Agnico-Eagle’s primary objective is to create more value for shareholders – by finding more gold and producing it in greater quantities, at the lowest possible cost. Our strategy is focused on five key pursuits.
  
     
 
1. Produce More Gold
We are targeting annual gold production from existing projects of 750,000 ounces by 2009, and close to 1.0 million ounces by 2011. This increase will come by applying our own skills to build and explore our own mines.

2. Grow Gold Reserves
From 12.5 million ounces of gold at year-end 2006, we aim to grow gold mineral reserves to between 14 and 15 million ounces within a year through aggressive exploration at our 100%-owned properties. All of Agnico-Eagle’s reserves are located in politically stable, mining-friendly regions with excellent nearby infrastructure, helping to mitigate risk and manage costs.

3. Acquire Small, Think Big
Our acquisition strategy has been a proven winner with the recent additions of Kittila and Pinos Altos. When looking at acquisitions, we focus primarily on our ability to enhance value while managing the technical challenges of new opportunities. We continuously look for strategic opportunities, such as Cumberland Resources, where our team can see the potential for big rewards. This is how our LaRonde mine started almost 25 years ago.

4. Be a Low-Cost Leader
Agnico-Eagle is one of the lowest-cost producers in the gold industry with total cash cost per ounce of gold produced at minus $690 for 2006. Low production costs have allowed 25 consecutive years of dividends, even in years when the price of gold was low.

5. Maintain a solid Financial Position
A conservative and strong balance sheet gives us the financial resources to fund our growth projects while maintaining our longstanding policy of never selling away the price upside on our gold reserves. Despite ambitious exploration and capital development programs, we increased our cash position to $459 million by year-end 2006 and our shareholders continue to be positioned to benefit fully from 100% exposure to rising gold prices.