Chart 5 years

LARONDE MINE, THE LARGEST GOLD DEPOSIT IN CANADA

Business Summary

Agnico-Eagle is a intermediate-sized gold producer operating in one of mining's most friendly and politically risk-free areas of the world: Quebec.

Agnico-Eagle is poised for rapid growth in gold production near the flagship LaRonde mine, and also internationally.

The Company's strategy is to build a multi-mine platform from the foundation of its LaRonde Mine, the largest gold deposit in Canada.

It has created a dominant land position around LaRonde, with numerous properties at different stages of development, running for 35 kilometers along the gold-rich Cadillac-Bousquet belt. This unparalleled strategic concentration provides Agnico-Eagle with reserves of 7.9 million ounces at December 31, 2004. 

LaRonde Mine

The LaRonde property is located in the Abitibi region of north-western Quebec, the 2^nd largest gold producing region in Canada, midway between the cities of Rouyn-Noranda and Val d’Or.

The Company's strategy is to build a multi-mine platform from the foundation of its LaRonde Mine, the largest gold deposit in Canada.

It has created a dominant land position around LaRonde, with numerous properties at different stages of development, running for 35 kilometers along the gold-rich Cadillac-Bousquet belt.

This unparalleled strategic concentration provides Agnico-Eagle with reserves of 7.9 million ounces at December 31, 2004.

Moving towards a multi-mine base Agnico-Eagle is constructing the Goldex mine near LaRonde. Gold production is expected in 2008. Additionally, the nearby Lapa deposit is expected to be approved by the Board for construction beginning in 2006, with gold production also in 2008.

Equally important, access to these contiguous orebodies and reserves, combined with decades of experience in the region, provides the Company with greater knowledge and enhanced opportunities for exploration, development, efficiency and synergy to create value for shareholders.

Vision

Agnico-Eagle's vision extends beyond Canada. It is actively pursuing opportunities in the United States and northern Mexico. Through its equity position in Riddarhyttan Resources AB, it also has an interest in the Suurikuusikko gold deposit in Finland.

Recent News:  Agnico-Eagle targets $50 per ounce total cash costs in 2006; Announces 26th consecutive annual dividend; And strengthens board and management

Agnico-Eagle Mines Limited announced its production guidance for 2006. Included in this guidance is the target for total cash costs from its world-class LaRonde mine. The Company is targeting $50 per ounce, a level which would again rank Agnico-Eagle among the lowest cost producers in the gold industry.

Overall, payable metals production is likely to be at similar levels to those in 2005.

"While we are budgeting for cash costs of $50 per ounce of gold in 2006, at current byproduct prices and exchange rates, the actual total cash costs have the potential to be significantly lower," said Sean Boyd, Vice Chairman and Chief Executive Officer. "Agnico-Eagle's revenues, earnings, and cash flows enjoy significant leverage to rising metals prices.

This leverage, and our low cost production base, puts us in an excellent position to finance our growth pipeline of gold projects," added Mr. Boyd.  

Fundamental Considerations

Technical Considerations

If the past is any help in judging the future, the Oscillator presented above usually faithfully forecasts corrections when it reaches overextended levels as at present. On the other hand, the market could remain overextended for many months without any significant corrections as we experienced in 2003. Nevertheless, when the correction finally sets in, it can be painful and lengthy.

While on a short-term chart, a price may look overextended, the long-term often reveals better the ultimate price potential. AEM is a typical case.

For now, we expect some sort of consolidation but remain convinced that the share price will move to new highs over the long-term.

Peter Zihlmann

www.pzim.com  

invest@pzim.com

+41 44 268 51 10

THE TIMELESS PRECIOUS METAL FUND

is a shareholder in the company and will benefit from any increase in the company’s share price.

**********************************************************************************************************************************************

Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price.

Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.

**********************************************************************************************************************************************