, at current byproduct metal prices.
    Agnico-Eagle is proud to announce that its LaRonde Mine Rescue Team won
the prestigious Quebec Championship for the third consecutive year, the first
time that any team has accomplished this feat in the 52 year history of the
event.

    Cash Position At Record Level, Despite Large Investments in Gold Growth

    Cash and cash equivalents increased to $495.3 million at June 30, 2007
from the March 31, 2007 balance of $427.6 million, as the strong cash
generating performance from the LaRonde mine and the cash acquired in the
Cumberland transaction more than offset capital investments at the Company's
development projects.
    During the quarter, Agnico-Eagle added $79.8 million of cash provided by
operating activities and an additional $96.0 million upon the acquisition of
Cumberland. Capital expenditures in the quarter totaled $106.4 million,
including $31.4 million on the construction of Meadowbank, $27.2 million on
Goldex, $15.7 million on the extension at LaRonde, $14.0 million at Kittila
and $4.8 million at Lapa. For the full year 2007, capital expenditures are
expected to total over $400 million.
    With a large cash balance, strong cash flows, no long term debt, and
substantially undrawn bank lines of $300 million, Agnico-Eagle is well funded
for the development and exploration of its pipeline of gold projects in
Canada, Finland and Mexico.

    Four New Gold Mines Under Construction, Board Decision On Pinos Altos
    Expected In Third Quarter

    At the 100% owned Goldex mine project in northwestern Quebec,
Agnico-Eagle commenced construction in July 2005. Proven and probable reserves
of 1.7 million ounces of gold (22.9 million tonnes grading 2.3 grams per
tonne) are estimated to be sufficient for a ten year mine life with annual
production averaging 170,000 ounces at total cash costs of approximately $225
per ounce, assuming C$/US$ of 1.30. With a large additional resource, the
deposit remains open for expansion.
    The Goldex production shaft had reached a depth of 641 metres at the end
of June 2007, towards a final planned depth of 865 metres. The shaft is
expected to be completed by year end 2007. Approximately 28,000 tonnes of ore
were extracted and stockpiled on surface during the quarter. The total proven
reserves in the surface stockpile now stand at approximately 181,000 tonnes,
grading 1.9 grams per tonne from development ore.
    Construction commenced at the 100% owned Kittila mine project in northern
Finland in the second quarter of 2006. The project is expected to produce an
average of 150,000 ounces of gold per year at total cash costs of
approximately $250 per ounce, assuming US$/Euro of 1.20. The mine life is
estimated to be 13 years. Kittila has probable gold reserves of 2.6 million
ounces (16.0 million tonnes grading 5.1 grams per tonne). With a large
additional resource, the deposit remains open for expansion.
    Surface overburden stripping for the open pits is advanced. Approximately
2.0 million tonnes of waste rock has been excavated as well. Much of this rock
has been used in road and tailings dam construction. Construction of the
underground decline is on schedule and had advanced approximately 1,000 metres
by the end of June 2007. The mining fleet has been ordered and mechanical
installation in the processing plant is underway.
    At the 100% owned Lapa mine project in northwestern Quebec, the final
phase of construction commenced in the second quarter of 2006. Probable gold
reserves of 1.2 million ounces (3.9 million tonnes grading 9.1 grams per
tonne) are expected to support estimated annual production of 125,000 ounces
per year at total cash costs per ounce of approximately $210, assuming C$/US$
of 1.25.
    The shaft at Lapa reached a depth of 1,279 metres below surface as of
June 30, 2007 towards the currently planned final depth of 1,375 metres. The
shaft is expected to be completed this quarter. The development of the
underground shaft stations continues as planned, and lateral development is
anticipated to begin in the fourth quarter of 2007. Construction of the
surface service facilities is underway.
    At the 100% owned LaRonde mine in northwestern Quebec, construction
commenced in the second quarter of 2006 on the infrastructure extension at
depth. Proven and probable reserves of 5.2 million ounces (35.6 million tonnes
grading 4.5 grams per tonne) are expected to support a mine life through 2021.
Annual gold production post-2011, when the deeper ore is mined, is anticipated
to average 320,000 ounces at total cash costs per ounce of approximately $230,
assuming C$/US$ of 1.25.
    The excavation for the production hoist room was completed. The focus
during the third quarter continues to be on underground infrastructure
construction and detailed engineering. Shaft sinking for the new internal
shaft is expected to begin in the fourth quarter of 2007.
    At the 100% owned Pinos Altos mine project in northern Mexico, the
property has probable gold reserves of 1.8 million ounces (18.6 million tonnes
grading 3.1 grams per tonne). Additionally, the property contains a large
silver reserve of over 55 million ounces (the same 18.6 million tonnes grading
92.8 grams per tonne). The feasibility study has been completed and the third
party review is nearing completion. The Board decision regarding production is
expected this month.
    Construction of the permanent camp is progressing as expected. The
construction of a 2,800 metre underground exploration ramp commenced in March
2007 and has advanced 280 metres, while construction of a 900 metre light
aircraft airstrip is complete.
    Exploration drilling is underway on the Mascota zone, and underground
drilling on the main Santo Nino zone is expected to begin by the end of the
year. With a large gold and silver resource outside of the reserve envelope,
the deposit remains open for expansion.
    With the recent completion of the acquisition of Cumberland, Agnico-Eagle
now owns 100% of the Meadowbank project in Nunavut. Meadowbank has proven and
probable gold reserves of 2.9 million ounces (21.3 million tonnes grading 4.2
grams per tonne). With a large additional gold resource, the deposit remains
open for expansion.
    The exploration focus on Meadowbank during 2007 will be resource to
reserve conversion in the vicinity of the open pit reserves, and resource
exploration around the Goose South and Goose Island zones. Further grassroots
exploration and diamond drilling will be performed on the large property
position, largely to the north of the existing resource. Currently, three
drills are in operation on the property.
    The all-weather road construction, detailed engineering and sourcing and
acquisition of the major capital equipment are ongoing.
    Agnico-Eagle is pleased to announce the addition of two experienced mine
builders to the Meadowbank team. In July, Mr. Dan Kivari was appointed to the
position of General Manager. He is a graduate metallurgical engineer with
extensive international operating and project development experience. Most
recently, he was the Vice President Operations having built a 10,000 tonne per
day mine and processing plant in South America for a TSX listed Company.
    Also Mr. Martin Bergeron was appointed to the position of Mine Manager.
He is a graduate mining engineer with extensive international operational and
design experience focusing on open pit mining. Most recently, he was the Mine
Manager of a 20,000 tonne per day open pit mining operation located in South
America for a TSX listed Company.
    Both individuals have over 30 years of experience and are a welcome
addition to Agnico-Eagle's mine building team.

