Q3 2023 Agnico Eagle Mines Ltd Earnings Call
Speaker 1: transcript
Speaker 1: Please, in gentlemen, please stand by. The call will begin shortly.
And gentlemen, please standby the call will begin shortly.
Speaker 1: transcript
Speaker 1: Again, ladies and gentlemen, please stand by. The call will begin shortly. Thank you.
Again, ladies and gentlemen, please standby.
Call go begin shortly thank you.
[music].
Speaker 1: transcript
Speaker 1: Good morning. My name is Lara and I will be your conference operator today.
Good morning, My name is Laura and I will be a conference operator today.
Speaker 1: transcript
Speaker 1: At this time, I would like to welcome everyone to the E
At this time I would like to welcome everyone to the Agnico Eagle mines third quarter results, Tony 23 Conference call.
Speaker 1: transcript
Speaker 1: All lines have been placed in need to prevent any background noise. After just because remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two. Thank you. Mr. Amar Aljundi, you may begin your conference.
All lines have been placed on mute to prevent any background noise. After just because your likes there will be a question and answer session. If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad. If you would like to withdraw your question. Please press star followed by the number too.
Thank you Mr. Martin you May begin your conference.
Speaker 2: transcript
Speaker 2: Thank you and good morning everyone. Thank you for taking the time to join Agnico Wiggle on this call. We know it's a busy morning. There's a lot to do. We always appreciate the opportunity to talk to our owners about how the business is going and it's going well. In the room with me, I've got our senior team. We'll all be talking and available for questions at the end.
Thank you and good morning, everyone. Thank you for taking the time to join Agnico Eagle on this call. We know it's a busy morning, there is a lot to do.
We always appreciate the opportunity to talk to our owners about how the business is going and it's going well.
In the room with me I've got our senior team will all be talking and available for questions at the end.
Speaker 2: transcript
Speaker 2: So I'll talk about before we jump in. I want to talk briefly about operations, but then hit some of them, the bigger point. With regards to operations, we had another solid quarter. With three good quarters behind us, it's obvious that we're well on our way to comfortably meet our guide.
So I'll talk about before we jump in I want to talk briefly about operations, but then hit some of them.
The bigger points.
With regards to operations, we had another solid quarter.
With three good quarters behind us.
Obviously, we're well on our way to comfortably meet our guidance with.
Speaker 2: transcript
Speaker 2: With regards to production, we're well positioned to be above the midpoint of our guidance. And if things go well with us in Finland, we will be closer to the top end of that guidance on the production side. Importantly, on cost.
With regards to production, we are well positioned to be above the midpoint of our guidance and if things go well with us in Finland are we will be closer to the top end of that guidance on the production side importantly on cost. The team has also done an excellent job.
Speaker 2: transcript
Speaker 2: The team has also done an excellent job. We continue to forecast within guidance and towards the midpoint of guidance. It's clearly been a tough year for everybody on the inflation side, but our team has really, I think, done a remarkable job and we continue to be confident. We're confident in the year and to be sure we're confident in the fourth quarter.
We continue to forecast.
Within guidance towards the midpoint of guidance, it's clearly been a tough year for everybody on the inflation side, but our team has really I think done a remarkable job and we continue to be confident we're confident in the year and to be sure. We're confident in the fourth quarter as well.
Speaker 2: transcript
Speaker 2: But the real story that we want to talk about
But the real story that we want to talk about this.
Speaker 2: transcript
Speaker 2: And this call is, frankly, the same story we talked about last quarter and the same story the quarter before. It shouldn't change because it really, it's all about how we're continuing to build the foundations from which we're looking to grow our business, from which we're looking to grow our business on a per share basis.
This call is frankly, the same story, we talked about last quarter and the same story the quarter before.
It shouldn't change because it really it's all about how we're continuing to build the foundations from which we're looking to grow our business from which we're looking to grow our business on a per share basis.
Speaker 2: transcript
Speaker 2: with a focus on return on capital and a focus on risk adjusted return on capital. And we're going to talk five big
With a focus on return on capital.
Focus on risk adjusted return on capital and we're going to talk <unk>.
<unk> big points.
Speaker 2: transcript
Speaker 2: that are these foundational points. One is detour.
That are these foundational points one is detour, we're continuing to work towards our target of 1 million ounces a year at that mine that would be a function of increasing the mill and increasing the grade and we'll talk a little bit about that too.
Speaker 2: transcript
Speaker 2: We're continuing to work towards our target of a million ounces a year at that mine. That would be a function of increasing the mill and increasing the grade. And we'll talk a little bit about that too. Canadian Moulartic's transition to Odyssey from Canada's largest open pit mine.
Canadian Mallard ex transitioned to Odyssey from Canada's largest open pit mine to Canada's largest underground mine. It's interesting. We were just there a couple of days ago meeting with the team looking at the progress.
Speaker 2: transcript
Speaker 2: Canada's largest underground mine. It's interesting. We were just there a couple of days ago, meeting with the team, looking at the progress.
Speaker 2: transcript
Speaker 2: And we talked about that it was a hundred years ago.
And we talked about that it was 100 years ago October.
Speaker 2: transcript
Speaker 2: October 1923 that that mine was first discovered. It's a mine that's been around for a hundred years, and I think as we all know in the last four years alone, we've added 15 million ounces of resources to it.
1923 that that mine was first discovered it's a mine that's been around for 100 years and I think as we all know in the last four years alone. We've added 15 million ounces of resources to it.
Speaker 2: transcript
Speaker 2: The third item is the Abitibi consolidation. We'll talk about that and some of the good progress that we've made. The fourth is the continuing to invest...
The third item is the Abitibi consolidation will talk about that in some of the good progress that we've made.
Fourth is the continuing to invest heavily in our operations with the key taller shaft commissioned the Makassar shafts commissioned and the <unk> expansion well underway and then finally <unk> will talk a little bit about some of the exceptional exploration results. He is continuing to get in and.
Speaker 2: transcript
Speaker 2: heavily in our operations with the Kitala shaft commissioned, the Makassa shaft commissioned, and the Meliadine expansion well underway. And then finally, Guy will talk a little bit about some of the exceptional exploration results he's continuing to get. And so as we go through, first let me point out there the full three pages of forward-looking statements.
So as we go through first let me point out there the full three pages of forward looking statements and cautionary notes and maybe we can just jump to page five.
Speaker 2: transcript
Speaker 2: and cautionary notes, and maybe we can just jump to page five.
Speaker 2: transcript
Speaker 2: So as mentioned, we had a solid operating quarter of 850,000 ounces of production at a little under $900 cash cost.
So as we mentioned we had is we had a solid operating quarter of 850000 ounces of production.
At a little under $900 cash cost what I would say is that.
Speaker 2: transcript
Speaker 2: What I would say is that, well, that's a solid quarter up until the middle of August , we were having another record quarter. We were above budget. We were doing very well. We had a little bit of a setback with a transformer failure, a detour. And I say this not as an excuse, but I say this just to emphasize how strong the underlying operations are.
Well thats, a solid quarter up until the middle of August we were having another record quarter.
We were above budget.
We're doing very well.
We had a little bit of a setback with the transformer failure at detour.
And I say this not as an excuse but I say this just to emphasize how strong the underlying operations are.
Speaker 2: transcript
Speaker 2: We are going to have a good year and we're going to have a good fourth quarter. We expect to hear from the Supreme Administrative Court in Finland imminently. We are cautiously optimistic that it goes our way. I mean, who knows? But we are cautiously optimistic and that would add another 30,000 ounces of production in the fourth quarter, putting us towards the top end of our production guidance.
We are going to have a good year and we're going to have a good fourth quarter.
We expect to hear from the Supreme administrative court in Finland imminently.
We are cautiously optimistic that it goes our way I mean, who knows but we are cautiously optimistic and that would add another 30000 ounces of production in the fourth quarter, putting us towards the top end of our production guidance adjusted net income you've all read this I'm sure.
Speaker 2: transcript
Speaker 2: Adjusted net income, you've all read this, I'm sure, 44 cents. Cash provided by operating activities of $1.1, $1.35 before working capital adjustments.
<unk> 44 cents.
Cash provided by operating activities of $1, one $1 35.
Before working capital adjustments next page, but getting to the foundational projects that we've talked about I'll hit a few highlights.
Speaker 2: transcript
Speaker 2: next page. But getting to the foundational projects that we talked about, I'll hit a few highlights. Dominic and Natasha will go into it in a little bit more detail, but let's start with the Odyssey mine at Mallardic.
Dominic and Natasha will go into in a little bit more detail, but let's start with the Odyssey mine at that.
At melodic.
Speaker 2: transcript
Speaker 2: Very good progress. As I mentioned, we were out there just the other day on Monday. The productions are already ramped up to 3,300 tons per day. Remember our target for 2024 is 3,500. So we're almost there. And frankly, the ramp development is well ahead of schedule. And the shaft is down to 130 meters. What I think.
Very good progress as I mentioned, we were out there just the other day on Monday.
They are the productions are already ramped up to 3300 tons per day.
Remember our target for 2024 is 330 500, so we're almost there and frankly the ramp development is well ahead of schedule and the <unk>.
And the shaft is down now to 130 meters.
Speaker 2: transcript
Speaker 2: is the most exciting at of course they're making good progress of course they're finding a lot of gold but what I really like is the fact that for the first four stopes
What I think is the most exciting at.
Of course, they're making good progress of course, they are finding a lot of gold, but what I really like is the fact that for.
For the first four stopes.
Speaker 2: transcript
Speaker 2: We've had 18% more gold than the block model anticipated. And that is, as some of you know, from the internal zones, and that is...
We've had 18% more gold than the block model anticipated and that is as some of you know from the internal zones and that is.
Speaker 2: transcript
Speaker 2: Frankly, that's great news for a CEO when one of the biggest minds is producing 20% more gold than you thought it would.
Frankly, thats great news for our CEO.
One of the biggest minds is producing 20% more gold than you thought it would.
Speaker 2: transcript
Speaker 2: If we switch to D to Relay, remember our target is to get to a million ounces a year. We're working on that. There's two big parts. There's expanding the mill. And there is the replacing.
If we switch to detour Lake remember our target is to get to a million ounces a year. We're working on that there's two big parts. There is expanding the mill.
And there is the replacing.
Speaker 2: transcript
Speaker 2: lower grade open pit or with higher grade underground. Natasha will talk about that and talk about the progress made to our target of 28 million tons per annum by 2025. Remember to put that into perspective three years ago, we were at 23 million tons per annum. So big progress there and we'll continue to talk about that. But importantly, we've also had some very good drill results
Lower grade open pit.
Or with higher grade underground Natasha will talk about that and talk about the progress made to our target of 28 million tons per annum by 2025 remember to put that into perspective three years ago.
We were at 23 million tons.
Per annum, so big progress there and we'll continue to talk about that but importantly.
We've also had some very good drill results.
Speaker 2: transcript
Speaker 2: Continuing to have very good drill results at detour at the West Pit extension and under the current
Continuing to have very good drill results at detour at the West pit extension and under the current.
Speaker 2: transcript
Speaker 2: open pit with tighter infill drilling, confirming continuity of high-grade zones. What that means is it's giving us a higher level of confidence in the underground potential, which gives us, of course, a higher level of confidence that we can get to that million ounce per annum target that we're working so hard on.
Open pit with tighter infill drilling confirming continuity of high grade zones at what that means is it's giving us a higher level of confidence in the underground potential which gives us of course higher level of confidence that we can get to that 1 million ounce per annum target that will work.
And so hard on we've also made some some good progress on the optimization of the Abitibi.
Speaker 2: transcript
Speaker 2: We've also made some good progress on the optimization of the Abitibi. As you know, that has been a
As you know that has been at.
Speaker 2: transcript
Speaker 2: singular focus for the team throughout the year. As you know, we expect to be giving guidance throughout 2024 on specifics and which projects will work and which projects won't, but we are making good progress and we'll talk a little bit about that. And then finally, Hope Bay, we have
Singular focus for the team.
Throughout the year as you know, we expect to be giving guidance throughout 2024 on specifics and which projects will work in which projects won't.
But we are making good progress and we'll talk a little bit about that.
And then finally hope Bay.
We have had some very good drill results <unk> is going to talk about that specifically he's going to talk about some of the exciting results at Madrid, where we're filling in a two kilometer gap.
Speaker 2: transcript
Speaker 2: And Guy is going to talk about that. Specifically, he's going to talk about some of the exciting results at Madrid, where we're filling in a two kilometer gap between the Suluk and patch seven zones at Madrid. That's important because while there's a lot of gold adoris.
Between the <unk> and patch seven zones at Madrid, that's important because.
While there is a lot of gold of Doris.
Speaker 2: transcript
Speaker 2: As we've said before, for hope to meet our targets, we want to hit 300 to 400,000 ounces a year. And Madrid is an important part of that. And GEE's exploration results are giving us higher confidence. We're still working on it, but very good results so far. Next page, please.
For as we've said before for whole pay to meet our targets and we want to hit 300 to 400000 ounces a year and Madrid is an important part of that and geese.
Exploration results are giving us higher confidence, we're still working on it but very good results. So far next page. Please.
Speaker 2: transcript
Speaker 2: And then finally on the optimization of assets, we've talked a lot about this. We're working hard on it, but a couple of-
And then finally on the optimization of assets.
We've talked a lot about this.
We're working hard on it but a couple of points. One is we're quite confident we've talked about amalgamated Kirkland that was the low hanging fruit.
Speaker 2: transcript
Speaker 2: One is, we're quite confident, we've talked about amalgamated kirkland, that was the low-hanging fruit. You can expect some of that to be in our guidance next year, probably 20,000 ounces.
You can expect some of that to be in our guidance next year, probably 20000 ounces.
Speaker 2: transcript
Speaker 2: And in 2025 beyond it will be probably closer to 30 to 40,000 ounces per year. So
In 2025 beyond it'll be probably closer to $30 to 40000 ounces per year. So what we promised right from the very beginning when we talked about the merger.
Speaker 2: transcript
Speaker 2: What we promised right from the very beginning, when we talked about the merger between Agnico and Kirkland Lake, we said that's a low hanging fruit. It'll start to come in this upcoming year. And interestingly, it looks like we're going to be milling it with spare capacity at Laurent Zone 5, which again shows the opportunity to take advantage of existing infrastructure with minimal capital investments.
Tween Agnico in Kirkland Lake, we said Thats the low hanging fruit.
