Q2 2024 Agnico Eagle Mines Ltd Earnings Call

Good morning. My name is Lara and I'll be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Q2 2024 conference call.

Operator: At this time, I would like to welcome everyone to the Agnico Eagle Q2 2024 conference call. All lines have been placed on mute to prevent any background noise.

Operator: At this time, I would like to welcome everyone to the Agnico Eagle Q2 2024 conference call. All lines have been placed on you to prevent any background noise.

Operator: 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, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number 2.

Operator: 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 star, then the number one on your telephone keypad. If you would like to avoid your question, please press the star followed by the number two. Thank you.

Speaker Change: 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 star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number 2.

Ammar Aljundi: Mr. Amar Aljundi, you may begin your conference. Good morning, and thank you for joining us today. We are very excited to be reporting another exceptional quarter and to share with you some of the important work the teams are focused on to create additional value. Some of the highlights this quarter include continued strong operational performance with excellent cost control. This focus on cost control has allowed us to deliver four hour owners tremendous leverage to increase gold prices, as demonstrated by our third consecutive quarter of record free cash flow. A significantly strengthened investment grade balance sheet with over $900 million of cash at quarter end and $250 million of debt repaid in July.

Operator: Thank you. Mr. Ammar Al-Jundi, you may begin your conference. Good morning, and thank you for joining us today.

Speaker Change: Thank you. Mr. Ammar Al-Jundi, you may begin your conference.

Ammar Al-Jundi: We are very excited to be reporting another exceptional quarter and to share with you some of the important work that teams are focused on to create additional value. Some of the highlights this quarter include continued strong operational performance with excellent cost control. This focus on cost control has allowed us to deliver for our owners tremendous leverage to increased gold prices, as demonstrated by our third consecutive quarter of record free cash flow and a significantly strengthened investment grade balance sheet with over $900 million of cash at quarter end and $250 million of debt repaid in July.

Ammar Al-Jundi: Good morning and thank you for joining us today. We are very excited to be reporting another exceptional quarter and to share with you some of the important work that teams are focused on to create additional value.

Some of the highlights this quarter include continued strong operational performance with excellent cost control.

This focus on cost control has allowed us to deliver, for our owners, tremendous leverage to increased gold prices, as demonstrated by our third consecutive quarter of record-free cash flow.

A significantly strengthened investment-grade balance sheet with over $900 million of cash at quarter end and $250 million of debt repaid in July .

Ammar Aljundi: We continue our long-standing commitment to shareholder returns with $50 million in share buybacks in the quarter and almost $200 million paid out in the quarterly dividend, marking over 40 years consecutive quarterly dividends. Prudent, measured, and importantly economically driven reinvestment into the business, including approximately $50 million of supplemental exploration budget. Focus primarily on detour, melodic and hope they and based on exceptional ongoing exploration results and announcing the next steps to developing the upper beaver mine and expanding detour to potentially over a million ounces a year of annual production. Both investments based on exceptional projected risk-adjusted economic returns.

Ammar Al-Jundi: We continue our longstanding commitment to shareholder returns with $50 million in share buybacks in the quarter and almost $200 million paid out in the quarterly dividend, marking over 40 years of consecutive quarterly dividends, prudent, measured, and importantly, economically driven reinvestment into the business, including approximately $50 million of supplemental exploration budget focused primarily on Detour, Mallardic, and Hope Bay, and based on exceptional ongoing exploration results, and announcing the next steps to We continue to deliver stable, reliable, consistent operational results safely and responsibly in the most prospective and the most politically stable jurisdictions in the world.

Speaker Change: We continue our long-standing commitment to shareholder returns, with $50 million in share buybacks in the quarter, and almost $200 million paid out in the quarterly dividend, marking over 40 years of consecutive quarterly dividends.

Speaker Change: prudent, measured, and importantly, economically driven reinvestment into the business.

Speaker Change: Including approximately $50 million of supplemental exploration budget.

Speaker Change: Focused primarily on Detour, Malartic, and Hope Bay, and based on exceptional ongoing exploration results.

Speaker Change: Announcing the next steps to developing the Upper Beaver Mine and expanding Detour to potentially over a million ounces a year of annual production, both investments based on exceptional, projected, risk-adjusted economic returns.

Ammar Aljundi: We continue to deliver stable, reliable, consistent operational results safely and responsibly in the most prospective and the most politically stable jurisdictions in the world. With our strong first half results, we are very well positioned to reiterate our production and cost guidance for 2024.

Speaker Change: We continue to deliver stable, reliable, consistent operational results, safely and responsibly, in the most prospective and the most politically stable jurisdictions in the world.

Ammar Al-Jundi: With our strong first half results, we are very well positioned to reiterate our production and cost guidance for 2024. However, before we get into the operational and financial details, I'd like to take a moment to talk about safety and sustainability. The safety of our people, our partners, our communities, and our environment is paramount. Nothing is more important.

Speaker Change: With our strong first half results, we are very well positioned to reiterate our production and cost guidance for 2024.

Ammar Aljundi: However, before we get into the operational and financial details, I'd like to take a moment to talk about safety and sustainability. The safety of our people, our partners, our communities, and our environment is paramount. Nothing is more important. I'm proud to say we had another strong quarter on the safety and sustainability front. This performance has been recognized by our peers, with our teams recently winning several industry awards, including, to name just a few, on the safety front. From the Canadian Mining Institute of Mining, the John T. Ryan Safety Awards for 2023 for Eastern Canada to Canadian Melodic for the Prairie Provinces and Territories to Meliodine and for Canada nationally to Grow.

Speaker Change: However, before we get into the operational and financial details, I'd like to take a moment to talk about safety and sustainability.

Speaker Change: The safety of our people, our partners, our communities, and our environment is paramount.

Ammar Al-Jundi: I'm proud to say we had another strong quarter on the safety and sustainability front. This performance has been recognized by our peers, with our teams recently winning several industry awards, including, to name just a few on the safety front. From the Canadian Mining Institute, I'm sorry, from the Canadian Institute of Mining, the John T. Ryan Safety Awards for 2023 for Eastern Canada to Canadian Malartic, for the Prairie Provinces and Territories to Meliuddin, and for Canada nationally to Goldex. At the Mine Rescue Competitions, our mines won a total of eight awards, including five first-place awards.

Speaker Change: Nothing is more important.

Speaker Change: I'm proud to say we had another strong quarter on the safety and sustainability front. This performance has been recognized by our peers, with our teams recently winning several industry awards, including, to name just a few, on the safety front.

Speaker Change: from the Canadian Mining Institute.

Speaker Change: I'm sorry, from the Canadian Institute of Mining, the John T. Ryan Safety Awards for 2023 for Eastern Canada, to Canadian Malartic, for the Prairie Provinces and Territories, to Meliuddin, and for Canada nationally, to Goldex.

Ammar Aljundi: Our mine rescue competitions at the mine rescue competitions. Our minds want a total of eight awards, including five first place awards on sustainability front. Agnico Eagle's Laurent Complex was awarded the 2024 Towards Sustainable Mining Environmental Excellence Award presented by the Mining Association of Canada. And we also recently released our inaugural Reconciliation Action Plan and our 2023 Climate Action Report. As Sean Boyd, our chairman and longtime CEO, often says, it's not just what you do, but how you do it.

Speaker Change: At the Mine Rescue Competitions, our mines won a total of 8 awards, including 5 first place awards.

Ammar Al-Jundi: On the sustainability front, Agnico Eagle's Laron complex was awarded the 2024 Towards Sustainable Mining Environmental Excellence Award presented by the Mining Association of Canada, and we also recently released our inaugural Reconciliation Action Plan and our 2023 Climate Action Report. As Sean Boyd, our chairman and long-time CEO, often says, it's not just what you do, but how you do it. So well done to the team.

Speaker Change: On the sustainability front.

Speaker Change: Agnico Eagle's Laron Complex was awarded the 2024 Towards Sustainable Mining Environmental Excellence Award.

Speaker Change: Presented by the Mining Association of Canada And we also recently released our inaugural Reconciliation Action Plan and our 2023 Climate Action Report

Sean Boyd: As Sean Boyd, our Chairman and longtime CEO , often says, it's not just what you do, but how you do it. So well done to the teams.

Ammar Aljundi: So well done to the teams. In our first quarter call earlier this year, with gold prices and our revenue up significantly, we chose in that call not to focus on the record cash flows we generated, but instead to focus on cost control. We wanted to emphasize cost control because, while we don't control the gold price, we can work hard to control costs. And it is our strongly held and fundamental view that the benefit of higher gold prices must go to our owners, not to higher costs, and certainly not to bad projects. Our performance in this second quarter demonstrates that this focus on cost control is real.

Ammar Al-Jundi: In our first quarter call earlier this year, with gold prices and our revenue up significantly, we chose, in that call, not to focus on the record cash flows we generated but instead to focus on cost control. We wanted to emphasize cost control because, while we don't control the gold price, we can work hard to control costs, and it is our strongly held and fundamental view that the benefit of higher gold prices must go to our owners, not to higher costs, and certainly not to a bad project. Our performance in this second quarter demonstrates that this focus on cost control is real, and this focus is delivering results for our owners, with Q2 cash costs at $870 an ounce.

Speaker Change: In our first quarter call earlier this year, with gold prices and our revenue up significantly, we chose in that call not to focus on the record cash flows we generated, but instead to focus on cost control.

Speaker Change: We wanted to emphasize cost control because, while we don't control the gold price, we can work hard to control costs. And it is our strongly held and fundamental view that the benefit of higher gold prices must go to our owners, not to higher costs.

Speaker Change: and certainly not the bad projects.

Speaker Change: Our performance in this second quarter demonstrates that this focus on cost control is real and this focus is delivering results for our owners with Q2 cash costs at $870 an ounce.

