Q1 2024 Agnico Eagle Mines Ltd Earnings Call

Operator: Good morning. My name is Ludi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Q1 2024 conference call.

Good morning, My name is Judy and that will be a conference operator today at this time I would like to welcome everyone to the Agnico Eagle Q1, 2024 conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Operator: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. Thank you. Mr. Ammar Aljandi, you may begin your conference.

If you would like to ask a question. During this time keep you press the star followed by the number one on your telephone keypad. If you would like to draw. Your a question. Please press the star followed by the number to you. Thank you Mr. Amaral, Charlie you May begin your conference.

Ammar Al: Thank you and good morning everyone. Thank you for joining us. I have the great pleasure, along with my colleagues, to report on another strong quarter for Agnico Eagle. But before we get into that, I'd like to acknowledge that the reason we're having another strong quarter is because of all the hard work of all of our employees; our people at the rock face work every day, sometimes in tough conditions, our geologists who are away from their families, sometimes for weeks at a time, and our engineers and professionals who do the I want to thank all of you for delivering. Again, it makes our job easier here at corporate. We'll have a number of executives talking about a good quarter. But again, it's thanks to all of you.

Charlie: Thank you and good morning, everyone. Thank you for joining us.

Charlie: I have the great pleasure along with my colleagues to report on another strong quarter for Agnico Eagle, but before we get into that I'd like to acknowledge that the reason we're having another strong quarter is because of all the hard work of all of our employees our people at the rock face work everyday sometimes in tough can.

Charlie: <unk>, our geologists who are away from their families.

Charlie: Times for weeks at a time our engineers.

Charlie: Professionals, who do the studies I want to I want to thank all of you.

Charlie: For delivering again it makes our job easier it here at corporate we will have a number of executives talking about a good quarter, but again its thanks to all of you. Please keep yourselves safe keep the community safe and.

Ammar Al: Please keep yourself safe, keep the community safe, and the environment safe. Before we jump into the presentation, I'd ask you to turn your attention to these forward-looking notes. We will be talking about some expected good results going forward, but again, please take a look at the forward-looking notes and statements. And if I could ask, Operator, if we could start, I see, on page 6, that would be great. We're going to cover a lot this morning, but there are really three key takeaways. One, we've had a very good start to the year.

Speaker Change: And the environment safe before we jump into the presentation I'd ask you to turn your attention to the forward looking notes.

Speaker Change: We'll be talking about some.

Speaker Change: Expected.

Speaker Change: Good results going forward, but again, please take a look at the forward looking notes and statements and if I could ask operator.

Speaker Change: If we could start I see on page six that's great.

Speaker Change: We're going to cover a lot this morning.

Speaker Change: But there's really three key takeaways.

Speaker Change: One we've had a very good start to the year.

Ammar Al: Two, we continue to make excellent progress on some of our key value drivers and the catalysts that will really move this company forward over the next 12 to 36 months. And three, we've had some tremendous drill results that we are excited to share with you today. On the strong start to the year, solid operating results, approximately 880,000 ounces of production, good cost control, and reiterating guidance, both production guidance and cost guidance. Those strong operating results, along with an excellent gold price, have delivered strong financial results, as you would expect.

Speaker Change: Two we continue to make excellent progress on some of our key value drivers and catalysts that will really move this company forward over the next 12 months to 36 months and three we've had some tremendous drove results that we are excited to share with you today.

Speaker Change: On the strong start to the year solid operating results approximately 880000 ounces of production good cost control reiterating guidance, both production guidance and cost guidance.

Speaker Change: Those strong operating results along with an excellent gold price has delivered strong financial results as you would expect Jamie will review these but some of the highlights include our second consecutive quarter of record operating margins and our second consecutive quarter of record free cash flow.

Ammar Al: Jamie will review these, but some of the highlights include our second consecutive quarter of record operating margins and our second consecutive quarter of record free cash flow on the key projects and the value drivers. Detour to a Million Ounces.

Speaker Change: On the key projects and the value drivers.

Speaker Change: <unk>, two 1 million ounces, we said.

Ammar Al: We said a couple of years ago that we thought Detour had the potential to get to a million ounces a year. The team has been working very hard on that since, systematically, professionally, and we're making good progress. And we remain on target to talk about this mid-year. In fact, we expect, at this point, to have a technical session in June, followed by a site visit, at which point we will talk about the project parameters as we see them at this point, and we will talk about the next step.

Speaker Change: A couple of years ago that we thought detour had.

Speaker Change: Potential to get to a million ounces a year. The team has been working very hard on that since systematically professionally and we're making good progress and.

Speaker Change: And we remain on target.

Speaker Change: Two.

Speaker Change: About this mid year in fact, we expect at this point to have a technical session.

Speaker Change: In June followed by a site visit at which point, we will talk about the project parameters as we see them at this point and we will talk about the next step and we've talked we've hinted about what that next step will be and it will be.

Ammar Al: And we've hinted about what that next step will be, and it will likely be an exploration ramp that will allow us to get into the ore body, take some bulk samples, confirm continuity, put in an exploration platform, and really the first step of what we think will be an exciting project. And clearly, that exploration ramp will become an important part of a future production ramp. At Upper Beaver, also very good progress, also on target, also confirming that we expect to provide an update towards the middle of the year. For Upper Beaver, it'll likely be with our second quarter results, at which point we will be outlining the parameters of the project as we see it and, again, the next step.

Speaker Change: Likely.

Speaker Change: And exploration ramp.

Speaker Change: That will allow us to get into the ore body take some bulk samples confirm continuity put in an exploration.

Speaker Change: <unk> platform and really.

Speaker Change: The first step of what we think will be an exciting project and clearly that exploration ramp will become an important part of our future production ramp.

Speaker Change: At Upper Beaver also very good progress also on target also confirming that we expect to provide an update.

Towards the middle of the year with upper Beaver, it'll likely be with our second quarter results at which point, we will be outlining the parameters of the project as we see it and again the next step and the next step as we've already discussed in February is what you would expect the likely next the logical next step.

Ammar Al: And the next step, as we discussed in February, is what you would expect, the likely next, the logical next step, an exploration shaft and an exploration ramp that will allow us to take a couple of bulk samples, again, confirm continuity, again, and put in exploration platforms. At Mallardic, we continue to make excellent progress, the shaft is progressing well, and the underground development, as I think most of you know, is ahead of schedule, and the initial stoves are generating positive reconciliation. With Mallardic, however, there's also been some excellent drill results.

Speaker Change: An exploration shaft in an exploration ramp that will allow us to take a couple of bulk samples again confirm continuity again put in exploration platforms.

Speaker Change: At <unk>, we continue to make excellent progress.

Speaker Change: The shaft is continuing well in the underground development as I think most of you know is ahead of schedule and the rich and the initial stopes are generating positive reconciliation.

Speaker Change: With melodic however, there has also been some excellent drill results and that leads us to our third.

Ammar Al: And that leads us to our third key takeaway today. Guy will be discussing some frankly pretty amazing drill results at Mallardic, at Detour, and at Hope Bay. Big assets in good parts of the world that really just continue to deliver. We think that these are potentially big enough to move the needle and cause us to rethink in a positive way some of our growth options going forward. And because of that, we've added a little extra time at the end of today for Guy to talk about it.

Speaker Change: The key takeaway today.

Speaker Change: <unk> will be discussing some some frankly pretty amazing drill results at <unk>.

Speaker Change: At Detour and at Hope Bay Big assets in good parts of the world that really.

Speaker Change: Discontinued to deliver we think that these are potentially big enough to move the needle and causing us to rethink in a positive way some of our growth options going forward and because of that we've added a little extra time at the end of today for <unk> to talk about it.

Ammar Al: At $2,300 gold, you should fully have expected us to report strong results, and we have. We continue to be very constructive on the gold price. You know, I came into this business in 1999 when gold was $290. People have hated the gold price since, and it's now $2,350.

At $2300 Gold you should fully have expected us to report strong results and we are.

Speaker Change: We continue to be very constructive on the gold price.

Speaker Change: I came into this business in 1999 gold was $290.

Speaker Change: People have hated the gold price. Since then it's now $23 50, and we think that we are just starting a long term secular move.

Ammar Al: And we think that we are just starting a long-term secular move. That said... And importantly, and we want to emphasize this, we do not take this higher gold price for granted. We remain absolutely focused on cost control, we remain focused on per share metrics, and we remain focused on capital discipline. We are absolutely determined at Agnico that increases in the gold price go to our owners, and these increases are not going to be eaten away by higher costs.

Speaker Change: That said an important and we want to emphasize this we do not take this higher gold price for granted.

Speaker Change: We remain absolutely focused on cost control, we remain focused on per share metrics and we remain focused on capital discipline. We are absolutely determined at agnico that increases in gold price go to our owners.

Speaker Change: And these increases are not going to be eaten away with higher costs in fact, when Dominic Natasha go through their sections and they'll go through it briefly but the overriding theme you will hear over and over again as is the theme of continued focus on business improvement at.

Ammar Al: In fact, when Dominic and Natasha go through their sections, and they'll go through it briefly, but the overriding theme you will hear over and over again is a theme of continued focus on business improvement at every mine and every opportunity. Our focus on costs of $2,300 is as strong as ever, and our key projects, Detour, Upper Beaver, Mallardic, Wausamak, Amalgamated Kirkland, et cetera, those are the same projects at $2,300 as they were at $1,800.

Speaker Change: At every mine and every opportunity our focus on cost of $2300.

Speaker Change: As strong as ever.

Speaker Change: And our key projects detour upper Beaver melodic wassa Mac amalgamated Kirkland et cetera. Those are the same projects at 'twenty $300 as they were at <unk> thousand $800. We're remaining focused.

Ammar Al: We're remaining focused. So, a very good start to the year. But at Agnico Eagle, we believe strongly that it's not only what you do, but how you do it. And with that, our next speaker is Carol Plummer, our EVP of Sustainability, People, and Culture, who will discuss our 15th Annual Sustainability Report.

Speaker Change: So a very good start to the year.

Speaker Change: But at Agnico Eagle, we believe strongly that it's not only what you do but how you do it.

Speaker Change: And with that our next speaker is Carol Plummer, our EVP sustainability people and culture, who will discuss our 15th annual sustainability report.

Carol Plummer: Thank you, Ammar, and good morning everybody. We're certainly happy to release this 15th annual sustainability report, which is titled Global Approach, Regional Focus. This report highlights how we are deeply rooted in and committed to the regions in which we operate, even as we grow and evolve as an organization. While our vision and goals are global, our strategies are tailored to each region, taking into account its environmental, social, and economic context and adapting to its specific needs, priorities, and challenges.