    Next Exploration Update In Third Quarter

    Agnico-Eagle is undertaking its largest ever exploration program in 2007
with expenditures expected to total more than $40 million. A comprehensive
update on all of the exploration properties is expected to be released in
September 2007.

    Pinos Altos Analyst Tour

    Agnico-Eagle is planning to host a tour of its Pinos Altos property on
August 20 and August 21, 2007. The trip is open to equity analysts. A charter
will be departing from Toronto early in the morning on August 20, returning
late on August 21. Interested parties should contact Hazel Winchester at (416)
847-3717 or hwinchester@agnico-eagle.com as soon as possible as spaces are
limited.

    
    ---------------------------------------
    (1) Payable gold production and total cash costs per ounce are non-GAAP
        measures. For reconciliation of total cash costs per ounce to
        production costs, as reported in the financial statements, see Note 1
        to the financial statements at the end of this news release.

    (2) Minesite costs per tonne is a non-GAAP measure. For reconciliation of
        this measure to production costs, as reported in the financial
        statements, see Note 1 to the financial statements at the end of this
        news release.
    

    About Agnico-Eagle

    Agnico-Eagle is a long established Canadian gold producer with operations
located in Quebec and exploration and development activities in Canada,
Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's
largest gold deposit in terms of reserves. The Company has full exposure to
higher gold prices consistent with its policy of no forward gold sales. It has
paid a cash dividend for 25 consecutive years.