Ammar Aljundi: And this focus is delivered, delivering results for our owners with Q2 cash costs at $870 an ounce. I can tell you with quite a bit of pride that at every mine, at every call, at every meeting, the teams remain laser focus not only on cost control, but on continuous improvement to make our operations more efficient, more productive, and to offset cost inflation where we can. And as we continue to deliver record cash flows and as we continue to accrue cash on our balance sheet, our focus is not only on continued cost control, but also on continued discipline when it comes to capital allocation.

Ammar Al-Jundi: I can tell you, with quite a bit of pride, that at every mind, at every call, at every meeting, the teams remain laser focused not only on cost control but on continuous improvement to make our operations more efficient, more productive, and to offset cost inflation where we can. And as we continue to deliver record cash flows, and as we continue to accrue cash on our balance sheet, our focus is not only on continued cost control but also on continued discipline when it comes to capital allocation. This is your money,

Speaker Change: I can tell you with quite a bit of pride

Ammar Aljundi: This is your money. We remain as committed to disciplined capital allocation at $2,300 gold, at $2,400 gold, as we were at $1,800 gold. In fact, the projects we will talk about today, Canadian melodic detour underground upper beaver, are exactly the same projects we talked about a year ago when gold prices were $1,800. We are moving ahead in exactly the same manner at exactly the same measured pace as we guided at the beginning of the year. As a reminder, Detour Underground were investing in an exploration ramp and bulk sample to de-risk the project. At Upper Beaver, we are investing in an exploration shaft, a shallow ramp, and bulk samples to de-risk the project.

Ammar Al-Jundi: We remain as committed to disciplined capital allocation at $2,300 gold, at $2,400 gold, as we were at $1,800 gold. In fact, the projects we will talk about today, Canadian Malartic, Detour Underground, Upper Beaver, are exactly the same projects we talked about a year ago when gold prices were $1,800. We are moving ahead in exactly the same manner, at exactly the same measured pace as we guided at the beginning of the year.

Ammar Al-Jundi: As a reminder, at Detour Underground, we're investing in an exploration ramp and bulk samples to de-risk the project. At Upper Beaver, we are investing in an exploration shaft, a shallow ramp, and bulk samples to de-risk the project. Again, these are the same projects and the same steps we guided in both February and April. The total spent for both of these combined is expected to be about $100 million a year over the next three years.

Speaker Change: As a reminder, at Detour Underground, we're investing in an exploration ramp and bulk sample to de-risk the project.

Ammar Aljundi: Again, these are the same projects and the same steps we guided in both February and April. Total spent for both of these combined is expected to be about $100 million a year over the next three years. This is a measured and responsible approach. These are great projects with great economics. With tremendous upside to expand and extend my life. They are straight down the fairway of what we do and what we've done. These are not new projects in countries we've never been to before. They are in our backyard, and we've done our homework. We have the people, the skills, the resources to take these projects prudently to the next level.

Ammar Al-Jundi: This is a measured and responsible approach. These are great projects with great economics, with tremendous upside to expand and extend mine life. They are straight down the fairway of what we do and what we've done before. These are not new projects. In countries we've never been to before, they are in our backyard, and we've done our homework.

Speaker Change: These are great projects with great economics.

Ammar Al-Jundi: We have the people, the skills, and the resources to take these projects prudently to the next level. Again, we're talking about $100 million a year over the next three years. Our goal is to deliver projects that not only have a great return on capital but also a great risk-adjusted return on capital. That's what we mean by disciplined capital allocation, and that's what we aim to deliver with these investments in the business. And with that introduction and summary, I now turn the presentation over to our CFO, Jamie Porter, who will go over our financial results. Jamie?

Ammar Aljundi: Again, we're talking about $100 million a year over the next three years. Our goal is to deliver projects that not only have a great return on capital, but also a great risk-adjusted return on capital. That's what we mean by discipline, capital allocation, and that's what we aim to deliver with these investments into the business.

James Porter: With that introduction and summary, I now turn the presentation over to our CFO, Jamie Porter, who will go over our financial results. Jamie, thank you more. As mentioned, we have had a very strong first half of the year, delivering consistent operational results and excellent cost performance. In the current higher gold price environment, our focus has been on ensuring that the benefit of higher prices accrues to the bottom line, and that we deliver strong financial results. We've certainly demonstrated that this quarter. We generated record financial results for a third consecutive quarter with a just city bed of approximately 1.2 billion and free cash flow of over half a billion dollars in the second quarter.

Jamie Porter: And that's what we aim to deliver with these investments into the business. And with that introduction and summary, I now turn the presentation over to our CFO , Jamie Porter, who will go over our financial results. Jamie? Thank you, Ammar.

Jamie Porter: Thank you, Ammar. As mentioned, we have had a very strong first half of the year, delivering consistent operational results and excellent cost performance. Moving on to slide five, we significantly strengthened our balance sheet, increased our liquidity to $2.9 billion, and reduced our net debt to under $1 billion. We also increase returns to shareholders through 50 million share buybacks. In July, we repaid $100 million of senior notes at maturity.

Jamie Porter: We generated record financial results for a third consecutive quarter, with adjusted EBITDA of approximately $1.2 billion, and free cash flow of over half a billion dollars in the second quarter.

James Porter: One of the key drivers to our strong financial results has been our focus on cost control. Cash costs were below the low end of our guidance in the quarter, driven by the strong operating results and the benefit of the weaker Canadian dollar, which was partially offset by higher royalty costs, which are linked to the gold price. With respect to all in sustaining costs, we came in at $31 an ounce below the low end of guidance. This was driven by the lower cash costs as well as deferred sustaining capital.

Jamie Porter: One of the key drivers to our strong financial results has been our focus on cost control.

James Porter: We do expect our all-in sustaining costs to increase in the third quarter as we catch up on sustaining capital. Our all in sustaining costs are hundreds of dollars per ounce below our peers, and our all in sustaining costs margin increased to 50% in the quarter, which is amongst the best in our industry. Taking a closer look at our financial highlights, our revenues increased by 21% over the second quarter of 2023 to over 2 billion. Importantly, our adjusted EBITDA increased by 33%, and our free cash flow increased by over 80% when compared to the prior year period.

James Porter: On an adjusted basis, net income per share was $1.7 in the second quarter, a 65% increase relative to the prior year.

James Porter: Overall, we had strong financial results for the quarter and first half of the year.

James Porter: We move on to slide five. During the quarter, we significantly strengthened our balance sheet, increased our liquidity to 2.9 billion, and reduced our net debt to under 1 billion. All supported by record free cash flow. We also increased returns to shareholders through 50 million of share buybacks. In July, we repaid 100 million of senior notes on maturity. We also made an accelerated payment of 150 million on our 600 million term loan facility, bringing our total debt repayment subsequent to quarter end to 250 million. We continue to prioritize returns to shareholders, with our dividend and share buybacks representing nearly 50% of the free cash flow we generate in the first half of the year.

Jamie Porter: All supported by record free cash flow.

Jamie Porter: We also increase returns to shareholders through 50 million of share buybacks.

Jamie Porter: We continue to prioritize returns to shareholders, with our dividend and share buybacks representing nearly 50% of the free cash flow we generate in the first half of the year. We plan to continue to strengthen our balance sheet, reinvest in the business, and opportunistically buy back shares.

James Porter: We plan to continue to strengthen our balance sheet, reinvest in the business, and opportunistically buy back shares.

James Porter: We move on to slide six. This slide really highlights our disciplined approach to capital allocation. When comparing to what we budgeted at the start of the year using the $1,800 gold price, we now forecast generating an additional $1 billion of incremental after-tax cash flow. We expect that approximately 80% of that incremental after-tax cash flow will be allocated to continued strengthening of our financial position and share buybacks. We also continue to reinvest in our business. We focus on projects with solid risk-adjusted returns and advance them in a phased, measured manner with incremental capital spending. We are also providing a supplemental exploration budget of 50 million for this year based on the positive drill results we've seen at some of our key projects.

Speaker Change: We move on to slide six.

Speaker Change: We now forecast generating an additional $1 billion of incremental after-tax cash flow.

Speaker Change: We also continue to reinvest in our business. We focus on projects with solid risk-adjusted returns and advance them in a phased, measured manner with incremental capital spending.

Speaker Change: We are also providing a supplemental exploration budget of $50 million for this year, based on the positive drill results we've seen in some of our key projects that Guy will go over later in the presentation.

James Porter: Foundation. While we continue to focus on our portfolio of high quality internal growth projects, we complement this with our strategy of acquiring strategic to hold positions in emerging high quality opportunities, to something that Agnico Eagle has done for decades.

Speaker Change: While we continue to focus on our portfolio of high-quality internal growth projects, we complement this with our strategy of acquiring strategic toehold positions in emerging high-quality opportunities.

James Porter: The theme of our first quarter conference call was cost discipline. This quarter we want to highlight that we also remain very focused on capital discipline. We're taking a measured approach with our organic growth projects, again to ensure that the benefit of rising gold prices accrues to our balance sheet and to our shareholders.

Speaker Change: We're taking a measured approach with our organic growth projects, again, to ensure that the benefit of rising gold prices accrues to our balance sheet and to our shareholders.

Dominique Girard: I'll now turn the call over to Dom, who will provide an overview of our operational results.

Dominique Girard: Thank you, Jimmy. Good morning, everyone. Today I will cover all the operations I liked on behalf of Natasha and myself. I will also provide an update on the DC, and Natasha will provide an update, provide updates on the tour and on upper river pipeline project.

Speaker Change: I'll now turn the call over to Dom who will provide an overview of our operational results.

Dom: Thank you, Jimmy. Good morning, everyone. Today, I will cover all the operations I liked on behalf of Natasha and myself. I will also provide an update on the DC and Natasha will provide an update, provide updates on detour and on Upper Beaver Pipeline Project.

