Agnico Eagle Mines Limited (AEM) 27 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

Ammar Al-Joundi	President and Chief Executive Officer
Dominique Girard	Executive Vice President & Chief Operating Officer-Nunavut, Quebec & Europe
Natasha Vaz	Executive Vice President & Chief Operating Officer-Ontario, Australia & Mexico
Eric Kallio	Executive Vice President-Exploration Strategy and Growth
Guy Gosselin	Executive Vice President, Exploration
Dave Smith	Chief Financial Officer
Josh Wilson	RBC Capital Markets
John Tumazos	Very Independent Research
Tanya Jakusconek	Scotiabank
Mike Parkin	National Bank

Call transcript

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Operator

Good day. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Third Quarter Results 2022 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank instructions] [Operator Mr. may conference. you begin Al-Joundi, your Ammar

Ammar Al-Joundi

this notably Well, Thank this but we'd operating just out you the results, Nothing safe well very a operating by our much thanking well importantly our of the we'd the thank teams also we quarterly our our morning solid is delivering important mine in exceptional everyone. and safety good teams, run history. operating thank to and call people on for like for a us and run delivering busy our to XX communities. to team thank Last best call quarter mine than not like day our is quarter, mine. a more started year delivering A and you your join for of is morning. the for taking some safe operating the operating time safety performance company's And results. mine

So our operating thank delivering our employees for to and much that. you teams of all very

a that good and XXXX, we importantly that. probably done we've cost The job been expenditure reiterating results pleased be on quarter, in belt, that this to guidance the third and nine guidance, and production congratulations to got With the say guidance hasn't very inflation under years. strong in has team we environment months for and in are guidance again capital highest now easy able XX XX or our are

strong are separates share, financial flow maintain and guidance. allows generation. our value cash at peers. going are the our progress share, cash and real of albeit higher story that the call the creation versus both value and end us going the earnings This position results. exciting and to I on drill These per flow you'll share, quarterly cost liquidity and create think all on I per strong see maintaining strong us are think per excellent this The differentiates and projects what items forward, production expansion our on and really guidance us to continued during is that have We drive of some that our those,

are challenge to a Finally confident an emissions by that greenhouse of going by a it's not target interim say zero we XX% introduction, greenhouse emissions on a we will It's announcing proud reduction are we of to our as XXXX. target are to easy, challenge in to way XXXX a gas This a undertake gas we and take achieve. is prepared are is we lightly. be but think not challenge an

please. Thank you. slide, Next

highlights. Some the third of quarter

$X.XX, all-in and to XXX,XXX a $X.XX, solid at $X.XX income quarterly but quarterly per cash costs share. adjusted costs will of operating $XXX flow talk about $X,XXX, of Dave sustaining Solid that later, of costs of production production ounces net and cash about and at

Some operating include ounces of XXX,XXX production That's the gold highlights the at Amaruq. quarter. results record this of

coming on into remained, some a improvements to quarter. We is those related stride. third I'm workforce continued the a inflation. able be on Pressures ore to that by moment during progress its we a think little them cost and asking projects. about manage a world two Dominique standards mine I material availability talk inflation, body Natasha to COVID-XX see class to bit pressure at Vaz Girard any And going Macassa, great and and in that is were

potential starting are We see to relief. some

this that situation. think it's are we too past early I completely to say

but pressures remains just a we good on very expecting mitigating where production, fact continued cost strong. and cost focused mine can, team Financial are the optimizing but forward, position pressures pressures We on planning that and and the for going offset has team with focused cost mine gold also in of some the is which efficiency, done throughput, that. to helps job not

of paid through have of cash you that's told due. what we're flow came pay and it we all due down are doing. as We million debt our as another comes debt $XXX it We planning to

this $XX a additional of about a share a quarterly million, paying little Some about Macassa. dividend XXXX. then of about ask X buybacks and about million bit Amaruq can you quarter past bit if Natasha, Dominique, maybe since to And shares continually $X.XX, and a dividend talk I little

Dominique Girard

for and and good a also Thank very division. you, with Amaruq maintenance, pits. did been from mill with grade coming a Ammar. throughput good also has the This the record quarter a strong quarter result obtained operation,

thank for quite on schedule which build a communities more mentioned at in have achievement grade where the mentioned despite develop which inflationary we also local good deep the more situation I to go cost did higher. IVR celebrated And million ore, it, going this quarter. and the success too, is X employees, we the would underground support, which we As suppliers the the at QX, We XXX to did And contractors, milestone. in at it we And We've the February the coming is all plus also also in are. like COVID and Meadowbank, pit also underground now. interesting tail be situation past, grade and we in to good that's in million an right a so that we well ounces going is project. important and also XXXX,