Carol Plummer: Thank you Omar and good morning, everybody.

Carol Plummer: Certainly happy to release, the 15th annual sustainability report, which is titled Global approach Regional focus is there.

Carol Plummer: Before I highlight how we are deeply rooted in and committed to the regions in which we operate even as we grow and evolve as an organization.

While our vision and goals are global our strategies are tailored to each region, taking into account their environmental social and economic context, and adapting to their specific needs and priorities and challenges.

Carol Plummer: We're proud of our people are working every day not only to complete the work of our global miner for doing it safely and reflecting our commitment to the environment and our communities.

Carol Plummer: We're proud of our people who work every day, not only to complete the work of a global miner but to do it safely and respecting our commitment to the environment and our community. ESG is central to our strategy, and it's through the stories of our people, the partnerships they have created, the relationships that they maintain, and the challenges that they face, that you can see how it is integrated into the very fabric of our company.

Carol Plummer: ESG is central to our strategy and it's through the stories of our people the partnerships. They have created the relationships that they maintain and the challenges that they face.

Carol Plummer: You can see how it is integrated into the very fabric of our company.

Carol Plummer: We prioritize close collaboration with local communities and indigenous people valuing their perspective as integral components of our operational approach.

Carol Plummer: We prioritize close collaboration with local communities and indigenous people, valuing their perspective as integral components of our operations. This is how we make mining work for everyone. Working together, we can reduce our environmental impact, increase social benefits, and positively contribute to the local economy. You can see on this slide some of the highlights from 2023. I'm particularly happy to point out the safety record and a 34% improvement in safety frequency year on year.

Carol Plummer: This is how we make mining work for everyone.

Carol Plummer: Working together, we can reduce our environmental impact.

Carol Plummer: Increased social benefits and positively contribute to local economies.

Carol Plummer: You can see on this slide some of the highlights from 2023, Im, particularly happy to point out the safety record and a 34% improvement in safety frequency year on year.

Carol Plummer: We continue to work on our decarbonization plan, and we invested in our communities and worked with our employees to make sure that we can maintain our commitment to mine responsibly. The full report can be found on our website or by clicking on the link in the press release. And I will now pass on to Jamie to discuss the Q1 results.

Carol Plummer: We continue to work on our de Carbonization plan.

Carol Plummer: We invested in our communities.

Carol Plummer: And we worked with our employees to make sure.

Carol Plummer: If we can maintain our commitment to mine responsibly.

The full report can be found on our website or by clicking on the link in the press release and I will now pass on to Jamie to discuss the Q1 results.

Jamie: Thank you Carol.

Jamie: Thank you, Carol. As Ammar mentioned in his opening remarks, we had a great start to the year with stable, consistent operating results and excellent cost performance, coupled with higher gold prices to drive record cash flows and financial results. First quarter gold production totaled 879,000 ounces at total cash costs of $901 per ounce and all-in sustaining costs of $1,191 per ounce. With this strong start to the year, we are very well positioned to achieve our full year production and cost guidance.

Jamie: Gives me.

Jamie: As Tamara mentioned in his opening remarks, we had a great start to the year with stable consistent operating results and excellent cost performance pairing with higher gold prices to drive record cash flows and financial results first.

Jamie: First quarter gold production totaled 879000 ounces at total cash costs of $901 per ounce and all in sustaining costs of $11 91 per ounce with this strong start to the year, we are very well positioned to achieve our full year production and cost guidance.

Jamie: Our all in sustaining costs for the first quarter were actually below the low end of our guidance range at <unk> 91 per ounce. This resulted from the deferral of certain sustaining capital expenditures at Detour Lake to later in the year as a result, we do expect higher all in sustaining costs in subsequent quarters, but still expect all in sustaining cost per ounce to be within our guidance range of.

Jamie: Our all-in sustaining costs for the first quarter were actually below the low end of our guidance range at $11.91 per ounce. This resulted from the deferral of certain sustaining capital expenditures at Detour Lake to later in the year.

Jamie: As a result, we do expect higher all-in sustaining costs in subsequent quarters but still expect all-in sustaining costs per ounce to be within our guidance range of $1,200 to $1,250 for the full 2024 year. The higher gold price in the first quarter, combined with our strong operating and cost performance, led to significant margin expansion. And we had record operating margins in the first quarter of over $1 billion, led by our two largest mines, Detour Lake and Canadian Malartic.

Jamie: <unk> $212 50 for the full 2024 years.

Jamie: The higher gold price in the first quarter combined with our strong operating and cost performance led to significant margin expansion and we had record operating margins in the first quarter at over 1 billion led by our two largest mines detour Lake and Canadian melodic.

We will maintain our focus on costs and ensure that the benefit of higher gold prices is allocated to strengthening our balance sheet, providing financial flexibility and continuing to return capital to our shareholders.

Jamie: We will maintain our focus on costs and ensure that the benefit of higher gold prices is allocated to strengthening our balance sheet, providing financial flexibility, and continuing to return capital to our shareholders. Now, we move on to slide nine.

Jamie: If we move on to slide nine.

Jamie: Have a look at our financial highlights. Our revenues increased 21% over the first quarter of 2023 to over $1.8 billion. Importantly, our cash provided by operating activities increased by the same percentage, and our free cash flow actually increased by over 50% to a record of $396 million for the quarter. We are seeing the benefit of higher gold prices, with margin expansion helping to strengthen our financial position, adding approximately $190 million of cash to our balance sheet in the quarter. On an adjusted basis, net income per share was $0.76 in the first quarter, approximately a 30% increase relative to the prior year period.

Jamie: Have a look at our financial highlights our revenues increased 21% over the first quarter of 2023 to over $1 8 billion.

Jamie: Importantly, our cash provided by operating activities increased by the same percentage and our free cash flow actually increased by over 50% to a record of $396 million for the quarter.

Jamie: We are seeing the benefit of higher gold prices with margin expansion, helping to strengthen our financial position, adding approximately $190 million of cash to our balance sheet in the quarter.

Jamie: On an adjusted basis net income per share was <unk> 76 in the first quarter, approximately a 30% increase relative to the prior year period.

Jamie: We continue to pay a strong quarterly dividend of $0.40 per share, which is at a healthy level and represents approximately half of the free cash flow we generate in the quarter. We also repurchased 375,000 common shares for approximately $20 million through our normal course issuer bid in the first quarter. While we expect the majority of our capital returns to shareholders will continue to be through the dividend, we do have the financial flexibility to be opportunistic with respect to additional share buybacks.

Jamie: We continue to pay a strong quarterly dividend of <unk> 40 per share, which is at a healthy level represents approximately half of the free cash flow we generated in the quarter.

Jamie: We also repurchased 375000 common shares for approximately $20 million through our normal course issuer bid in the first quarter.

Jamie: While we expect the majority of our capital returns to shareholders will continue to be through the dividend. We do have the financial flexibility to be opportunistic with respect to additional share buybacks.

Jamie: At current gold prices, we would expect to generate substantial free cash flow in subsequent quarters. We will remain disciplined with our capital allocation, with excess cash being directed to further strengthening our balance sheet, paying down debt, reinvesting and improving our business, and continuing to return capital to shareholders. We move on to slide 10.

At current gold prices, we would expect to generate substantial free cash flow in subsequent quarters, we will remain disciplined with our capital allocation with excess cash being directed to further strengthening our balance sheet paying down debt reinvesting in improving our business and continuing to return capital to shareholders.

Jamie: Yes.

Jamie: We move on to slide 10.

Jamie: I'm very proud of the work our team has done this quarter to further strengthen our financial position and flexibility. Strong quarterly operational and financial results added cash to our balance sheet and reduced our debt position to $1.3 billion. During the quarter, we upsized our revolving credit facility to $2 billion. This new facility reflects Agnico's size, scale, and investment grade status and significantly increases our available liquidity. We do have approximately $800 million of debt maturities over the next 15 months, and we will look to either repay those from cash on hand or refinance at the appropriate time.

Jamie: Proud of the work our team has done this quarter to further strengthen our financial position and flexibility.

Jamie: <unk> quarterly operational and financial results added cash to our balance sheet and reduced our net debt position to one 3 billion.

Jamie: During the quarter, we upsized, our revolving credit facility to $2 billion. This new facility reflects agnico size scale and investment grade status and significantly increased our available liquidity.

Jamie: We do have approximately $800 million of debt maturities over the next 15 months, we will look to either repay those from cash on hand or refinance at the appropriate time.

Jamie: We were also pleased that Moody's upgraded our credit rating during the quarter to BAA1 with a stable outlook, which reflects our strong and strengthening credit profile. Overall, the balance sheet's in great shape. We're always looking for opportunities to strengthen it, improve our liquidity and overall financial flexibility. I'll now turn the call over to Dom, Dominique, who will provide an overview of our Quebec and Nunavut Outposts.

Jamie: We were also pleased that Moody's upgraded our credit rating during the quarter to be a one with a stable outlook, which reflects our strong and strengthening credit profile.

Jamie: Overall, the balance sheets in great shape, we're always looking for opportunities to strengthen and improve our liquidity and overall financial flexibility.

Jamie: I'll now turn the call over to Dominique who will provide an overview of our Quebec in Nunavut operations.

Dominique Girard: Thank you, Jimmy. I'm on slide 11.

Dominique: Thank you Jimmy I am at Slide 11.

Dominique Girard: A good quarter all-time record at Canadian Malartic Complex. So with the addition of the higher grade from underground at Odyssey, Canadian Malartic is breaking new records after 12 years of operation. We also did a strong quarter on the project development with the ramp, the shaft sinking, and the surface construction. And also, Guy is going to talk about the potential extension of the ease-goody zone, which is feeding the field-to-mill strategy, so we're very excited about that.

Dominique: Good quarter, all time record at Canadian Monarch take complex. So with the addition of the higher grade from underground at OTC Canadian Arctic is breathing new record after 12 years of operation.

Dominique: We also did a strong quarter on the project development with the RAF.

Dominique: Sorry, the ramp the shafts sinking and the surface construction and also he is going to talk about potential extending of the east <unk>.

Dominique: Zone, which is phili feeding the field EMEA with strategy. So we're very excited with that.