Dominique Girard: In Q2, excellent operational performance all across the board with a quarterly production close to 900,000 ounces at a cash cost of $870 per ounces and record operating margin of 1.3 billion. Some of the highlights include at Kennedy Merarti, delivering another strong quarter with a gold production ahead of the plan, mainly with higher throughput at the meal, higher gold recoveries, and higher gold rate, as we access higher grade zone ahead of the schedule. So overall, an excellent quarter, an excellent first half of the year for Kennedy Merarti. Larone also benefited from higher gold rate, from the favorable mining sequence.

Speaker Change: In Q2, excellent operational performance all across the board with the core lead production close to 900,000 ounces at a cash cost of $870 per ounces and record operating margin of $1.3 billion.

Speaker Change: Great Zone ahead of the schedule. So overall an excellent quarter, an excellent first half of the year for Canada Emeriti.

Speaker Change: Laron also benefited from higher gold grade from a favorable mining sequence.

Dominique Girard: In Ontario, my case I continued to ramp up its meal throughput, setting another quarterly record in Q2. And at the tour, they achieved a new Easter recall quarterly record about meal availability at 93%; budget was at 91.6. The average meal throughput improved through the quarter with an introduction of new grinding media and some new controls, and they reached in June 81,000 done per day average. At Fosterville, the mine site focused on increasing meal and mining rate, and they set also new records for quarterly records on the tonne mine and the monthly record on the tonne meal in June.

Speaker Change: In Ontario, myCASA continued to ramp up its mill throughput, setting another quarterly record in Q2.

Speaker Change: And at Detour, they achieved a new historical quarterly record about meal availability at 93%.

Speaker Change: Budget was at 91.6. The average mill throughput improved through the quarter with an introduction of new grinding media and some new controls, and they reached, in June , 81,000 tons per day, average.

Speaker Change: At Fosterville, the mine site focused on increasing mill and mining rate, and they set also new records, so a quarterly record on the tonne mine and a monthly record on the tonne mill in June .

Dominique Girard: In Nunavut, Middle Bank, Millia Dean continued to all perform, both operation have made good progress to unlock their underground potential, and it is paying off. The strong performance is a key driver to our excellent total cash cost for the quarter at 870, which is below the low end of our annual guidance. But, as I more mentioned, our cost performance is also driven by continuous focus on cross control and optimizing our operations. Here's some example. Our Nunavut site deserves a gold medal. They have implemented a strong continuous improvement culture, sitting stretch target and beating them, and on top of that, both of them reach health and safety records into two.

Speaker Change: In Nunavut, Medobank, Milliadene continue to outperform, both operations have made good progress to unlock their underground potential, and it is paying off.

Speaker Change: which is below the low end of our annual guidance. But, as Ammar mentioned, our cost performance is also driven by continuous focus on cost control and optimizing our operations.

Speaker Change: Here's some example.

Speaker Change: Our Nunavut sites deserve a gold medal. They have implemented a strong continuous improvement culture, setting stretch targets and beating them. And on top of that, both of them reach health and safety records in Q2.

Dominique Girard: The main gains are on the productivity improvement, which affect a very good cash cost performance, but also they are benefiting from cost management discipline, focusing on what matters from them, like the supply chain, flight, sea lift, inventory, and also energy savings. For example, more recently, they took action to reduce their footprint by closing some buildings that were no longer required, saving on the internet, but also, more importantly, on energy. What we've learned from it and what is the beauty about the nervous success is the way this has been done, 100% done by site management. It is so great to see the teams proud of their achievement.

Speaker Change: The main gains are on the productivity improvement, which affects a very good...

Speaker Change: cash cost performance, but also they are benefiting from cost management discipline, focusing on what matters from them, like the supply chain, flight, sea lift, inventory, and also energy savings.

Speaker Change: For example, more recently, they took action to reduce their footprint by closing some buildings that were no longer required, saving on maintenance, but also, more importantly, on energy costs.

Speaker Change: What we've learned from it and what is the beauty about the Nervous Success is the way this has been done, 100% done by site management. It is so great to see the teams proud of their achievement.

Dominique Girard: We believe this is the way to grow our talent and to achieve our business goals.

Speaker Change: We believe this is the way to grow our talent and to achieve our business goals.

Dominique Girard: So overall, with our strong performance in the first half, we are highly confident that we can achieve our production, cost guidance, production and cost guidance for the full year.

Speaker Change: So overall, with our strong performance in the first half, we are highly confident that we can achieve our production and cost guidance for the full year.

Dominique Girard: Next slide. With Odyssey project, very well, it is developing on track, so record quarterly mining rate and goal production from the Odyssey South deposit. The RAM development was ahead of the schedule, helped by more teleremotes, group operation, and the addition of the new 65-tonner truck for the hauling fleet. At the quarter end, the RAMP reached the third production level at its beauty at 822 meters below surfaces. Shaft thinking is also advancing well, reaching 600 ED meter depth at the quarter end.

Jamie Porter: We also made an accelerated payment of $150 million on our $600 million term loan facility, bringing our total debt repayment subsequent to quarter end to $250 million, which is below the low end of our annual guidance. With the ODYSSEY project going very well. It is developing on track. So record quarterly mining rate and gold production at the ODYSSEY South deposit. On that, I will now pass it on to Natasha, who will discuss other projects, such as Key Value Drivers, Detour Underground, and Upper Beaver.

Speaker Change: Next slide.

Speaker Change: With ODYSSEY project, very well. It is developing on track. So record quarterly mining rate and gold production from the ODYSSEY South deposit.

Speaker Change: The ramp development was ahead of the schedule, helped by more tele-remote scoop operation and the addition of the new 65-tonner truck for the hauling fleet. At the quarter-end, the ramp reached the third production level at Yizgudi, at 832 meters below surface.

Speaker Change: Shaft syncing is also advancing well, reaching 680 meter depth at a quarter end.

Dominique Girard: Overall, Odyssey is developing as a planet and is expected to be the largest underground mining in Canada. But stay tuned. We are ramping up the drills from 16 in the first half of the year, up to 23 in the second half of the year. It is our biggest drilling program ever at Canadian Monarchic.

Speaker Change: Overall, ODYSSEY is developing as planned and is expected to be the largest underground mine in Canada.

Speaker Change: But stay tuned, we are ramping up the drills from 16 in the first half of the year up to 23 in the second half of the year. It is our biggest drilling program ever at Canadian Antarctic.

Natasha Vaz: On that, I will now pass on this to Natasha, who will discuss other projects, key value drivers, the tour underground and Upper Beaver. Thanks, Tom. And good morning, everyone. So I'll touch on the two projects in Ontario that we're pretty excited about because it's an opportunity. It's an opportunity to grow low-risk, profitable production in a province that, in my opinion, anyway, is one of the best mining jurisdictions in the world.

Speaker Change: On that, I will now pass it on to Natasha, who will discuss other projects, Key-Value Drivers, Detour Underground, and Upper Beaver.

Natasha: Thanks, Dom, and good morning, everyone.

Natasha: So I'll touch on the two projects in Ontario that we're pretty excited about because it's an opportunity. It's an opportunity to grow low-risk, profitable production in a province that, in my opinion anyway, is one of the best mining jurisdictions in the world.

Natasha Vaz: So the first project is Detour Underground. We provided an update on this project in June, and it outlined a pathway for Detour to be a 1 million ounce producer annually for over a 14-year period, beginning as early as 2030. Now, if we were to use the current goal prices, during that time period, we would generate over 1 billion in free cash flow per year from Detour alone. The Detour Underground project is not just a good return on capital. As Amar mentioned, it's a good risk-adjusted return on capital. Now, Dom already touched on this from an operating standpoint, but I just wanted to highlight this again, and that's our focus on cost and capital discipline in all aspects of our business.

Jamie Porter: So the first project is Detour Underground. We provided an update on this project in June, and it outlined a pathway for Detour to be a 1 million ounce producer annually for over a 14 year period, beginning as early as 2030, and Bernardt on Flight 12, just that 400 meter depth. At Agnico Eagle, we strive to build a simple, high-quality business that generates great returns for our owners. The mandate our owners give us is simple.

Speaker Change: So the first project is Detour Underground. We provided an update on this project in June and it outlined a pathway for Detour to be a 1 million ounce producer annually for over a 14 year period beginning as early as 2030.

Speaker Change: Now, if we were to use the current gold prices, during that time period, we would generate over $1 billion in free cash flow per year from detour alone.

Speaker Change: The Detour Underground Project is not just a good return on capital. As Ammar mentioned, it's a good risk-adjusted return on capital.

Speaker Change: Now Dom already touched on this from an operating standpoint, but I just wanted to highlight this again.

Ammar Al-Jundi: And that's our focus on cost and capital discipline in all aspects of our business.

Natasha Vaz: Now, as Amar and Jamie said, from a project perspective, we're taking a pretty disciplined and phased approach to further de-risk the project with a measured investment of 100 million in capital over the next three years. And that's to develop the first develop an exploration ramp, and then to collect a bulk sample, and then at the same time facilitate infill and expansion drilling to convert, and then potentially grow the recurrent mineral resource.

Speaker Change: Now, as Ammar and Jamie said, from a project perspective, we're taking a pretty disciplined and phased approach to further de-risk the project with a measured investment of $100 million in capital over the next three years.

Speaker Change: And that's to develop, to first develop an exploration ramp and then to collect a bulk sample and then at the same time facilitate infill and expansion drilling to convert and then potentially grow the current mineral resource.

Natasha Vaz: And speaking of drilling, we continue to see positive exploration results from along the western plunge of the deposit, and Guy will discuss this later on in his presentation. Foundation.

