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Agnico Eagle: Third Quarter Report 2015 AGNICO EAGLE MINES LIMITED MANAGEMENT'S DISCUSSION AND ANALYSIS

The following excerpt is from the company's SEC filing.

(Prepared in Accordance with International Financial Reporting Standards)

For the Three and Nine Months Ended September 30, 2015

This Management's Discussion and Analysis ("MD&A") dated October 30, 2015 of Agnico Eagle Mines Limited ("Agnico Eagle" or the "Company") should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2015, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). This MD&A s hould also be read in conjunction with the MD&A and consolidated financial statements included in the Company's Annual Report on Form 40-F for the year ended December 31, 2014 (the "Form 40-F"), prepared in accordance with IFRS. The Company has adopted IFRS as its basis of accounting, replacing US GAAP effective July 1, 2014. The condensed interim consolidated financial statements and MD&A are presented in United States dollars ("$" or "US$") and all units of measurement are expressed using the metric system, unless otherwise specified. Certain information in this MD&A is presented in Canadian dollars ("C$") or European Union euros ("Euros" or "€"). Additional information relating to the Company, including risk factors in the Form 40-F, is available on the Canadian Securities Administrators' (the "CSA") SEDAR website at www.sedar.com.

Business Overview

Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. The Company's nine mines are located in Canada, Mexico and Finland, with exploration and development activities in each of these regions as well as in the United States. The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.

Agnico Eagle earns a significant proportion of its revenue and cash flow from the production and sale of gold in both dore bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of by-product metals, primarily silver, zinc and copper.

Agnico Eagle's nine mines are located in what the Company believes to be politically stable countries that are supportive of the mining industry. The political stability of the regions in which Agnico Eagle operates helps to provide confidence in its current and future prospects and profitability. This is important for Agnico Eagle as it believes that many of its new mines and recently acquired mining projects have long-term mining potential.

Financial and Operating Results

Balance Sheet Review

Total assets as at September 30, 2015 of $6,805.6 million were comparable with December 31, 2014 total assets of $6,809.3 million. Cash and cash equivalents increased by $24.4 million to $202.0 million between December 31, 2014 and September 30, 2015 due primarily to cash provided by operating activities of $475.5 million, net proceeds from the sale of available-for-sale securities and warrants and the issuance of a $50.0 million note on September 30, 2015, partially offset by $316.8 million in capital expenditures, a net $176.1 million repayment of long-term debt and $44.6 million in dividends paid during the first nine months of 2015. Restricted cash decreased from $54.0 million at December 31, 2014 to $20.3 million at September 30, 2015 due primarily to the transfer of cash from a restricted trust account to a Canadian Malartic Corporation cash account during the third quarter of 2015. Ore in stockpiles and on leach pads inventories of $51.9 million at September 30, 2015 remained comparable with $52.0 million at December 31, 2014. Concentrates and dore bar inventories increased from $111.9 million at December 31, 2014 to $160.3 million at September 30, 2015 due primarily to a buildup of concentrates and dore bar inventories at the Canadian Malartic mine as mill throughput is increased toward capacity and to planned mine sequencing resulting in the buildup of concentrates and dore bar inventories at the La India and Lapa mines. Supplies inventories decreased marginally from $282.8 million at December 31, 2014 to $278.6 million at September 30, 2015 as supplies at the Meadowbank mine that were drawn down during the first six months of 2015 were replenished during the 2015 summer barge

AGNICO EAGLE MINES LIMITED

MANAGEMENT'S DISCUSSION AND ANALYSIS

(Prepared in Accordance with International Financial Reporting Standards)

For the Three and Nine Months Ended September 30, 2015

shipping season. Available-for-sale securities decreased from $56.5 million at December 31, 2014 to $32.0 million at September 30, 2015 due to $29.7 million in disposals, $11.1 million in unrealized fair value losses and $8.1 million in impairment losses, partially offset by $24.4 million in new investments recorded during the first nine months of 2015. Long-term ore in stockpiles and on leach pads increased by $11.2 million from $25.1 million at December 31, 2014 to $36.3 million at September 30, 2015 due primarily to updated mine sequencing plans at the Kittila and Pinos Altos mines resulting in the reclassification of ore stockpiles from short-term to long-term. Property, plant and mine development decreased from $5,155.9 million at December 31, 2014 to $5,082.3 million at September 30, 2015 due primarily to amortization expense of $451.5 million, partially offset by $316.8 million in capital expenditures and property acquisitions totaling $67.5 million during the first nine months of 2015.

