Economic Value

2017 Highlights

Our Economic Value Stories

Agnico Eagle +
Economic Value

Our strategy is to build a growing, high-quality, low risk, sustainable business. To achieve this we:
  • deliver on performance and growth expectations by ensuring our existing portfolio delivers on expectations, lowering operational risk and generating free cash flow;
  • build and maintain a high quality project pipeline by ensuring we develop a best in- class project pipeline to replenish mineral reserves and production, while maintaining the quality, manageability and fit of our future portfolio;
  • develop our people by developing and providing growth opportunities for our people, and providing the skills infrastructure to support development of our operations and projects; and,
  • operate in a socially responsible manner by creating value for our shareholders as we contribute to the prosperity of our people, their families and the communities in which we operate.

AWARDS & CERTIFICATIONS

United Nations Sustainable Development Goals

Agnico Eagle is working to achieve progress on a set of goals adopted by the United Nations in 2015. These 17 goals – known as the SDGs – focus on ending global poverty, protecting the planet and ensuring prosperity for all. Click the icons to read more about our activities.

We believe the biggest contribution we can make to the well-being of the communities in which we operate is through the creation of long-term employment opportunities and the provision of economic development opportunities.

Economic Value
In 2017, Agnico Eagle provided $382 million in wages and benefits to our global workforce to our global workforce and paid $329 million in taxes, royalties and fees to all levels of government (including Indigenous groups). We recorded operating margin of $1,185 million1 and produced 1,713,533 million ounces of gold.2

Generating Employment and Economic Benefit
In 2017, through the payment of wages and benefits, Agnico Eagle contributed approximately $304 million to the economy of Canada, $32 million to the economy of Finland, and approximately $46 million to the economy of the Chihuahua and Sonora States in Mexico.

Although we do not measure the direct and indirect economic impact of employee wage spending on local goods and services, it is an important factor in Agnico Eagle’s overall economic contributions to our host communities.

Taxes and Royalty Payments
In 2017, we made payments in taxes, royalties and fees to governments at all levels (including Indigenous groups) totalling $329 million.

We contributed approximately $92 million in taxes and royalties to Quebec, Canada (since 2010, we have paid a total of $178 million in royalties to Quebec); $77 million in taxes, royalties, fees and compensation payments in Nunavut, Canada (both to government and to Inuit organizations representing Inuit beneficiaries under the Nunavut Land Claim Agreement); $24 million in taxes and royalties to Finland; approximately $105 million in taxes and royalties to Mexico; and, $31 million in taxes to Ontario. These payments to governments comprised 13% of our gross revenue in 2017.

1. Operating margin is calculated as revenues from mining operations less production costs
2. Including 50% owned Canadian Malartic

2017 Performance

Buying Locally
Agnico Eagle strives, where feasible, to buy from locally based suppliers as a way of supporting the economic vitality of our communities, stimulating the local economy and at the same time minimizing the environmental impact of transporting materials from distant locations to our sites. Local suppliers must still meet the same criteria that all potential suppliers must meet in order to do business with our Company.

In 2017, our mines spent $879 million on the procurement of local goods and services. This represents 65% of all procurement spending in 2017.

$382M

in wages and benefits to global workforce

$879M

Spent in 2017 on the procurement of local goods and services

$329M

in taxes and royalties paid to governments at all levels