Speaker Change: Speaking of drilling, we continue to see positive exploration results along the western plunge of the deposit and Guy will discuss this later on in his presentation.

Natasha Vaz: Now moving over to the Upper Devert Project, this is another low-risk opportunity to grow the production profile in a camp that we know pretty well. In fact, we expect this project to leverage and benefit from our technical expertise and our workforce at Macata. With the internal assessment that we've completed, we've outlined a stand-alone mill concept, but we continue to evaluate our transportation options specifically at Laurent. So based on this internal assessment, we see the potential for Upper Devert to be a low-cost, long-life project with a solid risk-adjusted return and upside potential that supports moving us to the next phase.

Guy: Now moving over to the Effort VEFA project.

Guy: This is another low-risk opportunity to grow the production profile in a camp that we know pretty well.

Guy: In fact, we expect this project to leverage and benefit from our technical expertise and our workforce at MACASA.

Guy: With the internal assessment that we've completed, we've outlined a stand-alone mill concept, but we continue to evaluate ore transportation options specifically at La Ronde.

Guy: So based on this internal assessment, we see the potential for Upper Beaver to be a low-cost, long-life project with a solid risk-adjusted return and upside potential that supports moving us to the next phase.

Natasha Vaz: And so, like Ditor Underground, we'll be taking a steady and a disciplined approach to de-risk and optimize this project, starting with a measured investment of 200 million over a three-year period. And this is to first develop an expiration shaft and then an expiration ramp. And then collect two bulk samples, one in the upper level of the deposit using the expiration ramp to test the shallow mineralization in the basalt. And then the second bulk sample will be using the shaft to test a deeper, pour-free mineralization that holds a large portion of our resources. As well, during this time frame, we'll be developing underground drilling platforms to convert and then expand the current mineral resources.

Guy: And so, like Detour Underground, we'll be taking a steady and a disciplined approach to de-risk and optimize this project, starting with a measured investment of $200 million over a three-year period. And this is to first develop an exploration shaft and then an exploration ramp.

Guy: As well, during this time frame, we'll be developing underground drilling platforms to convert and then expand the current mineral resources.

Natasha Vaz: But we don't just see the expiration potential at depth. We also see the opportunity for Upper Devert to unlock the potential in the region.

Guy: But we don't just see the exploration potential at depth. We also see the opportunity for Upper Beaver to unlock the potential in the region.

Guy Gosselin: And so with that, I'll pass it over to Guy to explain the potential a little bit more.

Speaker Change: And so with that, I'll pass it over to Guy to explain the potential a little bit more.

Guy Gosselin: Thank you, Natasha, and good morning, everybody. To start with, I'm very happy to provide additional information on the Upper Devert project. Going on flight 11, since the previous PFES study in 2017, there's been a lot of work done by the exploration team on site by our technical services group and by our project study team, integrating more than 225,000 meters of drilling and 440 drill holes completed over the year since the last study. This additional drilling helped the risking the judge's goal model by fulfilling, also by expanding the resources base. The interpretation of the Orbadi was completely refreshed, and the updated mineral resources system for the new internal PE study now total 3.4 million ounces of indicated resources, with that additional 0.4 million ounces of infer resources.

Guy: Thank you, Natasha, and good morning, everybody. To start with, I'm very happy to provide additional information on the Upper Beaver project. Going on slide 11.

Guy: The interpretation of the ore body was completely refreshed, and the updated mineral resources estimate for the new internal PE study now total 3.4 million ounces of indicated resources, with an additional 0.4 million ounces of inferred resources.

Guy Gosselin: These results show significantly higher potential than the 1.4 million ounces mineral reserve contemplated to be mined by the historic study in 2017. We now expect that the large portion of the new indicated resources will be brought to mineral reserve at Iran.

Guy Gosselin: This new PE study and the three-year advanced exploration phase that we are about to undertake will allow to further erase the project through the collection of the bulk sample that was described by Natasha. While we continue exploration around a per beaver deposit and the address in deposit in the camp, such as a per beaver, a such as a per Canada and a chemic beam, to develop the full potential of the currently camp that we now own 100% from the macasamine to your per beaver project following the merger. with the ability of leveraging operational synergies, expanding our global mineral-reservant resources at the camp that already exceed 10 million ounces in our category.

Guy Gosselin: All of that within a camp that has over a hundred years of mining history and more than 40 million ounces of historical gold production.

Guy Gosselin: Next, we're also pleased to announce that following the exploration result received in the first half of 2004, in particular in Kenyla Morarte, D-Tour in Obede, that we're increasing the exploration budget by 50 million for a second half. We believe that this will lead to another successful year of growth in mineral-reservant mineral resources at our keyword driver project.

Guy Gosselin: At Monartic, on flight 12, in the E-School D-Deposit, Adoriadesae mine, recent exploration drilling continue to demonstrate the potential to grow the deposit laterally, with good result both on the eastern and western extension, outside of the current footprint of the mineral-reservant line. The result from the ongoing exploration program are anticipated to have a positive impact on the mineral resources system at the Iran and continue to support our view to improve the throughput of the underground mine in the future as reserve and resources continue to grow laterally. And also supporting the potential to develop new underground mining area, this is core to our Felda Mil strategy in Monartic.

Speaker Change: In the East Gouldie deposit at the Odyssey Mine, recent exploration drilling continues to demonstrate the potential to grow the deposit laterally, with good results both on the eastern and western extension, outside of the current footprint of the Mineral Reserve Outline.

Speaker Change: The results from the ongoing exploration program are anticipated to have a positive impact on the mineral resources system at ADRM and continue to support our view.

Speaker Change: to improve the throughput of the underground mine in the future as reserve and resources continue to grow laterally and also supporting the potential to develop new underground mining area. This is core to our fill-the-mill strategy in Monarchic.

Guy Gosselin: Moving to slide 13, a D-Tour on the ground, infield drilling, as previously mentioned by Natasha, continues to deliver a high-grade result in the high-grade core of the deposit below into the west of the reserve open pit. This continues to confirm good grade and continuity of the high-grade corridor that we describe at our June update. As demonstrated by recent results, that's 4 gram over 22 meter, 4.4, or 30, 20 gram over 5.4, all of that between 300 and 550 meter near the proposed exploration ran recently announced in June. Those results continue to support our view that the underground project first presented about a month ago in June has great potential to continue to grow and will help at bringing D-Tour mine site, combining open pit and the underground, to the select club of a million ounces of gold per year producer for years to come.

Speaker Change: Moving to slide 13, a detour on the ground. Infill drilling, as previously mentioned by Natasha, continue to deliver a high-grade result in the high-grade core of the deposit, below and to the west of the reserve open pit.

Natasha: As demonstrated by recent results, that's 4 g over 22 m, 4.4 over 30, 20 g over 5.4, all of that between 300 and 550 m near the proposed exploration ramp recently announced in June.

Speaker Change: Those results continue to support our view that the underground project first presented in about a month ago in June has great potential to continue to grow.

Guy Gosselin: And finally, on slide 14, in the deposit in the patch of a zone, exploration drilling continue to return excellent results up to 17 gram over 25 meter estimated through thickness, just at 400 meter depth. Further confirming, the larger thicknesses had higher gold grade in this new zone compared to a circle mineral reserve and resources at ob-b mine. These results are expected to lead to a significant increase in grade and total mineral resources that he ran 24 supporting our view for the potential to develop a larger operation at ob-b in the near future.

Speaker Change: And finally, on Flight 14, in the Madrid Deposit in the Patch 7 Zone, exploration drilling continued to return excellent results up to 17 g over 25 m, estimated through thickness.

Speaker Change: Further confirming.

Ammar Aljundi: Inclusing Agnico Eagle as a strong pipeline of internal exploration project with work-class exploration potential and, more importantly, around existing infrastructure in safe jurisdiction that we can leverage with our own internal expertise and on that our return to my to our bar for some chosen remarks.

Ammar Aljundi: Thank you, Guy, and very exciting stuff. It's great work to you and the team. At Agnico Eagle, we strive to build a simple, high-quality business that generates great returns for our owners. The mandate our owners give us is simple. Our owners want Agnico Eagle to be the best place to invest in the gold space. That means one, giving them the best leverage to increase in gold prices, and two, giving them this leverage with a reasonable risk profile.

Speaker Change: I will return the mic to Ammar for some closing remarks.

Operator: Our owners want Agnico Eagle to be the best place to invest in the gold sector and the best Senior Gold Producer that we can be. Fund Project Growth to Strengthen the Balance Sheet and to Return Capital to Shareholders, as demonstrated by over 40 years of continuous quarterly dividend payments. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press star followed by the number 2. If you are using a speakerphone, please lift your hands up before pressing any key.

Speaker Change: That means one, giving them the best leverage to increase in gold prices, and two, giving them this leverage with a reasonable risk profile. And the strategy we use to deliver on this mandate is the same strategy we've used for over 60 years.

Ammar Aljundi: And the strategy we use to deliver on this mandate is the same strategy we've used for over 60 years. One, we want to focus on low-risk mining jurisdictions, jurisdictions that have multiple mines, multiple-decade geologic potential, and districts that have political stability for multiple decades. We want to focus on the regions we know well, and we want to have a simple, manageable business in those regions.

Ammar Al-Jundi: One, we want to focus on low-risk mining jurisdictions, jurisdictions that have multiple mine, multiple decade geologic potential, and districts that have political stability for multiple decades.

Ammar Aljundi: Two, we want to be the highest quality senior gold producer that we can be. That means high ESG standards based on a multi-decade investment horizon. That means discipline capital investments based on knowledge and experience in the regions we operate. And that means creating value through the drill bit and through technical expertise. We feel we are uniquely positioned with robust land packages in core mining jurisdictions with the unique potential to leverage existing capital and existing assets. We believe we have a competitive; we know we have a competitive advantage from over 50 years of operating in the regions where we are.