It'll start to come in this upcoming year and interestingly it looks like we're going to be milling at it with spare capacity at <unk> zone, five which again shows the opportunity to take advantage of existing infrastructure with minimal capital investment we continue to work with.
Speaker 2: transcript
Speaker 2: We continue to work with Upper Beaver and Wassemack, both as standalone projects, and as the potential to mill those and process them at existing facilities. We've made some good progress on the analysis with both trucking and rail, and we are in discussions with the rail operators to assess costs. So we're getting right down to the nitty gritty in the details. What we've concluded is it's doable.
Upper Beaver and Wassa Mac, both as Standalone projects and as the potential too.
1000 dose and process them at existing facilities.
We've made some good progress on the analysis with both trucking and rail and we are in discussions with the rail operators to assess cost. So we're getting right down to the nitty gritty and the details what we've concluded is it's doable.
Speaker 2: transcript
Speaker 2: We've concluded that the cat-bex is materially less than building your own mills. And really it's about now fine-tuning and making sure that the economics makes sense.
We've concluded that the Capex is materially less in building your own mills.
And really it's about now fine tuning and making sure that the economics are.
Makes sense.
Speaker 2: transcript
Speaker 2: Again, we'll be going through that through next year. And with that introduction, I'd like to turn it over to Jamie Porter to talk about some of our financial results. Thank you, Omar.
Again, we'll be going through that through.
Next year.
And with that introduction I'd like to turn it over to Jamie Porter to talk about some of our financial results.
Thank you Omar and good morning, everyone. We.
Speaker 3: transcript
Speaker 3: We had strong financial results in the third quarter with an operating margin of $883 million. It was driven by excellent performances from Canadian, Malarric and Metal.
We had strong financial results in the third quarter with an operating margin of $883 million, which was driven by excellent performances from Canadian melodic and meadowbank. Despite lower production at detour and Fosterville, both operations delivered decent operating margins in the quarter, approximately a $180 million and $90 million respectively.
Speaker 3: transcript
Speaker 3: Spide lower production at D-Tour and Fosterville, both operations delivered decent operating margins in the quarter, approximately 180 million and 90 million.
Speaker 3: transcript
Speaker 3: Our production for the quarter was 850,000 ounces and we sold 843,000 ounces at an average realized price of $1,928 per ounce, which was right in line with the London PM fixed price and resulted in revenues of 1.6 billion for the quarter.
Our production for the quarter was 850000 ounces and we sold 843000 ounces at an average realized price of $1928 per ounce, which was right in line with the London PM fix price and resulted in revenues of $1 6 billion for the quarter.
Speaker 3: transcript
Speaker 3: The first nine months of the year, we produce just over two and a half million outs of gold and are well positioned to exceed the midpoint of our production guidance for 20.
For the first nine months of the year, we produced just over $2 5 million ounce of gold and are well positioned to exceed the midpoint of our production guidance for 2023.
Speaker 3: transcript
Speaker 3: Our third quarter cash cost of 898 per ounce were just slightly above the top end of our total cash cost guidance range of between 848, 890 per ounce for the year. While our year-to-date total cash cost were 857 per ounce, which is slightly below the midpoint of our cost guidance. We remain.
Our third quarter cash cost of $8 98 per ounce were just slightly above the top end of our total cash cost guidance range of between $8 40 to $8 90 per ounce.
For the year, while our year to date total cash costs were $8 57 per ounce, which is slightly below the midpoint of our cost guidance.
We remain on track to meet our cost guidance for the year.
Speaker 3: transcript
Speaker 3: With respect to earnings, our adjusted net income per share of 44 cents to client slightly relative to the third quarter of last year, due to higher cost given inflation, higher amortization related to our now owning 100% of Canadian malarctic and higher interest costs.
With respect to earnings our adjusted net income per share of <unk> 44 cents declined slightly relative to the third quarter of last year due to higher costs, given inflation higher amortization related to our now owning 100% of Canadian melodic and higher interest costs.
Speaker 3: transcript
Speaker 3: We move over to slide nine. We'll just talk briefly about our balance sheet.
We move over to slide nine we'll just talk briefly about our balance sheet.
Speaker 3: transcript
Speaker 3: Our overall financial position and financial flexibility remains strong. We ended the third quarter with $355 million in cash, and 1.1 billion in available liquidity under our revolving credit.
Our overall financial position and financial flexibility remains strong we ended the third quarter with $355 million in cash and $1 1 billion in available liquidity under our revolving credit facility.
Speaker 3: transcript
Speaker 3: Are net deposition increased slightly to 1.6 billion due to the increased working capital requirements in the quarter from associated with the seasonality of the Nunavitz seal?
Our net debt position increased slightly to $1 6 billion due to the increased working capital requirements in the quarter from associated with the seasonality of the Nunavut Sealift.
Speaker 3: transcript
Speaker 3: Our net debt to evadabrae shall remains very low around 0.5 and our balance sheet position remains stable.
Our net debt to EBITDA ratio remains very low at around 5% and our balance sheet position remained stable.
Speaker 3: transcript
Speaker 3: We anticipate a strong fourth quarter. And with gold prices at current levels, we anticipate adding cash to our balance chain.
We anticipate a strong fourth quarter and with gold prices at current levels, we anticipate adding cash to our balance sheet in Q4 overall.
Speaker 3: transcript
Speaker 3: Overall, we look forward to a great fourth quarter and strong finish of the year from a financial.
Overall, we look forward to a great fourth quarter and strong finish to the year from a financial perspective with that I'll turn the call over to Dominique who will provide an overview of our tobacco operations.
Speaker 3: transcript
Speaker 3: With that, I'll turn the call over to Dominique who will provide an overview of our feedback.
Speaker 4: transcript
Speaker 4: Thank you. Before getting to the result of the Q3, as Ammar mentioned, we were there at Canada-Malartic a couple of days this week with our board of directors plus the management team. And I would like to thank the team there, a very great visit.
Thank you before getting to the result of the Q3 as Omar mentioned, we were there and change them out or take the couple of days. This week with our board of directors plus the management team and I would like to thank the team there are really great visit and all of the visitor were impressed by the quality of the people.
Speaker 4: transcript
Speaker 4: All of the visitors were impressed by the quality of the people, the housekeeping, the quality of the installation that we have there. It is such a great project.
On the housekeeping the quality of the installation that we have there it is.
A great project. It was also a good timing Q3 results our strong hundreds of 87000 ounces at canyons MLR take and this is partially due.
Speaker 4: transcript
Speaker 4: It was also a good timing. Q3 results are strong, 177,000 answers at Canadian Malarctic. And this is partially due to the result or let's say the operation, all results we have in Barnabt pit are better than expected. The ore is a bit softer, the block model is also on our side. So this is overall good news for now and also for the future. Mill recovery results are better than expected.
The result towards let's say the operation.
Our result, we have in Barnett pit are better than expected the or is a bit softer. The block model is also on our side. So this is overall a good news for now and also for the future mill record results through better better than expected.
Speaker 4: transcript
Speaker 4: So strong Q3 and we're in good position in Quebec for Q4. All of the operations that we see there are in good position to beat or to be at the top end of their guidance for the end of the year.
So a strong Q3 and we're in good position in Quebec for Q4, all of the operation that we see there are in good position to beat or to be at the top end of their guidance for the end of the year.
The next slide.
Speaker 4: transcript
Speaker 4: At ODYSSEY, you could see on the graph or on the picture there that the ramp is achieving the level 649 below surfaces, and so the ramp is now heading to the East Goldie Zone, where we are expecting to achieve it by the first half of 2024, which is going to be the next mining horizon.
D C.
Could see under on the graph for the picture that they made their ramp is achieving the level of 649 below surfaces.
So the ramp is now heading to the east <unk> zone, where we are expecting to achieve it by the first half of 'twenty 'twenty, four which is going to be the knicks mining horizon.
<unk>.
Speaker 4: transcript
Speaker 4: The other good news at OTC, the Pace backfill plant has been commissioned in July 2023 and we are already achieving our expected, let's say, design nameplate.
So.
The other good news at the DC the paste plant paste backfill plant I've been commission in July 2023, and we are already achieving our expected.
Design nameplate nameplate. So it's a good example of the power of I think the synergy or adding more mines into the same area, where during the commissioning and the ramp up we get some help from around from <unk> to the Canadian Arctic team and within three months were reaching ARP.
Speaker 4: transcript
Speaker 4: So it's a good example of the power of having the synergy or having more minds into the same area.
Speaker 4: transcript
Speaker 4: where during the commissioning and the ramp up, we get some help from LaRone, from Goldex to the Kennedy Marotic team. And within three months, we're reaching or beating the nameplate. So.
Beating the nameplate so.
Speaker 4: transcript
Speaker 4: We have a competitive advantage being in ABTB, our turnover is around 5 to 6 percent. We are able to attract the A-teams for the construction, for the shaft sinking, and we see how it's an advantage to develop projects into Nunavut.
We have a competitive advantage being able to beat our over over.
Turnover is around 5% to 6% we are able to attract the eighteens for the construction for the shaft sinking and we see it.
An advantage to develop project into Nunavut another net.
Speaker 4: transcript
Speaker 4: Another example of this is on the automation. We are beating our target right now on the RAM development at this is out and this is partially due to the automation. So even though it is still into the startup, they are already able to mine or to do some operation in between shifts by using automation, operating the equipment from surfaces. And this is at the end giving 20% improvement on our productivity on the RAM development.
And another example of this.
Is on the Dia automation, we are beating our target right now in the ramp development. At this is and this is partially due to the autonation. So even though it is selling to the startup they are already able to mine or two to do some operation in between shifts by using automation and operating the equipment from surface.
And this is at the end of giving a 20% improvement on our productivity on their ramp development.
Speaker 4: transcript
Speaker 4: On the exploration side, the focus continues to be on infilling the internal zone where we could potentially add answers into our plan. We still need to continue to better understand those zones and also to extend the east to the deposit on the east and on the west side.
The exploration side, the focus continued to be on the in filling the internal zone, where we could potentially add on sales into our plan with Sydney to continue done better understand those zones and also to extend the east to the deposit on the east and on the West side.
So on that.
Speaker 5: transcript
Speaker 5: I will pass the mic, I think, to Natasha. Perfect. Thanks, Dom. And good morning, everyone. I'm on slide 12. In Ontario, our operations continue to deliver robust results. I'm particularly proud of Detour. We were on track to have a solid Q3, but then we had an unexpected and rare transformer failure that the team had to manage.
I will pass the mic I think to Natasha Okay. Thanks, Tom and good morning, everyone I'm on slide 12.
Ontario, our operations continue to deliver robust results.
Particularly proud of detour.
We were on track to have a solid Q3, but.
Then we had an unexpected and where transformer failure that the team had to manage.
Speaker 5: transcript
Speaker 5: But the quick response by the site and being able to leverage our Abitibi procurement network ensured that the impact to our production was minimized.
But the quick response by the sight and being able to leverage our abitibi procurement network and ensure that the impact to us.
Our production was minimized.
Speaker 5: transcript
Speaker 5: As for Q4, we've had a good start here at Detour and based on our forecast, we're planning to have a strong quarter and expect Detour to deliver at the lower end of guidance for the year.
That's for Q4, we had a good start here at detour and based on our forecast we are planning to have a strong quarter and expect to deliver at the lower end of guidance for the year and.
Speaker 5: transcript
Speaker 5: And we also don't expect this type of incident with the transformer to happen again.
And we also don't expect this type of incident with the transformer to happen again.
Speaker 5: transcript
Speaker 5: But we have secured a spare transformer, which is planned to be delivered to the site by the end of this month and Out of excess caution. We also plan to order a second spare in the next few months
But we have secured a spare transformer, which is planned to be delivered to the site by the end of this month and out of excess caution. We also plan to order a second spirit in the next few months.
Speaker 5: transcript
Speaker 5: As for MACASA, we continue to see strong operational performance here. The management team has done a great job and we continue to experience the benefits associated with the new ventilation upgrade that we completed earlier this year and the commissioning of number four shaft, also completed at the beginning of this year, which resulted in higher throughput and reduced unit costs when compared to our numbers from the prior year.
Ashwin Makassar, we continue to see strong operational performance. The management team has done a great job and we continue to experience the benefits associated with.
The new ventilation upgrade that we completed earlier this year and the commissioning of a number four shaft also competed at the end of the beginning of this year.
Which resulted in higher throughput and reduce unit cost when compared to.
Our numbers from the prior year.
Speaker 5: transcript
Speaker 5: Now moving to slide 13, this is where the real story is, and that's the expansion potential that we have here at Detour. As you know, we have a track record of delivering improvements at Detour, and so we continue to journey to generate additional value at the site by, as Ammar said, assessing the potential to achieve 1 million ounces on an annual basis.
Now moving to slide 13, this is where the real story is and Thats the expansion potential that we have here at <unk>.
As you know we have a track record of delivering improvements at detour.
So we continue to add too.
<unk>.
We continue on the journey to generate additional value at the site.
As Amar said assessing the potential to achieve 1 million ounces on an annual basis.
Speaker 5: transcript
Speaker 5: And this potential comes in the form of two main projects. As you know, it's increasing the mill capacity, but also assessing the underground potential.
This potential comes in the form of two main projects as you know.
Increasing the mill capacity, but also assessing the underground potential.
Speaker 5: transcript
Speaker 5: So prior to the Transformer incident, Detour was in line to achieve 27 million tons this year, 2023, and the mill availability was hovering around 92%, which was the targeted rate for 2023. Now we're expecting to be closer to 26 million tons for the full year of 2023.
So prior to the transformer incident detailer was in line to achieve.
27 million tons this year 2023.
And the mill availability was hovering around 92%, which was the targeted rate for 2023 now we're expecting to be closer to 26 million tonnes for the full year 2023.
Speaker 5: transcript
Speaker 5: Having said that, though, the team continues to focus on delivering 28 million tonnes per year by 2025, if not sooner. And we're also working on other opportunities, as I've mentioned in prior calls before, to further optimize the mill and look at the opportunity to go beyond 28 million tonnes a year. And at the same time, assess the underground potential.
Having said that though the team continues to focus on delivering 28 million tons per year by 2025, if not sooner and we're also working on other opportunities as I've mentioned in prior calls before.
Further optimize the mill and look at the opportunity to go beyond 28 million tons, a year and at the same time assess the underground potential.
Speaker 5: transcript
Speaker 5: We still expect to report the results of the underground study in the first half of 2024.
We still expect to report the results of the underground study in the first half of 2024.
