Good morning ladies and gentlemen and thank you for standing by. Welcome to the Agnico Eagle Mines Limited Q1 2014 Call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded today, Friday, May 2, 2014 at 8:30 a.m. Eastern Time. I will now turn the conference over to Mr. Sean Boyd, President and CEO. Please go ahead, sir.

Thank you, operator. And good morning, everyone. And thank you all for joining us at our Q1 2014 conference call. I’d like to just make everybody aware that there will be forward-looking statements in this presentation so please read our forward-looking statement cautionary language at the beginning of the presentation. And we should also just remind everyone that our annual meeting this morning at 11 AM., at the Sheraton in Toronto. Everybody’s welcome and we look forward to seeing a lot of our shareholders there this morning. What I like to do is go through the first quarter highlights and then talk about our operations and where we’re seeing some improvements on the cost side. As far as highlights for Q1 it was an outstanding quarter not just from a production point of view, but also from a cost point of view. We had record production of over 360,000 ounces, out cash cost were in the low $500 per ounce. Meadowbank continued its strong performance from Q4 of 2013, producing a record amount of gold of over 150,000 ounces at very low cost. We will talk a bit about Meadowbank cost performance which is also exceptional on a cost per tonne basis. As a result of the strong start in the first quarter, we expect to exceed our production guidance. The top end of the production guidance range and we also expect to do better in the lower end of our cash cost forecast. As a result of the strong quarter, we are able to repay in the first three months of the year, $80 million on our revolving credit facility. The cash generation was very strong, at $248 million. Well also as you know a couple of weeks ago announced the joint bid with Yamana Gold for Osisko Mining…

Thank you, (Operator Instructions) your first question comes from Andrew Quail with Goldman Sachs, please go ahead.

Morning Sean, thanks very much for the update and congratulations on a super quarter, [Indiscernible] just got one question La India, what sort of upside do you see there going forward now into commercial production and so how much are you spending in the exploration around the area.

We’ll let Tim Haldane handle that.

Sure, well it’s early days yet La India but we are pretty comfortable with what we see so far as Sean mentioned metallurgy is tracking where we want it to be, the ore body is slightly favorable, early days yet, we hope that continues. Upside at La India, you’re right, it’s just to grow it and we’re drilling inside of La India, infill drilling and offsite drilling, we’ve got a 50,000 hectare land package there but I think we’ve got news to come in the future, I think there’s upside there and right now we’re just concentrating on the solid startup behind us.

Your next question comes from Botir Sharipov with HSBC, please go ahead.

Good morning everyone and congrats on a strong quarter, my first question is on your gold project, the Osisko position assuming it’s completed, what’s the thinking about your other gold project now that you know you will probably draw down another $0.5 billion for the Oskiso position, what’s the thinking, what’s the current thinking for Kittila shaft and Miller dam project as both will require substantial capital investment. Are you thinking about more debt eventually just your thoughts on that?

Well the Osisko transaction, Canadian Malarctics generating net free cash flow, so our overall net free cash flow generated in the business will be higher collectively so we’ll be measuring each project on its merits and we feel we can still build Meliadine assuming positive economics later this year, so no change in our thinking on our growth projects, our current business absent Canadian Malarctic is generating net free cash flow at the moment and we were mindful when we structured the deal that we didn’t take on too much debt that would have affected our investment grade credit rating. So on balance we’re in good financial shape despite the fact that we’re going to be borrowing an additional C$500 million.

Okay. Thank you. And my second question is actually on depreciation? It was lower this quarter from prior quarter. Is it because you’re -- I guess, you're into production method is based more on tonnage and you actually put on less tonne this quarter and last quarter?

Yeah.

Despite higher production?

Yeah. It’s kind of two parts, but you have to look at it on a tonnage basis for sure. And if you compare to 2013, we actually had some write downs in 2013. So on a per tonne basis versus per ounce basis, the depreciation is actually pretty close to where we think it’s going to be -- it will be a little bit higher in subsequent quarters for the year than it was in Q1, because we have just commission them, taking La India commercial.

Your next question comes from Anita Soni with Credit Suisse. Please go ahead.