Speaker Change: That means disciplined capital investments based on knowledge and experience in the regions we operate. And that means creating value through the drill bit and through technical expertise.

Ammar Aljundi: And we believe we have unique mining experience and expertise in none of it in the Canadian North.

Ammar Aljundi: And finally, always focused on financial returns with an emphasis on per share metrics, maintaining a strong financial position to fund project growth, to strengthen the balance sheet, and to return capital to shareholders, as demonstrated by over 40 years of continuous quarterly dividend payments. So thank you all once again for joining us, and thank you in particular to all of our employees who delivered such a great quarter safely.

Speaker Change: And finally, always...

Ammar Aljundi: And with that, we end our presentation and open for questions. Thank you, sir.

Operator: Ladies and gentlemen, you will not begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press star followed by the number two. If you are using a speaker phone, please lift your hands up before pressing any. Again, should you have a question, please press star, followed by the number one on your touch-tone phone.

Speaker Change: Should you have a question, please press star followed by the number 1 on your touchtone phone. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press star followed by the number 2.

Operator: One moment, please, for your first question.

Joshua Wolfson: Our first question comes from the line of Josh Wolfson from RBC Capital Markets.

Speaker Change: Our first question comes from the line of Josh Wolfson from RBC Capital Markets. Go ahead, please.

Ammar Aljundi: Go ahead, please. Thanks very much. First question on Upper Beaver. I'm just curious about understanding the economic decision to progress this on a standalone basis. I guess I'm wondering if there are any other opportunities to maybe leverage the infrastructure the company's talked about historically across the habitivity to reduce some of that capex, or is this the best plan going forward?

Josh Wolfson: Thanks very much. First question on Upper Beaver. I'm just curious about understanding the economic decision to...

Ammar Aljundi: Hi, Josh. It's Ammar, and thank you for that question. There is absolutely an opportunity to continue to consider leveraging existing infrastructures. As Natasha mentioned, we are still looking at the transport option to Laurent, which would obviously materially reduce the capital that we would have to spend. The numbers we've given Josh are based on an onsite mill, because even with an onsite mill, the returns on this are quite strong at current levels. It's an excess of 20%. So given, as you would know, that the longest driving factor is the shaft, and given that the shaft is independent of where you have the plant, what we've decided to do is basically we've said, look, worst case scenario, we build a mill; it still makes a lot of money for our shareholders.

Speaker Change: Hi Josh, it's Ammar and thank you for that question.

Speaker Change: There is absolutely an opportunity to continue to consider leveraging existing infrastructure. As Natasha mentioned, we are still looking at the transport option to Le Ronde.

Speaker Change: which would obviously materially reduce the capital that we would have to spend. The numbers we've given, Josh,

Speaker Change: are based on an on-site mill, because even with an on-site mill, the returns on this are quite strong. At current levels, it's in excess of 20%.

Speaker Change: So, given, as you would know, that the...

Speaker Change: Longest driving factor is the shaft.

Speaker Change: And given that the shaft is independent of where you have the plant, what we've decided to do is, basically we've said, look, worst case scenario, we build a mill, it still makes a lot of money for our shareholders, so let's get started on that shaft, because it's a great investment.

Ammar Aljundi: So let's get started on that shaft, because it's a great investment. But to your point, absolutely, we are still looking at transportation to Laurent. And if we were to do that, obviously it would be because it improves the economics.

Speaker Change: But to your point, absolutely, we are still looking at transportation to La Ronde, and if we were to do that, obviously it would be because it improves the economics.

unknown: God, thanks.

unknown: Next question is on East Goldie. In terms of some of the infill drilling that's been identified on what looks like a pretty large area.

Speaker Change: Got it, thanks.

Speaker Change: Next question is on East Gouldie, in terms of some of the infill drilling.

Speaker Change: that's been identified on what looks like a pretty large area. And then the comments, I guess, much more clearly this quarter about the potential for a second shaft.

unknown: And then the comments, I guess, much more clearly this quarter about the potential for second shaft.

unknown: I guess I'm wondering, given that the first underground project at Melardic was advanced within for resource PE level, would this resource extension give you the confidence to be able to progress or make a decision for a second shaft, or what time frame could we have the information that would be able to advance that or not advance that? Josh Geespeaking, we're still getting some strong results on both sides, both to the east to the west and both of them west and east extension are not, I would say, tightly drilled enough yet to make those kind of, so this is some of the internal consideration we're currently having.

Speaker Change: I guess I'm wondering, you know, given that the first underground project at Malartic was advanced, I guess I'm wondering, you know, given that the first underground project at Malartic

Speaker Change: you know, with an inferred resource at PE level. You know, would this resource extension give you the confidence to be able to progress or make a decision?

Speaker Change: for a second shaft or what sort of time frame could we have the information that would be able to advance that or not advance that?

Guy: Hi Josh, Guy speaking.

Speaker Change: We're still getting some...

Speaker Change: strong result on both sides, both to the east, to the west, and both of them, west and east extension, are not, I would say, tightly drilled enough yet.

Speaker Change: to make those kind of, so this is, you know, some of the...

unknown: So by increasing the 12 program by year, we want a tight fill that area where we've been getting some pretty high grade and good thickness in the east as well as to the west. And it's going to help further down the road at making up our mind about what needs to be done and where.

Speaker Change: internal consideration we're currently having.

Guy: So, by increasing the drill program by year-end, we want to tight-fill that area where we've been getting some pretty high-grade and good thickness in the east as well as to the west, and that's going to help further down the road at making up our mind about what needs to be done and where.

unknown: Yeah, I mean, to be sure, we are very excited about the results, Josh, and, you know, it's actually progressing probably faster and better than we had anticipated. But, you know, as Guy said, and, you know, where you put the shaft is pretty important, and that's going to be defined largely by, you know, the right place to put a shaft. But certainly we, we love what we're seeing.

Unknown Speaker: We are very excited about the results, Josh, and, and, Okay. And if I can sort of tuck in one more. We've been there a long time. It's the same mill. We're currently building a shaft. If we build another shaft. Our next question comes from the line of Anita Soni from CIBC World Markets. Go ahead. Hi, good morning.

Speaker Change: Yeah, I mean, to be sure...

Guy: We are very excited about the results, Josh.

Josh Wolfson: You know, it's actually progressing probably faster and better than we had anticipated.

Guy: As Guy said, where you put the shaft is pretty important and that's going to be defined largely by the ore body, again defined by drilling.

Speaker Change: You know, we're not at a position yet to say absolutely this is the right place to put a shaft, but certainly we love what we're seeing.

unknown: Got it, and if I can sort of tuck in one more, there's a bunch of projects the company is sort of, you know, evaluating at this point. I guess more recently, Dietcher Underground and Upper Beaver, still a number beyond that in the pipeline, and then this quarter, there is a large equity investment made in a junior developer in the basement of space.

Speaker Change: And if I can sort of tuck in one more.

Speaker Change: There's a bunch of projects the company is sort of, you know, evaluating at this point. I guess more recently, Deetro Underground and Upper Beaver.

Speaker Change: And then this quarter, there was a large equity investment made in a junior developer in the base metal space.

Ammar Aljundi: It just kind of on understand what the company's perspective here is on growth and internal versus external opportunities, and how is the company going to manage capital with all these different options on the table? Thank you.

Ammar Aljundi: So I'll address that. So we keep emphasizing the phrase risk adjusted return on capital, and, of course, that is the return on capital and the risk adjusted. So by definition, we have more knowledge on internal projects, by definition, and we are able to make an assessment on risk much better. So if I had an external project at 20% and an internal project at 20%, we would go with the internal project. Again, because we would, in our view, have a better view on the amount of risk associated with it. But broadly, we look at a lot of things, which is what our investors want us to do.

Speaker Change: So I'll address that.

Guy: So we

Guy: We keep emphasizing the phrase risk-adjusted return on capital, and of course, that is the return on capital and the risk-adjusted. So by definition, we have more knowledge on internal projects. By definition.

Guy: And we were able to make an assessment on risk much better. So if I had an external project at 20% and an internal project at 20%, we would go with the internal project. Again, because we would...

Guy: in our view have a better view on the amount of risk associated with it.

Guy: But broadly, we look at a lot of things.

Ammar Aljundi: Our investors want us to make them money in this space. And the way we do that is we try to be in places that have good geologic potential, and we try to have a knowledge advantage there. And so we are always looking at a number of things, and it's actually a very good thing. I tell you, and I've been in this business for 25 years. It's fantastic to have the pipeline of opportunities that we have. But I will be very clear, and we try to emphasize this explicitly. We are going to continue to be disciplined in our capital approach.

Guy: which is what our investors want us to do. Our investors want us to make them money in this space.

Guy: And the way we do that is we try to be in places that have good geologic potential.

Guy: and we try to have a knowledge advantage there.

Guy: And so we are always looking at a number of things, and it's actually a very good thing. I tell you, and I've been in this business for 25 years, it's fantastic to have the pipeline of opportunities that we have. But I will be very clear, and we try to emphasize this.

Guy: explicitly. We are going to continue to be disciplined in our capital approach. I mean, detour underground, it's fantastic to get to a million ounces a year.

Ammar Aljundi: I mean, due to our underground, it's fantastic to get to a million ounces a year. It's a ramp and a pace plan. I mean, it's simple. This is stuff we do. You know, melodic. We've been there a long time. It's the same mill. We're currently building a shaft. If we build another shaft, you know, this is stuff we know how to do, Upper Beaver. We know how to do. So clearly, some of the things we look at are more complex than others. But we are very comfortable that we have the resources, both financial and people, to move at the measured pace that we're moving forward.

Guy: It's a it's a ramp and a pace plant.