    Forward-Looking Statements

    The information in this press release has been prepared as at August 1,
2007. Certain statements contained in this press release 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. When used in this
document, the words "anticipate", "expect", "estimate", "forecast", "planned",
"projected" and similar expressions are intended to identify forward-looking
statements or information.
    Such statements and information include without limitation: statements
regarding timing and amounts of capital expenditures and other assumptions;
estimates of future reserves, resources, mineral production and sales;
estimates of mine life; estimates of future mining costs, total cash costs per
ounce, minesite costs and other expenses; estimates of future capital
expenditures and other cash needs, and expectations as to the funding thereof;
statements and information as to the projected development of certain ore
deposits, including estimates of exploration, development and production and
other capital costs, and estimates of the timing of such exploration,
development and production or decisions with respect to such exploration,
development and production; estimates of reserves and resources, and
statements and information regarding anticipated future exploration and
feasibility study results; the anticipated timing of events with respect to
the Company's minesites; statements and information regarding the sufficiency
of the Company's cash resources; and other statements and information
regarding anticipated trends with respect to the Company's capital resources
and results of operations. Such statements and information reflect the
Company's views as at the date of this press release and are subject to
certain risks, uncertainties and assumptions, and undue reliance should not be
placed on such statements and information. Many factors, known and unknown,
could cause the actual results to be materially different from those expressed
or implied by such statements and information. Such risks include, but are not
limited to: the Company's dependence on the LaRonde mine, the volatility of
prices of gold and other metals; uncertainty of mineral reserves, mineral
resources, mineral grades and mineral recovery estimates; uncertainty of
future production, capital expenditures, and other costs; currency
fluctuations; financing of additional capital requirements; cost of
exploration and development programs; mining risks; risks associated with
foreign operations; the completion of successful negotiations with the royalty
holder on certain surface rights and other interests relating to the Pinos
Altos property; governmental and environmental regulation; the volatility of
the Company's stock price; and risks associated with the Company's byproduct
metal derivative strategies. For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained in this
document, see Company's Annual Report on Form 20-F for the year ended December
31, 2006, as well as the Company's other filings with the Canadian Securities
Administrators and the U.S. Securities and Exchange Commission. The Company
does not intend, and does not assume any obligation, to update these
forward-looking statements and information.
    Without limiting the foregoing, certain of the foregoing statements,
primarily related to projects, are based on preliminary views of the Company
with respect to, among other things, grade, tonnage, processing, mining
methods, capital costs, and location of surface infrastructure and actual
results and final decisions may be materially different from those currently
anticipated.

    Note to Investors Regarding the Use of Non-GAAP Financial Measures

    This press release presents estimates of future "total cash cost per
ounce" and "minesite cost per tonne" that are not recognized measures under
United States generally accepted accounting principles ("US GAAP"). This data
may not be comparable to data presented by other gold producers. These future
estimates are based upon the total cash costs per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at the applicable
projects and 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 GAAP
measure. A reconciliation of the Company's total cash cost per ounce and
minesite cost per tonne to the most comparable financial measures calculated
and presented in accordance with US GAAP for the Company's historical results
of operations is set forth in the notes to the financial statements attached
hereto and in the Company's Annual Report on Form 20-F for the year ended
December 31, 2006 filed with the Canadian Securities Administrators and the
United States Securities and Exchange Commission.

    Detailed Mineral Reserve and Resource Data

    Agnico-Eagle Mines Limited is reporting mineral resource and reserve
estimates in accordance with the CIM guidelines for the estimation,
classification and reporting of resources and reserves. Further information
regarding the Company's mineral reserve and mineral resource estimates (other
than in respect of the Meadowbank mine project) can be found in the Company's
Annual Report on Form 20-F for the year ended December 31, 2006 filed with
Canadian securities regulators and with the United States Securities and
Exchange Commission on March 30, 2007. Marc Legault, Agnico-Eagle's Vice
President, Project Development, a qualified person for the purposes of the
Canadian Securities Administrators' National Instrument 43-101, is the
qualified person that supervised the preparation of the material that forms
the basis for the disclosure of scientific and technical information set out
in this press release.
    The effective date of the Company's mineral reserves (with the exception
of Meadowbank project) is February 21, 2007. The effective date of the
Meadowbank project reserves is December 2005.