Hi, good morning guys. A question for Dave and congratulation on the quarter, it’s nice to keep in tally. So Goldex, could you give us a breakout of all of the sustaining capital at Goldex and add Kittila as well?

May be that’s something we can do offline when we have the model in front of us, Anita.

Sure. And just wondering on Pinos, is the mill constrained by the one -- the amount of tonnage that you can put through that operation? Is that constraint by the mill at 1.954 or is there opportunity to upgrade that?

Tim Haldane will answer.

You know, I think we’re pretty close to apprehend where we can get through the mill. The quarter was 53 somewhat tonnes per day and maybe within average 55. So I think our -- what we’re looking at in subsequent years after we get the shaft up and running is how we can optimize the tonnage to the mill and maintain that kind of 5500 tonne a day, right.

And how about the heap leaches that, is there opportunities for -- I think there was pretty good amount of order placed on the pad, I am just wondering about that?

Heap leach, Pinos Altos is always -- it’s kind of gravy for us. We minded as it is in front of us, it comes from the open pits. The open pits -- sorry -- well, the open pits -- okay, sorry I am changing microphones here. Heap leach comes from our open pits mines, our mine plan right now is open pits deplete around the end of this decade, but we still got those satellite deposits that we’re looking at. And I think will bring something in to supplement that in the future years.

Great. And then last question is on the LaRonde copper grade, those seem -- the gold and copper grade. So just starting with the gold grade, any expectation, I mean would that grade remain at this level? And then as you said in the MD&A trend upwards towards the 5 gram per tonne or is there any sort of factor that we need to consider as you time the circuit -- sorry as you time the heating and ventilation system?

As we move into the, currently 293 pyramids, grades are typically in the 68 grams per tonne level. Typically 269 pyramids grades are between, I guess, 2.5 to 4 grams per tonne. So as we move deeper and we increase the proportions will meet reserve grade there, going forward. And I guess that’s what all we can say. I think as we move ahead and maturities established in 293 pyramids this grades will continue to creep up as we’ve established our guidance once.

All right. And then just could you provide a little bit more color on the per tonne cost at Goldex it was pretty good for us, first quarter for commercial there?

Color in what sense Anita?

Just I mean, you haven’t -- you -- sorry, I was just wondering if you would be able to say with confidence that what factors are potentially -- long term could those cost be at that low per day -- 30 buck per tonne level?

I think when feasibility study was initiated, I think we had pretty good hand along the G&A and milling cost, I guess, the mining method would be different and our appreciation of mining cost would be -- was the main factor. I think the costs of backfill in general are lower than expected, perhaps a bit on ground support. And I think the biggest aspect is probably getting better than anticipated productivity numbers in certain areas. So I think it’s just contributes the overall cost structure.

(Operator Instructions) Your next question comes from Joss Wilson with Dundee Capital Markets. Please go ahead.

Hi, good morning guys. Just a bit more color on Meadowbank, I guess previously you had redone the block model and deposit a great reconciliation, was a factor for higher grade last year. Was that factored all this quarter and I guess what are the grades for plan (ph)?

The grades at Meadowbank, Yvon (ph) will answer that in the trajectory and the carryover from Q4.

Yeah. Grade Q4 and Q1 have been highly influenced by mining in Goose (ph), I think as we completed the budget last year have also upgraded the reconciliation information and the data and to our block model for next year. Presently there is roughly five or six benches left to be mine in Goose as we transition towards the end of the year. We’re better recognizing that in our current forecast, so there should be less surprises down the road, but essentially Goose will be completed late Q3 or early Q4. We’ll also be introducing lower grade material from the vault pit going forward starting in Q1, because we’ve established commercial production there. And we’ll continue getting strong grades from the Portage (ph) sector of the pit and the push back in those areas. So I think we’ve established or we’ve always said from the beginning of the year that our grades would be stronger in the first half and that’s what we’re recognizing and we’ll have a strong first half and we’ll have roughly numbers in the close to 100,000 range per quarter going forward for the rest of the year.

Just another question for the northern part of the north business. Looking back on what the estimates provided before production was achieved for La India and seeing how those mines are progressing relative to the outline expectations. Is there a reasonable conclusion that you think can be drawn I guess but maybe the numbers you put out for Meliadine previously are bit too conservative and you mentioned I guess earlier on the call the underground would be the focus of the feasibility but obviously with the reserve being pit and the grade there double Meadowbank, there are further opportunities.