Guy: I mean, it's simple. This is stuff we do. You know, malartic...

Guy: We've been there a long time. It's the same mill. We're currently building a shaft. If we build another shaft,

Guy: You know, this is stuff we know how to do. Upper Beaver, we know how to do.

Speaker Change: So clearly some of the things we look at are more complex than others, but we are very comfortable that we have the resources, both financial and people, to move at the measured pace that we're moving forward. And honestly, I love the fact that you're asking about...

unknown: And honestly, I love the fact that you're asking about which of the very many good pipeline opportunities we are going to prioritize? Because we have a lot of really good opportunities. Thank you. Great, thank you very much.

Guy: Which of the very many good pipeline opportunities are we going to prioritize because we have a lot of really good opportunities.

Anita Soni: Thank you. Our next question comes from the line of Anita Soni from CIBC World Market. Go ahead, please. Hi, good morning.

Speaker Change: Great. Thank you very much.

Speaker Change: Thank you.

Guy: Our next question comes from the line of Anita Soni from CIBC World Markets. Go ahead, please.

Anita Soni: First off, congratulations on a strong free cash flow quarter. My next question would be on Hope Bay. So, what would be the next steps as we think about startup timelines for Hope Bay and what do you need to see more there to make a go-ahead decision?

Ammar Aljundi: First off, congratulations on a strong free cash flow quarter. My next question would be on Hope Bay. So what would be the next steps as we think about startup timelines for Hope Bay and what you need to see more there to make a go ahead decision?

Anita Soni: Hi, good morning. First off, congratulations on a strong free cash flow quarter. My next question would be on Hope Bay. So what would be the next steps as we think about startup timelines for Hope Bay and what you need to see more there to make a go-ahead decision?

Ammar Aljundi: Hi, Anita. Obviously, we need to continue drilling, patch 7. We are still not yet at the drill spacing that allow to bring them indicated and into the plan. So our focus, and this is why we are accelerating the pace in terms of drilling. So the plan for us is to bring the core portion of that new high grade zone that we think are the needle mover on the project as quickly as possible to a drill spacing that will allow us to integrate them into the plan. So I know in a year from now, we should be in a bunch better position in terms of our understanding of the grade and patch 7 and to integrate that into some scenarios.

Anita Soni: Hi, Anita, it's Guy. Obviously, we need to continue drilling patch 7. We are still not yet at a drill spacing that allows to bring them indicated and into the plan. So, our focus, and this is why we are accelerating the pace.

Anita Soni: In terms of drilling, so the plan for us is to bring the core portion of that new high-grade zone that we think are the needle mover on the project as quickly as possible to a drill spacing that will allow us to integrate them into the plan.

unknown: Okay, thanks. And then just an operational question. Are there any shutdowns or maintenance in the back half of the year that we should be aware of that any of the major operations?

Speaker Change: Okay, thanks. And then just an operational question. Are there any shutdowns or maintenance in the back half of the year that we should be aware of at any of the major operations?

unknown: Yes, hi, Anita. We had the one at La Ronde, which is over. We had 10 days a meal and 14 days on the ground at La Ronde. I've been done and successfully. And there's another one coming at the Canadian monolithic, and they shut down at the meal. It is to change the drives drive system at the tailing stick there.

Unknown Speaker: We had 10 days; the mill and 14 days on the ground at La Ronde have been done and successfully. And there's another one coming at the Canadian Maritimes, 10 days shut down at the mill. It is to change the drive system at the tailings thickener.

Speaker Change: Yes, hi Anita. We had one at La Ronde, which is over. We had 10 days, a mill, and 14 days on the ground at La Ronde have been done and successfully. And there's another one coming at the Canadian Maritime, 10 days shut down at the mill. It is to change the drive system at the tailings thickener.

Natasha Vaz: Hi, Anita. It's Natasha. And with respect to detour, we have two more shutdowns coming up, one in August and one in November. And it's typical shutdowns. We normally have four shutdowns a year. Okay, and then just again at Canadian monolithic. So the delivery and pretty good throughput and grade is that which should we expect that to continue for the remainder of the year and things outpacing the guidance by a significant mountain in the first half? Yes, we should expect the tonnage to keep. We're going to keep a good tonnage to the end of the year, but the grade we expect that is going to be lower than the first half.

Natasha Vaz: Hi Anita, it's Natasha, and with respect to DETOUR, we have two more shutdowns coming up, one in August and one in November, but they're typical shutdowns; we normally have four shutdowns a year. Then DETOUR is delivering pretty good throughput and grade. Is that what should we expect to continue for the remainder of the year? I think it's outpacing the guidance by a significant amount from the first half. Thank you, operator. Good morning, Ammar and team. Thank you for the update today. It is always very helpful and wonderful to hear from you.

Speaker Change: Natasha Vaz, Ammar Al, James Porter, Guy Gosselin, Dominique Girard

Speaker Change: And then, just again, at Canadian Malarctic, though,

Speaker Change: It's delivering pretty good throughput and grade. Should we expect that to continue for the remainder of the year? I think it's outpacing the guidance by a significant amount from the first half.

Speaker Change: Yes, we should expect the tonnage to keep, we're going to keep a good tonnage to the end of the year, but the grade, we expect that it's going to be lower than the first house.

Dominique Girard: As in the second quarter, we were mining two inner pits close to all the workings where we had the upside on the grade, but now we're moving more to a phase that we need to move more ways than the lower grade ore. So we can have a good tonnage, but lower grade than we had in the first half.

Speaker Change: As in the second quarter, we were mining two inner pits.

Speaker Change: Close to old workings where we had the upside on the grade, but now we're moving more to a phase that we need to move more waste in the lower grade ore. So we can have a good tonnage, but lower grade than we had in the first half.

unknown: Okay, I'll leave it there and let someone else ask questions. Thank you very much.

Speaker Change: Okay, I'll leave it there and let someone else ask questions. Thank you very much.

unknown: Thank you.

Lawson Winder: Our next question comes from the line of Lawson Winder from Bank of America Securities. Go ahead. Thank you, operator. Good morning, Amar and team. Thank you for the update today. Always very helpful and wonderful to hear from you. I wanted to follow up on the capital return team and just observing the very, very strong cash flow in Q2 and looking out to the second half and next year at spot and even lower than spot gold prices. That free cash flow generation will continue to be very robust, to put it lightly.

Speaker Change: Thank you. Our next question comes from the line of Lawson Winder from Bank of America Securities. Go ahead, please.

Unknown Speaker: I wanted to follow up on the capital return team. And just, you know, observing the very, very strong cash flow in Q2 and looking out to the second half and, and next year at spot and even lower than spot gold prices, that free cash flow generation will continue to be, Lawson, it's Jamie. Thanks for the question. Yeah, I'll answer it just by focusing on the last part of your question. Our dividend payout ratio was 36% in this most recent quarter, and I think that's really a comfortable level.

Lawson Winder: Thank you, operator. Good morning, Ammar and team. Thank you for the update today. Always very helpful and wonderful to hear from you.

Lawson Winder: I wanted to follow up on the capital return team.

Speaker Change: and just, you know, observing the very, very strong cash flow in Q2 and looking out to the second half and, and next year at spot and even lower than spot gold prices, that free cash flow generation will continue to be.

James Porter: And with that as context, when you look at the capital return program and the increased focus on the buyback recently, is there any thought internally to maybe shifting that back to the dividend with a potentially higher dividend? And when you think about paying a dividend, what's kind of a comfortable free cash flow payout on that dividend level? Thanks.

Speaker Change: very robust, to put it lightly.

Speaker Change: And with that as context, when you look at the capital return program and the increased focus on the buyback recently, is there any thought internally to maybe shifting that back to the dividend with a potentially higher dividend? And when you think about paying a dividend,

Speaker Change: What's kind of a comfortable free cash flow payout on that dividend level? Thanks.

James Porter: Lawson, it's Jamie. Thanks for the question. Yeah, I'll answer it just by focusing on the last part of your question. Our dividend payout ratio was 36% in this most recent quarter. And I think that's really a comfortable level. I mean, if you factor in combination of the dividend and the share buybacks, the 70 million share buybacks, the first half of the year, we're running at a rate of about 50% direct returns to shareholders. The portion of our free cash flow. So I think that the dividends at the right spot where it is currently representing about a third of the free cash flow that we're generating.

Speaker Change: Lawson, it's Jamie. Thanks for the question.

Jamie Porter: I'll answer it just by focusing on the last part of your question. Our dividend payout ratio was 36% in this most recent quarter, and I think that's really a comfortable level. I mean, if you factor in...

Speaker Change: combination of the dividend and the share buybacks, the $70 million in share buybacks the first half of the year, we're running at a rate of about 50% direct return to shareholders as a portion of our free cash flow. So I think that the dividends at the right spot where it is currently, representing about a third of the free cash flow that we're generating.

unknown: Okay, very helpful.

unknown: Wanted to also ask, just given the theme of our of your your early comments on cost management and cost reduction. Congratulations on the success there. In the recent past, so in the past sort of two to three years, there's obviously been a lot of labor and cost inflation in the industry, but in particularly on labor. And it would be helpful just to get your comments on what you're seeing in the various regions today. Is that continuing to improve both with respect to labor costs, but also labor availability? Thanks very much.

Speaker Change: Okay, very helpful.

Speaker Change: Wanted to also ask

Anita Soni: Just given the theme, Ammar, of your early comments on cost.

Speaker Change: management and cost reduction. Congratulations on the success there.

Speaker Change: In the recent past, so in the past sort of two to three years, there's obviously been a lot of labor and cost inflation and in the industry, but in particularly on on labor. And it would be helpful just to get your comments on what you're seeing in the various regions today. Is that continuing to.

Speaker Change: to improve both with respect to labor costs but also labor availability. Thanks very much.

