Good morning, ladies and gentlemen, thank you for standing by. Welcome to the Agnico-Eagle Mines third quarter 2009 results webcast and conference call. At this time all participants are in a listen-only mode. Following the presentation we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up the questions. (Operator Instructions). I’d like to remind everyone that this conference call is being recorded today October 29, 2009 at 11 a.m. Eastern Time. I will now turn the conference over to Sean Boyd, Vice Chairman and CEO. Please go ahead.

Thank you, operator, and good morning, everyone, and thanks for dialing into our Q3 2009 conference call. We have the theories applied to move through some of them in the middle of the body of the presentation quite quickly so that we can get to each of the individual projects. But what we'd like to accomplish in the next hour or so is to go through the Q3 which from a results point of view was disappointing not from an efforts point of view but we did run into some challenges in starting up thee mines, we'll go through those issues. We will hopefully give you a sense of where we are with respect to those issues as we move through Q4 and also give you a sense of how we are positioned for next year and beyond next year. As we complete the building of these mines, the commissioning of them and then start working on optimization and expansion of these mines. And before the question-and-answer Session, Ebe would like to give you his impression of where we are particularly on Kittila, Lapa and Pinos Altos but in terms of dealing with them in consecutive order, we'll deal with the third quarter. Our earnings and cash flow were below our expectations simply because we produced about 30,000 ounces last then we had expected to produce. And that lower output really came from slower tonnage ramp up at Kittila, which averaged about 2000 tonnes a day; we have recoveries averaging about 64%. We are not for the last week and a half or so at 3000 tonnes a day or better with recoveries around approaching the 80% level. So we'll get into more details on those issue that Kittila has been moved forward. We have more dilution when anticipated about…

Thanks Sean and good morning everyone. Thanks for listening in. I will just give a brief overview of all of the projects and then just sum up a bit at the end. Last week, we were at LaRonde and as Sean mentioned this has been a great mine for us and we continue to perform very well during the quarter. We also had good fortune to go underground. We were underground at almost 2.85 kilometers underground on the LaRonde extension project and that particular project is on time and on budget and that is really remarkable and bodes well going forward. During the sinking of the internal shaft we only had one minor seismic event and only one shift lost due to excessive heat. There really haven’t been any ground control issues whatsoever. We are very close to completing the shaft and we expect to be starting changeover within the next 10 days to two weeks or so. And that should be completed by the end of the year and then we will start the pre production development and have the mine ready for the end of the 2011. Goldex, Goldex has been an amazing performer for us as well in terms of our original feasibility, in terms of tonnage and costs. It has done better than the original feasibility and it’s ramped up its tonnage faster as well. What we have done over the past quarter or so, we have decided on purpose to slow down production mucking from the western part which tended to be a bit higher than reserve grade and why we did that, there is a cross structure at dyke that tended to converse on us. So we kept that scope for on purpose until we could drill and develop and blast the remaining ore…

Thank you. (Operator instructions) one moment please. Our first question comes from John Finnegan with Fundamental Equities please go ahead.

Hi you just said that Meadowbank had simple metallurgy could you explain the lane in what that involves and also economics and data?

Well in comparison to a poly-metallic deposit like LaRonde where we have four accountable metals and even at Pinos Altos where we have silver by product at Meadowbank it is strictly gold there are no other metals also as far as the process used that is straight ionization carbon and pulp which is probably the most elementary gold processing process available compared to Lapa and also Kittila those ores are refractory which means that the gold is encapsulated or enrolled by other sulfide and that material has to be burnt or removed or cracked to be able to expose the gold. So that extra step plus removing the organic material Kittila all involve extra steps and extra processing and therefore extra cost and the process is more fragile and complex whereas I would say Goldex and Meadowbank are probably the simplest process which by that I mean there are less steps required to extract the gold.

So this is a plus for the cash cost so that you know.

From a processing point yes.

Thank you.

Our next question comes from Steven Butler with Canaccord Adams. Please go ahead.

Ebe a question for you on first the comment on the Euro cost per tonne at Kittila was EUR78 per tonne in Q3 and I think you guys reported EUR43 per tonne in Q2 so may be you can get some context around the costs increase or may be its all denominator related but I am not sure what’s happening there to that trend, are you drilling everything you can at it is the question and how quickly would you expect costs to come down back towards your EUR35 to EUR45 per tonne sort of range as we go forward. Thanks.

I can only answer 50% of that Steve because I only heard 50% of the question. You broke up, may be you could try and repeat that. Steven Butler - Canaccord Adams I am sorry, can you hear me better now?