Well I think there has been a lot of work done on Meliadine studies, I think we got a pretty good hand over on what cost are. Certainly at the moment we’re in the process of integrating our operation team within this study and we’re overlooking the opportunities that will be coming out, but at this stage I wouldn’t say that we’re very conservative on the Meliadine numbers. I think numbers that we’ve sort of being working at OpEx wise and CapEx wise we think are pretty realistic at this stage.

Your next question comes from Alec Kodatsky with CIBC. Please go ahead.

I just had a question about Meadowbank. With respect to the unit cost coming in at $75 a tonne. Is that a level that you think you’ll be able to hold as you start transitioning into other pits?

We’ll be mining more in the range of low 80s back in the quarter as we mined from Vault, some of the OpEx are lower in first quarter because we’ve capitalized some of the stripping before commercial production involved but I think the low 80 number is a good target for the rest of the year.

And maybe just a qualitative question about LaRonde. With the ventilation now complete, is the progress on the development side and sort of the ramp up tracking in line with expectations?

Yeah actually the whole team from LaRonde is in the room today and we’re quite happy with the performance. I think these [inaudible] and productivity in the lower part of the mine is increased and we’re pretty low on target for the year. I guess mining flexibility and infrastructures are now in place and I guess the team there can actually operate and meet all the targets and it bodes well for the future and we’re really happy with their progress.

Your next question comes from John Tumazos with John Tumazos Very Independent Research. Please go ahead.

Congratulation on the great first quarter. Five, 10 years ago Sean you used to sort of use an expression something like Agnico 2,500, 8,500 tonne a day underground mines that weren’t big enough mines. Now there is the underground mines, there is multiple heap wage targets in the southern system, Canadian Malartic brings in a large 60,000 tonne of grinding mill, Kittila was running the auto very nicely. Should we look at Agnico as able to approach any project and any setting for the most part that you wished to pursue where size is no constraint, first question. Second question, could you give us a little background about some of the unique features of the final Osisko deal. Did you suggest them, did you get a call at late stage saying here is the deal we’re inviting you in, but if you say no we’re going to call competitors xyz in the next hour, make a decision. To sort of how did all this unique president setting structure get created?

Those are two interesting questions; I’ll deal with interesting question number one on our skill sets. I think it’s fair to say that over the years that we have developed a much broader range of skill and a much broader pool of talent within our company and I would match our talent base and skill base up with anybody in the industry, and so there are projects and if you look at it and you mentioned a few of them whether it’s deep underground mining at 2.9 kilometers in the Abitibi region of Quebec, whether it’s mining north of the Arctic in Finnish Lapland with a complex metallurgy autoclave which is working quite well with recoveries of almost 90%, whether it’s our skill set in Mexico or we’re mining in the Sierra Madre at altitude open pit, not only open pit but underground in getting good productivity. It’s a pretty range of skills and one of the things that we tried to do over the years and one of our focuses is, in a very tough and challenging industry, for us it’s about manageability and fit and being able to deliver on targets and so we take a very measured approach, a step by step approach and that approach has helped us develop those skill sets over time as you know, we tend to do all of our own feasibility work, we do generally all of our general contracting, we have those skill sets internally, we have a large technical service group that provides support and provides skills and experience in unique disciplines to all of our operation, so it’s a nice position to be in. So we can actually look at more things, whether we do them or not’s another story. One of the things we have been very…

Your next question will come from Anita Soni with Credit Suisse, please go ahead.

Sorry to have cut off John there, the question is a follow up; could you just give us the grade of the vault pit the remaining life of mine there?

Sorry I don’t have the exact number with me but I think the, we’re talking about 2.7, 2.8 grams per ton.

Okay so lower than, but still a pretty good grade.

Yes.

And there are no further questions at this time, please continue.

Thank you operator and thank you everyone for your attention and time and again like to remind everybody you’re all welcome to attend our annual meeting this morning at 11am at the Sheraton Center in downtown Toronto, thanks again.

Ladies and gentlemen this concludes the conference call for today, thanks for your participation you may now disconnect your line.