Dominique Girard: I lost the next picking. We see a stabilization in terms of workforce availability. We still have a very low turnover between three and six percent average in 2020, three Quebec. Also, it's getting going good also in Ontario in terms of salary increase. We just expect a normal year. No, three, three to four percent have kind of, so it's, there's no, there's no, we don't see big issue on that and maybe why we're talking about inflation. There's interesting trending going on diesel, steel, and also cyanide that we had. We see now that kind of help a bit more higher on the line, but other than that.

Anita Soni: Hi Lawson, Dominique speaking. We see a stabilization in terms of workforce availability. We still have a very low turnover.

Speaker Change: between 3% and 6% average in 2023 Quebec. Also it's getting going good also in Ontario. In terms of salary increase, we just expect a normal year.

Speaker Change: I don't know, 3-4% kind of, so we don't see a big issue on that. And maybe while we're talking about inflation, there's interesting...

Speaker Change: trending going on diesel steel and also cyanide that we had we see now that's going to help a bit more higher on the on the line but other than that it is stabilizing maybe getting lower a bit

Dominique Girard: It is stabilizing, maybe getting lower of it.

Dominique Girard: Hi, Lawson, just on Ontario. Yeah, we still have a tight market, but as Domnick mentioned, it is stabilizing. We have a low turnover, and at Mekasa in particular, one of the reasons that our costs are lower is that we are focused in on internalization of our contractors, and we've seen a good progress. But overall, they can see rates are pretty low.

Lawson Winder: Hi Lawson, just in on Ontario. Yeah, we still have a tight market, but as Dominique mentioned, it is stabilizing. We have a low turnover and at Macassar in particular, one of the reasons that our costs are lower is that we are focused in on internalization of our contractors, and we've seen good progress, but overall vacancy rates are pretty low.

Ammar Aljundi: And I'll just jump in by saying something I often say, which is a big driver of quarterly costs is quarterly production. When the teams do a great job like they did this quarter and they deliver good production, they almost always deliver great costs, so it's just important to keep that in mind as well.

Speaker Change: And I'll just jump in by saying something I often say, which is...

Speaker Change: The big driver of quarterly cost is quarterly production. When the teams do a great job, like they did this quarter, and they deliver good production, they almost always deliver great costs. So it's just important to keep that in mind as well.

Guy Gosselin: Okay, thank you all for the comments. And then just, Guy, you made some comments on Hope Bay and some of the other assets and the outlook for resource and reserve growth for your end. Maybe could we get just an early look on your thinking in terms of overall reserve replacement for on a consolidated basis for Ignico heading into year end and then just any thoughts on whether there might be an update to the gold price assumption that you can consider?

Speaker Change: Okay, thank you all for those comments and then just...

Speaker Change: You made some comments on HOPE-A and some of the other assets and the outlook for resource and reserve growth for year-end. Maybe could we get just an early look on your thinking in terms of overall reserve replacement on a consolidated basis for year-end?

Speaker Change: Big Neco heading into year-end and then just any thoughts on whether there might be an update to the gold price assumption considered.

Guy Gosselin: It's a bit early in the year, I would say, to commit on a gold price assumption, and now we're going to move on. So that still needs to be seen. We are usually completing our analysis. There ain't Q3, Q4 to make up our mind early in the year. So truly for that, same as well during; it's difficult. You know, we've been basically running a couple of internal runs on some project with just the Q1 result. You were a pretty good shape. And I'm expecting, as I mentioned in my, so I think we're in a good position to replace what we mine this year.

Speaker Change: It's a bit early in the year, I would say, to commit on a gold price assumption and are we going to move on?

Speaker Change: So that still needs to be seen. We are usually completing our analysis during Q3, Q4, to make up our mind early in the year. So truly for that, same as well, during it's difficult, you know, we've been basically.

Speaker Change: running a couple of internal run on some project with just the Q1 result. I think we're in pretty good shape and I'm expecting, as I mentioned in my, so I think we're in a good position.

Guy Gosselin: I would say there's no majors to study to come like when we added the detour and eSchool D last year. So we're not expecting a big bump associated with a major project updates. We're expecting more kind of a flat replacement as I see, but it's still early in the year.

Speaker Change: to replace what we mined this year. I would say there's no major study to come like when we added the detour and East Gouldy last year, so we're not expecting a big bump associated with the major project updates. We're expecting more kind of a flat replacement.

unknown: Good, fantastic. Thank you all very much, and congratulations on a great quarter.

Speaker Change: as I see, but it's still early in the year.

Speaker Change: Fantastic. Thank you all very much and congratulations on a great quarter.

unknown: Thank you. Our next question comes from the line of Rawls proceeding from 8 Capital. Go ahead, please. Thanks very much. Good morning.

Jamie Porter: I mean, if you factor in the combination of the dividend and the share buybacks, the $70 million in share buybacks in the first half of the year, we're running at a rate of about 50% direct returns to shareholders using a portion of our free cash flow. So I think that the dividends, at the right spot where it is currently, are representing about a third of the free cash flow that we're generating. Thank you. Our next question comes from the line of Ralph Profiti from Aid Capital. Go ahead.

Speaker Change: Thank you. Our next question comes from the line of Ralph Profitti from Aid Capital. Go ahead, please.

Ammar Aljundi: Mar, when we look at this supplemental exploration budget, you know, how much of this is strategic and geology driven, and how much of any comes from increasing cost pressures, right? So set another way. Is there any performance carryover on what we're seeing on the operating cost discipline side into the exploration and discovery cost side of the business, especially when we look at this second half. I would say to the contrary; you know, we've seen some easing into our overall drill. So we managed to drill more, I would say up to 10% more than originally planned and our first half.

Ralph Profitti: Thanks very much. Good morning.

Ralph Profitti: Ammar, when we look at this supplemental exploration budget, you know, how much of this is strategic and geology driven?

Speaker Change: and how much, if any, comes from increasing cost pressures, right? So said another way, is there any performance carryover on what we're seeing on the operating cost discipline side into the exploration and discovery cost side of the business, especially when we look at this second half budget?

Ammar: I would say to the contrary, you know, we've seen some easing into our overall drill cost. So we managed to drill more.

Speaker Change: I would say up to 10% more than originally planned in our first half.

Ammar Aljundi: So the addition we're doing in the second half is very directed to, as you heard, you know, to detour because, you know, along with the exploration ramp and, you know, eventually our desire to bring the upper part of the western extension. Of the deposit to reserve. So it ties along with the ramp develop and same in malarctic, you know, in order to eventually come it on additional infrastructure, increasing the pace of it there to get more clarity sooner and later. And it will be with the great result we've been getting in order again to come back with some more clarity in 25 or 26.

Speaker Change: So, the addition we're doing in the second half is very directed to, as you heard, to detour because along with the exploration ramp and eventually our desire to bring the upper part of the western extension of the deposit to reserve, so it ties along with the ramp development, same in the Mont Arctic, in order to eventually commit on additional infrastructure, increasing the pace over there to get more clarity sooner than later, and obey with the great result we've been getting in order, again, to come back with some more clarity in 2025 or 2026.

James Porter: So better cost performance, better unit costs. I'm easing the market is favorable here and it's difficult for a lot of the smaller juniors to get capital. There are four. There's been so driven easing, and we've been quite pleased with our ability to really go to contract and get better rate.

Speaker Change: So, better cost performance, better unit costs, I'm easing, the market is favorable. Currently, it's difficult for a lot of the smaller juniors to get capital. Therefore, there's been sort of an easing and we've been quite pleased with our ability to renegotiate contract and get better rates.

James Porter: Great excellent answer.

James Porter: Jimia, a capital allocation question on the private placement debt and the cost of that debt. As you know, we're likely to see the outlook for rates come lower, and we're seeing us step up in the gold price as these maturities come due. How are we thinking about the process of looking into either paying that off, partitioning, or rolling it forward? Yeah, thanks for a question. I you know I'd say we do have the remaining 450 million on the term facility due in April of 2025, so we'll look to certainly repay that between now and then. On the private notes, the terms are actually quite favorable.

Speaker Change: Great, excellent answer.

Speaker Change: Jamie, a capital allocation question on the private placement debt and the cost of that debt as, you know, we're likely to see the outlook for rates come lower and we're seeing a step up in the gold price. As these maturities come due, how are we thinking about the process of looking into either paying that off, partitioning, or rolling it forward?

Jamie Porter: Yeah, thanks for the question. You know, I'd say we do have the remaining 450 million on the term facility due in April of 2025, so we'll look to certainly repay that between now and then. On the private notes, the terms are actually quite favorable. I think the average coupon is in the fours in terms of what's outstanding.

Speaker Change: Yes, thanks for the question. You know, I'd say we do have the remaining $450 million on the term facility due in April of 2025, so we'll look to

Speaker Change: to certainly repay that between now and then. On the private notes, the terms are actually quite favourable. I think the average coupon is in the fours in terms of what's outstanding, and they're spread out really over the next decade. So I'd be happy keeping those in place and paying them off as they come due.

James Porter: I think the average coupon is in the forest in terms of what's outstanding, and they're spread out really over the next decade, so I'd be happy keeping keeping those in place and paying them off as as they come do. Understood.

Jamie Porter: And they're spread out really over the next decade, so I'd be happy keeping those in place and paying them off as they come due. Understandable. Thanks all. Thank you. Our next question comes from the line of John Tumazos from John Tumazos's Very Independent Research. Go ahead. Could you, um, elaborate?

unknown: Thanks all. Thank you.

Speaker Change: Understood.

Speaker Change: Thanks all.

John Tumazos: Our next question comes from the line of John Tomazzo from John Tomazzo's Very Independent Research. Go ahead. Thank you.