Total liabilities decreased to $2,650.4 million at September 30, 2015 from $2,740.8 million at December 31, 2014 due primarily to $150.0 million in net Credit Facility repayments during the first nine months of 2015 and the June 30, 2015 settlement of the convertible debentures issued by Osisko Mining Corporation ("Osisko") and assumed by Canadian Malartic GP. A $42.1 million increase in accounts payable and accrued liabilities between December 31, 2014 and September 30, 2015 was due primarily to summer barge shipping season expenditures to the Meadowbank mine and Meliadine project and to a $12.7 million securities class action lawsuit settlement agreement which is expected to be covered by insurance. Agnico Eagle's net income taxes payable position of $17.7 million at December 31, 2014 compared with a net income taxes receivable position of $49.0 million at September 30, 2015 due primarily to payments to tax authorities during the first nine months of 2015.

Certain previously reported Agnico Eagle consolidated balance sheet line items as at December 31, 2014 were updated to reflect adjusted final estimates of the fair value of identifiable assets acquired and liabilities assumed related to the June 16, 2014 joint acquisition of Osisko. As a result of new information obtained about the facts and circumstances that existed as of the Osisko acquisition date, the following adjustments were recorded to both the adjusted final purchase price allocation and the December 31, 2014 balance sheet as previously reported: the goodwill line item (not deductible for tax purposes) increased by $114.3 million; the property, plant and mine development line item decreased by $145.6 million and the deferred income and mining tax liabilities line item decreased by $35.0 million.

Fair Value of Derivative Financial Instruments

The Company occasionally enters into contracts to limit the risk associated with decreased by-product metal prices, increased foreign currency costs (including capital expenditures) and input costs. The contracts act as economic hedges of underlying exposures and are not held for speculative purposes. Agnico Eagle does not use complex derivative contracts to hedge exposures. The fair value of the Company's derivative financial instruments is outlined in the financial instruments note to the condensed interim consolidated financial statements.

Results of Operations

Agnico Eagle reported net income of $1.3 million, or $0.01 per share, in the third quarter of 2015 compared with a net loss of $15.1 million, or $0.07 per share, in the third quarter of 2014. In the third quarter of 2015, the operating margin (revenues from mining operations less production costs) increased to $254.2 million from $193.6 million in the third quarter of 2014 due primarily to a 26.3% increase in gold production and a 5.6% decrease in production costs, partially offset by a 10.4% decrease in the average realized price of gold between periods. Gold production increased to 441,124 ounces in the third quarter of 2015 compared with 349,273 ounces in the third quarter of 2014 due primarily to higher gold grade and tonnes of ore milled at the LaRonde mine, a 54.0% increase in tonnes of ore milled at the Kittila mine and higher gold grade at the Canadian Malartic, La India, Meadowbank and Pinos Altos mines. Cash provided by operating activities amounted to $143.7 million in the third quarter of 2015 compared with $71.2 million in the third quarter of 2014.

Weighted average total cash costs per ounce of gold produced amounted to $536 on a by-product basis and $587 on a co-product basis in the third quarter of 2015 compared with $716 on a by-product basis and $794 on a co-product basis in the third quarter of 2014.

In the first nine months of 2015, Agnico Eagle reported net income of $40.1 million, or $0.19 per share, compared with net income of $104.3 million, or $0.55 per share, in the first nine months of 2014. In the first nine months of 2015, the operating margin (revenues from mining operations less production costs) increased to $737.0 million from $676.4 million in the first nine months of 2014 due primarily to a 19.9% increase in gold production, partially offset by an 8.7% decrease in the average realized price of gold and a 6.7% increase in production costs between periods. Gold production increased to 1,249,012 ounces in the first nine months of 2015 compared with 1,041,753 ounces in the first nine months of 2014 due primarily to an incremental 136,298 attributable ounces for the full first nine months of 2015 from the Company's interest in the Canadian Malartic mine which was acquired on June 16, 2014, higher gold grade and tonnes of ore milled at the LaRonde mine, a 37.5% increase in tonnes of ore milled at the Kittila mine, the ramp up of production from the La India mine and the Goldex mine's M and E Zones which achieved commercial production in February 2014 and October 2013, respectively, and higher gold grade at the Pinos Altos and Lapa mines. Partially offsetting the overall increase in gold production between the first nine months of 2014 and the first nine months of 2015 was a 23.7% decrease in gold production at the Meadowbank mine due primarily to lower gold grade. Cash provided by operating activities amounted to $475.5 million in the first nine months of 2015 compared with $504.4 million in the first nine months of 2014. Weighted average total cash costs per ounce of gold produced amounted to $574 on a by-product basis and $633 on a co-product basis in the first nine months of 2015 compared with $627 on a by-product basis and $716 on a co-product basis in the first nine months of 2014.