Speaker 5: transcript
Speaker 5: And one last thing on the exploration side, with respect to the underground deposit, during the quarter, as Ammar mentioned, we completed tighter infill drilling within the underground deposit in two areas, and this has confirmed good continuity of the zones, which supports the underground mining plan that we're currently developing. So good news there.
And one last thing on the exploration side.
With respect to the underground deposit during the quarter as Adam mentioned, we completed the tighter infill drilling within the underground deposit into areas and this has confirmed good continuity of the zones, which supports the underground mining plan that were currently developing so good news there.
Speaker 5: transcript
Speaker 5: And with that, I'll pass the call back to Dominic to provide some highlights on our Nunavut operation.
And with that I'll pass the call back to Dominic to provide some highlights on our Nunavut operations.
Speaker 4: transcript
Speaker 4: Yes, thank you, Natasha. For Nunavut, a strong quarter also, so over 200,000 ounces produced in Nunavut, and looking forward, Miladyn Mill expansion is on track, on schedule, on cost to achieve the expansion going to 6,000 tons per day by the end of 2024.
Yes, Thank you and ADESA for Nunavut, a strong quarter also so over 200000 ounces produced in Nunavut and looking forward.
Media <unk> mill expansion is on track on schedule on cost to achieve.
The extension going to 6000 ton per day by the end of 'twenty 'twenty four Mito Bank.
Speaker 4: transcript
Speaker 4: Middle Bank is all currently working on a scenario to potentially extend the mine life by doing a pushback to potentially go over 2027, so that's another good news. And on Hope Bay, it is not, there's no bullet point on that, but on Hope Bay, he's going to talk about the good, interesting drilling results, where we might be in a position one day to see another long-life mine asset and none of it with that project. That's interesting.
Currently working on a scenario to potentially extend the mine life by doing it pushed back into potentially go over 22007, So thats another good news.
And on.
<unk> is not there is no point on that but on whole bag he's going to talk about the good interesting drilling result, where we might be in a position one day to see another long life mine asset in Nunavut with that project that's interesting.
Speaker 4: transcript
Speaker 4: On the next slide, Akitila, on during the quarter, the production shaft is now commissioned, so that the new shaft ready to work is ongoing. And we already see some improvement or benefits from productivity and on cost using that shaft. In concerning the permit, as Amor mentioned, we're expecting to receive news in the coming days.
On the next slides at Kittila.
During the quarter.
The production shaft is now commission, so that the new shaft.
Work is ongoing.
We already see some in.
Improvement or benefits from productivity and on cost using that chasse and concerning the permit as edmar mentioned, we're expecting to receive news in the coming days.
Speaker 4: transcript
Speaker 4: And that, I will ask Natasha to continue to close the operation update for.
With that I will ask Natasha to continue to close the operation update for.
Speaker 5: transcript
Speaker 5: and Mexico. Thanks, Tom. Moving to Fosterville, we saw lower production as a result of lower grades that were sequenced, but also a result of lower tons mined.
Australia, and Mexico, Thanks, Tom moving to Fosterville, we saw lower production as a result of lower grades that were sequenced, but also a result of lower tonnes mined.
Speaker 5: transcript
Speaker 5: The lower tonnage, it's a result of a redesign of our primary ventilation system, which requires additional development. The redesign of the ventilation system will help us de-risk, not just the construction of these raises, but also, more importantly, the operation in the long term to sustain the mining rates in the lower Phoenix area in future years.
The lower tonnage.
Adult of redesign of our primary ventilation system, which requires additional development.
The redesign of the ventilation system will help us derisk not just the construction of these races, but also more importantly, the operation in the long term to sustain the mining rates in the lower Phoenix area in future years.
Speaker 5: transcript
Speaker 5: So the priority has become the development of this infrastructure, which has resulted in the delayed extraction of lower grade stopes this quarter.
So the priority has become the development of this infrastructure, which has resulted in the delayed extraction of lower grade stopes at this quarter.
Speaker 5: transcript
Speaker 5: We expect to achieve similar production levels in the fourth quarter as we continue to prioritize this development on the primary ventilation infrastructure.
We expect to achieve similar production levels in the fourth quarter as we continue to prioritize this development on the primary ventilation infrastructure.
Speaker 5: transcript
Speaker 5: As a whole though, Fosterville remains an incredible asset as it's an extremely low cost mine on a per-ounce basis with an excellent hardworking management team on-site.
As a whole, though fosterville remains an incredible asset as it is an extremely low cost mine on a per ounce basis with an excellent hard working management team on site.
Speaker 5: transcript
Speaker 5: And then just over to Mexico, we have seen some strong operational performance and stable production in Mexico. The team in Mexico have also done a great job focusing on operational improvements, and as a result of that, we see reduced unit rates when compared to prior years. And with that, I'll pass the
Then just over to Mexico, we have seen some strong operational performance and stable production in Mexico. The team in Mexico have also done a great job focusing on operational improvements and as a result of that we see reduced unit rates when compared to prior years.
And with that I'll pass the call over to Keith.
Speaker 6: transcript
Speaker 6: Thank you, Natasha, and good morning, everybody. First of all, I would like to mention that we intend to provide a more thorough exploration update in January .
Thank you Natasha and good morning, everybody first of all I would like to mention that we intend to provide a more thorough exploration update in January.
Speaker 6: transcript
Speaker 6: to streamline a bit the reporting of the operation. So a specific press release will be dedicated to expiration results.
To streamline a bit the reporting of the operation saw a specific press release will be dedicated to exploration result, So we will now go over just a few specific exploration highlights starting with Kittila, where our recent drilling returned some very interesting shallow intercept.
Speaker 6: transcript
Speaker 6: So we'll now go over just a few specific exploration highlights, starting with Ketela.
Speaker 6: transcript
Speaker 6: where a recent drilling returns some very interesting shallow intercept 200 meter close to the historic wall through repeat into
Hundred meter or close to these to recall through a <unk> to a.
Speaker 6: transcript
Speaker 6: That is basically located 150 meters to the east of the main orbodies that was
The structure that is basically located at the 150 meter to the east of the main ore body that was.
Speaker 6: transcript
Speaker 6: previously under Explore, where we got an interesting result of 11.8 grams over 9.9 meters.
Previously under explore where we got to an interesting result of 11 eight grams over $9 nine meter so.
Speaker 6: transcript
Speaker 6: So we intend to, we are right away, I've undertook some follow-up drawing on that to better understand the potential in that parallel structure.
We intend to or we are ready we have undertook some follow up drilling on that to better understand the potential in that parallel structure and.
Speaker 6: transcript
Speaker 6: and we'll continue to report, let's say, on progress at the upcoming press.
We will.
We will continue to report, let's say on progress.
Upcoming press release.
Speaker 6: transcript
Speaker 6: Moving on to Fathaville. Our exploration is continuing in both the Robin Zill and Lower Phoenix area, investigating in the Lower Phoenix the extension of this one in Cardinal Structure.
Moving on to Fosterville.
Operations is continuing in both the robbinsdale in lower Phoenix area investigating.
The lower Phoenix, the extension of this one and Carter and old structure.
Speaker 6: transcript
Speaker 6: The colonial structure is a split in the hanging wall of the swamp structure, and a recent result continues to return very interesting value, up to 10.8 grams over 10 meters, approximately a 190-meter downplunge of the current reserve.
The color on the structure is a split in the hanging wall of the <unk> structure.
And our recent result continued to REIT.
To return very interesting value up to 10 eight grams over 10 meter approximately 190 meter down plunge of the current reserve.
Speaker 6: transcript
Speaker 6: So continuing to demonstrate that the lower fin et cetera and our cardinals really remains open to grow at depth. And finally moving.
Continuing to demonstrate that the lower Phoenix area I know Carter noticeably remains open to grow at depth.
And finally moving to obey.
Speaker 6: transcript
Speaker 6: We continue to drill with focus through the second and third quarter in the Madrid area, as Dominic mentioned. And we're very pleased with the result we continue to see in that area south of the Madrid. So look below the past seven.
We continue to drill.
With our focus.
Through the second and third quarter in the Madrid area as Dominik mentioned and we're very pleased with the continued results we continue to see.
In that area south of the Soo look below that that seven.
Speaker 6: transcript
Speaker 6: We continue to consistently see well mineralized visual intercept with a lot of visible gold occurrences, which is quite encouraging. And with the recent result returning up to 15.9 gram over 4.6 meter at 600 meter depth, demonstrating that entire area south of Suluk and below Pak.
We continue to consistently see well mineralized visual intercept.
With a lot of the.
Visible golar currencies, which is quite encouraging.
And with the recent result, returning up to $15 nine gram over $4 six meter at 600 meter depth demonstrating that in that entire area south of Sue look and below batch.
Speaker 6: transcript
Speaker 6: is hosting, you know, the extension of the deposit and the deposit remain open at depth and to the south. So we see those recent results as a testimony of what we saw in terms of exploration offsite when we took over Obbe. So this will continue to be the focus of our exploration activity moving forward, and we intend to report more results on Obbe at the upcoming press conference.
Is all staying you know the extension of the deposit and the deposit remains open at depth into this out so we see dose reason resolved.
The ammonia of what we what we saw in terms of exploration upside when we and when we took over Obi. So this will continue to be the focus of our our exploration activity moving forward and we intend to report more result on <unk> at the upcoming press release.
Speaker 6: transcript
Speaker 6: And on that, I will return the mic to Ammar for closing remarks.
And on that that will return to Mike to EMR for closing remarks.
Operator: Ladies and gentlemen, please stand by. The call will begin shortly. Again, ladies and gentlemen, please stand by. The call will begin shortly.
Well, thank you everyone and.
Speaker 2: transcript
Speaker 2: You know, it's our job as management.
It's our job.
As management.
Speaker 2: transcript
Speaker 2: to focus on the details. We watch every dollar, we watch every ounce, and we sweat the smallest stuff. And you should want us to do that, and we do it.
To focus on the details we watch every dollar we watch every ounce and we sweat the small stuff and you should want us to do that and we do it.
Speaker 2: transcript
Speaker 2: But at the same time, it's important to step back and look at the big picture. And in the big picture, a very solid operating year so far, a lot of hard work to control costs and a lot of progress towards foundational investments in detour at Malartic, at Kitala, at Makassar and throughout the Abitibi, throughout all of our mines. We are going to continue.
But at the same time, it's important to step back and look at the Big picture and in the Big picture are very solid.
Operating year, so far a lot of hard work to control costs.
And a lot of progress towards foundational.
Investments in detour at Golar Arctic at key pillar at <unk>.
And throughout the Abitibi throughout all of our mines.
We are going to continue.
Speaker 2: transcript
Speaker 2: To focus like a hawk on creating value per share. That's all we care about. We don't care how big we are. We just care about are we responsibly making money for our shareholders. And our strategy to do that hasn't changed in over 60 years.
To focus like a hawk on creating value per share. That's all we care about we don't care how big we are.
We just care about are we responsibly, making money for our shareholders and our strategy to do that hasnt changed in over 60 years.
Speaker 2: transcript
Speaker 2: which is to be in the best jurisdictions in the world.
Which is to be in the best jurisdictions in the world.
Speaker 2: transcript
Speaker 7: as measured by geologic potential and political stability.
As measured by geologic potential and political stability.
Speaker 2: transcript
Speaker 8: to try to be the best miner in those parts of the world where we focus.
To try to be the best miner.
In those parts of the world, where we focus.
Speaker 2: transcript
Speaker 9: by being the best member of the community, by being respectful to the environment we're in, and by building competitive advantages on the ground, knowing the contractors better, the suppliers better, the permitting process better, and being the employee of choice. We do think we are.
By being the best.
Member of the community.
By being respectful to the environment, we're in and by building competitive advantages on the ground.
The contractors better the suppliers better the permitting process better and being the employer of choice. We do think we are uniquely positioned that way and we're going to continue to play off of those strengths because we think it makes sense and again.
Speaker 2: transcript
Speaker 10: uniquely positioned that way and we're going to continue to play off of those strengths because we think it makes sense.
Speaker 2: transcript
Speaker 11: and again, always focused on strong financial returns on a per share basis, strong balance sheet, consistent dividend payments. That's who Agnico has been for over 60 years and that's who we're going to be for the next 60 years.
Always always focused on strong financial returns on a per share basis strong balance sheet.
Consistent dividend payments, that's that's who agnico has been for over 60 years, and that's who we're going to be for the next 60 years.
Speaker 2: transcript
Speaker 12: Before I open it up for questions, I'll just make one more comment that's not on the present table.
Before I open it up for questions I'll, just make one more.
Comment that's not on the presentation, but is.
Speaker 2: transcript
Speaker 13: Close to all of our hearts, as you might have noticed from the press release, we've announced that Sean Void will be transitioning from executive chair to chair at the end of this year. And I wanna make two comments on that. The first comment is that was always the plan.
Close to all of our Hearts as as you might have noticed from the press release, we've announced that Sean Boyd.
We will be transitioning from executive chair to chair.
At the end of this year and I want to make two comments on that the first comment is that was always the plan.
Operator: Thank you.
Speaker 2: transcript
Speaker 14: As most of you will remember, when Agnico merged
As most of you will remember.
When agnico merged with Kirkland.
Speaker 2: transcript
Speaker 15: with Kirkland. Sean Boyd was going to be the executive chair.
Sean Boyd was going to be the executive chair.
Speaker 2: transcript
Speaker 16: to help through the transition, to guide us through the combination of the two companies. And he said at the time, and we said at the time, as soon as that's done, he'll transition out of executive chair into chair. And I must say, I think all of us would agree the integration went.
Through the transition to guide us through the combination of the two companies and he said at the time and we said at the time as soon as Thats done.
Will transition out of executive chair into into chair and I must say I think all of US would agree the integration went.
Speaker 2: transcript
Speaker 17: Even though we thought it was going to go well, it went probably even better than we expected. It's completely done, and so this is just the natural thing that we said we were going to do, and we're doing it. The second point is just how grateful all of us are for Sean.
Even though we thought it was going to go well went probably even better than we expected it's completely done and so this is just the natural thing that we said we were going to do and we're doing it.
Operator: Good morning.
Lara: My name is Lara and I will be your conference operator today.
Operator: At this time, I would like to welcome everyone to the Agnico Eagle Mind's third quarter results, 2023 conference call. Our lines have been placed on you to prevent any background noise.
Operator: After just because remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two. Thank you.
The second point is just how grateful all of us are for Sean.