Ammar Al-Joundi

Natasha? you. Thank

Natasha Vaz

Thanks, Ammar, everyone. morning good and

and Macassa, had starting the site respect more become with to the So quarter, a importantly more reliable. is mine solid very to

was in to the mine. our release the performance the that through press As mentions factor a ventilation big quarter the added led strong

we conditions. resulted connection lower to Shaft to workings mining and also improved that working X contributed ventilation areas in were our and the existing in temperatures improved of the So

our gains to And our so this quarter improved relative ventilation helped with in budget. productivities, the

also Now, the adherence seeing we're quarter-over-quarter. plan besides to better improvements, ventilation

equipment proud if we on all zone, trucks. get when in levels that. to optimum so and understand and benefits mine needed. new And Macassa, we're possible ventilation, better at and planning strategy. starting we to scenarios production continue and Macassa of future flexibility to about when a conventional So better availability back running the at on Macassa And been continue we're and entire to slightly is trucks the out a kudos target, their And by team our on our see team the to know the The short-term good lot to monthly on of wants to there of the that, a deliver hard the the has quarter. focus on stabilize all the we added and very battery very to site that but then the mine year-end and Ammar. side, work if and on us few the model I'm I'll plans But the also weekly AK for to dedication we it everyone then on the of to starting we further, with look the point. sure our work have And with associated work we're pass with this to very, get utilizing

Ammar Al-Joundi

to inflationary where and tough an going access none easy. Dominique few drivers be It's but our on the I'll costs in on only never and Thanks, equipment. not a particularly completed Natasha, Look particularly to and hit value just excitement on of to and up, quickly. budget. and schedule Amaruq underground environment mentioned the That's access difficult key it's Dom. it highlights real continues people

think to The remains shaft I so in that. to schedule. by are that congratulations January, there. as say team The that be for So ambitious as company project to again keep this go I'm expected performance environment on Odyssey going difficult resume far it as any on project activities on in schedule. sinking excellent early the a to would

the in it budget, done Detour access tons to XX best because XXX we've to have operating crusher. contractors at a of the think per great mine did what schedule, I the in and they front second which The in energy million quarter. suppliers doing September, annum the couple On we the on the the way throughput up Our screen of team we're regions best an people, And has usage. installed got We've days importantly, plus refeed, reached been The lower we there flawlessly. ago, of equivalent years. able exceptional for and were used the it Lake that we team best between worked just the a where in XX is job do the property.

So very the done. confident has we are what with team

that did Macassa year. this The the the the circuit not It's merger, expected deposit been number to amalgamated done When to be We from of Kirkland end we opportunity schedule we forward has only ahead reached per done number. as possibly I Lake, X be the possibly after synergies two ton the but Kirkland synergies. is And an create some annum we the this first now are a one eight that exceeds XX it's confident at identified we commitment some and ramp underground that the looking to million but months think to deliver that quarter. of the hit second installing promised and commissioning and into and of ground running that's to the demonstration target, I merger. in On our would. early, of hope Shaft the to will we completed. screen reach with are we that to able And the the fourth of

we'll just shaft talk X,XXX in mines, the way, completed single get is still it up just and the as every all sinking quarter. how day in progressing competitive that business will and fourth at secondly, a in everything on is, tons best exploration expected exceptional and on expansions two start advantages. capital at some of One expansions risk talked that next. have Kittila results the exciting. And I expansion that adjusted make existing you exceptional, before, always about existing is to but throughput, leveraging by of potential mentioned drill want And all in this leveraging The the assets, about expected. points. just return of That's not these The in area the Meliadine our infrastructure, the are moment. capital. per that and we talk these about to best upside return which one we've commissioning to And is open team

drilling. say Next to what's early for slide, XX these and I there. Guy At is point I'll to what very I'll Eric Macassa, the things world ramp would promising amalgamated is they're to ore and and exceptionally underground. perimeter means, I'll maybe results, talk bit briefly want most to It's Guy infill and drilling, effectively one That's body. ask out one is me two pretty world that XX Eric beyond good excited multi-decade mines, class the some you the At step XX impressive us out deposit at class to over about what is meters grams all just mentioned, hole assets briefly X.X experts the in being about a talk We're kilometers continued Fosterville, little the good two the very Odyssey say of but please. the of what is this, it to Kirkland but will I and Eric it, as to and of meters. talk to do and comment results, here step mines, we I exciting talked I'll mines. complete. now ask Both had But out of – these just you. then multi-decade that about about. really Thank the Detour, they existing are about to we've just

Guy Gosselin

Thank you, Ammar.