    
                         AGNICO-EAGLE MINES LIMITED
                          SUMMARIZED QUARTERLY DATA
        (thousands of United States dollars, except where noted - Unaudited)

                                    Three months ended      Six months ended
                                    -------------------     -----------------
                                           June 30,              June 30,
                                           --------              --------
                                       2007       2006       2007       2006
                                  ---------- ---------- ---------- ----------
    Income and cash flows
    LaRonde Division
    Revenues from mining
     operations.................  $ 117,935  $ 126,872  $ 218,665  $ 217,453
    Production costs                 42,810     35,567     78,988     68,754
                                  ---------- ---------- ---------- ----------
    Gross profit (exclusive
     of amortization
     shown below)...............  $  75,125  $  91,305  $ 139,677  $ 148,699
    Amortization................      7,094      6,108     14,022     12,105
                                  ---------- ---------- ---------- ----------
    Gross profit................  $  68,031  $  85,197  $ 125,655  $ 136,594
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Net income for the
     period.....................  $  37,809  $  37,092  $  62,731  $  74,282
    Net income per share
     (basic)....................  $    0.28  $    0.32  $    0.49  $    0.67
    Net income per share
     (diluted)..................  $    0.27  $    0.31  $    0.48  $    0.65
    Cash provided by
     operating activities.......  $  79,832  $  48,095  $ 135,898  $  67,806
    Cash used in investing
     activities.................  $ (25,242) $ (33,170) $(104,536) $ (64,376)
    Cash provided by
     (used in) financing
     activities.................  $   1,853  $ 246,449  $  (8,810) $ 291,905
    Weighted average number
     of common shares
     outstanding - basic
     (in thousands).............    133,788    114,434    127,473    110,281
    Tonnes of ore milled........    679,765    656,902  1,351,249  1,318,430
    Head grades:
      Gold (grams per tonne)....       2.82       2.89       2.91       3.10
      Silver (grams per
       tonne)...................      68.60      78.20      76.40      77.60
      Zinc......................       3.44%      4.27%      3.57%      4.03%
      Copper....................       0.32%      0.33%      0.35%      0.37%
    Recovery rates:
      Gold......................      91.54%     91.35%     91.09%     91.65%
      Silver....................      87.40%     87.70%     87.41%     87.10%
      Zinc......................      87.60%     87.20%     86.40%     87.00%
      Copper....................      86.40%     81.10%     85.50%     82.60%
    Payable production:
      Gold (ounces).............     56,392     55,966    114,980    120,201
      Silver (ounces in
       thousands)...............      1,135      1,247      2,532      2,474
      Zinc (tonnes).............     17,462     20,787     35,406     39,250
      Copper (tonnes)...........      1,689      1,590      3,680      3,643
    Payable metal sold:
      Gold (ounces).............     57,366     60,966    114,124    130,643
      Silver (ounces in
       thousands)...............      1,153      1,185      2,777      2,375
      Zinc (tonnes).............     16,460     20,621     34,227     38,799
      Copper (tonnes)...........      1,988      1,616      3,966      3,654
    Realized prices:
      Gold (per ounce)..........  $     683  $     687  $     676  $     646
      Silver (per ounce)........  $   13.28  $   13.06  $   13.60  $   11.94
      Zinc (per tonne)..........  $   3,950  $   3,786  $   3,352  $   3,249
      Copper (per tonne)........  $   7,008  $  14,901  $   6,549  $   9,833
    Total cash costs
     (per ounce):
    Production costs............  $     759  $     636  $     687  $     572
    Less: Net byproduct
     revenues...................     (1,396)    (1,523)    (1,230)    (1,109)
      Inventory adjustments.....        (57)       (86)        58        (44)
      Accretion expense
       and other................         (5)        (2)        (5)        (2)
                                  ---------- ---------- ---------- ----------
    Total cash costs
     (per ounce)(3).............  $    (699) $    (975) $    (490) $    (583)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    Minesite costs per
     tonne milled (C$)(3).......  $      71  $      61  $      67  $      60
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    (3) Total cash costs (per ounce) and minesite costs per tonne milled are
        non-GAAP measures. For a reconciliation of these measures to the
        financial statements, see note 1 to these financial statements.