Yes.

Ebe the cost per tonne was EUR78 per tonne in Q3 versus EUR43 per tonne in Q2 so can you explain some of that major hike in cost per tonne on a unit basis and what confidence do you have in the guidance of near EUR40 per tonne going forward. Thank you.

Okay, the function is strictly a matter of tonnes processed through the mill. We had low availability in it to the quarter and we averaged about 65%. Also what happened was we had quite a bit of contract labor in the open pit which was expensed as well. We were concerned at the middle of the year based on the performance that we were getting in the open pit at that time that we would start developing a satellite open pit the Rouravaara zone and that is what we did so we had additional contract labor we also had additional contract to production drillers in the main open pit because we were having troubles with water in flow in the pit and the blasting and we also have maintenance problems with our production drills. What we have done since we have changed our production drills we have got two new productions drills on site and they have been performing exceptionally well so as a result we have been able to get rid of the contract labor and then also what we have been able to find is that with the improvements in drilling, in blasting, in engineering we have also made some supervisory engineering changes and that the main pit has been able to hit its targets without necessarily going into the satellite open pit so contract labor has been leading the site and that will continue to lower the unit cost and then of course with steady state operations through the mill they denominator will improve and the unit cost per tonne will decrease into the fourth quarter and going forward.

Okay thanks for that thank you.

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

Hi actually seems I would like to withdraw my question. Thank you.

Our next question is from David Haughtonne with BMO Capital Market. Please go ahead.

Hi good morning Sean and Ebe. I have got a question for you with regards to the guidance particularly with Meadowbank is that for production or is that commercial production.

I mean in terms of the ounces produced

Are you including any free commercial production in those numbers or is it all once you have declared commission?

That I would don’t imagine there would be some pre production or commissioning ounces in there but if we start somewhere between 5 and 15, January we would like to think that within a months time or so we would be able to declare commercial production but in the new guidance we are practically, we are saying start up will take about three months and we thus sort of we both think that that will happen.

By that you mean to full production levels.

We think that’s part of our contingency. We think that will take about a month to may be five weeks to get up to a commercial production assuming we start between 5 and 15, January. So those ounces in that period the first month will be pre production and then after that middle of February into the end of the quarter will be commercial.

Alright and earlier on Sean provided a break of expected production in 2010, is it possible to give us a view as to where your CapEx might be in 2010?

Well our stated number is $250 million and we are saying that that was based on budgeted exchange rates that have moved about 15% against us. So increase that number and the only other additions we are looking for is potentially to move forward some of the underground development on a couple of projects and potentially expansion opportunities at Meadowbank and possibly in Mexico.

If you were to provide us with a general feeling as to where most of that CapEx will be going, what projects should it be allocating against?

I would say pretty well uniform across the board because if you look at LaRonde we are accelerating tailings on the construction and the reason we are doing that is because we’ve had two very wet summers in the Abitibi and so we’ve ended up stock piling and a larger amount of water than we feel comfortable with. So we have moved that construction forward a couple of years in the life of mines. We are doing the same thing as the Kittila. We are accelerating and we are presently building a tailings pond which has been included in the life of mine. Kittila also and Pinos Altos we are accelerating underground development trying to get in to some of the higher grade material earlier faster than planned and so these are and the that Meadowbank we are looking at accessing the bulk zone low construction of that and also the various likes in there to try and get them done earlier than we had originally planned so we could, Lapa is about the lowest one but you could probably decide the capital equally among all of the other projects LaRonde expansion is pretty much as planned anywhere between them 10 million or so a month and now have accelerated development of that starting so they will be still our biggest CapEx using capital in the 2010.

Thank you very much for those answers.

Our next question comes from is from (Inaudible). He is a stockholder. Thank you. Go ahead.

I am looking at your results here, they are significantly different than what the picture was painted Sean Boyd and he was on the Kramer show more than 2 or 3 different times, CapEx was supposed to be down production was supposed to be up, dividends were supposed to be starting and these are significantly poor results than what was expected or the pictures that we've painted. Stock was down $14 in the last week. I am looking for some answers.