exploration be in in the following was year, company of So that will overall, budget terms million from announced that original most release we've announced XX we've of in press important spending XXXX result. added the since year in the the August the obviously additional early good an XXX

of result, X.X be and than results XXXX completed have move year XX of ounces at good Amaruq, for rig to our to with kilometer million this We've infilling near metre Odyssey XXX mine on provider operating. mid-year at returning project, deposit result East So of contractor mid over offset portion and up of complete XXX year-to-date, seen reserve to And potentially in year. more will of Odyssey we gram And of depletion moving X all is key surprised the over as – continue Detour and the notable at some We've and the the continuing X.X seen the depth, by certainly XXXX. complete to ourselves XXX with of several over gram get production to with target a successfully update. we're year in at drilling, XX lot – all of million each at XX core drill mentioned towards Gouldie at value towards resources Odyssey, the deposit. success positioning drill we the year meter end to current the getting XXX solid LaRonde, we presently good on on start the anticipating Gouldie at the is anticipating drilling. X.X that we intercept, continued Norrie the our which the service but the We're of of Meliadine results portion with resources gram of Kittila, to end We've addition the of of Zone located meter positive at metre total solid X.X will products And meter we've X.X western mine, in on million QX more with have solid X.X out, and the metre. a several metre. Malartic for Ammar. of program XX way Starting of core like driver this importantly intercept and now west our the of metre some operation step by some which some to X.X we're reserve in we've favorably core million thanks schedule the – infill extension the excess very seen by With project. are of our end been East

west. the to see to interesting shape towards quite the Gouldie up East continued So how

we're we're to and surprised Moving are Bay, completing we Madrid Doris we've very rigs second deeper We're a has Madrid. Recently, and at another in quarter, conducting drill a third getting that drill result starting Hope visual in on over aggressive drill ramping at XX,XXX we're deposit. there over focusing exploration contractor to depth. up two reporting We've the there, end a drill of seen activity only, good hole the mobilized depth presently intercept program good And in at metre. continue since surface potential over outcome closely the been quartz vein anticipate Doris of have we in will team BTD Closer merger, the with by on and underground. of to Ammar, ramp both interesting see of the clear activity The AK, a and Mr. continue picture at up the to in we Madrid better to which aggressively as later of full visible-gold, those. asset by from and And the mentioned XXXX. in been and drilling together there. has we've working the a

excess drillhole year-to-date. an that have of XXX completed We were

be that updating Eric to as We over the that, there at Fosterville. on to XXXX. And adding to year-end early a as are I at – potentially Detour production adding to going and have resources could talk and impact Macassa pass will about near-term

Eric Kallio

Guy. Thanks

focus quartz again, closer showing good further The intercepts the half the some on that showing the remaining to west. a terms pit, extension we we drilling total of metres very and In mineralization and more the and and and pit Detour, terms to had, broad the west, both of again, to grade some previously the some good with – the what side main to of some in kilometers up really and about drilled to And and to the the in we see zones higher two the two, and grade results. high announced, XX,XXX progress in additional of including west about pit holes and productivity results. quarter more of the as showing in We similar the the intercepts visible-gold.

half four we The to that add and XX SMC East, go to of also half lot a Fosterville Macassa, the underground a drilling the deep South the metres, over ahead. actually progress Break grade there. open the project extension in got were exciting get haven't to finally and drill We the high number we to a mine We mine, Main having the more quarter. the very was more the the grade So which of at really there. to on of continued we year. deep the believe. very shafts. zone that on to I in And drilling a to main the Break. and announced AK both in to Remember, there the delay And Main was of grams we pit the focus were east targets this It's second on of complex recent there, we in very we're believe together is two target everything corridor, looking a as hole project. additional that lot were just new been we've until coming the high East there. much project again, Mine the able and well track there about

few and And similar number the quite and a Cardinal plunge. about zone a are showing starting so in it We've the which zone now future XXX a well lenses with high more receive for structure, the of new holes bodes we the that high at with with Still that so of to total good showing also Cardinal, think a to identified that. down we're And the Fosterville. we metres the very zone. grade results results lot high additional call up has to continuation we the grade and to evaluate very to with pleased continuation Swan grade zone but depth of Swan

Ammar Al-Joundi

infrastructure, advantage want a Thank top we are shareholders. I create again have will These we for our these in. mountain been immediately results. have operations competitive never those none The very have the results. and country emphasize we've mean, people, are and where of much. excellent to the are at what I value you we And is the a of

So thank guys. you

to on the moving next Just slide.

Again, I that target want to do is culture of do are in safety interim quarterly XX% the of we record the what as how how the mentioned points. briefly said, talk operate. the always Sean But we this a We performance. of and Boyd bit about we bottom fantastic company, but and talk and As has demonstrate we a the very it are what important culture the of is a The continuing to as also important, representation company. we little about discussed. I've slide

bottom, relative We water look you are to are agencies, little mining companies, at was and these pretty we well. one a the Mexico. if just focus the gas But Best some Place shows Mexico isn't on to by awarded team is emission mine Work peers, measured to not and award. La a I'm well very of the against Mexico. a Sustainability but are. all of the industry to That points the take company but won in going the Agnico in look India a and external Work responsible who Best usage and as our at at Mexican company any we Foundation maybe huge rated greenhouse by is take Equity. look for Eagle anywhere for doing La there is Center Place Philanthropy not And this this a very, and and at the bit mining impressive And by the India below, social XXth distinction by this

of the company. that show ground it's things the small of culture things these a types on at And the communities the that really the Sometimes, make difference. it's

we are potentially and we So while very small are. who they're they awards, show these are, important

the some David, would of results. Moving on mind covering you financial to this?