                         AGNICO-EAGLE MINES LIMITED
                 COMPARATIVE CONDENSED FINANCIAL INFORMATION
               (thousands of United States dollars, unaudited)

                                                         As at         As at
                                                       June 30,  December 31,
                                                          2007          2006
                                                   ------------  ------------
    ASSETS
    Current
      Cash and cash equivalents................... $   495,334   $   458,617
      Metals awaiting settlement..................      76,511        84,987
      Inventories:
        Ore stockpiles.............................      5,142         2,330
        Concentrates...............................      6,841         3,794
        Supplies...................................     15,311        11,152
      Other current assets.........................     66,305        61,953
                                                   ------------  ------------

    Total current assets...........................    665,444       622,833
    Other assets...................................     15,317         7,737
    Future income and mining tax assets............     15,957        31,059
    Property, plant and mine development...........  1,714,628       859,859
                                                   ------------  ------------
                                                   $ 2,411,346   $ 1,521,488
                                                   ------------  ------------
                                                   ------------  ------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities.... $    71,961   $    42,538
      Dividends payable...........................         647        15,166
      Income taxes payable........................      17,121        14,231
                                                   ------------  ------------
    Total current liabilities.....................      89,729        71,935
                                                   ------------  ------------
    Reclamation provision and other liabilities...      32,392        27,457
                                                   ------------  ------------
    Future income and mining tax liabilities......     458,789       169,691
                                                   ------------  ------------
    Minority Interest.............................      10,195             -
                                                   ------------  ------------
    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 133,834,169
       (December 31, 2006 - 121,025,635)..........   1,724,496     1,230,654
    Stock options.................................      21,348         5,884
    Warrants......................................      15,715        15,723
    Contributed surplus...........................      15,128        15,128
    Retained earnings.............................      61,259         3,015
    Accumulated other comprehensive loss..........     (17,705)      (17,999)
                                                   ------------  ------------
    Total shareholders' equity....................   1,820,241     1,252,405
                                                   ------------  ------------
                                                   $ 2,411,346   $ 1,521,488
                                                  ------------  ------------
                                                  ------------  ------------



                         AGNICO-EAGLE MINES LIMITED
                 COMPARATIVE CONDENSED FINANCIAL INFORMATION
        (thousands of United States dollars except share and per share
                             amounts,unaudited)

                                    Three months ended     Six months ended
                                    ------------------     ----------------
                                           June 30,              June 30,
                                           --------              --------
                                       2007       2006       2007       2006
                                  ---------- ---------- ---------- ----------
    REVENUES
    Revenues from
     mining operations..........  $ 117,935  $ 126,872  $ 218,665  $ 217,453
    Interest and sundry income..      4,206      3,125      9,480      4,605
    Gain on sale of
     available-for-sale securities    3,202        339      5,067     21,913
                                  ---------- ---------- ---------- ----------

                                    125,343    130,336    233,212    243,971
    COSTS AND EXPENSES
    Production..................     42,810     35,567     78,988     68,754
    Loss (gain) on derivative
     financial instruments......       (299)     4,614      5,829     12,045
    Exploration and corporate
     development................      9,037      7,051     14,866     12,652
    Amortization................      7,094      6,108     14,022     12,105
    General and administrative..      7,623      5,275     16,676     10,819
    Provincial capital tax......      1,438        344      2,500        897
    Interest....................        970        217      1,721      1,574
    Foreign currency
     translation loss...........      8,045      6,650      6,778      8,518
                                  ---------- ---------- ---------- ----------
    Income before income, mining
     and federal capital taxes..     48,625     64,510     91,832    116,607
    Income and mining tax
     expense....................     10,816     27,418     29,101     42,325
                                  ---------- ---------- ---------- ----------
    Net income for the period...  $  37,809  $  37,092  $  62,731  $  74,282
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    Net income per share -
     basic......................  $    0.28  $    0.32  $    0.49  $    0.67
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    Net income per share -
     diluted....................  $    0.27  $    0.31  $    0.48  $    0.65
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    Weighted average number of
     shares outstanding (in thousands)
      Basic.....................    133,788    114,434    127,473    110,281
      Diluted...................    138,056    117,817    131,741    113,664




                         AGNICO-EAGLE MINES LIMITED
                 COMPARATIVE CONDENSED FINANCIAL INFORMATION
               (thousands of United States dollars, unaudtied)