Dominique Girard: On the automation side, Agnico is recognized as a worldwide leader in remote operation, and this leadership can be seen at LZ5. As an example, during the quarter, the Friday night shift, which traditionally was from, let's say, manual operation, has now been transitioned to fully automated operation.

Dominique: On the automation side Agnico is recognized as a worldwide leader in remote operation.

Dominique: And this leadership can be seen that that has had five as an example during the quarter to Friday nights night shift, which traditionally was from let's say manual operation now have been transitioned to fully automated operation.

Dominique: No.

Dominique: This is not just only improving productivity, but it is also improving the life quality of our workers by not having to work anymore on Tonight Friday night shift so from now on a Friday night Saturday Night, and day Sunday night shift or fully operated remotely.

Dominique Girard: This is not just only improving productivity, but it is also improving the life quality of our workers by not having to work anymore on Friday night. So from now on, Friday night, Saturday night, and the Sunday night shift are fully operated remotely. I'm also happy to highlight that at 40 kilometers of LZ-5 in Laronde Mine, the ODC team executed the first fully automated truck load during a shift change. So I wrap up the Quebec session section by saying a big thank you to the teams for keeping pushing automation boundaries and leveraging regional synergy. Moving to slide 12.

Dominique: I'm also happy to highlight that at 40 kilometers of <unk>, five and narrow mind. The OTC team executed the first fully automated truckload doing just shift change so I'd wrap up the Quebec session section by seeing a big Thank you to the teams to keep pushing automation bundle.

Dominique: <unk> and leveraging of original synergy.

Dominique: Moving to slide 12.

Dominique Girard: Nunavut delivered an outstanding first quarter both on cost control and gold production. Both Milliardin and Middlebank achieved better performances than budgeted, especially at the underground operation, where mocking, hauling, and development activities beat the budget. This is the result of a team effort to improve the business. Following last year's cost pressure, the Nunavut management team heads down and initiated bold action plans. But why did it succeed? Let me explain why.

None of it deliver an outstanding first quarter, both on cost control and gold production.

Dominique: Both <unk> and media and Middle Bank achieve better performances in budgeted, especially at the underground operation, we're mucking hauling and development activities.

Dominique: Beat the budget.

Dominique: This is the result of a television for it to improve the business.

Dominique: Following last year cost pressure, the Nunavut management team, Ed down and initiated bold action plan.

Speaker Change: But why do you succeed let me explain why.

Dominique Girard: I stole four important points from Jean-Claude Blais' presentation. He is the general manager at Méliadine, and here's what he said. First, focus on what matters. Second, empower and train a dedicated team to succeed. Third, be open-minded to challenge the stethoscope. Fourth, and last but not least. Execute like hell. So, here's why they succeed, and we're very proud of that one. I would like to conclude by congratulating the Nunavut team for their leadership and this outstanding quarter. All those improvements are building flexibility for 2024 and the coming years, but Hope Bay will be able to build upon those important improvements. On that, I will pass the call to Natasha. Thanks, Dom.

Speaker Change: I stole four important points from Antelope blip blip presentation jointly with is the general manager at.

Speaker Change: At media Dean <unk>.

Speaker Change: With the what he said.

Speaker Change: First focus on what matters.

Speaker Change: So again empower and staff a dedicated team to succeed.

Speaker Change: Third be open minded to challenge the status quo.

Speaker Change: Last but not least.

Speaker Change: Execute like hail.

Speaker Change: So.

Speaker Change: Here's why do you succeed and we're very proud of that one.

Speaker Change: I'd like to conclude by congratulating the Nunavut team for their leadership and this outstanding quarter.

Speaker Change: All of those improvements are not only building flexibility for do we need 24 in the coming years, but <unk> will be able to build upon those important improvement.

Speaker Change: On that I will pass the call to net issue, thanks, Tom and good morning, everyone.

Natasha Nella Dominica Vaz: Thanks, Dom, and good morning everyone. So I'll start with the operations in Ontario. Here we had another strong quarter and solid performance. Combined, the sites generated around $300 million in operating margins with, as you can see on this table, industry-leading costs. At both operations, MACASA and at Detour, we're continuing to steadily ramp up production. And just coming back to Ammar's point earlier on, we remain laser focused on optimizing and continuously improving our assets. And I'll give you a few examples.

Speaker Change: With the operations in Ontario.

Speaker Change: We had another strong quarter and solid performance combined the sites generated around $300 million and operating margins with them.

Speaker Change: As you can see on this table with industry leading cost.

Net Issue: At both operations Makassar, Annette detour, while continuing to steadily ramp up production and just coming back to my point earlier on we remain laser focused on optimizing and continuously improving on our assets.

Net Issue: And I'll give you a few examples we'll start with macassar first off we have seen improved productivity throughout the mine and the mill this quarter.

Natasha Nella Dominica Vaz: We'll start with MACASA. First off, we have seen improved productivity throughout the mine and the mill this quarter. The site, they hit records. They hit records in underground development. They hit a record in skipped tons. They hit a record in milled tons. Really incredible work by the team. And they keep going.

Net Issue: Site, They hit records, they hit records and underground development. They hit a record in skip tons to hit a record in milled tonnes really incredible work by the team and and.

Net Issue: And they keep going keep their heads down and they are working on other initiatives such as <unk>.

Natasha Nella Dominica Vaz: They keep their heads down, and they're working on other initiatives such as improvements in energy management and workforce availability or productivity and also fleet availability, just to name a few. And then, in keeping with our regional strategy, we're continuing to integrate the AK deposit into the production profile this year. We're still tracking well to complete a bulk sample extraction of the AK later in Q4, and just as a reminder, this is the ore that will be sent to the Laronne mill. Moving to Detour, we set a record, a quarterly record for total tonnage mined, but we also delivered mill throughput that was the highest for our first quarter period. The team already knows this.

Net Issue: Improvements in energy management and workforce availability productivity.

Net Issue: And also our fleet availability just to name a few.

Net Issue: And then in keeping with our regional strategy, while continuing to integrate the AK deposit into the production profile this year.

Net Issue: We're still tracking well to complete a bulk sample extraction of the 8-K later in Q4 and just as a reminder.

Net Issue: This is the ore that will be sent to the la Ronde mill.

Moving to <unk>, we set a record quarterly record total.

Net Issue: Total tonnage mined, but we also delivered mill throughput that was the highest one.

Net Issue: Quarter period.

Net Issue: The team already knows as Ive mentioned this to them a couple of times, but im particularly proud of them.

Natasha Nella Dominica Vaz: I've mentioned this to them a couple of times, but I'm particularly proud of them and our results this quarter, especially considering we face some challenges with abnormal breakage of our grinding media. And in terms of continuous improvement efforts at Detour, we have many, but of course, as you know, our main focus is to continue advancing the mill optimization efforts. We still expect to reach the mill throughput of 76,000 tons per day, roughly around 28 million tons a year, late in the second half of 2024. Now moving on to slide 14.

Net Issue: Our results this quarter, especially considering we faced some challenges with abnormal breakage.

Net Issue: Grinding media.

Net Issue: And in terms of continuous improvement efforts at detour, we have many but of course as you know.

Net Issue: Main focus is to continue advancing the mill optimization efforts, we still expect to reach the mill throughput of.

Net Issue: 76000 tons per day, roughly around 28 million tons a year in late in the second half of 2024.

Net Issue: Now moving on to slide 14.

Net Issue: I'll touch on our other assets starting in Finland.

Natasha Nella Dominica Vaz: I'll touch on our other assets, starting in Finland. At Kittila, the team had an inaugural celebration for the commissioning of the new shaft in March. And based on their performance in the quarter, they are tracking pretty well to meet guidance. They're also continuing to see positive exploration results demonstrating the expansion potential at the main zone, the CSAR zone, and in the Roura area. And then over in Australia, Fosterville, they continue to generate strong cash flows with costs among the lowest in the industry, despite decreasing grades.

Net Issue: At Kittila the team had an inaugural celebration for the commissioning of the new shop in March and.

Net Issue: And based on the performance in the quarter, they are tracking pretty well to meet guidance.

Net Issue: They are continuing to see positive exploration results.

Net Issue: Concerning the expansion potential at the main zone.

Net Issue: <unk> zone.

Net Issue: Lula area.

Net Issue: And then over in Australia, Fosterville, they continue to generate strong cash flows with cost among the lowest in the industry despite decreasing grades.

Natasha Nella Dominica Vaz: And this is a testament to not just the team's ability but their continued focus on improving productivity and controlling costs. Finally, in Mexico, at Pinos Altos, we continue to operate with consistent, stable production. Here also, we focused our efforts over the past year on improving productivity and controlling our costs. All in all, our operations are continuing to exhibit a stable and consistent approach to safely delivering on our objectives. Our site teams are continuing to work hard on improvement initiatives while also advancing on our pipeline projects. And with that, I'll now pass it over to Guy, who will provide us with an update on exploration.

Net Issue: And this is a testament to not just the team's ability, but their continued focus on improving productivity and controlling their costs.

Net Issue: Finally in Mexico at Pinos Altos, we continue to operate with consistent stable production.

Net Issue: Also we focused our efforts over the past year on improving productivity and controlling our costs.

Net Issue: All in all our operations are continuing to exhibit a stable and consistent approach to safely delivering on our objectives.

Net Issue: Our site teams are continuing to work hard to continuing to work hard on improvement initiative.

Net Issue: While also advancing on our pipeline projects.

Speaker Change: And with that I'll now pass it over to <unk>, who will provide us with an update on exploration.

Guy Gosselin: Thank you, Natasha, and good morning everybody online. This quarter, we continue our exploration efforts to build on last year's record mineral reserves momentum, focusing on Opportunity Near Mine and Key Value Drivers Project and our Portfolio. Our strategy remains the same.

Speaker Change: Thank you and ADESA and good morning, everybody online.

Speaker Change: This quarter, we continue our exploration efforts to build on last year REIT cards mineral reserves momentum.

Speaker Change: Focusing on opportunity near mine and key value driver for all Jake on our portfolio.

Speaker Change: Our strategy remains the same.

Guy Gosselin: One, extend the life of the mine, two, maximize available milling capacity at our key operation, and three, advance some specific high-potential projects by increasing mineral resources and mineral reserves, both in quantity and quality. Today, I would like to discuss three projects in particular where we see strong opportunities. First of all, Monarchic and Odyssey, we've seen some excellent results in the eastern extension of the East Gouldy that could significantly contribute to our fill the mill strategy. Second, a detour.