Dave Smith

just a at mind on don't all, I numbers here. focus Ammar. few I'll

margin, these scale than number. the Agnico it's a are the extreme slide companies ever. the think the XX, metrics. big Just size, of operating I in is US$X.X liquidity market the on and more Page this certainly, delivering important right important looking And That's And on year-to-date. billion of of the

cash I to a in $X is But graph The on between margin is share per I number very numbers. current extrapolates and guess, quarterly if and me If you flow. that, this slide balanced of more pie last the well that think And close And on look that million. ago just years and share important flow Agnico going And few balance per share. just for I'd well. I or than our commentary our you than might the the yearly cash number line what $X told the a done it's above this be at said with but share below a would've of we've QX, throughout portfolio $XXX generate very year-to-date about more was to market on, investors price diversification as a operating to comforting cash regions. conditions, per flow, share $XXX per that year-to-date, is focus importantly, to

talking market So I for we've top guess, we're price moving to base recover higher balance the of equities got price next gold where year. I the we're the and really the valuation over a seeing market page, near sheet and equities for the here not going to Flipping the next as into of a about share certainly think solid continue gold just the briefly.

bank Of more and do than course, strong million undrawn we cash of have liquidity $X.X billion. of facilities $XXX

schedule If maturity the a look schedule, out on maturity it's at very spread the bottom, time over debt you purpose. light at

make doing So continue tremendous flexibility what financial can we doing we've That's sure decades. for been got we've that it. to

Ammar Al-Joundi

Dave. you, Thank

please. slide, Next

corporate operational optimization. synergies, these very On them and We divide I'll quickly. strategic optimization into the synergies, hit

synergies, job that really easy, better frankly, we've roughly but I even we corporate good that original want it we the gave. don't anticipated On was done say than the double to and estimate on a

to ramp then Detour. again, obviously that progress. and the well XXXX. the like improvement in XXXX. our will are said are little a And on in already that some of remains companies, chance saving a talked confident than with underway we million it. policies tell we year, on important that analysis were making as had, there million year. going the combination the and of we the are opportunities, mentioned to you more exceed individually. the do everything we two our And even million of made progress strategic annually everyone for I add and at in there it, side So the bit remain insurance of about $X to continuing it'll And our maintenance mine operational Detour. but on faster million small to on of all targeting and up. ounces as $XXX then of things companies get same. we've congratulations a moving thank on, including expectation to the identified done. than The $XXX optimization, towards the that happens. you mine is get, was to team, assure a is I that. the is move the year. couple I not Things the and and the And And consolidating sites We it, good target The We real into the underground we you team $XXX eight can and another a And rather the but there we that Every happening a take programs have X we're discussions identify production we vision slices, the Amalgamated are is year technical up years Kirkland, can months we drilling hopeful you, –frankly, I a tell combination the bring recently, big a million big by difference

years, it's simple, on the and a to for value based approach discipline had have following. creation. consistent, same It's and approach XX proven We the we've

low this and strong build that It again means we've First, flows strong business. year. To cash profile us delivered means margins, high Premier costs, production robust so from jurisdictions. quality far a that

over And capital have program, that. that of from this per a of continuing and to that political mines have a in in you build position, and building in to record long that's on only expansion of from I have the the beat. value responsible we're to quality through not to exploration think going operate per have that. multiple multiple doing high a over share. strong we're over the and is a responsible bit regions those seen be competitive creating just a what decades To and And exploration. and with for part world proud we To manner. existing potential you've drill cyclical doing And growth basis to competitive be Our to places Proven get, with to built advantage. share actually projects, and in need of always continue and our big we're we strong largely governance in how go strategy a not do always mines and just leadership, we're company XX into our very you history with that a essential socially, decades returns, care perspective. that. we're the value – balance that of stability the the that's potential many financial a a a most payments operate. which finally, And We mines decades sheet, To multiple to care And do. to in way, don't this, welcome, have leverage years geologic track dividend advantage a business. what without to missing frankly, about It's trusted do we be environmentally, multiple to but community

same Agnico So be in deliver it'll year, next conclusion, next the the as the story One, remains after. operational quarter, the and last hopefully same will be and of this the year quarter it reliably. strong consistently, it results and quarter same was

and it to for possible, the to end value, we'll through do to lowest good of the off will by over the been easy not a existing our regions. which investors. decades our best credentials ESG existing teams. the in says, And four, is get of for being and the have and continue As to our part to risk operate. at to we through programs to night we've sleep which be those in with investment exceptional member that, with deliver be to questions, Three, And with only Two, always desire call bit transfer the in drill finally operator. where welcome CFO Smith, value best always growth Dave the regions and create infrastructure building profile possible communities we

Operator

now of go comes RBC [Operator question will We Markets. ahead. session. Instructions] begin the Please Capital from question-and-answer Josh First Wilson