                                    Three months ended      Six months ended
                                    -------------------    -----------------
                                           June 30,              June 30,
                                           --------              --------
                                       2007       2006       2007       2006
                                  ---------- ---------- ---------- ----------
    Operating activities
    Net income for the period...  $  37,809  $  37,092  $  62,731  $  74,282
    Add (deduct) items not
     affecting cash:
      Amortization..............      7,094      6,108     14,022     12,105
      Future income and mining
       taxes....................      5,932     20,133     22,261     31,835
      Unrealized loss on
       derivative contracts.....       (705)     1,433      5,018      8,116
      Gain on sale of
       available-for-sale
       securities...............     (1,338)      (339)    (3,202)   (21,913)
      Amortization of deferred
       costs and other..........     19,073      5,970     23,522      7,824
    Changes in non-cash working
     capital balances
      Metals awaiting
       settlement...............     (1,331)   (31,652)     8,476    (40,560)
      Income taxes payable......       (301)     6,969      2,890     10,258
      Other taxes recoverable...     (6,376)       (46)    (3,207)     3,940
      Inventories...............     (3,417)      (238)    (6,008)    (2,389)
      Other current assets......     (1,773)    (1,355)    (8,826)    (4,260)
      Accounts payable and
       accrued liabilities......     25,165      4,020     18,221     (9,189)
      Interest payable..........          -          -          -     (2,243)
                                  ---------- ---------- ---------- ----------
    Cash provided by operating
     activities.................     79,832     48,095    135,898     67,806
                                  ---------- ---------- ---------- ----------
    Investing activities
    Additions to property, plant
     and mine development.......   (106,416)   (33,533)  (169,390)   (54,508)
    Acquisitions, investments
     and other..................    (14,869)       363    (31,189)    (9,868)
    Cash acquired upon
     acquisition of Cumberland
     Resources Ltd..............     96,043          -     96,043          -
                                  ---------- ---------- ---------- ----------
    Cash used in investing
     activities.................    (25,242)   (33,170)  (104,536)   (64,376)
                                  ---------- ---------- ---------- ----------
    Financing activities
    Dividends paid..............          -          -    (13,406)    (3,166)
    Short-term debt.............          -      3,968          -      7,232
    Proceeds from common
     shares issued..............      1,853    254,769      4,596    302,456
    Share issue costs...........          -    (12,288)         -    (14,617)
                                  ---------- ---------- ---------- ----------
    Cash provided by (used in)
     financing activities.......      1,853    246,449     (8,810)   291,905
                                 ---------- ---------- ---------- ----------
    Effect of exchange rate
     changes on cash and
     cash equivalents...........     11,276       (812)    14,165       (846)
                                  ---------- ---------- ---------- ----------
    Net increase in cash and
     cash equivalents during
     the period.................     67,719    260,562     36,717    294,489
    Cash and cash equivalents,
     beginning of period........    427,615    154,909    458,617    120,982
                                  ---------- ---------- ---------- ----------
    Cash and cash equivalents,
     end of period..............  $ 495,334  $ 415,471  $ 495,334  $ 415,471
                                  ---------- ---------- ---------- ----------
    Other operating cash flow
     information:
    Interest paid during
     the period.................  $     540  $      45  $   1,129  $   3,319
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    Income, mining and capital
     taxes paid during
     the period.................  $   3,112  $     484  $   3,137  $     968
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------



          Note 1: Reconciliation of Total Cash Costs Per Ounce and
                          Minesite Costs Per Tonne


                                      Three      Three        Six        Six
                                     months     months     months     months
                                      ended      ended      ended      ended
    (thousands of dollars,          June 30,   June 30,   June 30,   June 30,
     except where noted)               2007       2006       2007       2006
    ----------------------        ---------- ---------- ---------- ----------
    Cost of production per
     Consolidated Statements
     of Income..................  $  42,810  $  35,567  $  78,988  $  68,754
    Adjustments:
      Byproduct revenues........    (78,745)   (85,188)  (141,489)  (133,227)
      Inventory adjustment(i)...     (3,210)    (4,833)     6,683     (5,337)
      Non-cash reclamation
       provision................       (280)      (112)      (544)      (217)
                                  ---------- ---------- ---------- ----------

    Cash operating costs........  $ (39,425) $ (54,566) $ (56,362) $ (70,027)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Payable gold production
     (ounces)(v)................     56,392     55,966    114,980    120,201
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Total cash costs
     (per ounce)(ii)............  $    (699) $    (975) $    (490) $    (583)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------