I will deal with that. I think we’ve been dealing with some startup issues that have taken a bit longer than we have anticipated as we've started up three mines in a period of six months. But I think what we’ve done today as we’ve gone through each of the projects in detail is clearly identified these are not individually fatal issues for any of these projects. The issues are temporary in nature and that happen with mine building. We’ve addressed the vast majority of them so that puts us in a stronger position as we move forward into the fourth quarter and what we’ve decided to do as we move into 2010 is simply build a contingency in on the production guidance to allow for a start up on our biggest producer which is Meadowbank. But as was explained on that project, mining has done well. It's not a complex ore. It's simply going to be starting up of plants in the Artic in January. So we felt that it was necessary to building a cushion with respect to that. As we look at our internal numbers, we said we haven’t changed them. There is potential to still do better at some of these projects next year. And Goldex, in terms of tonnage, Lapa in terms of dilution so hopefully, the way we’ve positioned it is to be in a strong position to beat and exceed the guidance. As far as dividends go, we’ve paid them for 27 years. There was no expectation that we were going to increase the dividend this year. Based on our forecast for next year, we will still be in a position given the cash flow that’s going to be generated on the production base that we’ve laid out to increase that dividend but we will make that decision when the time comes.

But didn’t you guys' guidance sound like 500,000 ounces.

No we didn’t, the guidance as we said the number we have been using internally remains the same. It is 1.18 million ounces or 1.2 million ounces. We are still using that as an internal number and the guidance that we put out yesterday in the press release was from 1 to 1.1 million ounces.

All right thank you.

Our next question is from Barry Cooper with CIBC. Please go ahead.

Couple of questions for Ebe. Ebe on Goldex, the way I understand that the rate there should be extremely predictable because basically you are pulling materials that would have been blasted earlier and what not. Can you give us an idea of what the grades will be over the next couple of quarters that presumably that's already have been blasted?

Well over this present quarter we expect our grades to be about 2.2 to 2.3 grams. We will be mucking mostly out of the central area and with also for more coming from the eastern area. The eastern area the average grade is about 1.6 to 1.7 and then when we reconciled that through the mail we get anywhere about 5% more growth. So we have got positive reconciliation. So next year we are going to be playing that catch up because we have a blast of about 1.5 million tonnes planned in January for the western side across the eastern side. So our budget then is in neighborhood to be able to operate between 2.1 to 2.2. So, slightly above reserve grade for the rest of the year. So we will be just in the normal mining sequence. We will be accelerating those because we have now extracted more ore than originally planned in the eastern side and it’s been behaving very well, very little dilution. So we just want to balance things out a bit to start mining up the western side and then finally in the central part. And as we said we are about 1.5 years ahead of schedule. So we figure that by the end of 2011 the all original 23 to 24 million tonne ore body will have been blasted and in its entirety and ready for simple extraction.

We reckon it on the 5% reconciliation cause that wasn’t perfectly clear. Is that 5% on the Eastern or total component or are you actually able to kind of differentiate Eastern versus the central in terms of reconciliation. I realize that there is a whole lot of coal mine doing up the ore and what not so there may not, you may be talking about the whole ore body there.

Well, all we can say is that for most of the quarter, we were running strictly 100% from the Eastern. So that’s an easy exercise and when we compare with what our mucks indicated and what was predicted, we compare that with the ore reserve model and then what we extracted in the ore we got roughly 5%. We also predicted that as we look at the central zone that some of those range we are going to be in the 2.4, 2.5 range. Therefore, the blend in grade should be in the neighborhood of 2.2 and that is exactly what we are getting. There are days even where we’ve had mill heads in excess of 3 to 3.5 grams per ton. So I think I agree with you that that is becoming quite predictable and so Goldex over its life of mine will be a situation that will be contingent on where on a quarter-to-quarter basis, where the ore gets extracted. And sometimes thereon will be issues that drawpoint being clubbed or a large ore or blast not going off on time. So there will be a variation possible on a quarter-to-quarter but yes it's becoming quite predicable

Then on that same topic of great conciliation you know Lapa part was off with what looked to be a kind of a really good surprise there and obviously dilution and kind of muddy the water is with respect to what is great reconciliation and what is dilution causing the rates to go down. Are you finding anything at point in time that would suggest that you are having positive great reconciliation there exclusive of after dilution issue.

Barry I am sorry you broke up at the last part, I didn't get the gist of your question now could you repeat just the last part?

Yeah are you experienced on that Lapa how is the great reconciliation exclusive of the dilution affect that you are seeing there are highly disowned or can you differentiate that because of that at the start of combining your same 30% positive reconciliation which I don’t feel bad in the numbers at this point of time. But it could be muddy, the dilution effect of that.