Josh Wilson

I I’m next be morning. The prior up on? rolling to maybe now that or release or Good mentions curious had that prior the Thanks. a for inflation couple I sort on months, couple that versus or guess, questions of commentary Is what rolling of hedging understand matter to inflation. the realized disclosures what’s that’s a inventory now the ramping causing quarters? of in off

Ammar Al-Joundi

It’s Ammar an don’t really acceleration of here. Josh. It’s Hi, we see inflation. –

hopeful In bit the little to of and we’re at of past end the see a fact, peak we’re light that the tunnels. we’re starting

So are though over. to want just is our too everything job to And we to to we do we be control planning are it’s to still what responsible. and trying because that costs say say can we think to I that do it’s early that

didn’t everything to mitigate So I don’t suggest doing we it that and to intend we accelerating, we’re seriously seeing can is think rather it taking still we’re very it. inflation that but and

Josh Wilson

maybe flexibility? than what you applicable a – Odyssey this greater then reevaluation And more the there? question cost of being and we cost X% was the bit about inflation the to maybe information should And provide other in to year the on think also the on original study, Okay. whether in incorporated terms being relates upside to there. X% Could

Ammar Al-Joundi

That’s good Yes. question. a

to start and progress going making So to have good some we production. are Odyssey we’re at

year we year at budget go a know, all – we first every take and look you process every quarter a through the costs. we As the in are

the what We now Odyssey too XX are consideration through It’s at that right taking right now. we’ve over and months. early going process last seen into

job go cost that But through. some of and good the One the you this, been on work done suppliers? But an also as bit bit you of have Maybe team, material big are there project. increase hard talk one two about the sort And of best to to that manpower? case, our up to guidance two can. can because with, There’s so a construction that about contractors? is has inflation. issues you the team job that. in of lose exceptional to But good manage they’ve you if will Are that the job getting that you very I’m of is, side offset parts of pressures. industry’s at you getting I but this Dominique, the the good think going means getting done in really these little We things. with that a a done the we’re can’t I and expectation things on extra Are going they’ve will are we efficiency. on done struggling efficiency Dominique have looking a little that. is you And opportunities to say, to give revenue with to cost and the talk ask What Dominique goes the out his

Dominique Girard

South. we internal of is that one the zone the opportunity have at Yes, Odyssey

So close there, we know that the just be our it but is is to infrastructure. that’s complex, to mineralization still going

let’s coming over phasing from there we what are going about in doing the the in a to to we to already by side, So different cost. Two team let’s And construction to cost place plan alternative need the be some I is looking or say that expected, coming strong by answers that’s cost scope engineering development and land to say zones. revising helpful the the those quite best they’re better also and to a on that’s the team syncing see years per And mitigate coming meter the important world shaft. on than so sync overall. is our also things going say the to

be place going did We’ve good let’s the Galloway in of a busy that to be up to going right our shaft to and Macassa, And good at But they’re sync to with doing did but And did LaRonde is partnership that to see, the Lapa contractor sinking. the we Kittila we that. the staff it’s experience system the with area, over on let’s pudding, they’re going team. So rubber going years very let’s people a a have project is in set shaft a I’ve been people a sinking achieve shaft. very project. Also are team performances. infrastructure that been Redpath see that using also into to good been prove put Kittila, now have what’s XX have at I’ve from now say in a people after, team

on to – be I overall top. okay that’s going going think to So that’s be

Ammar Al-Joundi

are we message, finish, because Yeah. obviously. of And is environment the The just to message people lot this, I out think inflationary an Josh, in a interested still see there.

we We We it of tell I do now. in well are what can’t couldn’t be. with But is can’t think going a good January, predict you working the job. do and I team can. inflationary any project accuracy, to the very it hard doing environment’s is frankly to don’t can the We mitigate anybody level going it.

Josh Wilson

All I in for right. question tuck side disclosures shaft. guess the I the towards Maybe more guess, well on the things. of – second if can inflation the the one costs eventual shaft speak I

the in of of there half could Just XXX%, of then XX%, and northern overall is stocking case what reflected you today whatever because some there cost the the inventory been is impact seeing across place. Like larger a in you structure? of I that’s kind we’re amount exposure guess has the been also to inflation Is the any say would that far? practices, hedging actual provide so two-third, operations percentage inflation

Ammar Al-Joundi

some expect that, you’re right a on it’s Well, again, sort shipments would fair – right the through it. we that to on had it big that did than in that little about of have of chunk But I of that’s year. Dave and some barge last fuel less a side we’ve on relief had What a inflation. say would the in now. of purchased. also budget so expensive ask number wage items X% to second, a going we’re yes, I a because movement average been talk But things. And the do is And have more was in we I’ll we’ve currency bit

some So there inflation. is

it’s about to we those through ask but just really Again, team efficiency on I talk some everything Dave has to give cost, emphasize before I oil, – not message good it’s can a immune well would job. of are done not the to focusing And again, we’re budgets. everyone the doing it, to is with pressures. the just it, help the going as we offset We’re input