                                      Three      Three        Six        Six
                                     months     months     months     months
                                      ended      ended      ended      ended
    (thousands of dollars,          June 30,   June 30,   June 30,   June 30,
     except where noted)               2007       2006       2007       2006
    ----------------------        ---------- ---------- ---------- ----------

    Cost of production per
     Consolidated Statements
     of Income..................  $  42,810  $  35,567  $  78,988  $  68,754
    Adjustments:
      Inventory adjustments
       (iii)....................      1,401        153      4,895      1,562
      Non-cash reclamation
       provision................       (280)      (112)      (544)      (217)
                                  ---------- ---------- ---------- ----------
    Minesite operating costs
     (US$)......................     43,931  $  35,608     83,339  $  70,099
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Minesite operating costs
     (C$).......................     48,037  $  39,973     90,719  $  79,438
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Tonnes of ore milled
     (000's tonnes).............        679        657      1,351      1,318
                                  ---------- ---------- ---------- ----------

    Minesite costs per tonne
     (C$)(iv)...................  $      71  $      61  $      67  $      60
                                  ---------- ---------- ---------- ----------

    Notes:

    (i)    Under the Company's revenue recognition policy, revenue is
           recognized on concentrates when legal title passes. Since total
           cash costs are calculated on a production basis, this inventory
           adjustment reflects the sales margin on the portion of concentrate
           production for which revenue has not been recognized in the
           period.

    (ii)   Total cash costs per ounce is not a recognized measure under US
           GAAP and this data may not be comparable to data presented by
           other gold producers. The Company believes that this generally
           accepted industry measure is a realistic indication of operating
           performance and is useful in allowing year over year comparisons.
           As illustrated in the table above, this measure is calculated by
           adjusting Production Costs as shown in the Consolidated Statements
           of Income and Comprehensive Income for net byproduct revenues,
           royalties, inventory adjustments and asset retirement provisions.
           This measure is intended to provide investors with information
           about the cash generating capabilities of the Company's mining
           operations. Management uses this measure to monitor the
           performance of the Company's mining operations. Since market
           prices for gold are quoted on a per ounce basis, using this per
           ounce measure allows management to assess the mine's cash
           generating capabilities at various gold prices. Management is
           aware that this per ounce measure of performance can be impacted
           by fluctuations in byproduct metal prices and exchange rates.
           Management compensates for the limitation inherent with this
           measure by using it in conjunction with the minesite costs per
           tonne measure (discussed below) as well as other data prepared in
           accordance with US GAAP. Management also performs sensitivity
           analyses in order to quantify the effects of fluctuating metal
           prices and exchange rates.

    (iii)  This inventory adjustment reflects production costs associated
           with unsold concentrates.

    (iv)   Minesite costs per tonne is not a recognized measure under US GAAP
           and this data may not be comparable to data presented by other
           gold producers. As illustrated in the table above, this measure is
           calculated by adjusting Production Costs as shown in the
           Consolidated Statements of Income and Comprehensive Income for
           inventory and hedging adjustments and asset retirement provisions
           and then dividing by tonnes processed through the mill. Since
           total cash costs data can be affected by fluctuations in byproduct
           metal prices and exchange rates, management believes this measure
           provides additional information regarding the performance of
           mining operations and allows management to monitor operating costs
           on a more consistent basis as the per tonne measure eliminates the
           cost variability associated with varying production levels.
           Management also uses this measure to determine the economic
           viability of mining blocks. As each mining block is evaluated
           based on the net realizable value of each tonne mined, in order to
           be economically viable the estimated revenue on a per tonne basis
           must be in excess of the minesite costs per tonne. Management is
           aware that this per tonne measure is impacted by fluctuations in
           production levels and thus uses this evaluation tool in
           conjunction with production costs prepared in accordance with US
           GAAP. This measure supplements production cost information
           prepared in accordance with US GAAP and allows investors to
           distinguish between changes in production costs resulting from
           changes in production versus changes in operating performance

    (v)    Payable gold production means the quantity of gold produced during
           a period contained in products that are sold by the Company,
           whether such products are sold during the period or held as
           inventory at the end of the period.
    





For further information:

For further information: David Smith, VP, Investor Relations, (416)
947-1212


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