The table below sets out variances in the key drivers of net income for the three and nine months ended September 30, 2015 compared with the three and nine months ended September 30, 2014:

(millions of United States dollars)

Three Months Ended

vs. Three Months Ended

September 30, 2014

vs. Nine Months Ended

Increase in gold revenue

(Decrease) increase in silver revenue

Decrease in net copper revenue

Decrease in net zinc revenue

Decrease in production costs due to weaker Canadian dollar, Mexican peso and Euro

Increase in production costs

(142.5

Increase in exploration and corporate development expenses

Increase in amortization of property, plant and mine development

(156.9

(Increase) decrease in general and administrative expense

Change in impairment loss on available-for-sale securities

Decrease (increase) in finance costs

Change in gain on sale of available-for-sale securities

Change in non cash foreign currency translation

Decrease in income and mining taxes

Total net income variance

Three Months Ended September 30, 2015 vs. Three Months Ended September 30, 2014

Revenues from mining operations increased to $508.8 million in the third quarter of 2015 compared with $463.4 million in the third quarter of 2014 due primarily to a 26.3% increase in gold production between periods. An increase in tonnes of ore milled at the Kittila and LaRonde mines along with higher gold grades at the LaRonde mine resulted in a 91,851 ounce increase in gold production between the third quarter of 2014 and the third quarter of 2015. Partially offsetting the impact of increased gold production on revenues from mining operations was a 10.4% decrease in the average realized price of gold, a 15.7% decrease in the average realized price of silver and a 66.8% decrease in zinc production between periods.

Production costs were $254.6 million in the third quarter of 2015, a 5.6% decrease compared with $269.8 million in the third quarter of 2014 due primarily to the impact of a weaker Canadian dollar, Mexican peso and Euro relative to the US dollar. Partially offsetting the total decrease in production costs between the third quarter of 2014 and the third quarter of 2015 was a 29.4% increase in tonnes of ore milled at the LaRonde mine and a $7.2 million increase in production costs at the Kittila mine due to a 54.0% increase in tonnes of ore milled between periods.

Weighted average total cash costs per ounce of gold produced decreased to $536 on a by-product basis and $587 on a co-product basis in the third quarter of 2015 compared with $716 on a by-product basis and $794 on a co-product basis in the third quarter of 2014 due primarily to increased gold production at the LaRonde, Kittila and Canadian Malartic mines between periods and the impact on costs of a weaker Canadian dollar, Mexican peso and Euro relative to the US dollar. Partially offsetting the overall decrease in weighted average total cash costs per ounce of gold on a by-product basis produced between the third quarter of 2014 and the third quarter of 2015 were lower by-product revenue credits at the LaRonde mine. For a reconciliation of total cash costs per ounce of gold produced on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues) to production costs as presented in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) in accordance with IFRS, see Non-GAAP Financial Performance Measures in this MD&A.

Exploration and corporate development expenses increased to $37.1 million in the third quarter of 2015 compared with $20.5 million in the third quarter of 2014 due primarily to exploration at the Amaruq project in Nunavut and the El Barqueno project in Mexico, and increased corporate development and project evaluation expenses between periods.

Amortization of property, plant and mine development increased by $40.6 million to $158.0 million between the third quarter of 2014 and the third quarter of 2015 due primarily to increased gold production at the LaRonde and Kittila mines, an increase in depreciable mining properties at the Canadian Malartic mine between periods based on final estimates of fair value as at the June 16, 2014 acquisition date, and a ramp up in gold production at the La India mine related to the achievement of commercial production in February 2014.