Dave Smith

Yes.

from for we’re a XX% our February. hedged XX% little But is about that bit actually on last our the above probably about XXXX, fuel what position. exposure. But front less rate, comfortable you than on told we we’re So budget again, because It half guidance feeling more half of on going our year. to the do second the course, year for who the shipments to physical what price we’re have to we’ll knows in the of when next be side in exposed is oil innovate coming the second pretty

continue what a and something sure top going it’s be make guidance certainly something in the have do. way that give to confidence But So we to said do to on pick and we we’re going and to always, watch can inflation to our as try of mind. we is February

Josh Wilson

much. you Thank Great. very

Operator

Difficulty] [Technical go Anita, please ahead.

is line open. Your

Unidentified Analyst

that to you interesting would the Hi. Good would that specifically say that morning. high that taking what talk exploration highlights just of more to my are you zone. TMAC to project? question you sort Could need with had at Thanks a some to hits develop regards before ahead some the call. see for go of you the with And I the of do you? and about

Guy Gosselin

Anita. Hi, Guy. It’s

in focusing first depth at We’ve So And continue full fold some there up to XX.X been seeing depth, the year. yes, validate quite interesting quite engine, press over to X.X been X.X. that and for we we release. that been we’ve potential those pleased. the obviously of meters, is were which We’ve over second XX we’re getting gram result because part apparent you that repetition some the as saw end

were this some Obviously fold infrastructure lower to portion into in the we’re with but addressing the up. of drill we’ve and BCO early undertook BTD. continued not there it’s to underground first resources, the Therefore, quite when year very saw make to now rig And the well results. we those very that the sign that of that spacing, drift So good it as position drill shape extend from mining yet early of a close we by to the area area. drill two in from it

we’re major beefing the quite as we Madrid. at some to mentioned current So help we drill drilling up interesting. drill second now I mobilize our contractor extension capacity hole at as also And drawing at well, – at gold And of stepping depth bottom see And the when quite when in cords pleased out again vein depth at to extension. visible bending, still but are north. good we assays the the and we’re Madrid, down-plunge with

of trying we back our can grow come the think a in and at can assessment of project really when a drawing significantly theory with is about years better we think that with we couple to then how developing are demonstrate the future. acquire a the and/or project Madrid we So resources we on

Unidentified Analyst

bit running like Thank just Malartic you. operational And the little move I then now, a to but of you’re the came be. year grades I can right would for some think items average more the what below the little down at a bit

wondering that was So I’m the year. guidance had the for that I provided, if X.XX or you just like think

we a that you QX it see about and Detour then at expecting could if grade came So I’m wondering on are rate just down a one? uptick into And into similarly uptick going QX. XX%

Dominique Girard

Dominique Anita, Hi, speaking. Yes.

say just Malartic. We planned. as is we of Canadian are a but process question that planned stockpile as Everything and aligning is I with a guidance everything in QX, it’s going bit more at there. sequence will

Natasha Vaz

Hi, tracking Anita. With well respect still guidance, against guidance. against to Detour, we’re

think where to I be. expect year, X.XX grade was So the and that’s about for the we

in year The first of the higher grade half material. was we which X, were Phase

yes, thanks. So

Unidentified Analyst

installed then – could that that And costs, down. new was the going costs seems the bucking are unit the the I And we in question, just last having Okay. like of QX? while wondering, Natasha ventilation Macassa what they quarter? the the is further And sorry, seem was just gains see trend, main it ventilation newly this the the on Is driver that?

Natasha Vaz

cost, lower that’s Yes. function Anita, in budget. a of we but throughput a higher so see to did comparison

the And we has it shaft So hopefully see going too ventilation to well. comes along, helped then the when four us. future. continues And number as should improvements there yes,

Ammar Al-Joundi

And a efficiency good example underestimate fashioned the never costs. Anita Anita, and of, of that’s trying perfect mitigate to importance old throughput

Unidentified Analyst

that. leave at it I’ll you. Thank

Operator

of Very Research. go Tumazos from John Independent comes Thank next Please ahead. question you. The

John Tumazos

you. Thank

the stokes guess some ramps ton at expect staying zones we X,XXX are of access and around grade. the capacity the in which of know mill first. go deeper and from with a don’t quarter the the lower tonnage I XXX day you Macassa, As September grams. shaft the grade new for up would I XX higher grade the

for toward hold can was get and XXXX grade You day. hope a the that. wondering what ton XXX,XXX I should mine. It’s ounce we year a

Ammar Al-Joundi

I’ll Well, I you’ve pass investing that, And ore an from of the it’s the body. and excellent a body. ore Natasha. that And to infrastructure, why done great hear start it potential I’ll with mean, you the is that’s we’re is then it outlining again. you’ve John, job what to ventilation. the of nice mean, done I shaft,

also lot there. working say good We’re a a going has jurisdiction. And of are you’re It’s budget significant producer right This get on right. to to would a very to now. the – on But years in ask take, comment. Maybe potential be Natasha of frankly, exploration absolutely mine couple the we to I’ll working a with again I potential remaining.

