CIBCHave a US$67.00 target. GLTA
EQUITY RESEARCH
June 21, 2022 Company Update
AGNICO EAGLE MINES LIMITED
Sustainability Webcast Presentation
Our Conclusion
Agnico Eagle recently released its 2021 sustainability report and provided an
update on its oversight, strategy, practices and risk management approach to
key areas of health and safety, environmental, social and governance (ESG),
and on the historic sustainability performance of its mining operations during
a webcast presentation hosted with CIBC Capital Markets on June 21, 2022.
We highlight in this report our key takeaways and AEM’s unique strategy
which underpins sustainability.
Key Points
Unique Strategy Underpins Sustainability: First we wanted to highlight
what we see as a key differentiator for AEM on ESG vs. its peers. The
company looks for multi-mine, multi-region potential within a new host
country, which would support multiple generations of mining. It then works to
build indigenous, community and governmental relations in a collaborative
manner as part of its approach to sustainability. In our view, this approach
has helped AEM avoid labour, geopolitical and civil unrest over the years.
ESG Remains A Core Component Of The AEM strategy: AEM noted that
ESG is ingrained in how it does business. Its strategy focuses on engaging
with its people and communities and treating them with respect, pursuing
innovation, identifying and eliminating or mitigating risks, and adapting to
new realities.
KL Merger Strengthens ESG Leadership: The merger reinforced the
capacity to make longer-term ESG-focused investments given the
compatibility of the respective companies’ approach to ESG.
Though Still Early On Realizing Benefits Across Operations: While AEM
expects to benefit from the sharing of best practices across operations in
terms of energy use or electrification of mines, it remains early on the
learning curve given the recent close of the merger and the travel restrictions
that existed due to the pandemic.
2050 Net-zero Objective Needs To Be Supported By Investment In The
Overall Energy Infrastructure: As AEM reiterated its 2050 commitment, it
noted that it is critical for not just specific industries, but the entire society and
governments to answer critical questions on the provision of clean energy
sources, which are truly the key to the reduction of GHG emissions. AEM is
also planning to further delineate its climate strategy in its climate action
report, which is expected later this year.
Regional Update: AEM provided an update at its operations highlighting the
initiatives taken to increase energy efficiency, productivity and worker safety
through innovation as well as its continuous involvement and support of local
communitie