General and administrative expense increased to $25.7 million during the third quarter of 2015 compared with $25.0 million during the third quarter of 2014 due primarily to increased compensation and benefits expenses, partially offset by reduced consulting costs between periods.

An impairment loss on certain available-for-sale securities of $7.1 million was recorded as at September 30, 2015 compared with $0.5 million as at September 30, 2014. Impairment loss evaluations of available-for-sale securities are based on whether a decline in fair value is considered to be significant or prolonged. A gain of $0.9 million was recorded on the sale of available-for-sale securities in the third quarter of 2015 compared with $0.1 million in the third quarter of 2014.

During the third quarter of 2015, there was a non-cash foreign currency translation loss of $0.9 million attributable to the impact of a weakening of the Canadian dollar and Mexican peso versus the US dollar at

September 30, 2015 relative to June 30, 2015 on the Company's net monetary assets. A non-cash foreign currency translation gain of $4.7 million was recorded during the comparative third quarter of 2014.

In the third quarter of 2015, the Company recorded an income and mining taxes recovery of $15.3 million on a loss before income and mining taxes of $14.0 million, resulting in an effective tax rate of 109.3%. In the third quarter of 2014, the Company recorded income and mining taxes expense of $21.4 million on income before income and mining taxes of $6.3 million. The decrease in the effective tax rate between the third quarter of 2014 and the third quarter of 2015 is due primarily to a decrease in taxable permanent differences and a decrease in foreign exchange rate movements.

There are a number of factors that can significantly impact the Company's effective tax rate including varying rates in different jurisdictions, the non-recognition of certain tax assets, mining allowances, foreign currency exchange rate movements, changes in tax laws, the impact of specific transactions and assessments and the relative distribution of income in the Company's operating jurisdictions. As a result of these factors, the Company's effective tax rate is expected to fluctuate in future periods.

Nine Months Ended September 30, 2015 vs. Nine Months Ended September 30, 2014

In the first nine months of 2015, revenues from mining operations increased to $1,502.5 million from $1,393.7 million in the first nine months of 2014 due primarily to a 19.9% increase in gold production and a 21.0% increase in silver production between periods. An incremental increase of 136,298 attributable ounces of gold production from the Canadian Malartic mine which was jointly acquired on June 16, 2014, higher gold grade and tonnes of ore milled at the LaRonde mine, an increase in tonnes of ore milled at the Kittila mine, and the ramp up of production from the La India mine which achieved commercial production in February 2014, partially offset by a 19.4% decrease in gold grade at the Meadowbank mine, resulted in a 207,259 ounce net increase in total gold production between the first nine months of 2014 and the first nine months of 2015. Partially offsetting the impact of increased gold and silver production on revenues from mining operations was a 8.7% decrease in the average realized price of gold, a 17.0% decrease in the average realized price of silver and a 69.0% decrease in zinc production between periods.

Production costs were $765.5 million in the first nine months of 2015, a 6.7% increase compared with $717.2 million in the first nine months of 2014 due primarily to a $59.2 million increase in attributable production costs from the acquired interest in the Canadian Malartic mine, a $13.5 million increase in production costs at the Kittila mine due to a 37.5% increase in tonnes of ore milled and $12.9 million in additional production costs at the La India mine which achieved commercial production in February 2014 between periods. Partially offsetting the total increase in production costs between the first nine months of 2014 and the first nine months of 2015 was the impact of a weaker Canadian dollar, Mexican peso and Euro relative to the US dollar.

Weighted average total cash costs per ounce of gold produced decreased to $574 on a by-product basis and $633 on a co-product basis in the first nine months of 2015 compared with $627 on a by-product basis and $716 on a co-product basis in the first nine months of 2014 due primarily to increased gold production and the impact on costs of a weaker Canadian dollar, Mexican peso and Euro relative to the US dollar. Partially offsetting the overall decrease in weighted average total cash costs per ounce of gold produced on a by-product basis between the first nine months of 2014 and the first nine months of 2015 was decreased gold production at the Meadowbank mine and lower by-product revenue credits at the LaRonde mine between periods. For a reconciliation of total cash costs per ounce of gold produced on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues) to production costs as presented in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) in accordance with IFRS, see Non-GAAP Financial Performance Measures in this MD&A.