Speaker Change: One extend life of mine to maximize available milling capacity at our <unk> operation and three advanced some specific high potential project by increasing mineral resources and mineral reserves, both in quantity and quality.

Speaker Change: Today, I would like to discuss three project in particular, where we see strong opportunities for.

Speaker Change: First of all <unk>.

Speaker Change: Odyssey, we've seen some excellent result in the eastern extension of the east Goldie that could significantly contribute to our fill the mill strategy.

Speaker Change: Again at <unk>, we continue to see broad mineralized intercepts in the upper part of the underground extension of the deposit to the west of the open pit that continued to support our vision of an underground project at detour.

Guy Gosselin: We continue to see broad muralized intercepts in the upper part of the underground extension of the deposit to the west of the open pit that continue to support our vision of an underground project at detour. And third, OPI, where we got what I would qualify as some very spectacular exploration results in the gap between Suluk and Pacheben at the Madrid deposit, but that couldn't move the needle because of the high-grade nature of those intercepts that could significantly improve the scenario for future project development. So, starting with Malartic on slide 15.

Speaker Change: And third <unk>, where we got what I would qualify some very spectacularly exploration results in the gap between <unk> and <unk> seven at the <unk> deposit that could move the needle because of the high grade nature of those intercept that could significantly improve the scenario for future project development.

So starting with monarch <expletive> on slide 15.

Guy Gosselin: We saw that the zone is getting thicker again in the eastern extension, with some very solid intercepts returning 3 g over 32 m and 4.5 g over 33 m, respectively, at 400 and 1000 m away from the current mineral reserve, and that, you know, at a depth between 1.1 and 1.6 km. This could lead to the development of another thick mining area along the East Gouldie horizon, demonstrating that the zone remains open for additional significant discovery and future potential reserve addition that could help in our long-term field-of-mill strategy.

Speaker Change: We saw that the zone is getting thicker again in the eastern extension with some very solid niche separately <unk> three gram over 32 meter and four five gram over 32, 33 meter respectively. At 490000 meter away from the current mineral reserve and that you know what that Deb between one one and one six.

Speaker Change: Kilometer depth D. S. Good lead to the development of another take mining area, along the east Goldie horizon, demonstrating that the zone remains open for additional significant discovery and future potential Reserve addition that could help in our long term failed the mill strategic.

Speaker Change: Moving on to detour on slide 16 exploration of FERC continue to focus on the western extension of the deposit completing 58000 meter in our first quarter focusing in particular into the shallow portion of the potential underground project, where we continued to see broad mineralogy interval of good grade many.

Guy Gosselin: Moving on to detour on Site 16, exploration efforts continue to focus on the western extension of the deposit, completing 58,000 meters in the first quarter, focusing in particular on the shallow portion of the potential underground project, where we continue to see broad mineral intervals of good-grade mineralization, with examples of 5.4 over 16, 3.9 over 25, and 3.4 g over 29 meters in a large area located at shallow depth west of the potential underground project, close to the These results show potential for mineralization having both grade and width characteristics that are likely amenable to underground mining, supporting our vision to bring the Detour Lake mine to a million ounces of gold per year production from a combined open pit and underground operation in the future. And last but not least, and on slide 17.

Speaker Change: Zeeshan with example of $5 four versus 16, three nine over 25 and $3 four Graeme over 2009 meter in a large dry reallocated at shallow depth of the width of the potential underground project close to the conceptual exploration ramp that we are envisioning at detour.

Speaker Change: These results shows potential for mineralization avid having both grade and width characteristics that are lightly amenable for underground mining supporting our vision to bring the detour Lake mine to 1 million ounces of gold a year of production from our combined open pit and underground operation in the future.

Speaker Change: <unk>.

Speaker Change: And last but not least out on slide 17.

Guy Gosselin: I'm particularly proud that we completed 30,000 meters of drilling at Oak Bay this quarter, which is almost 50% of last year's safely. We focused this winter drilling campaign on ice-based drilling at the Madrid deposit in a previously unexplored gap between Suluk and Patchevan to follow up on some of the exciting results that were communicated in February. The most recent follow-up drilling returned exceptional results: 12 g over 19 m, 20 g over 18 m, 14 g over 16 m, and those are cap-grade and estimated through width.

Speaker Change: Im, particularly proud they know we complete 30000 meters of drilling at <unk> This quarter, which is almost 50% than last year.

Speaker Change: Safely we focus this year winter drilling campaign for Isps drilling at the Madrid deposit in a previously on explorer gap between <unk> and <unk> to follow up on some of the exciting result of that we're committed communicated in February.

Speaker Change: The most recent follow up drilling returned exceptional results 12 Gram over 19 meters 20 Gram over 18 meter 14 Gram over 16 meter and also our cap grade and estimated through with the Courtland tend to step on those were just spectacular solid from well to well demonstrating the potential.

Guy Gosselin: You know, the core length intercepts on those were just spectacular, solid from wall to wall, demonstrating the potential for a significant new thick mineralized area that could potentially host up to a million ounces between 10 and 20 g that could have a very positive impact on future project redevelopment scenarios, considering the high-grade nature compared to the rest of the deposit and the apparent simple geometry of this new zone. I would like to thank our exploration team and the various jurisdictions that put a lot of good thinking and hard work into these large exploration programs to deliver them safely and in the most cost-efficient manner.

Speaker Change: Sure for a significant new mineralized area that could potentially host up to 1 billion ounces between 10, and 20 Grand that could have a very positive and back on fridge sewer project redevelopment scenario, considering the high grade nature compared to the rest of the deposit and the upper end simple.

Speaker Change: Geometry of this new zone.

Speaker Change: I would like to thank all of our exploration team in the various jurisdictions that put a lot of good thinking and artwork into these large exploration program to delivered in the fleet and in the most cost efficient matter.

Guy Gosselin: Our focus in exploration remains to focus on opportunity by advancing key value driver projects to accelerate their integration into mine development scenarios. And with those excellent results, we can anticipate that additional exploration budget could be added in the second half of the year. Thank you very much.

Speaker Change: Our focus in exploration remains to focus on the opportunity by advancing key value driver project to accelerate their integration into mine development scenarios.

Speaker Change: And with those Tech tenant result, we can anticipate that additional exploration budget could be added in the second half of the year and on that I would like to return the mic to EMR for some closing remarks.

EMR: Thank you very much again.

Ammar Al: Well, thank you very much, Guy. We probably should have started with that.

EMR: We probably should have started with that well go.

Ammar Al: Well, good work. And thank you, Carol, Dom, Natasha, and Jamie. Before we jump into questions and the next slide, could we please? Thank you.

EMR: Good work and thank you Carol Tom Natasha and Jamie.

EMR: Before we jump into questions.

EMR: Next slide if we could.

Speaker Change: Please thank you.

Ammar Al: Just really to summarize, we had a strong quarter operationally and a strong quarter financially. We're all proud of our team for delivering results but also for continuing focus on business improvement and our commitment to capturing gold price increases for the benefit of our shareholders. We made good progress on our key value drivers and we have had, as you just heard, some excellent exploration results. We are delivering on 2024, but we're also building the company for the future. Our strategy remains the same as it's been for the last 67 years: focus on the best regions based on geologic potential and political stability.

Speaker Change: Just really to summarize we had a strong quarter operationally strong quarter financially.

Speaker Change: We're all proud of our team.

Speaker Change: For delivering results, but also for continuing focus on business improvement.

Speaker Change: And our commitment to capturing gold price increases for the benefits of our shareholders. We made good progress on our key value drivers and we have had as you just heard some excellent exploration results we are delivering on 2024.

Speaker Change: But we're also building the company for the future.

Speaker Change: Our strategy remains the same as it's been for the last six seven years.

Speaker Change: Focus on the best regions based on geologic potential and political stability try to build the highest quality business that we can for our shareholders for our communities and for our employees continue to focus on the bottom line continue to focus on per share metrics continue to focus on return on capital.

Ammar Al: Try to build the highest quality business that we can for our shareholders, for our communities, and for our employees. And continue to focus on the bottom line. Continue to focus on per share metrics and return on capital. And we think we are uniquely positioned with a competitive advantage in some of the best places in the world to mine for gold. So with that, I want to thank my colleagues for their presentations, thank all of you for being patient, and operator, if we can now open it up for questions, please.

And we think we are uniquely positioned with a competitive advantage in some of the best places in the world to mine for gold so with that I want to thank my colleagues for their presentations. Thank all of you for being patient and operator, if we can now open it up for questions. Please.

Speaker Change: Thank you and ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question. During this time keep your preference star followed by the number one on your telephone keypad.

Operator: Thank you. And, ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. One moment, please, for your first question. Your first question comes from the line of Ralph Profiti from 8 Capital. Your line is open.

Speaker Change: I would like to withdraw your question. Please press the star followed by the numbers Q1 moment. Please for your first question.

Speaker Change: Your first question comes from the line of Ralph <unk> from eight capital. Your line is open.

Ralph M. Profiti: Good morning, Ammar. Thanks for taking my questions. Two of them, please, on Odyssey and maybe Dom can chime in. I'm just wondering about matching hoisting capacity and the mining rates at Odyssey in that sort of 2025 to 2027. It seems like we're getting there a little bit earlier. And just wondering, is there some production perhaps being brought forward because of that temporary loader being repositioned higher in the strata? And then when you combine that with some of the development ahead of schedule, there's some sort of back envelope that you can get an extra sort of maybe 15, maybe 20,000 ounces of gold production in 2025. Just wondering if you can comment on that a little bit.

Ralph: Good morning Mara Thanks for taking my questions two of them. Please on Odyssey and maybe for Tom can chime in.

Ralph: I was just wondering about matching hoisting capacity and the mining rates at Odyssey and that sort of 2025 to 2027 and it seems like we're getting there a little bit earlier.

Ralph: I'm just wondering is there some production, perhaps being brought forward because of that temple temporal loader being repositioned higher into Australia, and then when you combine that with some of the development ahead of schedule. There is some sort of back envelope that you can get an extra sort of maybe 15, maybe 20000 ounces of gold production in 2025 I'm. Just wondering if you can comment on that a little bit.

Ralph: Yes.

Dominique Girard: Yeah, Dominique, the teams are working on all the different scenarios to integrate new drill holes, to integrate modification to the shaft by, let's say, changing the loading station and also adjusting the sinking rate that we're doing. Those plans are going to come up more later during the year with the optimization, but as you mentioned, there is a place of improvement, and the team is working on that.

Speaker Change: The teams are working on.

Speaker Change: The different scenarios.