Natasha Vaz

Ammar. that’s Yes, correct,

tons it’s near has Mine respect right day. capability reserves, which the And of of it a John, the the ore X,XXX to Complex. South is hoisting shaft, main our with So in

So expect to our increase. we throughput

running right We’re now. scenarios

We’re looking new strategy. at a mine

can changing the We’re optimize exploration in the We different looking mining potential. also potential deposit exploration at the scenarios, how we see believe here. up to mining methods, and sequences

to now our – that grade XX, hope And continue grams. we reserve XX at sit XX So right trend.

Ammar Al-Joundi

But year it of couple a is John. endeavor,

John Tumazos

next what for tons year, be day? expectation for example, for a might So reasonable per

Ammar Al-Joundi

come feel guidance all out We’d February. – guidance specific right for now, giving that’ll next in uncomfortable year

John Tumazos

mining and the should East East grams, engineering taking X optimization, Malartic in it three ounces the drilling, to is bit? and four engineers in going get optimization done where is little to and detailed the sometimes underground If the about legacy is Gouldie is the a infill and it other resources get three measured incremental for gone two drilling When I have and back with for average the in million and inferred X.X about or is other grams grams Or those can zones be zones going iterations to grams properties, through, Gouldie now modeling zones? higher is infill we the resources. switch almost lower, indicator two Agnico ton

Ammar Al-Joundi

go I’ll I mean, – Well, ahead. Guy

Guy Gosselin

on I update having we moving think the to we when see you’re grade, resources are the to going Yes, – indicated. when are

We are we’re realistic our mining incorporating dilution, expecting scenarios. using

So we obviously dilution. gram see transiting lower adding indicate, because East inferred Gouldie you’re that closer to grade are going inferred. a as three from But you to overall indicated is to

don’t we is adding the so the infill, thickness, we confirmed don’t as any grade – fact, of when add the infill. One in So see we surprise expected. the terms in

positive So I is most growing the do is This laterally. surprise believe that we our – that this see. only

So confirmed is by being the core infill portion drill.

North the be Odyssey a And adding when the the and We’re blend the will the after that, South and of indicated. did going that. to incorporating Gouldie. Odyssey dilution to it East be then is moving the And matter about math you

grade So average sequence to each get the operation. grade area, the their three mining the of to I into think, of respective the

John Tumazos

of the and So two as ounces? lot it a as doesn’t good it’s and grams, grams Macassa, feel but of three Fosterville, a tons lot the

Ammar Al-Joundi

tons mine. Yes, mean, I a XX,XXX a it’s big day. it’s

John Tumazos

good be are this so on Makes ton isn’t south Africa. at me real price week. for it your if in deep traded money and with gold this? going make we you was do company And so his per thought low this tons that have this to think sold XX,XXX inflation. Peter, the good he – we do make, South But costs problem how to wonder It partner, good your

Ammar Al-Joundi

know it right Well, the acquired And are bulk when out, we which X, mining, uniquely a mine. pit Guy it but in think through as open mine in mine now, is economics pointing something Canada. X. Gold to all you because but view able we be from going And X, said, is like biggest this from asset. underground through the – that underground you’re as as biggest is Canada we’re of this big economics, going I our at Gold our think experience right develop underground this we’re It’s I the going was to going Gold beginning the to those

John Tumazos

Thank you.

Ammar Al-Joundi

you. Thank

Operator

Jakusconek ahead. next Tanya question from The Please Scotiabank. comes you. Thank from go

Tanya Jakusconek

my morning, everyone. much so for Good questions. taking Great. Thank you

costs? in back and just your in wanted what just picture, at the was call picture. on the to Just in is you conference think Is that cost running bigger X%, your know where to the what QX time, circle saw sort I inflation X% the similarly of I said I QX. asked inflation Ammar, you QX

Ammar Al-Joundi

to Nice hear you the Yes. way. by Tanya. from Yes,

Tanya Jakusconek

Okay, thank you.

there coming that I on that. the out wanted you all we relief see So mentioned, and see seeing you and that with just back encouraging, circle want we off. Fuel, to oil are to

how supply constraint transportation constraints. the Is or think you’re so helping, we seeing there? relief supply that should Like transportation, a mentioned You in about relief costs? the

Dominique Girard

see containers to to on XX supply America news the where from start Tanya, China time positive Dominique was point at some speaking. North the some costs during We COVID.

around pre two Let’s now say time we right COVID down. cost are the and still is it going

that the orders of So we is this our supply back of the level lower is say their the a and chain COVID also since slowly, start supplier level. at improving. main are that the start the good news inventory the showing When – hear from supplier let’s highest

was you’re XX recall, But better now because I maybe to we right. workforce, Guy start So at the what bit that’s it’s having the be in out see six what And months. and watch position. this is drillers a a the we beginning, that ago, getting hit getting with this And driller years is is on problem in and also, know, place. told but two side signs in going to right speculating, he I – the the bit me that don’t that on

on think I stabilize. that the we’re getting also should So workforce

recently projects some slowdown projects. Ontario. have in We We and some in saw Quebec