Exploration and corporate development expenses increased to $84.4 million in the first nine months of 2015 compared with $41.6 million in the first nine months of 2014 due primarily to exploration at the Amaruq project in Nunavut and the El Barqueno project in Mexico and increased corporate development and project evaluation expenses between periods.

Amortization of property, plant and mine development increased by $156.9 million to $451.5 million between the first nine months of 2014 and the first nine months of 2015 due primarily to the consolidation of the acquired interest in the Canadian Malartic mine and the increase to its depreciable mining properties between periods due to the finalization of related acquisition date fair value estimates, increased gold production at the La Ronde and Kittila mines and a ramp up in gold production related to the achievement of commercial production at the La India mine in February 2014.

General and administrative expense decreased to $74.5 million during the first nine months of 2015 compared with $92.8 million during the first nine months of 2014 due primarily to $16.7 million in transaction costs associated with the June 16, 2014 joint acquisition of Osisko and lower consulting expenses between periods. Partially offsetting the overall decrease in general and administrative expense, the Company consolidated its interest in the Canadian Malartic mine's general and administrative expense for the full first nine months of 2015. Transaction costs associated with the June 2015 acquisitions of Soltoro Ltd. ("Soltoro") and Gunnarn were capitalized to the mining properties acquired as both were accounted for as asset acquisitions.

Impairment losses on certain available-for-sale securities of $8.1 million were recorded in the first nine months of 2015 compared with $2.9 million in the first nine months of 2014. Impairment loss evaluations of available-for-sale securities are based on whether a decline in fair value is considered to be significant or prolonged. A gain of $24.6 million was recorded on the sale of available-for-sale securities in the first nine months of 2015 compared with $5.4 million in the first nine months of 2014.

During the first nine months of 2015, there was a non-cash foreign currency translation gain of $6.0 million mainly attributable to the impact of a weakening of the Canadian dollar, Mexican peso and Euro versus the US dollar at September 30, 2015 relative to December 31, 2014 on the Company's net monetary liabilities. A non-cash foreign currency translation gain of $3.2 million was recorded during the comparative first nine months of 2014.

In the first nine months of 2015, the Company recorded income and mining taxes expense of $23.5 million on income before income and mining taxes of $63.6 million, resulting in an effective tax rate of 36.9%. In the first nine months of 2014, the Company recorded income and mining taxes expense of $82.6 million on income before income and mining taxes of $186.9 million, resulting in an effective tax rate of 44.2%. The decrease in the effective tax rate between the first nine months of 2014 and the first nine months of 2015 is due primarily to a decrease in taxable permanent differences, partially offset by foreign exchange rate movements.

LaRonde mine

At the LaRonde mine, gold production increased by 91.7% to 71,860 ounces in the third quarter of 2015 compared with 37,490 ounces in the third quarter of 2014 due primarily to higher gold grade and an increase in tonnes of ore milled. Production costs at the LaRonde mine were $49.2 million in the third quarter of 2015, an increase of 4.6% compared with production costs of $47.1 million in the third quarter of 2014 driven primarily by increased mill throughput and higher local currency costs related to underground development, underground maintenance and site administration costs, partially offset by a weakening of the Canadian dollar relative to the US dollar.

Gold production increased by 34.0% to 194,760 ounces in the first nine months of 2015 compared with 145,336 ounces in the first nine months of 2014 at the LaRonde mine, due primarily to higher gold grade and an

increase in tonnes of ore milled. Production costs at the LaRonde mine were $140.2 million in the first nine months of 2015, a decrease of 0.6% compared with production costs of $141.1 million in the first nine months of 2014 driven primarily by a weakening of the Canadian dollar relative to the US dollar, partially offset by increased mill throughput, higher local currency costs related to underground development and maintenance, and site administration costs and costs related to temporary issues with the paste fill piping network during the first nine months of 2015.

Lapa mine

At the Lapa mine, gold production increased by 3.6% to 25,668 ounces in the third quarter of 2015 compared with 24,781 ounces in the third quarter of 2014 due primarily to increased mill recoveries and higher gold grade. Production costs at the Lapa mine were $12.3 million in the third quarter of 2015, a decrease of 11.6% compared with production costs of $13.9 million in the third quarter of 2014 driven primarily by a weakening of the Canadian dollar relative to the US dollar and decreased mill throughput due to downtime related to the discovery of fatigue cracks in the feed head of the Lapa mine's ball mill.