Speaker Change: To integrate new drill hole to integrate.

Speaker Change: Dislocation to the chef.

Speaker Change: Let's see what it will just change of loading station and also adjusting with the.

Speaker Change: Thinking right that we're doing.

Speaker Change: Those plans are going to come more later during the year with the optimization.

Speaker Change: But as you mentioned there is place of improvement and the team are working on that.

Dominique Girard: Okay, okay. Is there any mining deeper in the deeper levels of the ore body, perhaps Odyssey North, that was going to happen ahead of shaft completion, where perhaps if we move up the temporary load, there's perhaps a partly offsetting cost impact of moving that up in the strata?

Speaker Change: Okay.

Speaker Change: Is there any mining.

Speaker Change: Deeper in the deeper levels of the ore body, perhaps odyssey north that was going to happen ahead of shelf completion, where perhaps if we move up the temporary loaded there is perhaps a partly offsetting cost impact of moving that up in the strata.

Dominique Girard: Yeah, maybe on the loading, the positive impact is going to be a shorter run, so we're going to be able to do more tonnage, so that's going to help to bring out the waste or the ore. But really, the focus is on accessing the East Gouldie deposit. So now we're at the level of the East Gouldie deposit with the ramp, we're still not touching the ore, that's going to be more coming into 2026. But again, the focus is to be able to really unlock it by having the shaft, being able to skip that out of the mine in 2027, and this is where the heart of the ore body is.

Speaker Change: Maybe on the loading the positive impact is going to be a shorter run. So we're going to be to be able to do more tonnage that's going to help to bring out the waste ore to your.

Speaker Change: But the really the focus is on the.

<unk>.

Speaker Change: <unk> accessing the <unk> deposit so now we're at the level of the igo deposit with their ramp we're still not touching the ore that's going to be more coming into 2020 six.

Speaker Change: But again the focus is to be able to really.

Speaker Change: Unlock by I think the shaft being able to to skip that out of the mining to we need to win seven end.

Speaker Change: This is where the heart of the ore body is yes.

Ralph M. Profiti: Yeah, gotcha. That's helpful. Thank you.

Speaker Change: Gotcha that's helpful. Thank you.

Speaker Change: Your next question comes from the line of Mike Parkin from National Bank Financial Your line is open.

Michael Parkin: Your next question comes from the line of Mike Parkin from National Bank Financial. Your line is open.

Michael Parkin: Thanks guys. Thanks for taking my question. Congratulations on a good quarter. The question is just on Canadian Malarctic.

Michael Parkin: Thanks, Scott Thanks for taking my question and congrats on the good quarter.

Michael Parkin: Question is just on Canadian <unk>, the throughput this quarter and actually last quarter.

Michael Parkin: The throughput this quarter, and actually last quarter, has been a significant step up from where we were ever since really the start of 2022. Is that more of a blend like Barnett or being a bit softer, allowing you to push the mill a little harder? Just trying to understand, you know, the roughly 7-ish plus percent improvement in the last couple quarters versus the last couple of years' run rate. What's driving that? Is it sustainable?

Michael Parkin: It's been a significant step up from where we were ever since really the start of 2022.

Michael Parkin: Is that more of a blend of like Barnett or being a bit softer, allowing you to push the mill a little harder just trying to understand that.

Michael Parkin: Roughly seven ish plus percent improvement in the last couple of quarters versus that last couple of year run rate.

Michael Parkin: Driving that is sustainable.

Dominique Girard: Any color would be awesome.

Speaker Change: Any color would be awesome.

Dominique Girard: Yes, Mike, this is true. The Barnett ore is softer, and we're able to process more than initially planned. But right now, we're still processing underground ore and also a stockpile which came from the Canadian Malartic pit at the time. We also need to time the process plan with the tailing facilities. So this is where the team is also looking to optimize. But we're going to turn this position into an in-pit in the second half of the year. So we need to match this, let's say, tailing and also milling capacity. We have flexibility within the plan.

Speaker Change: Yes, Mike this is through the Barnett or is more softer and we're able to process more.

Speaker Change: Initially planted.

Speaker Change: But right now we're still so our processing undergone.

Speaker Change: Underground ore and also stockpiled, which came from the Canadian mill articulate at the time.

Speaker Change: We need to time also the process plant with the tailing.

Speaker Change: Milling facilities.

Speaker Change: So this is where the team.

Speaker Change: Also looking to optimize but we're going to turn into NPA disposition in the second half of the year. So we need to match. This let's say tailing and also milling capacity.

Speaker Change: We have we have flexibility within the plan.

Dominique Girard: Okay, and for in-pit tailings, given the underground is... not directly underneath it, there isn't really any need to add a solidifying agent like cement to it. Can you just dump it in without any additives?

Speaker Change: Okay.

Speaker Change: In pit tailing give.

Speaker Change: Given the underground.

Speaker Change: Not directly underneath that there isn't really any need to add.

Speaker Change: Solidifying agent like cement can you just dump it in.

Speaker Change: Without any additives.

Dominique Girard: Yeah, we don't need to do a specific plug because, as you mentioned, we're not on top of where we're going to mine. And we did external, let's say, many studies, including external expertise, to make sure that everything was fine. And there's no issue with going into the Canadian Maritimes.

Speaker Change: Yes, we don't need to do a specific plug because we're not as you mentioned, we're not on the top of where we're going to mine and we did.

Speaker Change: There are many studies, including external expertise to make sure that everything was fine and there's no issue with going into the Canadian market.

Michael Parkin: Okay, sounds good. Thanks very much, guys.

Speaker Change: Okay sounds good thanks, so much guys.

Speaker Change: Your next question comes from the line of Greg Barnes from TD Securities. Your line is open.

Greg Barnes: Your next question comes from the line of Greg Barnes from TD Securities. Your line is open.

Greg Barnes: Yes, thank you. Just returning to Hope Bay and some of the drilling success you've had there in that gap zone, I think you mentioned a couple of times in the presentation that the MD&A is changing your thinking in terms of how you expect Mahope Development to proceed. I was just wondering what that means.

Greg Barnes: Just if I could just returning to hope Bay and some of the drilling success, you've had there and that gap so I.

Greg Barnes: I think you mentioned a couple of times in the presentation in the MD&A as changing your thinking in terms of how you expect.

I hope its element to proceed just wondering what that means.

Speaker Change: While that Greg it so that means that if obviously, if we have an area.

Guy Gosselin: Well, Greg, that means that obviously if we have an area in that gap with a million ounces at 10 to 20 grams, obviously if we bring that sooner, but that was not known currently in any kind of previous scenario we've had. So now we're looking potentially, we should, in the most likely scenario, try to go there first, which is just kind of a maybe we could add another mining area, and we just reshuffle the proportion that could come from Narituxuluk with this new area.

Speaker Change: And that gap with 1 million ounces at 10% to 20 Gram.

Speaker Change: Obviously, if we bring that scenario, but that was not known currently when any kind of previous scenario. We've had so now we're looking potentially yes, we should.

Speaker Change: Most likely scenario tried to go there first which suggests kind of a.

Speaker Change: Maybe could we add another mining area there'll be can we address reshuffle the proportion that could come from <unk> <unk> with this new area. So obviously from a from a return perspective, if we could access that higher grade ore earlier, that's going to al So which means that yes, we may have to fast track <unk>.

Guy Gosselin: So obviously, from a return perspective, if we could access that higher-grade ore earlier, that's going to help. So it means that yeah, we may have to fast-track our thinking about establishing a mining area in this another mining area into that new zone and reshuffle you know what proportion could come from the different portion of the deposit. So all of that is kind of fresh out of the press from an exploration result standpoint, and we're trying to be live with our study to integrate all of that in to design the best project eventually with that.

Speaker Change: Thinking about establishing a mining area in this higher.

Another mining area and do that new zone and reshuffle, you know what proportion could come from the different portion of the deposit. So all of that is kind of fresh out of breath from the exploration result standpoint, and we're trying to be live with our study to integrate all of that into design.

Speaker Change: The best project eventually with that and it's just EMR here I'll jump in and.

Ammar Al: And it's just Ammar here; I'll jump in. You know what? We don't want to get too far ahead of things and there's a lot of work and it all goes to capital discipline, but you know, hope a. We don't see Hope A as a small thing. We've said from the beginning that if we go ahead with Hope A, it's going to be between 300,000 and 400,000 ounces a year. So, you know, these are important drill results. You know, take it with an appropriate amount of caution, but they do look pretty good.

EMR: So we don't want to get too far ahead of things and there's a lot of work and it all goes to capital discipline, but.

EMR: Hope Bay.

EMR: We don't see hope as a small thing we've said from the beginning if we if we go ahead with hope a it's going to be between 300, 400000 ounces a year or so.

EMR: These are important drill results.

EMR: Take it with the appropriate amount of caution but.

EMR: They are they do look pretty good.

EMR: So far with the second mining front higher grades I assume you'd be pushing towards the higher end of that production range now in terms of your thinking on this.

Greg Barnes: So Ammar, with a second mining front, higher grades, I would assume you'd be pushing towards the higher end of that production range now in terms of your thinking on this. Yes. Okay, good enough. And on slide 15, the Odyssey Mine, just thinking about the second shaft and looking at the cross section where... Do you think that second shaft is going to go and, obviously, timing?

Yes.

EMR: Okay.

EMR: And on Slide 15, the Odyssey mind, just thinking about the second shaft.

EMR: The cross section where.

EMR: Do you think that second half is going to go and obviously jumping ahead timing.

Speaker Change: Well it is not clear yet.

Dominique Girard: Well, it is not clear yet. The team, we're going to see more soon, some proposals on that. And again, just the new Eagle D, which is getting back wider, that's going to also bring, let's say, new ideas. But the team is looking at different options for the second and maybe eventually a third half. Who knows?

Speaker Change: The team.

Speaker Change: We're going to see more soon.

Speaker Change: Soon some proposition on that and again just the new.

Speaker Change: <unk> D, which is bidding getting back wider that's going to also bring new ideas.

Speaker Change: But the team are looking to different options.

Speaker Change: Again, and maybe eventually it there Jeff who knows.

Guy Gosselin: As you see, we have both good results in the western extension and in the eastern extension. So obviously, it opens up some process of thinking, you know, where could be a center of gravity and where should we do things. So there's the deposit being open on both sides of the first shaft. You can pick up the scenario that you prefer.