So to advantage that that. could of be for news take us good a

Tanya Jakusconek

better? should where could we sort do that of be your do we slow sort about, Should that of be think I for thinking are And labor your that. worked negotiations of a know is of for Or and on this X%, none being when down, for the and we thinking Abitibi labor we X% bit talk about currently bit a could wages? you

Dominique Girard

to a we we’re bit think, going could we – No, do better.

if a could let’s we’re pay our need expectation we depending and expecting, workforce competitive our negotiation’s course, happen where in now. I and where to Finland to is this X.X between those we one depends stay five, Then but need Canada, or world divisions, for say to fair going say, which Of the price. on – for

Tanya Jakusconek

And on good. consumables, consumables any are, oil I relief sorry, that on consumables, not we’ve ask you’re on – obviously, we fuel seen that’s can relief That’s other seeing but any just not based?

Ammar Al-Joundi

that time. Well, where a I’ve of I tell are saying, We the a are can bit the all look, comment. make there’s week I these first over – little people can quick time Tanya, you, emails seen get updates I relief. last the

in and they actually always are on for been which steel So they consumables. be some other Finland, They example, environment, had our cyanide, biggest has highest fair, seeing on to inflation relief – spike. the

so again, I is see the at just, that relief, of but But a still it. all we’re for surprising it. we hope not it’s possible I are to relief. seeing be are So and vanguard we best, are they’d over for the – we job to plan but our the starting worst some

Tanya Jakusconek

in like Ammar, it. call, now. we’re out maybe I a no, just to coming of this Yes, on level seeing the right appreciate inflation would optimism see relief bit that this

Guy just at I I resource reserves I first of actually about what think That’s at and from you some and about a at appreciate resources X,XXX. and you. Ammar end, I to So Eric, you your them have know and X,XXX X,XXX. and for thinking my one resources – And some fit I If maybe and are bigger at reserves, picture of where maybe and from starting we’re pricing? year think question. reserve could more for that. question know them Can

Guy Gosselin

reserve looking rate, Tanya, FX for – are assumption, the gold be still will trimming. the we looking I our so three-year the year tendency the evaluating and at end what resources price, at

with at of year – number end it’s back we the So that the usually regenerate. only out come

too not we more apart would now we to And obviously, portfolio in board a like So to forward, unified far portfolio. the moving assumption. the in, the with too across soon but were come

to in So get that you we’ll back all we’re of February. considering and

Tanya Jakusconek

to Detour No, where Meliadine, Okay. Kittila, previously replacements, had I grow on enough. obviously the I year? going But where that’s on at fair did depletion you’re end. Amaruq, your as you one to that’s we’re be hear LaRonde, got asset replacing correctly reserves just and our what reserve going this mentioned I

Ammar Al-Joundi

we obviously are mentioned, most down the assets. August, met of I when As in we nailed you the

at – Detour we’ve at the the we’re update So seen midyear.

to – sort results, what of midyear. of We’re and a told different I sorry, integrating still mine. continue update, you reiterate the I resource all And

to going from depletion plus having the We’re net be the operation. partial a at in Mine operation replacement Detour a is gain

we we overall going the know. everything How So of net Again, we’ll figure the consider date, Don’t an end are is much to see it out once gain. it? year. at

Tanya Jakusconek

questions. Thank enough. very fair much you that’s Okay, taking my for

Ammar Al-Joundi

final you. and up. maybe operator, Thank we’ll think just And then wrap I it question maybe one

Operator

comes question Parkin The of Bank. National final go Mike you. Thank from ahead. Please

Mike Parkin

taking guys for question. my Thanks

the The a the how we is about capacity, spare AK project sense material think to going but of get Just would kind primary has obviously phasing chewed AK mill could being to the better to of up priority in. terms to buffer capacity material with some shaft. be kind of fair get Macassa spare a of ore? filling the but that assume Macassa Is second mill, in

Unidentified Company Representative

Natasha reviewing with we plant listen, mentioned, this I might take as the shaft are will – speaking, one the mine four and the ventilation. I [indiscernible]

have So in say. This the will mill. first is I optimize element to the we will fact,

So it ore the first. will which bring profit or the be largest will highest

to to On to completed test and efficient. mill merge since reviewing work have we’re the was try other metallurgical more full be optimize started side, we the the

make ongoing the XXXX expect – information. proper first that all the the in to to of after need we and mill. adapt So decision, half of the On we we’ll the basis, it’s have

Mike Parkin

Okay. Thank you.

Ammar Al-Joundi

nice terminate think that Well, Bye-bye. And call. and everyone. thank everyone, Thank weekend. you have operator, I the with we’ll a you,

Operator

the gentlemen, participation that does thank please you your your ask today. conclude We you and for Ladies call for lines. this conference disconnect and

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