Ammar Aljundi: Mr. Amar Aljundi, you may begin your conference. Thank you. And good morning, everyone. Thank you for taking the time to join Agnico Eagle on this call. We know it's a busy morning. There's a lot to do. We always appreciate the opportunity to talk to our owners about how the business is going and it's going well. In the room with me, I've got our senior team. We'll all be talking and available for questions at the end.
Speaker 2: transcript
Speaker 18: I can tell you personally as the new CEO to the job, Sean support, not just to me, but to all of the senior management in the company who was invaluable, some very good strategic advice. And we are delighted that while he's transitioning from executive chair to chair, he is going to continue to be involved in the company. He's...
I can tell you personally as.
As the new CEO to the job.
Ammar Aljundi: So I'll talk about before we jump in. I want to talk briefly about operations, but then hit some of them, the bigger point. With regards to operations, we had another solid quarter. With three good quarters behind us, it's obvious that we're well on our way to comfortably meet our guidance. With regards to production, we're well positioned to be above the midpoint of our guidance, and if things go well with us in Finland, we will be closer to the top end of that guidance on the production side.
Sean support not just to me, but to all of the senior management and the company was invaluable.
Some very good strategic advice and we are delighted that while he's transitioning from executive chair to chair he is going to continue.
To be involved in the company.
Speaker 2: transcript
Speaker 19: You know, he spent, what, 30 years? 39? 39. I should know that. 39 years here, and he's not going anywhere, and I can again tell you that myself and all of the management are delighted to continue to have him with us. So with that, thank you all for your patience, and why don't we open it up to questions?
He spent.
30 years, 39, 39, I should know that 39 years here.
And he's not going anywhere and I can again tell you that myself and all of the management are delighted to continue to happen with us so with that thank you all for your patience and why don't we open it up to questions.
Ammar Aljundi: Importantly, on cost, the team has also done an excellent job. We continue to forecast within guidance and towards the midpoint of guidance. It's clearly been a tough year for everybody on the inflation side, but our team has really, I think, done a remarkable job, and we continue to be confident, we're confident in the year, and to be sure we're confident in the fourth quarter. As well.
Speaker 1: transcript
Speaker 20: Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number 1 on your touchtone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be polled in the order they are received.
Thank you, Sir ladies and gentlemen, we will now begin the question and Anthony Sachin. So do you have a question. Please press star followed by the number one on your Touchtone phone.
Tom Tom acknowledging your request and Youre question for Paul maybe or the daily fee.
Ammar Aljundi: But the real story that we want to talk about in this call is, frankly, the same story we talked about last quarter and the same story, the quarter before. It shouldn't change because it really, it's all about how we're continuing to build the foundations from which we're looking to grow our business, from which we're looking to grow our business on a per share basis. With a focus on return on capital and a focus on risk-adjusted return on capital, and we're going to talk five big points that are these foundational points.
Speaker 1: transcript
Speaker 21: Should you wish to decline from the polling process, please press star and follow it by the number 2.
Would you restate clients from the polling process. Please press star followed by the number Q.
Speaker 1: transcript
Speaker 22: If you are using a speakerphone, please lift your handset before pressing any keys. One moment, please.
If youre using a speakerphone. Please go ahead.
<unk>.
One moment. Please for you. Please go.
Question.
Speaker 1: transcript
Speaker 23: Your first question comes from the line of Mike Parking from National Bank. Please go ahead.
Your first question comes from the line of Mike Parkin from National Bank. Please go ahead.
Speaker 7: transcript
Speaker 24: Hey, guys, thanks for taking the question on the slide. 16. it's the cross section of. This parallel mineralized structure, was that something you guys knew what was there? Is that a bit of a positive surprise?
Hey, guys. Thanks for taking my question.
Slide 16, the cross section of Caterpillar.
This parallel mineralized structure was that something you guys knew was there is that bit of a positive surprise.
Ammar Aljundi: One is detour. We're continuing to work towards our target of a million ounces a year at that mine. That would be a function of increasing the mill and increasing the grade. And we'll talk a little bit about that. Two Canadian monarchs transition to Odyssey from Canada's largest open pit mine to Canada's largest underground mine. It's interesting. We were just there a couple of days ago, meeting with the team, looking at the progress, and we talked about that it was 100 years ago October 1923 that that mine was first discovered.
Speaker 7: transcript
Speaker 25: You have a sense of its potential magnitude like have you hit it before and the grades weren't really interesting and now suddenly near surface, they are just any additional color to give on what the potential upside there could be because it's obviously pretty interesting with it being so close to the surface with a hit that good.
Do you have a sense of its potential magnitude like have you hit it before in the grades.
They werent really interesting and now suddenly near surface. They are just any additional color you could give on what the potential upside there could be because it's obviously pretty interesting with it being so close to the surface of the hit that yet.
Speaker 6: transcript
Speaker 26: Yeah, I'm Ike. So we now we've been reviewing reprocessing some historical data and the close person we realized it was a couple of her friend and to step and obviously the main target has always been the main or body, the main lens at the back.
Ammar Aljundi: It's a mine that's been around for a hundred years, and I think as we all know in the last four years alone, we've added 15 million ounces of resources to it. The third item is the Abitibi consolidation. We'll talk about that and some of the good progress that we've made. The fourth is the continuing to invest heavily in our operations with the Kitala Shaft commission, the Macassa Shaft commission, and the Melody and expansion well underway.
Yes.
So now we have been reviewing re processing some historical that Diana <unk>, we realized that was a couple of her friends intercept and obviously the main target that's always been the main ore body. The main lands at the back.
Speaker 6: transcript
Speaker 27: And then we said, well, there's still some opening. The guy came to me with some thinking on how that place is taking off to the south and getting further away to the east.
And then we said while there is there is still some opening the guy came to me with some some thinking on all of that that's plays is taking off to the south and then getting further away to the east. So does through a whole we're aiming to address a few of those historical intercept that were there.
Speaker 6: transcript
Speaker 28: So those who are aiming to address a few of those historical intercepts that were discarded back in the days where we were mining in the main break. And now it's opening up a new target area. So we don't know yet how big it will be, but we intend to conduct more drilling during Q4 next year. And obviously, as you mentioned, it could provide some additional flexibility being so close from surface and close from infrastructure. So quite interesting.
<unk> back in the days, where we were mining in the main break and now it's opening up a new target areas. So we don't know yet how big it will be what we intend to conduct more drilling during Q4 and next year and obviously as you mentioned and could provide some additional flexibility being so close on <unk> face and Gotham infrastructures, so quite interesting and and the having the same.
Ammar Aljundi: And then finally, Guy will talk a little bit about some of the exceptional exploration results he's continuing to get. And so as we go through first, let me point out there the full three pages of forward-looking statements and cautionary notes. And maybe we can just jump to page five. So as mentioned, we had a solid operating quarter of 850,000 ounces of production at a little under $900 cash cost. What I would say is that, well, that's a solid quarter up until the middle of August we were having another record quarter.
Speaker 6: transcript
Speaker 29: And I'm having the same question that you do on how big it could be and what's the grade. So very interesting.
Question, then you do them.
It could be and what the grade so very interesting.
Speaker 7: transcript
And just in terms of what are you kind of throwing out in terms of resources in terms of rig count.
Speaker 8: transcript
Speaker 30: Sorry, I'm not sure I'm getting your call. But we're going to have a couple of raves. There will be performing maybe one or two raves from surface. It's very shallow. So we can do a lot of drilling at those kind of depth. And we'll see, you know, we're currently looking at a budget for next year. And obviously based on the first follow up drilling program, we may intensify the drilling activity on that, depending on how results will plan out. Great. Thanks very much.
Sorry, I'm not sure I am getting your company rig followed by are we going to have a couple of rigs that will be performing maybe one or two rigs from surveys is very shallow. So we can do a lot of drilling.
At that those kind of depth and well see.
Ammar Aljundi: We were above budget. We were doing very well. We had a little bit of a setback with a transformer failure at detour. And I say this not as an excuse, but I say this just to emphasize how strong the underlying operations are. We are going to have a good year, and we're going to have a good fourth quarter. We expect to hear from the Supreme Administrative Court in Finland imminently. We are cautiously optimistic that it goes our way.
We're currently looking at our budget for next year, and obviously based on the first.
Follow up drilling program that we may and intensify the drilling activity on that depending on how results will pan out.
Great. Thanks, very much and congrats on a good quarter.
Thank you Mike.
Speaker 1: transcript
Speaker 31: Your next question comes from the line of Anita Soni from CIBC World Markets. Please go ahead.
Your next question comes from the line of Amit.
IDC World markets. Please go ahead.
Speaker 9: transcript
Speaker 32: Hi, good morning, everyone, and congratulations on a good quarter and being able to reiterate your guidance. That's a that's a feat in this environment. My question was with regard to the, the layback that you said you were talking about potentially doing it at Amaruk. Could you give us a little bit more color on what you're what you're looking for and how many years I can potentially add to the mine list?
Hi, good morning, everyone.
Congratulations on a good quarter and being able to reiterate your guidance does the feat in this environment.
Ammar Aljundi: I mean, who knows. But we are cautiously optimistic, and that would add another 30,000 ounces of production in the fourth quarter, putting us towards the top end of our production guidance. Adjusted net income, you've all read this, I'm sure, $0.44. Cash provided by operating activities of $1.35 before working capital adjustments. Next page. But getting to the foundational projects that we talked about, I'll hit a few highlights.
My question is with regards to that the Layback that you said you were talking about potentially giving Cameroon could.
Could you give us a little bit more color on what your what youre looking for and how many years that can potentially add to the mine life.
Speaker 4: transcript
Yeah, we we didn't find yet another new open pit, but what we see is potentially expand, do a push back at the IVR pit. So we know that the underground resources are there, continue to to provide answers for a while, but we need to find a pit and now the team have looked back to the resources and how could we do a push back.
Yes, we didnt find yet.
Another new open pit, but what we see is potentially expand do a pushback at the IV. Our pit. So we know that the underground resources are there continue to to provide answers for a while but we need to find a bit and now the team have looked back to the resources and how could we do it.
Unknown Executive: Dominique and Natasha will go into in a little bit more detail.
Ammar Aljundi: But let's start with the Odyssey Mine at Mallardic. Very good progress. As I mentioned, we were out there just the other day on Monday. The productions are already ramped up to 3,300 tons per day. Remember our target for 2024. We're almost there. And frankly, the ramp development is well ahead of schedule. And the shaft is down to 130 meters. What I think is the most exciting at, of course, they're making good progress.
Back.
Speaker 4: transcript
to add a couple of years maybe to the operation. This is what is to play right now.
To add a couple of years, maybe to the to the operation. This is what is in play right now.
Speaker 4: transcript
Presumably it would be a higher strip than the original strip of the pit, which I think was around 8 or 9? No, I hear it was kind of 7 or 6, so not too bad. Okay.
Okay, and presumably would be higher than the original strip of the pit, which I think was around eight or nine.
No why here it was kind of seven 6% so not too bad.
Alright, Okay and then.
Speaker 9: transcript
In terms of the Foster Bill development work, could you, and Natasha talked about it a little bit, but
In terms of.
The sorry.
The Fosterville development work could you Natasha talked about it a little bit, but Ken could you just give us an idea of how that might.
Ammar Aljundi: Of course, they're finding a lot of gold. But what I really like is the fact that for the first four stopes, we've had 18% more gold than the block model anticipated. And that is, as some of you know, from the internal zones. And that is, frankly, that's great news for a CEO when, you know, one of the biggest minds is producing 20% more gold than you thought it would.
Speaker 9: transcript
Could you just give us an idea of how that might, what thinking are you, what are you thinking there in terms of the development work going into 2024 and how that could potentially impact the guidance? I know you had.
What thinking are you what are you thinking there in terms of the development work going into 2024, and how that could potentially.
Potentially impact the guidance I know you had about 30% or 40000 answers that potentially could have been added in 2024 with the with the approval of <unk>.
Speaker 9: transcript
about 30,000 or 40,000 ounces that potentially could have been added in 2024 with the approval of the higher throughput rate, but would that be sort of taken out of the mix with this development work that you're doing?
The the higher throughput rate, but.
Would that be sort of taken out of the next with this with this development work that Youre doing hi, Anita.
Ammar Aljundi: If we switch to D to our lake, remember our target is to get to a million ounces a year. We're working on that. There's two big parts. There's expanding the mill. And there is the replacing lower grade open pit or with higher grade underground. Natasha will talk about that and talk about the progress made to our target of 28 million tons per annum by 2025. Remember to put that into perspective three years ago.
Speaker 5: transcript
Hi Anita, it's Natasha but we are doing a little bit more development with respect to the ventilation and so as a result of that we have delayed some of our stoves out.
Natasha.
We are doing a little bit more development with respect to the ventilation and so as a result of that we have delayed some of our stopes out.
We.
Speaker 5: transcript
Along with those stopes, we also have to do additional development that comes along with it. So we are in the process of resequencing everything with respect to our mine plans, starting now into the end of the year. So we'll provide a little bit more guidance on that towards the end of the year.
Along with those Stopes you also have to do additional development that comes along with it. So we are in the process of re sequencing everything with respect of our mine plans.
Starting now into <unk>.
We ended the year, so we'll provide a little bit more guidance on that towards the end of the year.
Ammar Aljundi: We were at 23 million tons per annum. So big progress there. And we'll continue to talk about that. But importantly, we've also had some very good drill results. Continuing to have very good drill results at D tour at the West Pit extension and under the current open pit with tighter infield drilling, confirming continuity of high grade zones. What that means is it's giving us a higher level of confidence in the underground potential, which gives us, of course, higher level of confidence that we can get to that million ounce per annum target that we're working so hard on. We've also made some some good progress on the optimization of the Abitibi. As you know, that has been a singular focus for the team throughout the year.
Alright, thank you.
Okay.
Speaker 1: transcript
Your next question comes from the line of Josh Wolfson from RBC. Please go ahead.
Your next question comes from the line of Josh Wolfson.
Please go ahead.
Speaker 10: transcript
Thanks very much. Having heard some of the positive commentary on the Odyssey throughput ramp up underground and the comments as well about the positive grade reconciliation from the internal zones, I'm curious to understand a bit better maybe why the volumes in terms of the production of the output are still quite light and tracking sort of below with the 50,000-inch guidance for the year.
Thanks very much.
Having heard some of the positive commentary on the Odyssey throughput ramp up underground and.
And the comments as well about the positive grade reconciliation from the internal zones I'm curious to understand a bit better maybe why the volumes in terms of the production output are still quite light and tracking sort of below what the 50000 ounce guidance was for the year.