Gold production increased by 6.0% to 71,038 ounces in the first nine months of 2015 compared with 67,011 ounces in the first nine months of 2014 at the Lapa mine, due primarily to higher gold grade and increased mill recoveries. Production costs at the Lapa mine were $39.9 million in the first nine months of 2015, a decrease of 8.4% compared with production costs of $43.6 million in the first nine months of 2014 driven primarily by a weakening of the Canadian dollar relative to the US dollar and decreased mill throughput due to a reduction in the number of stopes available for mining between periods and downtime related to the discovery of fatigue cracks in the feed head of the Lapa mine's ball mill.

Goldex mine

On October 19, 2011, the Company suspended mining operations and gold production at the Goldex mine due to geotechnical concerns with the rock above the mining horizon. As of September 30, 2011, Agnico Eagle recorded an impairment loss on its investment in the Goldex mine (net of expected residual value) and its underground ore stockpile. All of the remaining 1.6 million ounces of proven and probable mineral reserves at the Goldex mine, other than ore stockpiled on the surface, were reclassified as mineral resources. An environmental remediation liability was recorded as of September 30, 2011 reflecting anticipated costs of remediation. The Goldex mill completed processing feed from the remaining Goldex Extension Zone ("GEZ") surface stockpile in October of 2011. Operations in the GEZ remain suspended indefinitely.

During the three and nine months ended September 30, 2015, the Company incurred $0.2 million and $0.4 million in remediation costs, respectively, that were applied against the environmental remediation liability recognized in 2011. During the three and nine months ended September 30, 2014, the Company incurred $0.9 million and $2.9 million in remediation costs, respectively, that were applied against the environmental remediation liability recognized in 2011.

Exploration drilling continued on several mineralized zones on the Goldex mine property near the GEZ after mining operations were suspended in October of 2011. A team of independent consultants and Agnico Eagle staff performed a thorough review, including a preliminary economic assessment, to determine whether future mining operations on the property, including the M and E zones, would be viable. After a review of the assessment, Agnico Eagle's Board of Directors (the "Board") approved the M and E Zones for development using existing mine infrastructure such as the shaft and mill. Commercial production was achieved at the Goldex mine's M and E Zones in October 2013.

As a result of the Company's restatement of comparative information under IFRS, a $109.7 million impairment loss reversal was recorded as at the January 1, 2013 IFRS transition date. Specific long-lived assets associated with the GEZ that were impaired as at September 30, 2011 due to the suspension of mining

operations, including the Goldex mine's shaft and mill, were subsequently incorporated into the development plan for the Goldex mine's M and E Zones which was approved by the Board in July 2012.

At the Goldex mine's M and E Zones, gold production increased by 16.1% to 32,068 ounces in the third quarter of 2015 compared with 27,611 ounces in the third quarter of 2014 due primarily to higher gold grade, an increase in tonnes of ore milled and increased mill recoveries. Production costs at the Goldex mine's M and E Zones were $16.1 million in the third quarter of 2015, a decrease of 0.6% compared with production costs of $16.2 million in the third quarter of 2014 driven primarily by increased mill throughput due to mining front maturity and productivity improvements, partially offset by a weakening of the Canadian dollar relative to the US dollar.

Gold production increased by 23.7% to 87,780 ounces in the first nine months of 2015 compared with 70,970 ounces in the first nine months of 2014 at the Goldex mine's M and E Zones, due primarily to an increase in tonnes of ore milled, higher gold grade and increased mill recoveries. Production costs at the Goldex mine's M and E Zones were $47.9 million in the first nine months of 2015, an increase of 0.9% compared with production costs of $47.5 million in the first nine months of 2014 driven primarily by increased mill throughput between periods due to the exploitation of more mature mining fronts, partially offset by a weakening of the Canadian dollar weakened relative to the US dollar.

Meadowbank mine

At the Meadowbank mine, gold production increased by 8.6% to 99,425 ounces in the third quarter of 2015 compared with 91,557 ounces in the third quarter of 2014 due primarily to higher gold grade. Production costs at the Meadowbank mine were $57.4 million in the third quarter of 2015, a decrease of 21.2% compared with production costs of $72.8 million in the third quarter of 2014 driven primarily by a weakening of the Canadian dollar relative to the US dollar and decreased mill throughput between periods.