Speaker Change: As you see we have both good result in the western extension and in the Eastern extension, so I'll be able to see it open ups. Some some process of thinking where it could be a center of gravity and where should we do things. So there is but the buzzer being opened on both side of that with.

Speaker Change: First Jeff.

Jeff: And you can pick up the scenario that you prefer.

Greg Barnes: That's very helpful. Thanks, guys.

Jeff: Okay.

Jeff: Helpful. Thanks, guys.

Jeff: Your next question comes from the lineup Anita Soni from CIBC. Your line is open.

Anita Soni: Your next question comes from the line of Anita Soni from CIBC. Your line is open. Hi, good morning, everyone.

Anita Soni: Hi, good morning, everyone, and congratulations on a good quarter and all the exploration success. I had similar questions to Greg. Can I just follow up on sort of the East Gouldie, what that means? You said it's obviously like you can extend it to the east and to the west, but would that change any of your, you know, sort of ideas on how much time you could push out of that asset?

Anita Soni: Hi, good morning, everyone and congrats on a good quarter and all the exploration success has been.

Anita Soni: My question to Greg can I, just follow up on some of the east Goldie.

Anita Soni: What that means you said, it's obviously like you can extend it to the east and to the west but would that change any of your initiatives.

Greg Barnes: Ideas on how much tons, you could push out of that asset.

Guy Gosselin: The panel being around, open on both sides, both towards the northeast, south leading to the west, so we're just basically adding additional mineral inventory, adding additional infer. Obviously, when the zone gets thicker like that with better grade, you know that kind of, it is becoming sort of an area of interest. Again, it was kind of a gap where we didn't add much drilling so far to an area of a couple of hundred meters.

Greg Barnes: No.

Greg Barnes: The panel being around at open on both side both towards the northeast held fleet into the web. So we're just basically adding additional element around inventory, adding additional and for obviously windows don't get sticker like that with better grade you know that kind of.

Greg Barnes: It is becoming an area of interest.

Greg Barnes: Again, it was kind of a gap, where we didn't add much drilling so far into an area of a couple 100 meter we add some draw alternative ease that where it kind of not as good but we were I would say I was pleasantly surprised because the belief our understanding with the deposit was pinching and all of us at any of the swelling back. So now we wanted to dedicate additional draw.

Guy Gosselin: We had some drills further east that were kind of not as good, but we were, I would say, pleasantly surprised because the belief or our understanding was the deposit was pinching, and all of a sudden, it was swelling back up. So now we want to dedicate additional drilling in the half of the year to better understand at a reasonable drill pattern, you know, we'll be, I think we're going to be trying to target in this area, drill pattern 175, 175 to figure out what's the extent of that new batch at 30 meters, and we'll see, you know, how many ounces and what kind of decision it drives.

Greg Barnes: Willing in second half of the year to better understand at reasonable drill pattern will be I think we're going to try to try to get them. In this area drill pipe and 175 to 175 to bigger figure out you know, what's the extent of that new batch at 30 meter and well see you know how many ounces and what kind of decision it drives but it's very.

Guy Gosselin: But it's very close to the existing infrastructure. We're just talking about, you know, it's between four and a thousand meters to the east of the current reserve. So it's not that far, quite thick, seems to be very close to the, it's in the extension of the main thing. So it is kind of tracking our attention.

Greg Barnes: Close from the from the existing <unk>, we're just talking about with BT.

Greg Barnes: Between four and 8000 meters to the east of the current reserve. So it's not that far quite <expletive> seems to be very close from the it's the extension of the main main thing. So it is kind of tracking our attention.

Speaker Change: Okay. Thanks, and then on detour the decision to defer the capital I guess until later in the year or is that related to.

Anita Soni: Thanks. And then on detour, the decision to defer capital, I guess, until later in the year, is that related to, you know, the results of the study, maybe waiting for that to come out and see if you can better deploy capital? Or was there something else behind it?

Speaker Change: Results of this study may be waiting for that to come out and see if you can better deploy capital or was there something else behind it I needed. Some sasha. Thanks for the question no. It has nothing to do with that it was just timing. So we're continuing to negotiate better terms with our suppliers and as part of the process. We just slightly delay the purchase of equipment and parts associated with.

Natasha Nella Dominica Vaz: Hi Anita, it's Natasha. Thanks for the question. No, it has nothing to do with that. It was just, the timing. We're continuing to negotiate better terms with our suppliers, and as part of the process, we just slightly delayed the purchase of equipment and parts associated with it. That's it.

Speaker Change: That's it.

Anita Soni: Can I have, before I turn it over, capital allocation. You talked about, you know, returning capital to shareholders. Can you talk about, Jamie, the priorities in order? Like, what will you address first?

Speaker Change: John has tried to turn it over to capital allocation you talked about.

Speaker Change: Returning capital to shareholders can you talk about Jamie the priorities in order, but what will you address first.

Jamie: Yes, I know you have your buyback that's expiring in a little bit would you renew that when you consider buying back shares at these levels.

Jamie: I know you have your buyback that's expiring in a little bit. Would you renew that? Would you consider buying back shares at these levels?

Anita Soni: Yes, thanks Anita for the question. Yeah, we did indicate in the press release that we will be renewing the buyback program, and you know, in my remarks, I indicated that the primary focus of the increased cash flow will be to strengthen our balance sheet. We do have, like I said, 800 million in debt maturities over the course of the next 15 months or so, so we want to be well positioned with cash on hand to have the ability to repay that from our balance sheet if If that' So that will continue to be the focus of our shareholder capital return program.

Jamie: Yes.

Jamie: Thanks needed for the question, Yes, we did indicate in the press release that we will be renewing the buyback program and.

Speaker Change: In my remarks.

Speaker Change: I indicated that the primary.

Speaker Change: Focus of the increased cash flow will be to strengthening our balance sheet, we do have as I.

Speaker Change: At 800 million and debt maturities over the course of the next 15 months or so so we want to be well positioned with cash on hand to have the ability to repay that from our balance sheet.

Speaker Change: We decided to take so we're still paying very healthy shareholder returns the dividend, 50% of the free cash flow that we generated in the quarter. So that will continue to be the.

Speaker Change: The focus of our of our shareholder capital return program.

Jamie: Okay, so first, debt repayment, and then secondly, a potential increase in dividends or just maintaining the dividend.

Speaker Change: Okay. So first debt repayment and then secondly, the.

Speaker Change: Potential increase in demand.

Speaker Change: Maintaining the dividend.

Anita Soni: I'd say maintaining the dividend for now. We'll look at debt repayment and then just further strengthening the balance sheet and providing financial flexibility. And we'll be opportunistic with respect to the share buyback. It's there for that reason. In the first quarter, we saw the gold price move, and our share price didn't, so we stepped in, you know, to a small extent. But that's what we'll use that for going forward. Okay, thank you very much.

Speaker Change: I would say that maintaining the dividend for now we'll look at debt repayment and that just further strengthening the balance sheet and providing financial flexibility and we'll be opportunistic with respect to the share buyback. It's there for that reason.

Speaker Change: First quarter, we saw the gold price move in our share price Didnt. So we stepped in.

Speaker Change: To a small extent, but that's what we'll use that for going forward.

Speaker Change: Okay. Thank you very much I'll leave it there.

Speaker Change: Thank you. Your next question comes from the line of John Tumazos from John Tumazos very.

Anita Soni: Okay, thank you very much. I'll leave it there.

John Tumazos: Thank you. Your next question comes from the line of John Tumazos. From John Tumazos, Very Independent Research. Your line is open.

John Tumazos: Independent research your line is open.

John Tumazos: Thank you very much.

John Tumazos: Congratulations on all the progress in so many dimensions.

John Tumazos: Thank you very much. Congratulations on all of the progress in so many dimensions. I'm trying to imagine how the Mind Planning Might Evolve.

John Tumazos: I'm trying to imagine.

John Tumazos: How the mine planning minded evolve.

John Tumazos: In the new zone that's east of East Goldie, over a thousand meters east, and Dee. Would that likely be? Another shaft 1,000 meters to the east. Or would that be a ramp? from Deep since the project plunges in that direction. First question. Second question, the grade intercepts in the mid 300 meters, so a detour is the underground target. Does that suggest that the pit doesn't need to go to 550 meters? And it's more economical to mine from underground, which, of course, solves the problem of waste dumps and where to put the waste stripping because the underground mine is Less Disruptive.

John Tumazos: In the news.

John Tumazos: East of East Goldie over a thousand meters.

John Tumazos: Andy.

John Tumazos: Would that likely be.

John Tumazos: Another shaft 1000 meters to the east.

John Tumazos: Or would that be a ramp.

John Tumazos: Tom.

John Tumazos: Deep since the project launches in that direction.

Speaker Change: First question.

Speaker Change: Second question.

Speaker Change: Right intercepts in the mid 300 meters.

Speaker Change: Detour.

Speaker Change: Underground targets.

Speaker Change: Does that suggest that the pit.

Speaker Change: Does it need to go to 550 meters.

Speaker Change: And it's more economic to mine from underground.

Speaker Change: Which of course.

Speaker Change: Solves the problem of waste dumps and where to put the waste stripping because the underground mining is most constructive.

Dominique Girard: Thank you, John. Dominique speaking.

Speaker Change: Thank you.

Speaker Change: Thank you John the unique speaking.

Dominique Girard: Yeah, for the scenario at East Gouldie, the team is looking at a different scenario. So now the shaft, we're going to be able to skip from that shaft 12,000 tons per day, including the waste. And that's going to be the limit of this one.

Speaker Change: Yes, Fotis scenario at <unk> more looking at the different scenarios. So now the shaft, we're going to be able to skip from that shaft 12000 ton per day, including the way and that is going to be.

Speaker Change: That's going to be the limit of this one and the ramp there is also a limit going with the ramp.

Dominique Girard: And the ramp, there's also a limit to the ramp. So we need to have another exit to get the ore out. So that could be a second shaft. That could also be a new ramp, maybe going to the more eastern Malartic zone first. So there's different opportunities into play, and the team is also looking at how that could, what is the most efficient way to do that shaft? Is it by, let's say, doing a ventilation raise that we're gonna turn it into a shaft?

Speaker Change: We need to have another exit to get the ore out so that could be a second half that could be also a new ramp maybe going through the.

Speaker Change: More to east minority zones, first so theres different opportunity and to play in.

Speaker Change: The team is also looking.

Speaker Change: Is that what is the most efficient way to do that shop visit by.

Speaker Change: Let's say doing of insulation raised that we're going to turn into a shaft is it to to do it like we are doing right now.