I agree with you that it is muddied and what our numbers indicate that there is a slight improvement in grade but right now its pretty hard to predict when some folks come in at 50% dilutions and we have had some situation where we have had close to 85% to 100% dilutions so perhaps you are trying to predict that but on a share mathematical model when we extract the dilution from it and we look at the calculated rates we do get exactly what our reserve model has predicted and then somewhat no major upgrades over and above.

Right. Okay. Well, thanks so much for the answers there and good luck.

Our next question is from David Christie with Scotia Capital. Please go ahead.

Just quickly, on the customer you were talking to Steve earlier about the cost per tonne, can you break it down. I mean what it was on a per tonne mine in an open G&A? And the other question may be is for David, on the warrants that are coming due at some point do you guys still expect you got some cash notes in Q4 or what’s your expectation there?

We’ve been working that’s not going to mature until for another four years.

Yeah, they are quite a bit in the money right now do you think they are going to.

Yeah, they are pretty tightly held and [CPP] is stock based holding and then end of the (Inaudible) certain exercises. And then quite a bit of time value up in this time.

Okay

David I'll e-mail you the exact breakdown of the quarter and then also what is planned going forward.

Thanks so much. That’s the way I wanted. Thanks a lot Ebe.

Our next question comes from Steven Butler with Canaccord Adams. Please go ahead.

Ebe just on the elaboration of Lapa. I hope you can still hear me. The Lapa you talked about the cycle time increasing, may be you can give us any perspective on what was the result on dilution at LaRonde when you decrease the cycle time and hoping what was the result at LaRonde? And so what would you expect for your dilution and control with that method

Well I would say historically at LaRonde was depending on what part of the ore body but I will take level 215 as sort of a base case and when we originally started around level 215 everyone can remember the rock fall of some of the ground control issues that we experienced when we were getting a dilution, like in our model, we had I believe at the time around 10% to 15% and we were getting dilutions of 30% to 50% and then some and we can say now as we went deeper into the mine below to level 215. And we are typically getting our dilution, which is in the neighborhood of 12% to 15%. And that was when we looked back at what we did. We improved our ground support, we went to the one pass one shot blasting, we went from six yards scoops to 8 yard scoops. So these are all the same things, that we are currently doing at Lapa and the key is those only stand up for a certain amount of time and we have to get the ore out as quickly, blast as quickly as possible and also what we found with the one shot blasting well. We don’t hammer the weak hanging wall several times we just gave it a one shot and then extract the ore and that has been very successful for us at LaRonde and that is exactly what we are applying now at Lapa.

And the ground conditions are very similar of the two mines, Ebe?

I would say the ores. Its rather than a fairer side shift at LaRonde we sort of have a very foliated (inaudible) ultramafic of they feel differently but they certainly react in the same way in the same way ground conditions are very very similar to what we had at LaRonde in the early days and we were able to you know upbeat the conditions at LaRonde or not beat them but able to manage them accordingly whereby we have been able to mine in excess of 7000 tonnes a day at greater depths for the last six years. At Lapa we’ve only mined 20 stokes of 750. So there’s a lot of optimization possibilities though.

Okay. Thank you. And while we are on the Dave Christie/David Malibu call, question on per tonne mine mill and G&A may be you could send it along to all the analysts or post it on the website just have a note, thanks.

All right.

Our next question comes from (inaudible) T.D. Newcrest.

Hi, just one quick question and then another follow up question. In terms of the mill availability you mentioned in the press release that was now just for 22 days last quarter I was just wondering how much downturn has that had this quarter or what the expected downturn is?

I am sorry I did not understand that question at all. We seem to be having some problems with the line.

My question was with regard to Kittila. So in the press release it refers to the mill was out or shut down for 22 days in the third quarter and it refers to some time down in October. I am just wondering what’s the expectation this quarter, how many days has it been down and what.

Well, as I mentioned earlier we had about 10 day’s downtime in October, still over from say days in September and into October but we were there a group of us. So just after the Thanksgiving Day, Canadian Thanksgiving Day holiday, so the plant has been operating consistently from October 14 on averaging 3000 tonnes per day. So on an overall average it will probably be over 70% over the last two and a half weeks it will probably be around 94%, 95% and the first ten days zero.

And going forward for those two quarters?

Well, we're planning about 92% for next year and that is the plan operating time and when we look at of our other plans, LaRonde is typically averaging around anywhere between 94 to 96 and similarly with Goldex, that is not an a unrealistic target.

Actually I meant the rest of this quarter, rest of this year.