Speaker 4: transcript
Yeah, Josh Dominic speaking. When we did the, we had the paste plant commissioning, we had challenges with the pipe underground, so we had to change, the pipes that we received were not, the elbow were not.
Yes, just the unique speaking when we did the <unk>.
We had.
The paste plant commissioning.
We had challenges with the pipe underground. So we had to change the pipe that we received were not the <unk> were nuts.
Ammar Aljundi: As you know, we expect to be giving guidance throughout 2024 on specifics and which projects will work and which projects won't. But we are making good progress and we'll talk a little bit about that.
Speaker 4: transcript
in good shape so we had to replace over 100 of those help when we started.
In good shape. So we had to replace over 100 of those eligible when we started.
Speaker 4: transcript
So that brings delay to do paste-backfill and then have an impact also on that, let's say, how fast we were able to mine.
That brings delay to do paste backfill and then.
Impact also on the on that.
Ammar Aljundi: And then finally, hope, we have had some very good drill results. Guy is going to talk about that. Specifically, he's going to talk about some of the exciting results at Madrid, where we're filling in a two kilometer gap between the Suluk and patch seven zones at Madrid. That's important because while there's a lot of gold at Doris, for as we've said before, for hope to meet our targets, we want to hit 300 to 400,000 ounces a year. And Madrid is an important part of that and these exploration results are giving us higher confidence. We're still working on it, but very good results so far.
How fast we were able to mine, but other than that there is no. There is no water challenges and we're going to finish the year.
Speaker 4: transcript
But other than that, there's no water challenges. And we're going to finish the year. We're planning to do 50,000 ton. We're going to be close to 40,000 ton coming from the Odyssey. Odyssey, so I'm so sorry. And the pace back, so maybe it's performing very well now, Dawn. Maybe you can comment. Yeah, the pace back, the team is very happy because we're beating what we were expecting. So we're able now to...
We're planning to do 50000 ton, we are going to be close to 40000 done coming from the OTC.
Answer sorry here and the pace backfill maybe is performing very well now Don maybe you can comment yes. These backfill the team is very happy because we're beating what we were expecting so we're able now to.
Speaker 4: transcript
to recover from that and to be or back on track on face back.
To recover from that and to be back on track on pace the pace backfill.
Speaker 10: transcript
On the cost side of things, one of the tailwinds that companies benefited from this year has been this hedging program. Is there any way that the team can quantify what that benefit would be, maybe as a dollar per ounce figure, so we can better understand the cost structure going forward?
Okay.
On the cost side of things.
The tailwind the Companys benefits from this year has been this hedging program.
Ammar Aljundi: Next page, please. And then finally on the optimization of assets, we've talked a lot about this, we're working hard on it, but a couple of points. One is we're quite confident, we've talked about amalgamated Kirkland, that was the low hanging fruit. You can expect some of that to be in our guidance next year, probably 20,000 ounces. And in 2025, beyond it will be probably closer to 30 to 40,000 ounces per year.
Is there any way that the team can quantify maybe what that benefit would be maybe a dollar per ounce figure. So we can better understand the cost structure going forward.
Speaker 3: transcript
Yeah, Josh, it's Jamie here. So it's about $23 an ounce that we've benefited from in terms of what we guided to at a 130 CAD relative to what we've realized closer to 135. But even without that benefit, we're still within our guidance range. So as a strong operating performance.
Yes, Josh it's Jamie here, so it's about $23 an ounce that we've.
From in terms of what we what we guided to at a 130 <unk> relative.
Relative to what we've realized closer to $1 35.
But even without that benefit we're still within our guidance range. So as the strong operating performance in terms of in terms of cost and Thats, Josh it's a bit of a.
Ammar Aljundi: So what we promised right from the very beginning, when we talked about the merger between Agnico and Kirkland Lake, we said that's a low hanging fruit, it'll start to come in this upcoming year. And interestingly, it looks like we're going to be milling it with spare capacity at Laurent Zone 5, which again shows the opportunity to take advantage of existing infrastructure with minimal capital investment. We continue to work with Upper Beaver and Wassermack, both as standalone projects, and as the potential to mill those and process them at existing facilities, we've made some good progress on the analysis with both trucking and rail, and we are in discussions with the rail operators to assess costs.
Speaker 2: transcript
in terms of cost and that's Josh it's a bit of a
Speaker 2: transcript
complicated question because you know we labor clearly Canadian dollars it's a direct direct relationship but if you're looking at things like spare parts
Complicated question because.
We labor clearly Canadian dollars its a gorilla direct relationship, but if you're looking at things like spare parts.
Speaker 2: transcript
Even if you pay for the Caterpillar transmission in Canadian dollars, it's really priced in U.S. dollars.
Even if you pay for the caterpillar transmission in Canadian dollars, its really priced in U S dollars.
Speaker 2: transcript
And it's sort of like cars. So it is something the team has done a great job with. It is something that is a good and positive tailwind and we'll take any tailwind we can. But as we've said on all the calls and I'll say it again on this call you know the team has really done a good job.
And it's sort of like cars so.
It is something that team has done a great job with it is something that is a good and positive tailwind and we'll take any tailwind we can but as we've said on all the calls and I'll say it again on this call.
The team has really done a good job controlling costs.
Speaker 2: transcript
to some of the proactive work they've done, but also through delivering good operating results.
Through some of the proactive work they've done but also through delivering good operating results. The operating results always set your your costs.
Speaker 2: transcript
The operating results always set your cost.
Ammar Aljundi: So we're getting right down to the nitty gritty in the details. What we've concluded is it's doable. We've concluded that the CAPEX is materially less than building your own mills, and really it's about now fine tuning and making sure that the economics make sense. Again, we'll be going through that through next year.
Speaker 10: transcript
And sorry, just to clarify, that $23 per ounce, that was on the FX side, it sounded like. Is there any additional factor on the diesel price?
And sorry, just to clarify that $23 per ounce that was on the FX side. It sounded like is there any additional factor on the diesel price.
Speaker 3: transcript
Yeah, I don't have the dollar per ounce in terms of diesel, but much much lesser benefit I think it's closer to about three dollars an hour
Yes, I don't have the dollars per outs in terms of diesel but much much lesser benefit I think it's closer to about $3 an ounce.
Speaker 10: transcript
Okay, and then one sort of final quick one on the katila permit.
Okay, and then one sort of final quick one on the Capella permits.
Jamie Porter: And with that introduction, I'd like to turn it over to Jamie Porter to talk about some of our financial results. Thank you, Omar, and good morning, everyone. We had strong financial results in the third quarter with an operating margin of $883 million, which was driven by excellent performances from Canadian Mallardic and Metal Bank. Despite lower production at DeTour and Fosterville, both operations delivered decent operating margins in the quarter, approximately $180 million and $90 million respectively.
Speaker 10: transcript
I think unless the Finnish people like to work weekends, there's three days left here in October . Any sort of commentary on what the status is or whether there's any remaining uncertainties for this outstanding permit? Thanks.
I think unless the.
Finished people like to work weekends, there's three days left here in October.
Any sort of commentary on what the status is and whether theres any eight remaining uncertainties for this outstanding permit. Thanks.
Speaker 2: transcript
Yeah, we're in constant contact and our understanding is they will have a decision imminently. So we are continue to be cautiously optimistic, but we obviously will respect whatever decision the court makes, but we expect it Josh to be very soon.
Yes, we are in constant contact and our understanding is they will have a decision imminently.
So we are.
Continue to be cautiously optimistic, but we obviously will respect whatever decision. The court makes but we expect that Josh to be very soon.
Jamie Porter: Our production for the quarter was 850,000 ounces, and we sold 843,000 ounces at an average realized price of $1,928 per ounce, which was right in line with the London PM fixed price and resulted in revenues of 1.6 billion for the quarter. For the first nine months of the year, we've produced just over two and a half million ounce of gold and are well positioned to exceed the midpoint of our production guidance for 2023.
Perfect. Thank you very much.
Speaker 1: transcript
Your next question comes from the line of John Tomazos from John Tomazos Very Independent Research. Please go ahead.
Your next question comes from the line of John Tumazos from John Tumazos very independent research. Please go ahead.
Thank you very much.
Speaker 11: transcript
When the geologists turn the keys over to hope to the engineers to restart production.
Jamie Porter: Our third quarter cash costs of 898 per ounce were just slightly above the top end of our total cash cost guidance range of between 848, 890 per ounce for the year. Well, our year-to-date total cash costs were 857 per ounce, which is slightly below the midpoint of our cost guidance. We remain on track to meet our cost guidance for the year. With respect to earnings, our adjusted net income per share of 44 cents declined slightly relative to the third quarter of last year, due to higher cost given inflation, higher amortization related to our now owning 100% of Canadian melodic and higher interest costs.
When the geologist turned the keys over.
To the engineers to restart production.
Roughly.
Speaker 11: transcript
How many years and how many dollars would it take?
How many years and how many dollars would it take.
To resume the mine at the expanded target level.
Once again I'm, assuming the geologists have already found all of the code a little bit optimistically.
Speaker 2: transcript
Thank you, John , Dominic speaking. Look, when we use this starter project, we're looking to have a kind of a 10 years of operation into our enough resource reserve to do that. This is what we're looking for. We have, let's say, right now, but he's continuing finding more that we need to extend that. But I think, John , you were asking how long it would take for us to start producing. Yes, sir. Yes, sir. Um, sir. You know, we're doing it from
Thank you Jon <unk> speaking.
When we use these startup project, we're looking to have a kind of a 10 years of operation into aware.
Jamie Porter: We move over to slide nine. We'll just talk briefly about our balance sheet. Our overall financial position and financial flexibility remains strong. We ended the third quarter with 355 million in cash and 1.1 billion in available liquidity under our revolving credit facility. Our net debt position increased slightly to 1.6 billion due to the increased working capital requirements in the quarter from associated with the seasonality of the note of its sea lift.
And our free resource reserve to do that this is wet.
We're looking for we have let's see right now, but geese, continuing finding more that we need to extend that but I think Jon you were asking how long it would take for us to start producing.
Yes, Sir yes.
It will be.
Speaker 2: transcript
I don't want to give it time, but it would be a lot faster than most because we have a camp, we have power generation, we have the port facilities, we have water treatment. The real emphasis will be on the mill, and the mill building is there, and we've done the analysis on that, so we basically have to empty out what's in the mill and basically
I don't want to give a time, but it would be a lot faster than most because we have a camp we have power generation we have.
Jamie Porter: Our net debt to EBITDA ratio remains very low, around 0.5. And our balance sheet position remains stable. We anticipate a strong fourth quarter, and with gold prices at current levels, we anticipate adding cash to our balance sheet in Q4. Overall, we look forward to a great fourth quarter and strong finish of the year from a financial perspective.
The port facilities, we have water treatment.
The real emphasis will be on the mill and the mill building is there and we've done the analysis on that so we basically have to empty out what's in the mill and basically.
Speaker 2: transcript
go inside that. That's always an advantage, that's particularly advantage up in a place like Nunavut where until you basically have a closed-in building you can't work in the winter and so we have that.
Go inside that.
It's always an advantage, that's particularly advantage up in a place like none of it where until you basically have a closed and building you can't work in the winter and so we have that so.
Dominique Girard: With that, I'll turn the call over to Dominique who will provide an overview of that operation. Thank you before getting to the result of the Q3. As I more mentioned, we were there.
Speaker 11: transcript
You know, I don't know exactly the time. It's a good question, but it would be materially less time than if you were starting from scratch. So if I had it in my model for the second half of 2030, there's a...
I don't know exactly the time, it's a good question, but it would be materially less time than if you were starting from scratch.
Dominique Girard: I can't even take the couple of days this week with our board of director plus the management team. And I would like to thank the team there are very great visits and all of the visitor were impressed by the quality of the people, the housekeeping, the quality of the installation that we have there. It is such a great project. It was also a good timing. Q3 results are strong, 177,000 answers at Kennedy Demalartic.
So if I had in my model for the second half of 2030, there is a chance you could do a little better.
Yes, I think so.
Speaker 1: transcript
Your next question comes from the line of Jackie Przybylowski from BMO Capital Markets. Please go ahead.
Thanks.
Our next question comes from the line of Jackie.
Dominique Girard: And this is partially due to the result. Or let's say the operation, all results we have in Barnabt pit are better than expected. The ore is a bit softer than the block model is also on our side. So this is overall good news for now and also for the future. Mill record results are better than expected. So strong Q3 and we're in good position in Quebec for Q4. All of the operation that we see there are in good position to be at the top end of their guidance for the end of the year.
From BMO capital markets. Please go ahead.
Speaker 12: transcript
Thanks very much. Maybe I could start with a follow-up to John's question on Hope Bay. If you continue to have exploration success around Madrid, is there any thoughts to
Thanks, very much maybe I could start with some with a follow up to John's question on hope they.
If you continue to have exploration success around Madrid is there is there any thought to.
Speaker 2: transcript
uh to re-centering the the um the operation around that or or i guess ammar you kind of alluded to this with the value of the mill building um you'll you'll continue to haul or to the existing location can can you talk about how to think about like the layout and the overall kind of scope of hope a yeah it's a good question jackie so
So re centering the.
The operation around that or I guess I'm are you kind of alluded to this with the value of the mill building.
Youll continue to haul ore to the existing location Ken can you talk about how to think about like the layout in the overall scope of pulp a yes. It's a good question Jackie so.
Dominique Girard: The next slide, as you could see on the graph or on the picture that the ramp is achieving the level 649 below surfaces. And so the ramp is now heading to the east, good zone where we are expecting to achieve it by the first half of 2024, which is going to be the next mining horizon. So the other good news, I thought you say the paste plant, paste backfield plant, I've been commissioned in July 2023.
Speaker 2: transcript
You know, everybody knows or a lot of people know there's Doris, there's Madrid, and then there's Boston. And I think a lot of people know that, you know, the total distance, but the truth is, it's a pretty quick drive from Doris to Madrid.
You know everybody knows are a lot of people know their storace Theres Madrid, and then Theres Boston and.
I think a lot of people know that.
The total distance.
But the truth is.
It's a pretty quick drive from Doris to Madrid.
Speaker 2: transcript
I can't remember exactly, but it's a few kilometers, it's I think 8 kilometers.
I can't remember exactly but it's a few kilometers it's I think 88 kilometers.