Gold production decreased by 23.7% to 279,224 ounces in the first nine months of 2015 compared with 366,162 ounces in the first nine months of 2014 at the Meadowbank mine, due primarily to lower gold grade, a decrease in tonnes of ore milled and lower mill recoveries. Production costs at the Meadowbank mine were $181.4 million in the first nine months of 2015, a decrease of 11.0% compared with production costs of $203.7 million in the first nine months of 2014 driven primarily by a weakening of the Canadian dollar relative to the US dollar and decreased mill throughput, partially offset by higher local currency costs related to site services and maintenance costs between periods.

Canadian Malartic mine

Agnico Eagle and Yamana Gold Inc. ("Yamana") jointly acquired 100.0% of Osisko on June 16, 2014 by way of a plan of arrangement under the

Canada Business Corporations Act

(the "Arrangement"). As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of Osisko and Canadian Malartic GP, which now holds the Canadian Malartic mine. Agnico Eagle and Yamana will also jointly explore, through their indirect ownership of Canadian Malartic Corporation (the successor to Osisko), the Kirkland Lake assets, the Hammond Reef project and the Pandora and Wood-Pandora properties.

At the Canadian Malartic mine, attributable gold production increased by 18.3% to 76,603 ounces in the third quarter of 2015 compared with 64,761 ounces in the third quarter of 2014 due primarily to higher gold grade. Attributable production costs at the Canadian Malartic mine were $42.0 million in the third quarter of 2015, a decrease of 12.3% compared with production costs of $47.9 million in the third quarter of 2014 driven primarily by a weakening of the Canadian dollar relative to the US dollar.

During the first nine months of 2015, the Canadian Malartic mine produced 212,937 attributable ounces of gold and incurred attributable production costs of $125.4 million. Between its June 16, 2014 joint acquisition

date and September 30, 2014, the Canadian Malartic mine produced 76,639 attributable ounces of gold and incurred attributable production costs of $66.2 million.

Kittila mine

At the Kittila mine, gold production increased by 64.6% to 46,455 ounces in the third quarter of 2015 compared with 28,230 ounces in the third quarter of 2014 due primarily to a scheduled shutdown in September of 2014 to tie-in the mill expansion. Production costs at the Kittila mine were $31.1 million in the third quarter of 2015, an increase of 29.9% compared with production costs of $24.0 million in the third quarter of 2014 driven primarily by the scheduled shutdown in September of 2014 to tie-in the mill expansion and higher local currency mill production costs between periods, partially offset by a weakening of the Euro relative to the US dollar.

Gold production increased by 35.0% to 133,095 ounces in the first nine months of 2015 compared with 98,612 ounces in the first nine months of 2014 at the Kittila mine due primarily to an increase in tonnes of ore milled, partially offset by lower gold grade and mill recoveries between periods. Production costs at the Kittila mine were $93.9 million in the first nine months of 2015, an increase of 16.9% compared with production costs of $80.3 million in the first nine months of 2014 driven primarily by a 37.5% increase in mill throughput facilitated by the mill expansion completed in the fourth quarter of 2014, partially offset by a weakening of the Euro relative to the US dollar between periods.

Pinos Altos mine

At the Pinos Altos mine, gold production increased by 16.0% to 47,725 ounces in the third quarter of 2015 compared with 41,155 ounces in the third quarter of 2014 due primarily to increases in gold grade and tonnes of ore milled, partially offset by a decrease in tonnes of ore stacked on the heap leach pad between periods. Production costs at the Pinos Altos mine were $26.8 million in the third quarter of 2015, a decrease of 8.4% compared with production costs of $29.3 million in the third quarter of 2014 driven primarily by a weakening of the Mexican peso relative to the US dollar and a decrease in tonnes of ore stacked on the heap leach pad, partially offset by an increase in mill throughput between periods.

Gold production increased by 13.9% to 148,478 ounces in the first nine months of 2015 compared with 130,350 ounces in the first nine months of 2014 at the Pinos Altos mine, due primarily to increases in gold grade and tonnes of ore milled, partially offset by a decrease in tonnes of ore stacked on the heap leach pad between periods. Production costs at the Pinos Altos mine were $80.8 million in the first nine months of 2015, a decrease of 10.8% compared with production costs of $90.7 million in the first nine months of 2014 driven primarily by a weakening of the Mexican peso relative to the US dollar and a decrease in tonnes of ore stacked on the heap leach pad between periods, partially offset by an increase in mill throughput between periods.