Dominique Girard: Is it to do it like we're doing right now? I cannot give you what's gonna be the scenario for now, but there are people working on that. And we just added the six resources to be able to digest and look at all those scenarios.

Speaker Change: I cannot give you what's going to be the best scenario for now, but there is people on that and we we just added six resources.

Speaker Change: To to be able to digest and to look to all of those scenarios and then John It's it's the right question that Youre asking in this case.

Dominique Girard: And John, it's the right question that you're asking. In this case, because the mill is unconstrained, we really wanted, as Dominic said, to get more tons up. You know, if the mill was constrained, then it becomes a question of what's more economical to access at a shaft versus a ramp. In this case, and again, it'll be up to the engineers because the mill is unconstrained.

Speaker Change: The mill is unconstrained.

Speaker Change: We really wanted as Dominic said get get more tons up.

Speaker Change: If it was a synovus constrained then it becomes a question what's more economic to access at a shaft versus a ramp in this case and again it'll be up to the engineers because the mill is unconstrained as we all know we're going to have 40000 tonnes a day available to.

Ammar Al: As we all know, we're going to have 40,000 tons a day available. To the extent you have this ginormous ore body, you want to bring up the tons. And just for clarification, Dominic mentioned the roughly 11,000 tons a day on the shaft. There's roughly the equivalent amount on the ramps coming up. So we're going from 22,000 tons a day, and we would look at

Speaker Change: To the extent you have this ginormous.

Speaker Change: Ore body, you want to you want to bring up tons and just for clarification.

Speaker Change: Dominic mentioned, the roughly 11000 tonnes a day on the shaft.

Speaker Change: There is roughly the equivalent amount on the ramps coming up so.

Speaker Change: We're going from 22000 tons, a day and we would look at.

Dominique Girard: In fact, it is 19,000 tons per day from the shaft, but that includes waste. So the rest of the ore is coming from the ramp to end up to 20,000 tons per day, and for the

Speaker Change: Getting higher yes. In fact, it is 19 doesn't done per day with the from the shaft, but thats include waste. So the rest of the ore is coming from the ramp to end up to 20 doesn't dunwoody.

Speaker Change: And for the second part of your question John about detour.

Guy Gosselin: And for the second part of your question, John, about the detour, it's the wear with exactly what you described. You know, considering the plunge of the ore body, you see that there is not much in the first 300 meters, and it just keeps on plunging. And therefore, considering the grade and the fact that of that thing, that seems to be kind of pretty good for underground. It would also, as you described, mean less disturbance, less waste, and you can access that higher grade part.

Speaker Change: Where are where the exactly what you described considering the plunge of the orebody you see that there is not much in the first 300 meter and it just keeps on plunging and therefore, considering the grade and the fact that thing that seems to be kind of.

Speaker Change: Pretty good for four underground and would also as you described.

Speaker Change: Mean, less disturbance less ways and you can access through that higher grade part and since at detour.

Guy Gosselin: And since a detour, well, we're going to be maximizing the feed at the mill, but now it's a trigger. Can we get a better grade? And obviously, we're going to get a better grade if we go to that area from underground with a ramp more selective into the ore body. And therefore, for all of the reasons you described, it makes more sense to go to that western part of the deposit and add, eventually, as we described, a combined open pit and underground scenario in the future.

Speaker Change: We're going to be maximizing the feed at the mill, but now it's triggered can we get a better grade and obviously, we're going to get a better grade if we go into that area from underground with the ramp more selective into the ore bodies over for all of the reason you described it makes more sense to go down in that western part of the deposit and adding eventually as we did.

Speaker Change: Scribe it combined open pit and underground scenario in the future.

John Tumazos: Thank you. If I could follow up on the east of East Goldie, do you have information about the Thousand Meters? in between. Oh yeah. Had you drilled in between, or is this just virgin ground for the 1,000 meters east?

Speaker Change: Thank you if I could follow up on the East East Goldie.

Speaker Change: Do you have information about 2000 years.

Speaker Change: In between.

Speaker Change: Yes.

Had you drilled in between or is this just a virgin ground in between 3000 meters East.

Guy Gosselin: I know that we have information in between, and we already had some loose drilling that was showing some economic intercept. And we already have something that does not yet qualify as inferred because the drilling pattern is to lose.

Speaker Change: I know that we have information in between and we already had some lose drill.

Speaker Change: Drilling that was showing some economy intercept.

Speaker Change: And we already add some thing that do not yet qualify and for because the drilling pattern is to lose when we were pleasantly surprised although is that we were kind of seeing a pattern to the east <unk> zone was getting a bit narrower anymore, and Dan or five to 10 meters still a decent grade what we were pleasantly.

Guy Gosselin: What we were pleasantly surprised to see is that we were kind of seeing a pattern to the east of Iskudu that the zone was getting a bit narrower anymore in the 10 or 5 to 10 meters, still a decent grade. But what we were pleasantly surprised to see is that the zone is getting back to 30, 33 meters, between 3 and 4.5. So that was a bit unexpected because I was thinking that the tick was within the plunge of the typical or shoot of the ore body. But we were kind of pleasantly surprised to see the system swelling again, still with some good grade between 3 and 4.

Speaker Change: So price do you see is that the zone is getting back to 30 33 meter between 3% and $4. Five so that was a bit unexpected because I was thinking that tick was within the plunge of the typical order shoot of the orebody, but we were kind of pleasantly surprised to see the system swelling again still with some good grade between three and four.

Guy Gosselin: And we have information in between. So eventually, you can, and you can see on our graph that there's already some reserve. And then we move to resources and then some mineral inventory. And all of that we're going to continue to drill because, as you remember, we only have 9 million ounces in the plan for Odyssey. But on total, there are 16 million ounces on the ground plus in Monarchic, so all of that is in a lower category. And we're going to continue to tight fill the area between the current reserve and this area with specific attention to this area where it seems to be thicker again.

Speaker Change: We have information in between so eventually you can and you can see on the graph that there is already some.

Speaker Change: Our reserve and then we move to resources and then some mineral inventory and all of that we're going to continue to drill because as you remember.

We only have 9 million ounces in the plan for Odyssey, but all in total there is 16 million ounces underground plus.

Speaker Change: And Marty so all of that is in lower category and we're going to continue to tight fill the area between the current reserve and this area with the specific attention to this area what it seems to be <unk> again.

John Tumazos: So it is undulating, it pinches and swells, and you have to drill it; you just can't project it. Wow.

Marty: So it is underway.

Speaker Change: Susan swells.

Speaker Change: And you have to drill you just can't project.

Guy Gosselin: Well, but it does, but at a large scale, you know, the core of Yizgudi is typically very, very thick, up to 50, 55 meters. And it was kind of progressively getting from 50, 60 towards, let's say, more 10 meters. And all of a sudden, it's going back to 30 meters. But it's not it's not it's not pinching and swelling on a small scale. It's kind of a very kind of large scale, progressive pinching that is called back swelling.

Speaker Change: Wow.

Susan: It does.

Susan: That the large scale you know the core of <unk> is typically very very tick up to $50 55 meter and it was kind of for aggressively getting from 50, 62 words that I would say more 10 meter and all of a sudden it's going back to 30 meters.

Susan: But it's not true.

Susan: It has not been ching and swelling on small scale. It is kind of very kind of large scale progressive benching that is back swelling.

Speaker Change: Wonderful thank you.

John Tumazos: Wonderful, thank you.

Susan: Welcome.

Speaker Change: Your next question comes from the line of Tanya Jaquith Sonic from Scotiabank. Your line is open.

Tanya Jakusconek: Your next question comes from the line of Tanya Jakusconek from Scotiabank. Your line is open.

Speaker Change: Oh, great. Good morning, everybody and congrats on a good quarter and good exploration results as well.

Tanya Jakusconek: Oh, great. Good morning, everybody. And congratulations on a good quarter and good exploration results as well. I'm going to start with Natasha, if I could. Good morning, Natasha.

Speaker Change: I'm going to start with Natasha Thank good morning Natasha.

Natasha Nella Dominica Vaz: On detour, a couple of questions there. Natasha, what exactly is happening between the ball and the sack, the ball mills and the sack mill? You know, I just want to understand getting that balance right, what needs to be done. And then I'm trying to understand this grinding media. Have you resolved the issue there with the grinding media, you know, getting caught in the mill?

Speaker Change: Alright.

Couple of questions. There I just wanted to understand the cash or what exactly is happening between the ball on the SaaS.

Speaker Change: The Sag mill.

Speaker Change: I just want to understand getting that balance what needs to be done.

Speaker Change: Trying to understand is grinding media have you resolved the issue there with these that the grinding media and getting caught it.

Tanya Jakusconek: Cheryl, good morning Tanya, and thanks for the question. So let's start with the grinding media. So the grinding media is basically these 5-inch steel balls. They're consumables that are going into the sag, and they're grinding the ore. And so what we have seen, which is very abnormal, is that these balls are pretty much chipping and flaking.

Speaker Change: Good morning, gentlemen, thanks for the question.

Speaker Change: Let's start with the grinding media so the grinding media just basically that these five inch steel balls, the consumables that are going into the sag and grinding dealer.

Speaker Change: And so what we have seen it's very abnormal.

Speaker Change: These bonds are pretty much chipping and flaking.

Natasha Nella Dominica Vaz: And so it's accumulating steel in this mill. We're working with our suppliers. This is a supplier that we've used for 10 years, and they're on it. They're working with us on this. We have new grinding media that was introduced sometime in mid-March, and so far, it's yielded favorable results, but it's still early days. But we're working with them, and we're looking to resolve this issue fairly soon.

Speaker Change: And so it's.

Accumulating steel and this mill.

Speaker Change: We're working with our suppliers. This is a supply that we've used for 10 years.

Speaker Change: They are on it they're working with us on this.

Speaker Change: We have new grinding media that was introduced some time in mid March.

Speaker Change: And so far it's yielded favorable results, but it's still early days, but we're working with them and we're looking to resolve this.

Speaker Change: This issue fairly soon.

Tanya Jakusconek: and then is this media sorry, was it just a bad batch that maybe you got or I don't know it's still inconclusive; we're doing the investigation with our suppliers on a third party

Speaker Change: And is this media sorry.

Speaker Change: Just a bad batch that maybe you got or I don't know.

Speaker Change: Still inconclusive, we're doing the investigation with our suppliers on a third party.

Speaker Change: Okay.