Dominique Girard: And we are already achieving our expected, let's say, design nine plate, name plate. So it's a good example of the power of having the synergy or having more mines into the same area. Where during the commissioning and the ramp up, we get some help from LaRome, from Goldex to the Kennedy monolithic team. And within three months, we're reaching or beating the name plate. So we have a competitive advantage being in AB2B.
So.
Speaker 2: transcript
You know, I think it's almost certain, well it is certain, that we would be focused at the existing facilities and leverage off of that.
I think I think it's almost certain that while it is certain that.
We would be focused at.
At the existing facilities and leverage off of that.
Speaker 12: transcript
Thank you, and to follow up maybe on Joshua's question about Ketela.
Got it thank you and to follow up maybe on <unk> question about Kittila.
Speaker 12: transcript
Can you talk like when you when is let assume that the Supreme Court of Finland provides a positive decision on this? Are we going to are we going to have a press release saying that the case and Would you be revising guidance at all for 2023 or would this just be served like at the upper end of existing guidance?
Can you talk when you is let's assume that the Supreme Court in Finland provides a positive decision on this.
Dominique Girard: Our turnover is around 5 to 6%. We are able to attract the eight teams for the construction, for the shaft thinking. And we see how it's an advantage to develop project into none of it. Another not none of it. University, another example of this is on the automation. We are beating our target right now on the RAM development at this, this is out and this is partially due to the automation. So, even though it is still into the startup, they are already able to mine or to, to do some operation in between shift by using automation operating equipment from surfaces.
Are we going to are we going to have a press release, saying that the case and what.
Would you be buys in guidance at all for 2023 or would this just be sort of like at the upper end existing guys. Thank you very much and yes.
Speaker 2: transcript
Yeah, so one, we will issue a press release either way, you know, to be sure, you know, the impact in 24 is about, it's about 30,000 ounces. And it is, and as you all know, we've already provided guidance, assuming we don't get that. So I think
So one we will issue a press release either way.
To be sure.
The impact in 'twenty four is about it's about 30000 ounces.
Dominique Girard: And this is at the end giving 20% improvement on our productivity on the RAM development. On the exploration side, the focus continued to be on the infilling the internal zone where we could potentially add answers into our plan with the need to continue to better understand those zones and also to extend the east, go the deposit on the east and on the west side.
And it is and as you all know we've already provided guidance, assuming we don't get that.
So I think.
Speaker 2: transcript
I mean, we've already said we're going to be above the midpoint and we'll be closer to the upper end of our guidance.
I mean, we've already said, we're going to be above the mid point and we'll be closer to the upper end of our guidance.
Speaker 2: transcript
Jackie, if we get that, so I don't know that we need to send out new guidance, but we will say what I've said, which is, you know, if it's positive that we got it, that we expect an additional roughly 30,000 ounces and that we...
Jackie if we get that so I don't know that we need to.
Send out new guidance, but we will say, what I've said, which is.
If it's positive that we got it that we expect an additional roughly 30000 ounces and that we will we are now expected to be towards the upper end of our guidance. If we don't get it we'll mention that and we will mention that we still expect to be above the midpoint of our guidance. So we're in good shape either way.
Speaker 2: transcript
We are now expecting to be towards the upper end of our guidance. If we don't get it, we'll mention that, and we'll mention that we still expect to be above the midpoint of our guidance. So we're in good shape either way.
Natasha Vaz: So, on that, I will pass the mic, I think to Natasha. Perfect.
Speaker 12: transcript
Okay, yeah, that's terrific. And if I could just ask maybe one last question, I think earlier on the call, you
Okay, Yes, that's terrific and if I could just ask maybe one last question I think earlier on the call.
Natasha Vaz: Thanks, Dom.
Natasha Vaz: And good morning, everyone. I'm on slide 12. In Ontario, our operations continue to deliver robust results, particularly proud of detour. We were on track to have a solid Q3, but then we had an unexpected and rare transformer failure that the team had to manage. But the quick response by the site and being able to leverage our ABITB procurement network ensure that the impact to our production was minimized. As for Q4, we've had a good start here at detour and based on our forecast, we're planning to have a strong quarter and expect detour to deliver at the lower end of guidance for the year.
Speaker 12: transcript
talked about the integration and I know it's more in context of the change to Sean Boyd's role, but with the integration.
Talked about the integration and I know tomorrow in context of the chain.
<unk>.
Sean Boyd role, but what do you with the integration.
Natasha Vaz: And we also don't expect this type of incident with the transformer to happen again. But we have secured a spare transformer, which is planned to be delivered to the site by the end of this month. And out of excess caution, we also plan to order a second spare in the next few months. As for Makasa, we continue to see strong operational performance here. The management team has done a great job and we continue to experience the benefits associated with the new ventilation upgrade that we completed earlier this year. And the commissioning of a number four shaft also completed at the end of this year, which resulted in higher throughput and reduced unit costs when compared to our numbers from the prior year.
Speaker 12: transcript
Crickle Lake and Agnico now being completed. Have you got any maybe updated comments you can give us in terms of asset divestments or how you're thinking about that? I would assume it's just kind of like as a go-forward standalone fully integrated company now, but is there any thoughts in terms of like anything in the near term?
Between.
Critical leg of Nick Nico now being completed.
Have you got any maybe updated comments you can give us in terms of asset divestments or how youre thinking about that I assume its just kind of like the go forward Standalone fully integrated company now, but is there any thoughts in terms of like anything in the near term.
Speaker 2: transcript
You know, it's a fair question and we are always looking at that and we...
It's a fair question and.
We are always looking at that and we.
Speaker 2: transcript
Frankly, we started looking at that very hard before the integration, during the integration, and we'll look at it after the integration. Right now, we're happy with what we've got, but for sure, we're always looking to optimize the portfolio, and whatever makes the most sense for our shareholders, we'll do it, and we'll do it in a heartbeat. Understood.
Frankly, we started looking at that very hard before the integration during the integration and we will look at it.
After the integration.
Right now we're happy with what we've got.
But for sure we're always looking to optimize the portfolio and whatever makes the most sense for our shareholders. We will do it and we'll do it in a heartbeat.
Understood. Thanks, very much mark.
Speaker 1: transcript
Your next question comes from the line of Tanya Dekuskanik from Scotiabank, please go ahead.
Your next question comes from the line of Tony <unk> from Scotia Bank. Please go ahead.
Speaker 13: transcript
A great good morning, everyone, and congrats on a good quarter. And again, I'm reiterating guide.
Great. Good morning, everyone. Congrats on a good quarter and again.
Natasha Vaz: Now moving to slide 13, this is where the real story is. And that's the expansion potential that we have here at detour. As you know, we have a track record of delivering improvements at detour. And so we continue to continue on the journey to generate additional value at the site by, as Amara said, assessing the potential to achieve 1 million ounces on an annual basis. And this potential comes in the form of two main projects, as you know, it's increasing the milk capacity, but also assessing the underground potential.
Guidance.
Speaker 13: transcript
Anita said the the talent in the market. So congrats on that. Just two questions, if I could. Can I ask the key whether going back to hope base or just looking at your slide 18 and looking at those 13 holes in the other patch and other. What do you think you need to do? Like, first of all, how many drove holes do you have in that?
Anita.
Thanks Al.
Linda.
Mike.
So congrats on that.
Two questions if I could.
Can I ask.
Weather.
Going back to I hope today, so just looking at slide.
Slide 18, and looking at those 13 halls.
Okay.
Sure.
What do you think you need to do like first of all how many drill holes do you have in that.
Speaker 13: transcript
graph area and what do you think you need to do before we can get a resource there?
GAAP area.
Natasha Vaz: So prior to the transformer incident, detour was in line to achieve 27 million tons this year, 2023. And the mill availability was hovering around 92%, which was the targeted rate for 2023. Now we're expecting to be closer to 26 million tons for the full year 2023. Having said that, though, the team continues to focus on delivering 28 million tons per year by 2025, if not sooner. And we're also working on other opportunities, as I've mentioned in prior calls before, to further optimize the mill and look at the opportunity to go beyond 28 million tons a year.
And what do you think you need to do before we can get a resource there.
Hi, Tanya.
Speaker 6: transcript
On the top of my head like that, I don't know exactly how many drill holes we've drilled over there, but we've been having six drill rigs, and the focus was really to demonstrate maybe the timing to get to infer or reserve over there is less important for us than understanding that the deposit is there, keeps going, remains open at depth. So we were looking for that long-term vision that, you know, it's going to get bigger. After that, well, we are obviously...
I cut out on the top of my head like that I don't know exactly how many drill hole, we drill over there, but we've been adding six rail rig and the focus is really to demonstrate maybe.
The timing to get to infer or reserve over there is less important for US then understanding that the positives there keeps going remain open at depth. So we were looking for that.
Long term vision that they know it's going to get bigger.
Sure that while we are obviously.
Natasha Vaz: And at the same time, assess the underground potential. We still expect to report the results of the underground study in the first half of 2024. And one last thing on the expiration side, with respect to the underground deposit, during the quarter, as Amara mentioned, we completed tighter infill drilling within the underground deposit in two areas. And this has confirmed good continuity of the zones, which supports the underground mining plan that we're currently developing. So good news there.
Speaker 6: transcript
looking at well the the drill spacing in that specific area what is needed to get to start to see some of that throwing up in resources.
Looking at the drill spacing in that specific area, what is needed to get to start to see some of that showing up in resources.
Speaker 6: transcript
I don't think we'll get any of that by year-end because, you know, we're still intend to rely on the TMAG PFS. We're not expecting any significant change, but that was not the main objective of our exercise over there. So eventually, once we're going to firm up our, let's say, assumption on costs, revise the potential cutoff grade.
Don't think will.
Well get any of that.
By year end, because we're still in.
<unk> tend to rely on the T. Mack PFS. So we're not expecting any significant change, but that was not the main objective of our exit of size over there. So eventually once we began to firm up our let's say assumption on cost revise the potential cutoff grade, we going <unk> don't that new drilling.
Dominique Girard: And with that, I'll pass the call back to Dominic to provide some highlights on our Nunavut operation. Yes, thank you, Natasha, for Nunavut, a strong quarter also, over 200,000 answers produced in Nunavut and looking forward, Milledin Mill expansion is on track on schedule, on cost to achieve the expansion, going to 6,000 ton per day by the end of 2024. On the next slide, Akitila, on during the quarter, the production shaft is now commissioned, so that's a new shaft ready to work, it's ongoing. And we already see some improvement or benefits from productivity and on cost using that shaft and concerning the permit, as Ammar mentioned, we're expecting to receive news in the coming days.
Speaker 6: transcript
We're going to be having that new drilling integrated. So maybe we can get to see starting to see the benefit of that maybe towards maybe the back end of the year in 2024 and 2025 where we should have a better understanding of the power of the part of grade. We don't want to do yo-yo with the resources of Adiris so we'd rather integrate all of that new drilling and make a good update. Good updates once we're going to.
Integrated so maybe we can we can get to see starting to see the benefit of that may be towards maybe the back end of the year end 2024, and 2025, where we should have a better understanding of of the part the cutoff grade we don't I don't want to we don't want to do Yo Yo with the resources of ideas that we do.
Better integrate all of that new drilling and make a good good.
Good updates once we gone to.
Speaker 6: transcript
Firm up our cut off grade assumption and mining approach.
Firm up our cutoff grade assumption in mining approach.
Speaker 13: transcript
So is it safe to assume that you need another two years, you mentioned, you know, back end of 2024 or 2025? So is it another two years of drilling this property before we are going to be able to say whether we have that target of that 350 to 400 and, you know, ready to put some sort of numbers on top of this. That'd be fair.
So is it safe to assume that you'll need another Julia as you mentioned.
End of 2020 for 2025, so is that another two years of drilling. This property before we are going to be able to say, whether we have that clarity out of that $2 50 to 400 and ready to put some sort of a button.
Yes.
Speaker 2: transcript
To have resources, yeah, but we're going to do some thinking on mineral inventory on something that is having a larger drill spacing. But, you know, they're obviously to come out with a public number. We'll need to reach the infer resources specification. And maybe, Amar, you may want to. Yeah, it's, again, a good question, Tania. It's
Sure.
To every services yet, but we are going to are we going to do some thinking on mineral inventory on something that is having a larger drill spacing Benin idea, obviously to come out with a public number we will need to reach the inferred resources specification and <unk>.
It's again a good question Daniel.
Natasha Vaz: And that I will ask Natasha to continue to close the operation update for Australia and Mexico. Thanks, Sam. Moving to Fosterville, we saw lower production as a result of lower grades that were a sequence, but also a result of lower tons lined. The lower tonnage, it's a result of redesign of our primary ventilation system, which requires additional development. The redesign of the ventilation system will help us de-risk, not just the construction of these raises, but also more importantly, the operation in the long term to sustain the mining rates in the lower Phoenix area in future years.
Daniel.
Speaker 2: transcript
It's expensive for us. It's expensive up in Nunavut and the plan we have is to aggressively drill and as Guy said we're more interested in is this going to make money and does it have a lot of legs rather than necessarily meeting the criteria for various classifications.
It's expensive for us.
It's expensive up in Nunavut, and the plan, we have is to aggressively drill and as <unk> said, we're more interested in is this going to make money and does it have a lot of legs, rather than necessarily meeting the criteria for various classifications. So.
Sure.
Speaker 2: transcript
Your question is going to be another two years before we know if we've got something, I think it'll be less than that. And we're pushing pretty hard and then it's looking good. And again, what he is doing is he's looking at, you know,
To your question is it going to be another two years before we know if we're going to if we've got something.
I think it'll be less than that.
And we're pushing pretty hard and then it's looking good.
Natasha Vaz: So the priority has become the development of this infrastructure, which has resulted in the delayed extraction of lower grade stoves this quarter. We expect to achieve similar production levels in the fourth quarter as we continue to prioritize this development on the primary ventilation infrastructure.
<unk>.
Again, we are what <unk> is doing is he is looking at.
Speaker 2: transcript
You know, is this thing going to be a multi-decade lot of production rather than, you know, the more traditional, okay, you know, we've increased it from X to Y to Z sort of.
Is this thing going to be a multi decade, a lot of production rather than.
The more traditional okay. We've increased it from X to Y does that sort of thing.
Natasha Vaz: As a whole, though, Fosterville remains an incredible asset, as it's an extremely low cost mine on a per-ounce basis with an excellent hardworking management team on site. And then just over to Mexico, we have seen some strong operational performance and stable production in Mexico. The team in Mexico have also done a great job focusing on operational improvements. And as a result of that, we see reduced unit rates when compared to prior years.