Creston Mascota deposit at Pinos Altos

At the Creston Mascota deposit at Pinos Altos, gold production decreased by 4.9% to 12,716 ounces in the third quarter of 2015 compared with 13,377 ounces in the third quarter of 2014 due primarily to a 7.4% decrease in ore stacked on the heap leach pad, partially offset by an increase in gold grade between periods. Production costs at the Creston Mascota deposit at Pinos Altos were $6.1 million in the third quarter of 2015, a decrease of 20.2% compared with production costs of $7.6 million in the third quarter of 2014 driven primarily by a weakening of the Mexican peso relative to the US dollar and a decrease in tonnes of ore stacked on the heap leach pad between periods.

Gold production increased by 17.0% to 40,770 ounces in the first nine months of 2015 compared with 34,853 ounces in the first nine months of 2014 at the Creston Mascota deposit at Pinos Altos due primarily to increases in tonnes of ore stacked on the heap leach pad and gold grade. Production costs at the Creston Mascota deposit at Pinos Altos were $19.2 million in the first nine months of 2015, a decrease of 5.3% compared

with production costs of $20.3 million in the first nine months of 2014 driven primarily by a weakening of the Mexican peso relative to the US dollar, partially offset by an increase in tonnes of ore stacked on the heap leach pad between periods.

La India mine

The La India mine achieved commercial production on February 1, 2014. During the third quarter of 2015, the La India mine produced 28,604 ounces of gold, a 40.8% increase compared with 20,311 ounces of gold in the third quarter of 2014 due primarily to higher gold grade. Production costs at the La India mine were $13.5 million in the third quarter of 2015, an increase of 22.5% compared with production costs of $11.0 million in the third quarter of 2014 driven primarily by the ramp up of ore stacked on the heap leach pad to design capacity, partially offset by a weakening of the Mexican peso relative to the US dollar between periods.

During the first nine months of 2015, the La India mine produced 80,930 ounces of gold compared with 51,820 ounces of gold in the first nine months of 2014, including 3,492 ounces of gold produced prior to the achievement of commercial production on February 1, 2014. Production costs at the La India mine were $36.7 million in the first nine months of 2015 compared with $23.8 million in the first nine months of 2014 due primarily to the operations ramp up during the period in which commercial production was achieved. Partially offsetting the overall increase in production costs between periods was the impact of a weakening of the Mexican peso relative to the US dollar.

Liquidity and Capital Resources

As at September 30, 2015, the Company's cash and cash equivalents, short-term investments and current restricted cash totaled $227.6 million compared with $215.3 million at December 31, 2014. The Company's policy is to invest excess cash in highly liquid investments of the highest credit quality to eliminate risks associated with these investments. Such investments with remaining maturities of greater than three months at the time of purchase are classified as short-term investments. Decisions regarding the length of maturities are based on cash flow requirements, rates of return and various other factors.

Working capital (current assets less current liabilities) increased to $653.2 million at September 30, 2015 compared with $575.7 million at December 31, 2014.

Operating Activities

Cash provided by operating activities increased by $72.5 million to $143.7 million in the third quarter of 2015 compared with $71.2 million in the third quarter of 2014 due primarily to a 26.3% increase in gold production and the impact of a weaker Canadian dollar, Mexican peso and Euro relative to the US dollar on costs between periods. Partially offsetting these positive impacts on cash provided by operating activities was a 10.4% decrease in the average realized price of gold and a $16.6 million increase in exploration and corporate development expenses between periods.

Cash provided by operating activities decreased by $28.9 million to $475.5 million in the first nine months of 2015 compared with $504.4 million in the first nine months of 2014 due primarily to an 8.6% decrease in the average realized price of gold, a $48.2 million increase in production costs, a $42.8 million increase in exploration and corporate development expenses and the impact of a weaker Canadian dollar, Mexican peso and Euro relative to the US dollar on costs between periods. Partially offsetting these negative impacts on cash provided by operating activities was a 19.9% increase in gold production.

Investing Activities

Cash used in investing activities decreased to $100.4 million in the third quarter of 2015 compared with $131.7 million in the third quarter of 2014 due primarily to available-for-sale securities and warrants transactions, an incremental $8.0...


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