Speaker Change: And then and then this year with respect to Sag and ball Mills, just optimizing the grinding deficiency and trying to find that balance between the sag and the ball mill and there's a few things that we're doing in here, where LNG, we're introducing a new instrumentation in the Sag mill.

Natasha Nella Dominica Vaz: And then this year, with respect to the SAG and ball mills, we're just optimizing the grinding efficiency and trying to find that load balance between the SAG and the ball mills. And there are a few things we're doing here.

Speaker Change: To stabilize the operating conditions were optimizing the screen and great sizing to improve the flow and the distribution of the load.

Speaker Change: And we're also testing new line is basically just to extend the line of life.

Natasha Nella Dominica Vaz: We're introducing new instrumentation in the SAG mill just to stabilize the operating conditions. We're optimizing the screen and grate sizing to improve the flow and the distribution of the load. And we're also testing new liners, basically, just to extend the liner life. That's basically what we're doing on the front end.

Basically what we're doing on the front end.

Speaker Change: Okay. So just trying to get that balance between the Q Mickey consistent is that a fair view.

Speaker Change: Yes, yes.

Speaker Change: Okay. Okay. Thank you for that and then the second part on detour.

Speaker Change: Have that study coming out.

Speaker Change: At the end of the second quarter, Ken Ken from a conceptual basis should I be thinking that.

Speaker Change: It's going to be based on that $1 6 million ounce resource at the end of ground with them.

Tanya Jakusconek: Okay, so it's just trying to get that balance between the two to just make it consistent. Is that a fair view of it? Yes. Okay, okay. Thank you for that. And then the second part on detour is we do have that study coming out at the end of the second quarter. Can, you know, from a conceptual basis, should I be thinking that it's going to be based on that 1.6 million ounce resource of the

Speaker Change: Released in February.

Speaker Change: Some additional.

Speaker Change: Sure.

Speaker Change: Resources that are coming in from pilot to Pik.

Speaker Change: Youre right.

Speaker Change: Yes, Youre right Danielle So as you know we are re looking at within the hour that you described so the inferred that we produced is here and also when you look at the larger resource pit that we show in Blue on the long section. So what portion of that could we mined quicker by accessing underground.

Speaker Change: So it will be a combined <unk> what could be within the resource pit what is outside of the west Youre right.

Tanya Jakusconek: You're right.

Guy Gosselin: So, there's not going to be any new additional ounces within your resource envelope. No, we're still, the study we will be producing will still be based on the number we produce at year-end, but we are obviously, we're still working on the next scenario that continues to integrate all of those nice drill holes. We have those, let's say, in the, an additional kind of mineral inventory that could help at the end, but what we will be looking at in the PEA will be the number from what we've added in at the year-end 2023.

Speaker Change: So it is not going to be any new additional ounces within your resource envelope.

Speaker Change: No. We're still study we will be producing will still be based on the number we produce at year end, but we are obviously, we are still working on the next scenario that continued to integrate all of those nice drill hole, we have those let's see and they up an additional kind of mineral inventory that could at enhancing but what we will be looking into <unk>.

Speaker Change: We'll be the number from what we've added and at year end 2023. So as you go into a picture Victor shot at certain point enzyme that we've kind of continued to update overtime.

Guy Gosselin: So, as you know, it's a picture shot at a certain point in time that we're going to continue to update over time. Okay, no, that's great. Thank you. And then my second question, maybe for Natasha and Dominique, I just wanted to ask, and I asked this for Neumont yesterday as well, is just on the costing side, you know, margins. We're finally seeing margins, strong margins out of the gold companies. And I just want to get an idea of the costs, the inflationary pressures, if any, have they eased, or are you seeing any relief, any pressures on your cost structure?

Speaker Change: Okay now that's great. Thank you and then my second question, maybe for Natasha and Dominic I just wanted to ask on <unk>.

Jack and I ask that Sarnia, Mont yesterday, as well as just on the costing side margins with financing margin.

Speaker Change: Strong margins out of the gold companies and I just wanted to get an idea on that cost.

Speaker Change: Great generic question any update there are you seeing any really any question on your cost structure.

Dominique Girard: Good morning, Tanya, and Dominique. I would say on inflation: it is stabilizing and maybe getting down a bit on the workforce, contractor. So this is good news. But I think what we need to protect to keep the margin is the cutoff break. So this is the part where I think we need to be disciplined to keep the margin. And I don't see any big inflation coming because of the gold price increase. I just see the danger that we need to be careful that we don't play too much with the cutoff rate or with the stable cutoff rate. It is more our philosophy.

Speaker Change: Good morning, Dominik I will say on the inflation it is stabilizing and maybe getting down a bit on the workforce contractor I will say, though this is a good news.

Speaker Change: What we need to to protect to keep the margin is that correct Greg.

Speaker Change: This is this is the part where.

Speaker Change: I think we need to be disciplined to keep the margin and.

Speaker Change: I don't see any big inflation coming because they love the gold price increase.

Speaker Change: Just the vendor that we need to be careful that we don't play too much with Dakota <unk>, we stay stable, where it is more of our philosophy.

Natasha Nella Dominica Vaz: Yeah, and same on my side, Tanya. We don't see any rise in costs. We're pretty stable from an inflation point of view, but we're continuing our efforts at renegotiating with our suppliers and finding the best optimal price that we can. We just had our board meeting yesterday, and really, Tanya, the emphasis there was... How do we reduce costs? I mean, we're working hard on making sure that the margin goes to our owners.

Speaker Change: And third one.

Speaker Change: Tanya we don't see any rise in costs pretty stable from an inflation point of view.

Speaker Change: But but we're continuing our efforts with nib renegotiating with our suppliers and finding the best.

Speaker Change: Optimal pricing that weekend.

Speaker Change: We just.

Speaker Change: We just had our board meeting yesterday and really tenure the emphasis there was how.

Speaker Change: How do we reduce costs I mean so.

Speaker Change: We're working hard on making sure that the margin goes to our owners and Tonya, maybe its a smaller drop in the overall cost structure, but at the end the drilling industry as well, which is in our contractor base. We have seen some easing into the cost there is a bit less activity and we've seen some reduction in costs in the drilling so overall.

Guy Gosselin: And Tanya, maybe it's a smaller drop in the overall cost structure, but in the drilling industry as well, which is, you know, contractor-based, we've seen some easing into the cost. There's a bit less activity, and we've seen some reduction in cost in drilling. So overall, we're quite pleased with that.

Speaker Change: All we are quite pleased with that.

Tanya Jakusconek: and can I just ask about cyanide and steel? You mentioned yesterday that they saw slight increases there. I'm just trying to see if that's the same for you guys.

Tonya: And can I, just ask about cyanide and scale Newmont mentioned yesterday that they saw slight increases there I'm just trying to see if that's the same for you guys.

Tonya: We haven't seen anything material.

Natasha Nella Dominica Vaz: We haven't seen

Tanya Jakusconek: Okay, that's possible. Thank you so much for that.

Tonya: Yes.

Speaker Change: Okay. That's helpful. Thank you. Thank you so much for that and if I could just one last exploration well.

Guy Gosselin: And if I could just put one last exploration question in from Guy. You know, Guy, that's a lot of, you know, interesting results that you're getting. And, you know, it looks like these things are getting bigger. For us, though, when do you think the market is going to be ready to get some, you know, results, some conceptual views of what this could be? I think we talked about Hope Bay maybe having something in 2025. Is that still fair that we would have something? Yeah, it is. It is still fair.

Speaker Change: Question then from from D.

Speaker Change: Gave us a lot of interesting results that you're getting in looks like these things are getting bigger.

Speaker Change: So when do you think the market is going to be ready to get some results.

Speaker Change: Satchwell views of what this could be I think we talked about maybe having something in 2025 is that still fair that we would hit his thinking.

Speaker Change: It is it is still fair so we're going to be obviously, focusing on bringing that new area to infer an indicated as possible and thats really what we are all over at the moment. So that we can but thats all youre right Obi.

Guy Gosselin: So we're obviously going to be focusing and bringing that new area to infer and indicate as possible. That's really what we are all over at the moment, so that we can put that so you're right. Hope Bay, you know, somewhere in 2025, we should be in a position, especially with those better results recently, to provide you with an update. And then can I ask about Odyssey? You know, we've got obviously, upside to the east, upside to the west.

Speaker Change: Some win in 2025, we should be in a position, especially with those better result recently to provide you with an update.

Speaker Change: And then can I ask about Odyssey.

Speaker Change: We've got obviously applied to the east to the west.

Guy Gosselin: We know what I know, it's all drilling dependent. But when do you think you know, you'd be ready in a couple of years that we need to wait to see something conceptual? I'm just trying to put a timeline together.

Speaker Change: I know, it's all drilling dependent but when do you think you'll be ready is it a couple of years that we need to wait to see something conceptional Im just trying to put a timeline.

Speaker Change: Yes.

Guy Gosselin: Yeah, it is drilling-driven. We're going to have an internal scenario coming in the second half of this year. I cannot commit to when we're going to have something more robust on that.

Speaker Change: Yes, it is really drilling driven.

Speaker Change: We're going to have internal scenario coming into second half this year.

Speaker Change: I cannot commit to when we're going to have something more on that.

Guy Gosselin: It'll be drilling-driven, as Dom said, so your timeline's not far off, Tanya.

Speaker Change: It will be drilling driven as Dom said, so your timeline is not far off Daniel.

Tanya Jakusconek: Great, congratulations, and thank you for answering my questions.

Speaker Change: Okay great.

Speaker Change: Ladies and gentlemen, thank you for answering my questions.

Ammar Al: Thank you. And that concludes the Q&A portion of today's call. I would like to turn it back to Mr. Ammar Al-Jandi for a closing remark.

Speaker Change: Thank you and that concludes the Q&A portion of today's call I would like to turn it back to Mr. Amaral Giambi for closing remarks.

Operator: Thank you, Operator, and thank you, everyone, for participating this morning. As a reminder, we are hosting our annual general meeting today at 11 a.m. at Arcadia Court in Toronto, and we hope to see some of you there. Thank you, everyone, and have a great weekend. Bye-bye.

Amaral Giambi: Thank you operator, and thank you everyone for participating this morning.

Amaral Giambi: As a reminder, we are hosting our annual general meeting today at 11, a M. At the Arcadia Court in Toronto, and we hope to see some of you. There. Thank you everyone and have a great weekend bye bye.

Operator: Thank you, presenters, and ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker Change: Thank you presenters, ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.

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Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: For.