Well as I mentioned right now we are planning to have the plant operate continuously our next shutdown varying any maintenance issues will be in February. So, that’s what we are banking on and so far so good.

Okay. Thank you.

Our next question comes from Tony Lesiak with Genuity Capital Markets. Go ahead.

Good morning. Ebe or Sean, could you provide us with a revised byproduct forecast for LaRonde for 2010 or should we still use the last guidance?

LaRonde guidance is fine it’s in a state where it’s expecting material changes from there.

Okay. And for that Q4 for Pinos Altos can you give us the exact expectations at your forecast to drive it?

I think for saying for the quarter we are expecting about 20 to 25,000 ounces of say Pinos Altos.

Okay and then silver?

We'd have to look that up, I don’t know.

Okay. And when do you expect to have steady states in terms of your 2010 forecast.

Tim maybe you'd like to update us on that?

Well, if you just draw trend lines through our progress so far, it looks like we'd hit commercial production and later on in the fourth and should be fairly well on steady states by the first quarter in next year as 100%.

Okay and just in terms of the general cost inflation you’ve seen in the industry and I guess some of the changes that you’ve had to make at Lapa and Kittila, can you give me a sense of where you think you might get to on a per tonne basis, obviously it looks like its tracking to be a little higher than what the feasibility predicted.

Once again Tony, the second half of your question I didn’t get but I will try and answer what I heard. I think with respect to what we are seeing with respect to labor is somewhere in the neighborhood of 3% cost escalation. Where we are seeing pressures are with respect to professional staff, mining is starting to gear up in the Northwestern Quebec and in Quebec in general. That’s what we’ve budgeted but we also feel that there will be cost pressures on labor with respect to skill hourly rates by that I mean diesel mechanics, welders, journeymen and people of that sort. There will be, pressure so we have had bids in for various development projects especially at LaRonde extension and some of those contractor rates compared to the actual contractor rates that we are presently experiencing. They have gone up significantly so we are not the only ones that are experiencing sort of labor cost pressures from the consumable point of view you know we are fairly lost in the Meadowbank accept or we don’t accept anything so I think in terms of overall cost pressures its coming mostly from the labor side.

Okay. Just more specifically on the Lapa and Kittila, I mean do you still expect to achieve feasibility design cost per tonne or should we be budgeting something maybe 10% higher than what you originally were looking for?

I think it will be prudent to budget something 10% higher. It’s hard to call right now when especially an operation like Kittila have been so volatile and we really haven’t got into the optimization phase but we are looking at our budgets it’s still fairly early and we are getting closer to our life of mine cost per ton. That’s what we are planning. At Lapa it will be higher because of the issues that we have experienced.

Joining the answer to question it’s over silver (inaudible) 1000 ounces in the fourth quarter.

Okay.

At Lapa we will be needing more ground support so the cost will be higher on per tonne basis.

Okay. Thanks very much, guys.

Next question is a follow up question from Anita Soni with Credit Suisse.

Hi I just wanted some clarification on 2.1 in dynamite in Goldex can tell me the sequence of the mining of the ore blocks again in this quarter you did essential in (inaudible) and next quarter you are doing or that?

Well the ore body at Goldex is about 300 meters long and we are basically mining in three slices of about 100 meters each and so from a ground control point of view our plan is to mine the eastern and western side simultaneously and blast most of it and maintain the central 100 meters as of support or as a rib in the opening and as most of the eastern and western sides go up there is about another 300 meters vertically than the last block to be mined will be the central rib and that will be blasted towards the end of the blasting cycle. So its east first, west following close behind followed at the end by the central.

Okay, so you are basically just mining the east west all the way up. And this quarter Q3 in particular is what I am talking about, you basically had the gold mine central zone but could you have commissioned it on schedule.

But right now three quarters of the material has come from the eastern block and in our reserve model that is the probably the lowest grade block of the mine.

Okay. So west, east, central right? East, west, central right? Hello?

Sorry Anita you cut out there again.

Our next question comes from David Christie with Scotia Capital. Please go ahead.

Hey guys just a little follow up on Lapa on the dilution that we’ve had. Will you be incorporating a higher dilution as we talked about reserve this coming year or what’s your thought there?

Yes, we will.

Okay. Thank you.

(Operator instructions). There are no further questions at this time. Please proceed.

Thanks operator and thanks everyone for dialing into our call. If there’s anything else or any other information that you require after this call just contact us and we will be happy to provide you with more details. Thanks again.

Ladies and gentlemen this concludes the conference call for today. Thank you for participating and please disconnect your lines.