Speaker 2: transcript
And so would it be similar to audacity where you would make the decision to build based on resources? Probably, yeah. Yeah, okay. A good example, Plania. And also similar to what we did at Melody Dean.
And so would it be similar to Odyssey, where you would make the decision to build based on resources.
Yeah, Okay. Good.
Good example, Kenya and also similar to what we did at <unk>.
Speaker 13: transcript
Yeah. Yeah. Okay. Okay. Now, that's very helpful. Thank you. And then if I could ask Dominic a question, just Dominic, just on the shaft thinking to Odyssey, can you talk a little bit about the water that you've encountered and what you're seeing there and sort of, you know, I just forget where you were relative to the water table. So, just a little bit about the water. Thank you.
Yeah. Okay. Okay. Now that's very helpful. Thank you and then if I could ask Dominic a question just some dumb Nic does on the shaft sinking.
Odyssey can you talk a little bit about the water unless you think countered in what youre seeing there and sort of.
Guy Gosselin: And with that, I'll pass the call over to Guy. Thank you, Natasha, and good morning, everybody.
I guess.
Guy Gosselin: First of all, I would like to mention that we intend to provide a more thorough exploration update in January to streamline a bit the reporting of the operation. So a specific press release will be dedicated to exploration result. So we'll now go over just a few specific exploration are light starting with Ketella, where a recent drilling returns some very interesting shallow intercept 200 meter close to the historic call through repeating to a structure that is basically located 150 meter to the east of the main or body that was previously on the red floor. Where we got an interesting result of 11.8 grams over 9.9 meter. So we intend to, we are right away have undertook some follow-up drilling on that to better understand the potential in that parallel structure.
<unk> put a lot of cable so just a little bit about the law there. Thank you.
Speaker 4: transcript
Tenuta, we've reached water at some point during shaft thinking. It's not behind us. The team did the grouting and everything related to that. And that's normal in part of the...
The new 10 year, we've reach water at some point.
During shaft sinking.
Now behind US the team did the grouting and everything related to that and Thats normal and part of the.
Speaker 4: transcript
This is the wing shaft sinking. The thing is, it was expected to get some water there. When we did the test hole, we saw that we had fractures.
Doing shafts sinking the thing it was.
<unk> to get some water there when we did the test all we said that we had fractures.
Speaker 4: transcript
So, the team, the good news, the team was ready to react and to do the crowding. And now, we don't expect to have more water on short term. We saw some other area that with water fracture, but we're going to know when we're going to be there. The good news also is now the ramp is getting, we're going down with the ramp close to the infrastructure. So, this is also helping to collect the water.
The team the good news the team was ready to react and to do the crowding and now we.
We don't expect to have more water on short term. We said we saw some other area that with other fracture, but we're going to Norway to when we're going to be there.
The good news also is now the ramp is getting worse.
We're going down with the ramp close with infrastructure. So this is also helping to collect the water.
Guy Gosselin: And we'll continue to report let's see on progress at the upcoming press release. Police, moving on to Fosterville, high exploration is continuing in both the Robin Zill and Lower Phoenix Area, investigating in the Lower Phoenix the extension of this one and current structure. The color of structure is split in the hanging wall of the Swan structure, and a recent result continues to return very interesting value up to 10.8 grams over 10 meter, approximately 190 meter, down plunge of the current reserve, so continuing to demonstrate that the Lower Phoenix Area and our cardinals remain open to grow at depth.
Speaker 13: transcript
Okay, so you've gotten through the water with you, so you were, you were anticipating the water in this in this area. Dominic, you, you grouted, you got through it. And now we're, you know, I'm gonna say smooth sailing. We're just back to sort of normal, you know, sinking rates into the proper rock without water. Yep. Yeah. Okay. Great. Thank you so.
Okay, so you've gotten through the water was zero.
We were anticipating the water in this and this.
Dominic you keep routed you've got through it and now we're.
Conversations are sailing where does that just sort of normal.
And thinking that rates.
And to the proper off without water yep.
Yeah, Okay, great. Thank you so much that's all my questions.
Speaker 1: transcript
Your next question comes from the line of Lawson Winder from Bank of America. Please go ahead.
Your next question comes from the line of Lawson Winder from Bank of America. Please go ahead.
Speaker 14: transcript
Thank you very much operator and hello Amar and team. Thank you for taking my question. I just wanted to ask one thing about that great slide you guys put up on the optimization of the assets of an infrastructure in the amphitheatery region. And just inquire around your thinking on rail versus truck. I mean, it's like standing back and looking at it.
Thank you very much operator, and Hello, Omar and team. Thank you for taking my question I just wanted to ask one thing about that great Slide you guys put up on the optimization of the assets and infrastructure in the Abitibi region.
Guy Gosselin: And finally, moving to Hopeby, we continue to drill with focus through the second and third quarter in the Madrid area, as Dominique mentioned, and we're very pleased with the continue, the result we continue to see in that area south of the Sunlook below the patch 7. We continue to consistently see well-motorized visual intercept with, with a lot of visible goal occurrences, which is quite encouraging, and with the recent result returning up to 15.9 grams over 4.6 meter, at 600 meter depth, demonstrating that that entire area south of Sunlook and below the patch is all staying in the extension of the deposit and the deposit remain open at depth into the south. So we see those recent results as a testimony of what we saw in terms of exploration outside when we took over Hopeby.
Just inquire around your thinking on rail versus truck.
Yes.
Standing back and looking at it.
Speaker 14: transcript
Rail seems like a really obvious and perfect solution here, but is truck a realistic alternative if rail doesn't work out?
<unk> seems like a really obvious and perfect solution here, but as truck a realistic.
Alternative if rail doesn't work out.
Speaker 6: transcript
I was in the genre speaking. Listen, we have to compare both. I agree with you the most.
Hi.
Lawson Shawn speaking listen we have two comparable I agree with you the most.
Speaker 8: transcript
efficient way will be to use rail. The study is progressing very well. And after the way I see it is after we'll have the infrastructure in place, it will be there for decades to come. So we're really looking to create value. So we'll.
Efficient way will be to you with this study is progressing very well.
And after <unk> the way I see it. This after we'll have the infrastructure in place it will be there for decades to come. So we are really looking to create value. So we'll.
Speaker 8: transcript
give you a good update in February on that and i think it often and uh...
Give you a good update in February on that.
And I think loss in.
Speaker 8: transcript
Just to build on what John said, you're right, I mean, high volume rail, but if it's relatively small volume, trucks can be effective too. And sometimes even small volume, if you can do it efficiently, that makes sense. So big ticket items, probably rail, but in some cases, trucks make sense if it's lower volume and shorter distance.
Just to build on what John said Youre right I mean high volume rail, but if its relatively small volume.
Trucks can be effective two and sometimes even small volume that you can do it efficiently that makes sense, so big big ticket items probably rail.
Guy Gosselin: So this will continue to be the focus of our exploration activity moving forward, and we intend to report the more result on Hopeby at the upcoming press release.
But in some cases trucks makes sense, if it's lower volume and shorter distance.
Ammar Aljundi: And on that, we'll return the mic to MR for closing remarks. Well, thank you, everyone, and you know, it's our job as management to focus on the details. We watch every dollar, we watch every ounce, and we sweat the small stuff, and you should want us to do that, and we do it.
Speaker 14: transcript
And then when you're thinking about what the investment for Magnico might be with that, are we just talking about a loading station and nothing much further than that?
And then when Youre thinking about what your like the investment from agnico might be with that we just talking about like <unk>.
Our loading station and nothing much further than that.
Speaker 2: transcript
Yeah, it's basically, it's effectively that, yeah. So there's the...
Yes, it's basically.
It's effectively that yes. So so there is the.
Ammar Aljundi: But at the same time, it's important to step back and look at the big picture. And in the big picture, a very solid operating year so far, a lot of hard work to control costs, and a lot of progress towards foundational investments in detour at Mallardic, at Ketola, at Mekasa, throughout the EBITB, throughout all of our minds. We are going to continue to focus like a hawk on creating value per share.
Speaker 2: transcript
effectively, you transport from the stockpile to the spot where you can unload and typically what you have to build is maybe two kilometers of rail so that the train can pull in and you can load it over a day without blocking the track. So it's really just a...
Effectively.
Transport from the stockpile.
To the.
Spot, where you can unload and typically what you have to build as maybe two kilometers of rail so that the train can pull in and you can loaded over a day.
Blocking the track so it's really just.
Speaker 2: transcript
It's the infrastructure to move the ore to that two kilometers of rail and then the same thing in the unloading.
It's the infrastructure to move the ore to the to the to that two kilometers of rail and then the same thing in the unloading.
Speaker 14: transcript
That's great. Well, it's quite exciting. I look for the next update on that. Thank you very much, Amar, John . Thank you.
Well, that's great, but it's quite exciting I look for look forward to the next update on that thank you very much amaya.
Ammar Aljundi: That's all we care about. We don't care how big we are. We just care about, are we responsibly making money for our shareholders? And our strategy to do that hasn't changed in over 60 years, which is to be in the best jurisdictions in the world, as measured by geologic potential and political stability, to try to be the best minor in those parts of the world where we focus by being the best member of the community, by being respectful to the environment we're in, and by building competitive advantages on the ground, knowing the contractors, better the suppliers, better the permitting process better, and being the employee of choice.
<unk>.
Speaker 1: transcript
There are no further questions at this time. I'd now like to turn the call back over to Mr. Ammar Al-Jundi for any closing remarks.
There are no further questions at this time I would now like to turn the call back over to Mr. Amaral GB for any closing remarks.
Speaker 8: transcript
Thank you operator and thank you everyone for being on the line and for your continued support and as you know we love talking about the company so if there are any other questions that we didn't answer today just give us a call directly and with that we'll end it. Thank you everyone.
Thank you operator, and thank you everyone for being on the line and for your continued support and as you know we love talking about the company. So if there are any other questions that we didn't answer today, just give us a call directly and with that we'll end it. Thank you everyone.
Speaker 1: transcript
Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.
Thank you, Sir ladies and gentlemen. This concludes your conference call for today, we thank you for participating and ask could you. Please disconnect your lines have a lovely day.
Ammar Aljundi: We do think we are uniquely positioned that way, and we're going to continue to play off of those strengths, because we think it makes sense. And again, always focused on strong financial returns on a per share basis, strong balance sheet, consistent dividend payments.
Speaker 15: transcript
The ch.
Okay.
Okay.
Yes.
Thank you.
Okay.
Okay.
[music].
Okay.
Okay.
Ammar Aljundi: That's who Agnico has been for over 60 years, and that's who we're going to be for the next 60 years.
[music].
Ammar Aljundi: And before I open it up for questions, I'll just make one more. Comment, that's not on the presentation, but it's close to all of our hearts as you might have noticed from the press release. We've announced that Sean Boyd will be transitioning from Executive Chair to Chair at the end of this year. And I want to make two comments on that. The first comment is that was always the plan. As most of you will remember, when Agnico merged with Kirkland Sean Boyd was going to be the Executive Chair to help through the transition, to guide us through the combination of the two companies.
Sure.
Okay.
Sure.
Okay.
Okay.
Okay.
Yes.
[music].
Perfect.
Yes.
Sure.
[music].
Okay.
[music].
Ammar Aljundi: And he said at the time, and we said at the time, as soon as that's done, he'll transition out of Executive Chair into Chair. And I must say, I think all of us would agree the integration went, even though we thought it was going to go well, went probably even better than we expected. It's completely done. And so this is just the natural thing that we said we were going to do, and we're doing it.
Ammar Aljundi: The second point is just how grateful all of us are for Sean. I can tell you personally, as you know, the new CEO to the job, Sean support, not just to me, but to all of the senior management in the company who was invaluable. Some very good strategic advice, and we are delighted that while he's transitioning from Executive Chair to Chair, he is going to continue to be involved in the company.
Ammar Aljundi: He's, you know, he spent, what, 30 years, 39. 39, I should know that, 39 years here, and he's not going anywhere, and I can again tell you that myself and all of the management are delighted to continue to have him with us.
Operator: So with that, thank you all for your patience, and why don't we open it up to questions.
Operator: Thank you, sir.
Operator: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star, followed by the number one on your touchstone phone. You will hear three tone prompt acknowledging your request, and your question will be pulled in the order they received. Should you wish to decline from the polling process, please press star, and followed by the number two. If you're using a speaker phone, please lift your hands up before pressing any piece. One moment, please, for your first question.
Mike Parkin: Your first question comes from the line of Mike Parkin from National Bank. Please go ahead. Hi guys, thanks for taking a question. On the slide 16, it's the cross section of Kipula. This parallel mineralized structure, was that something you guys knew was there? Is that a bit of a positive surprise and you have a sense of its potential magnitude. Have you hit it before and the grades weren't really interesting and now suddenly near surface they are just any additional color to give on what the potential upside there to be because it's obviously pretty interesting. Was it being so close to surface where they hit that good?
Guy Gosselin: Yeah, I'm Michael Skick. So now we've been reviewing reprocessing some historical data on the close person. We realized there was a couple of her friends intercept and obviously the main target has always been the main, the main, all body, the main lens at the back. And then we say, well, there's there's still some opening. The guy came to me with some, some thinking on all that, that's plays is taking off to the south and then getting further away to the east.
Guy Gosselin: So those were all aiming to address a few of those historical intercepts that were discarded back in the days where we were mining in the main break. And now it's opening up a new target area. So we don't know yet how big it will be, but we intend to conduct more drilling during Q4 and next year. And obviously, as you mentioned, it could provide some additional flexibility being so close from surface and close from infrastructure. So quite interesting. And I'm having the same question that you do on, though, how big it could be and what the grades are. Very interesting.
Mike Parkin: Just in terms of what are you kind of drawing at it in terms of resources in terms of rig care? Sorry, I'm not sure I'm getting your call. But we're going to have a couple of rigs that will be performing maybe one or two rigs from surface. It's very shallow. So we can do a lot of drilling at those kind of depth and we'll see, you know, we're currently looking at the budget for next year and obviously based on the first follow-up drilling program, we may intensify the drilling activity on that depending on how resources will plan out. Great, thanks very much and congrats on the good quarter. Thank you, Mike.
Anita Soni: Your next question comes from the line of Anika Sony from the ABC World Market. Please go ahead. Hi, good morning everyone and congratulations on a good quarter and being able to reiterate your guidance at the feet in this environment. My question was with regard to the layback that you said you were talking about potentially doing at Amarook. Could you give us a little bit more color on what you're looking for and how many years I can potentially add to the mind?
Anita Soni: Yeah, we didn't find yet another new open pit but what we see is potentially expand, do a pushback at the IVR pit. So we know that the underground resources are there continue to provide answers for a while but we need to find a pit and now the team have looked back to the resources and how could we do a pushback to add a couple of years maybe to the operation.
Anita Soni: This is what isn't a two-play right now. Okay, and presumably be higher than the original strip of the pit, which I think was around eight or nine. No, I hear it was kind of seven, six, so not too bad.
Natasha Vaz: Okay, all right. Okay, and then in terms of the, sorry, the Fosterville development work, could you and Natasha talked about it a little bit but could you just give us an idea of how that might, what thinking are you, what are you thinking there in terms of the development work going into 2024 and how that could potentially impact the guidance. I know you had about 30 or 40,000 answers that potentially could have been added in 2024 with the approval of the higher throughput rate but would that be sort of taken out of the mix with this development work that you're doing.
Natasha Vaz: Hi Anita, so it's Natasha but we are doing a little bit more development with respect to the ventilation and so as a result of that, we have delayed some of our stoves out. We... Along with those stopes, we also have to do additional development that comes along with it. So we are in the process of re-sequencing everything with respect to our mind plans, starting now into the end of the year.
Anita Soni: So we'll provide a little bit more guidance on that towards the end of the year. All right.
Josh Wolfson: Thank you.
Josh Wolfson: Your next question comes from the line of Josh Wolfson from RBC. Please go ahead. Thanks very much. Having heard some of the positive commentary on the Odyssey throughput ramp up underground and the comments as well about the positive grade reconciliation from the internal zones.
Josh Wolfson: I'm curious to understand a bit better maybe why the volumes in terms of the production of put are still quite light and tracked and sort of below with the 50,000 hours guidance was for the year. Yeah, Justin Nick speaking. When we did the. We had the pace planned commissioning. We had the challenges with the pipe underground. So we had to change the pipe that we receive. We're not the elbow. We're not in good shape.
Josh Wolfson: So we had to replace over 100 of those elbow when we started. So that brings delay to do pace back sale and then have an impact also on the on that. They see how fast we were able to mine. But other than that, there's no. There's no water challenges. And we're going to finish the year. We were planning to do 50,000 ton.
Josh Wolfson: We're going to be close to 40,000 ton coming from the Odyssey. I'm sorry. Yeah. And the pace back. So maybe it's performing very well now. Don maybe you can comment. Yeah. The pace back feel. The team is very happy because we're beating wet. We were expecting. So we're able now to. To recover from that and to be we're back on track on pace, the pace back. Okay.
Jamie Porter: And on the cost side of things, you know, one of the tailwind the company's benefit from this year has been this hedging program. Is there any way that the team can quantify maybe, you know, what, what that benefit would be maybe as a dollar prance figure so we can better understand the cost structure going forward. Yeah. Josh, it's Jamie here. So it's about $23 an ounce that we've been fitted from in terms of, you know, what we, what we guided to at a 130 CAD relative to what we've realized closer to 135.
Jamie Porter: But even, you know, without that benefit, we're still within our guidance range. So as a strong operating performance in terms of in terms of cost. And that's Josh. It's a bit of a complicated question because, you know, we labor clearly Canadian dollars. It's a direct direct relationship. But if you're looking at things like spare parts, even if you pay for the caterpillar transmission and Canadian dollars, it's really priced in US dollars.
Jamie Porter: And it's sort of like cars. So it is something the team has done a great job with. It is something that is a good and positive tailwind and will take any tailwind we can. But as we've said on all the calls and I'll say it again on this call, you know, the team's really done a good job controlling costs through some of the proactive work they've done, but also through delivering good operating results. It's the operating results always set your costs.
Jamie Porter: And sorry, just to clarify that 23 dollars per ounce, that was on the FX side, it sounded like, is there any additional factor on the diesel price? Yeah, I don't have the dollar per ounce in terms of diesel, but much lesser benefit, I think it's closer to about $3 an ounce.
Josh Wolfson: Okay, and then one sort of final quick one on the Catella Permit, I think unless the finished people like to work weekend, there's three days left here in October, any sort of commentary on what the status is or whether there's any remaining uncertainties for this outstanding permit. Thanks. Yeah, we're in constant contact and our understanding is they will have a decision imminently. So we are continue to be cautiously optimistic, but we obviously will respect whatever decision the court makes. But we expect it Josh to be very soon. Thank you very much.
John Tumazos: Next question comes from the line of John Tomatoes from John Tomatoes very independent research, please go ahead. Thank you very much. When the geologists turn the keys over to hope to the engineers to restart production, roughly how many years and how many dollars would it take? To resume the mine at the expanded target level. Once again, I'm assuming the geologists have already found all the gold a little bit optimistically. Thank you John, Dominic speaking.
John Tumazos: Look, when we use this starter project, we're looking to have a kind of a 10 years of operation into our enough resource reserve to do that. This is what we're looking for. We have let's see right now, but he's continuing finding more that we need to extend that. But I think John, you were asking how long it would take for us to start producing? Yes, sir. Yeah, it will be, I don't want to give it time, but it would be a lot faster than most because we have a camp, we have power generation, we have the port facilities, we have water treatment.
John Tumazos: The real emphasis will be on the mill and the mill building is there and we've done the analysis on that. So we basically have to empty out what's in the mill and basically go inside that. That's always an advantage that's particularly advantage up in a place like none of it, where until you basically have a closed and building, you can't work in the winter. And so we have that. So, you know, I don't know exactly the time it's a good question, but it would be materially less time than if you were starting from scratch. So, if I had it in my model for the second half of 2030, there's a chance you could do a little better. Yeah, I think so. Thank you.
Jackie Przybylowski: Your next question comes from the line of Jackie Prisbelozki from BMO Capital Markets. Thanks very much. Maybe I could start with a follow-up to John's question on Hope Bay. If you continue to have exploration success around Madrid, is there any thoughts to re-centering the operation around that? Or I guess Amar, are you kind of alluded to this with the value of the mill building? You'll continue to haul or to the existing location.
Ammar Aljundi: Can you talk about how to think about like the layout and the overall scope of Hope Bay? Yeah, it's a good question, Jackie. So, you know, everybody knows or a lot of people know their stories, there's Madrid, and then there's Boston, and I think a lot of people know that the total distance but the truth is, it's a pretty quick drive from Doris to Madrid. I can't remember exactly, but it's a few kilometers. It's I think eight kilometers.
Ammar Aljundi: So, you know, I think it's almost certain, well, it is certain that we would be focused at the existing facilities and leverage off of that.
Jackie Przybylowski: Thank you. And to follow, maybe on Josh's question, about Kittela, can you talk, like, when you, when is let assume that the Supreme Court of Finland provides a positive decision on this? Are we going to, are we going to have a press release saying that the case and would you be revising guidance at all for 2023? Or would this just be sure it's like at the upper end of existing guidance, like you've already mentioned?
Jackie Przybylowski: Yeah, I, so one we will issue a press release either way. You know, to be sure, you know, the impact in 24 is about, it's about 30,000 ounces, and it is, and as you all know, we've already provided guidance, assuming we don't get that. So, I think, I mean, we've already said we're going to be above the midpoint, and we'll be closer to the upper end of our guidance, Jackie, if we get that.
Jackie Przybylowski: So, I don't know that we need to, to, to, to send out new guidance, but we will say what I've said, which is, you know, if it's positive that we got it, that we expect an additional roughly 30,000 ounces and that we will, we are now expecting to be towards the upper end of our guidance. If, if we don't get it, we'll mention that and we'll mention that we still expect to be above the midpoint of our guidance. So, we're in good shape either way.
Ammar Aljundi: Okay, yeah, that's terrific. And if I could just ask maybe one last question. I think, earlier on the call, you've talked about the integration, and I know it's more in context of the change to Sean Boyd's role, but what's the, what's the integration between critical, like, and the Nico Nub being completed? Have, have you got any, maybe, updated comments, you can give us in terms of, as a side vestment or how you're thinking about that.
Ammar Aljundi: I assume it's just kind of like as a goal forward standalone fully integrated company now, but is there any thoughts in terms of, like, anything in the near term? I, you know, it's a fair question and we are always looking at that and we frankly we can we started looking at that very hard for the integration during the integration and we'll look at it after the integration. Right now we're happy with what we've got but for sure we're always looking to optimize the portfolio and whatever makes the most sense for our shareholders. We'll do it and we'll do it in a heartbeat.
Tanya Jakusconek: So thanks very much more. Your next question comes from the line of Tanya Jakusconek from Scotia Bank. Please go ahead. A great good morning everyone and I can grab on a good quarter and again I'm reiterating guidance as Anita said the challenges in the market. So I can grab on that just some two questions if I could can I ask the key whether in going back to a hope base or just looking at your slide 18 and looking at those 13 holes in the, you know, what do you think you need to do like, first of all, how many drove holes do you have in that gap area and what do you think you need to do before we can get a resource there.
Tanya Jakusconek: Hi Tanya. On the top of my head like that, I don't know exactly how many drove holes with real over there but we've been having six real rig and the focus is really to demonstrate maybe the timing to get to infer or reserve over there is less important for us than understanding that the positive there keeps going remain open at depth. So we were looking for that long term vision that they know it's going to get bigger after that while we are obviously looking at well the the drill piece thing in that specific area what is needed to get to start to see some of that throwing up in resources.
Tanya Jakusconek: I don't think will will get any of that by year and because you know we're still in tend to rely on the team at PFS we're not expecting any significant change but that was not the main objective of of our exercise over there. So eventually once we're going to firm up our let's say assumption on cost revise the potential cut off grade we're going to be having done that new drilling integrated so maybe we can we can get to see starting to see the benefit of that maybe towards maybe the back end of at the year and 2024 and 2025 where we should have a better understanding of of the part of grade.
Tanya Jakusconek: We don't I don't want to we don't want to do yo yo with the with the resources of it there so we'd rather integrate all of that new drilling and make a good update. Good updates once we're going to have firm up our cut off grade assumption and mining approach.
Guy Gosselin: So is it safe to assume that you need another two years you mentioned you know back end of 2024 2025 so is it another two years of drilling as properly before we are going to be able to say whether we have that target of that 350 to 400 and you know ready to put some sort of numbers on all this that be fair. To have resources yeah but you know we're going to we're going to do something gang on mineral inventory on something that is having a larger drill spacing but in other obviously to come out with the public number will need to reach the infer resources specification and maybe I'm are you.
Guy Gosselin: Yeah I it's it's again a good question tanya. It's expensive for us, it's expensive up in None of it. And the plan we have is to aggressively drill. And as Guy said, we're more interested in, is this going to make money and does it have a lot of legs rather than necessarily meeting the criteria for various classification? So, to your question, is it going to be another two years before we know if we've got something?
Guy Gosselin: I think it will be less than that. And we're pushing pretty hard and then it's looking good. And again, what he is doing is he's looking at, you know, is this thing going to be a multi-decade, a lot of production rather than, you know, the more traditional, we've increased it from X to Y to Z sort of thing. And so would it be similar to Odyssey, where you would make the decision to build based on resources? Probably not exactly. Yeah, okay. It's a good example, Plania. And also similar to what we did at Melody Dean. Yeah, yeah. Okay. Okay, now that's very helpful. Thank you.
Dominique Girard: And then if I could ask Dominique a question, just some Dominique just on the shaft thinking to Odyssey, can you talk a little bit about the water? That you've encountered and what you're seeing there and sort of, you know, I just forget where you were relative to the water table. So just a little bit about the water. Thank you. Tenuta, now yeah, we've reached water at some point during shaft thinking. It's not behind us.
Dominique Girard: The team did the grouting and everything related to that. And that's normal in part of the, this is doing shaft thinking. The thing is it was expected to get some water there when we did the test. All we saw that we had fractures. So the team, the good news, the team was ready to react and to do the grouting. And now we don't expect to have more water on short term. We saw some other area that with water fracture, but we're going to know when we're going to be there.
Dominique Girard: The good news also is now the ramp is getting, we're going down with the ramp close to the infrastructure. So this is also well paying to collect the water. Okay, so you've gotten through the water was you were anticipating the water in this in this area. Dominique you you sprouted, you got through it. And now we're, you know, I'm going to say smooth sailing. We're just back to sort of normal, you know, thinking rates into the proper off without water. Yep. Yeah. Okay. Great. Thank you so much.
Operator: That's all my questions.
Lawson Winder: Your next question comes from the line of loss and wonder from Bank of America. Please go ahead. Thank you very much operator and hello Amar and team. Thank you for taking my question. I just wanted to ask one thing about that great slide you guys put up on the optimization of the assets of an infrastructure in the appative region and just inquire around your thinking on rail versus truck. I mean, I mean, it's like standing back and looking at it. I mean, rail seems like a really obvious and perfect solution here, but it's truck a realistic alternative if rail doesn't work out.
John Tumazos: Hi, Lawson and John speaking. Listen, we have to compare both. I agree with you. The most efficient way will be to you Israel. The study is progressing very well. And after the way I see it this, after we'll have the infrastructure in place, it will be there for decades to come. So we are really looking to trade value.
Ammar Aljundi: So we'll give you a good update in February. And I think, Lawson and just to build on what John said, you're right. I mean, high volume rail, but if it's relatively small volume, trucks can be effective too. And sometimes even small volume, if you can do it efficiently, that makes sense. So big, big ticket items, probably rail. But in some cases, trucks make sense. If it's lower volume and shorter distance. And then when you're thinking about what your, like the investment from Agnico might be with that, are we just talking about like a loading station and nothing much further than that?
Ammar Aljundi: Yeah, it's basically, it's effectively that, yeah. So there's the effectively transport from the stockpile to the spot where you can unload and typically what you have to build is maybe two kilometers of rail so that the train can pull in. And you can load it over a day without blocking the track. So it's really just, it's the infrastructure to move the ore to the, to that two kilometers of rail and then the same thing in the unloading.
Lawson Winder: That's great. Well, it's quite exciting. I look forward to the next update on that. Thank you very much, Amar, John. Thank you.
Operator: There are no further questions at this time.
Ammar Aljundi: I'd now like to turn the call back over to Mr. Amar, Aljindi, for any closing remarks. Well, thank you, operator. And thank you, everyone, for being on the line and for your continued support. And as you know, we love talking about the company. So if there are any other questions that we didn't answer today, just give us a call directly.
Operator: And with that we'll end it. Thank you, everyone. Thank you, sir.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
Operator: Have a lovely day.
Operator: All right.