Speaker Change: Thank you. Our next question comes from the line of John Tumazo from John Tumazo's Very Independent Research. Go ahead, please.

Dominique Girard: Could you elaborate on the mine safety awards one? The wronged operates almost 10,000 feet deep, and you mentioned that there was a 4.1 Richter seismic event June 24th. We know on the search. And King Ross sold Macasa for 5 million to Kirkland Lake after a seismic event severed the shaft at 5,700 feet, and they couldn't go all the way to 7,250. They walked away and shut the mine.

John Tumazo: Thank you.

John Tumazos: on the Mines Safety Awards won. [inaudible] Le Ronde operates almost 10,000 feet deep, and you mentioned that there was a 4.1 Richter seismic event on June 24, where no one was hurt, at Kirkland Lake.

John Tumazo: Could you, um, elaborate?

Speaker Change: on the Mines Safety Awards won.

John Tumazo: [inaudible]

Speaker Change: Le Ronde operates almost 10,000 feet deep, and you mentioned that there was a 4.1

Speaker Change: Richter seismic event June 24th where no one was hurt.

Speaker Change: and Ken Ross sold Macasa for $5 million.

Speaker Change: to Kirkland Lake

Unknown Speaker: They subverted the shaft at 5,700 feet, and they couldn't go all the way to 7,250; they walked away and shut down the mine. And you win all these awards when you're operating two of the tougher mines in Canada. Yes, John, Dominique.

John Tumazo: after a seismic event.

John Tumazo: severed the shaft at 5,700 feet and they couldn't go all the way to 7,250, they walked away and shut the mine.

Dominique Girard: So please explain how everyone goes home safely and you win all these awards when you're operating two of the tougher minds in Canada. Yes, John Dominic. Well, there be words or from recognize recognize from them mining industry and giving to the base on the last year performances, and we're very, very proud that we won. There were two regional and one national awards on the La Ronde situation. We had a big seismic event at the 4.1. But on the overall, we did not have major damage. Our ground support did the work that they were supposed to do.

Speaker Change: So please explain how everyone goes home safely.

John Tumazo: And you win all these awards when you're operating two of the tougher mines in Canada.

Dominique Girard: Well, the rewards are from the mining industry and given to the based on the last year's performances, and we're very, very proud that we won two regional and one national awards. On the La Ronde situation, we had a big seismic event at 4.1. One part of that is also getting to more automation, so having the workers not close to the face, so using more mechanized and more remote operations, which we are excellent at at Z5 and also at La Ronde. We appreciate the question because safety is paramount. Maybe, Carol, I'm going to put Carol Plummer on the spot.

John: Yes, John, Dominique.

Dominique Girard: Well, the rewards are recognized from the mining industry and given based on the last year's performances, and we're very, very proud that we won two regional and one national awards.

Speaker Change: On the La Ronde situation, we had a big seismic event at 4.1, but on the overall, we did not have major damage. Our ground support did the work that they were supposed to do.

Dominique Girard: And we had to shut down the underground mine for two days to do the inspection. And after that we went back there and we did some work. Our model were expecting that one day we're going to get over four, and we get we get one over four. So it was as expected and we, the team, continued to develop their expertise, working with external expertise to by understanding those mechanism and protecting the workforce. One part of that is also going getting to more automation. So having the workers not close to the face. So you're using more mechanized and more tele-remote operation, which we are excellent in at Z5 and also at La Ronde.

Speaker Change: And we had to shut down the mine, underground mine, for two days to do the inspection.

Speaker Change: and after that we went back there and we did some rework.

Speaker Change: Our model, we're expecting that one day we're going to get over four, and we get one over four. So it was as expected, and the team continued to develop their expertise, working with external expertise to...

Speaker Change: by understanding those mechanisms.

Speaker Change: and protecting the workforce.

Speaker Change: One part of that is also getting to more automation, so having the workers not close to the face, so using more mechanized and more remote operation, which we are excellent at at Z5 and also at La Ronde.

Ammar Aljundi: And maybe just, and thank you, John, for that question because we appreciate the question, because safety is paramount.

Speaker Change: Thank you, John, for that question.

Ammar Aljundi: Maybe, Carol, I'm going to put Carol Plummer on the spot; she is our executive vice president, and broadly, safety falls under her, and she and her team have done an awful lot of work every day on this. Maybe just more broadly on our philosophy on safety management, Carol. Yeah, certainly so. I think we can sum up our safety management philosophy by saying that we very much believe in safe work, that every job can be done safely every time. And, you know, there's a lot of focus at all of our sites on ensuring that our people have the resources, they have the materials, they have the skills and they have the knowledge in order to be able to work safely and they're, in order to, to.

Speaker Change: We appreciate the question because safety is paramount. Maybe, Carol, I'm going to put Carol Plummer on the spot. She is our Executive Vice President and broadly safety falls under her and she and her team have done.

Carol Plummer: She is our Executive Vice President, and broadly, safety falls under her. And she and her team have done an awful lot of work every day on this, and maybe just more broadly on our philosophy of safety management. Carol?

Carol Plummer: Yes, certainly. So I think we can sum up our safety management philosophy by saying that we very much believe in safe work, and that every job can be done safely every time. And there's a lot of focus at all of our sites on ensuring that our people have the resources, they have the materials, they have the skills, and they have the knowledge in order to be able to work safely.

Carol Plummer: Yes, certainly. So I think we can sum up our safety management philosophies by saying that we very much believe in safe work.

Carol Plummer: that every job can be done safely every time.

Carol Plummer: And, you know, there's a lot of focus at all of our sites on ensuring that our people have

Speaker Change: the resources they have, the materials they have, the skills and they have the knowledge in order to be able to work.

Carol Plummer: To follow up and ensure that our people are able to do this, we have a big emphasis that's in place over the last couple of years and what we call boots in the field or visible felt leadership, depending on which site you're at. But it's essentially the same thing where essentially not only the supervisors are out in the field with the workers, but management is also out in the field with the workers or the engineers. Pretty well anybody walking through have their eyes open, they're looking for risks, they're ensuring that the risks are controlled and that our people are able to continue to work safely.

Speaker Change: safely.

Speaker Change: and they're in order to follow up and ensure that our people are able to do this. We have a big emphasis that's been placed over the last couple of years in what we call boots in the field or visible felt leadership, depending on which sites you're at, but it's essentially the same thing where essentially not only the supervisors are out in the field with the workers, but management is also out in the field with the workers. So are the engineers. Pretty well anybody walking through have their eyes open. They're looking for risks. They're ensuring that the risks are controlled and that our people are able to continue to work safely.

Carol Plummer: All of this doesn't prevent 100% of everything happening, so we also put a lot of emphasis on ensuring that we really understood, understand what critical controls need to be in place to prevent accidents. And when an incident happens, whether it is a near miss or somebody does actually get injured, we really dig deep into that to understand the root causes to ensure that it not only cannot happen again at that site, but it also cannot happen again at any of our other sites by putting in the correct preventive measures for those things. I think all these awards that our teams won over the last quarter, as Dom said, they're all based on the safety performance from last year.

Carol Plummer: So we also put a lot of emphasis on ensuring that we really understand what critical controls need to be in place to prevent accidents. I think all these awards that our teams won over the last quarter, as Don said, are all based on the safety performance from last year.

Speaker Change: All of this doesn't prevent 100% of everything happening.

Speaker Change: So we also put a lot of emphasis on ensuring that we really understood

Speaker Change: understand what critical controls need to be in place to prevent accidents.

Speaker Change: and when an incident happens, whether it is a near miss or somebody does actually get injured, really digging deep into that to understand the root causes to ensure that it not only cannot happen again at that site, but it also cannot happen again at any of our other sites by putting in the correct preventative measures.

Speaker Change: for those things.

Speaker Change: I think all these awards that our teams won over the

Carol Plummer: It was a record safety year for us across the company, and this is really a celebration of the excellent work that our management teams, our supervisors, and that our workers did over the course of the last year. And we just continue to encourage them to do that every day with every job they do. Sub-parallel geological structure down at 2.9 km and at the dose depth, our level design is adapted, our ground support is adapted, and it shows a good result as it resisted the event that we had at the end.

Carol Plummer: It was a record safety year for us across the company, and this is really a celebration of the excellent work that our management teams, supervisors, and our workers stayed over the course of the last year, and we just continue to encourage them. We encourage them to do that every day with every job that they're doing.

Speaker Change: As Dom said, they're all based on the safety performance from last year. It was a record safety year for us across the company. And this is really a celebration of the excellent work that our management teams, that our supervisors, and that our workers did over the course of the last year. And we just continue to encourage them to do that every day with every job that they're doing.

Dominique Girard: Could you elaborate on the steel or other ground support systems at Laurent, and how they're more than just a rebar of mine roofboat, or cement, and how they were strong enough to survive and support at a four-rictor event? So the Daniels speaking, so our ground support has evolved over the past decades at Laurent. So as we are mining deeper, we adapted our design and our ground support to resist those kinds of events. So, as Amnick mentioned, in that case, we were expecting to have a four-rictor magnitude at some point, which we did. The good thing is that we understand where it is, so it was in a subparallel geological structure down at 2.9 km, and at those depth, our level design is adapted, our ground support is adapted, and it shows a good result as it resisted the event that we had at the end of June.

Speaker Change: Could you elaborate on the steel or other ground support systems?

Speaker Change: at Le Ronde, and how their...

Speaker Change: more than just a rebar mine roof bolt.

Speaker Change: were cement, and how they were strong enough to survive and support the four-Richter event.

Daniel: So, Daniel speaking.

Speaker Change: Our ground support has evolved over the past decade at La Ronde. So as we are mining deeper, we adapted our design and our ground support.

Speaker Change: to resist those kind of events.

Speaker Change: So, as Dominique mentioned, in that case, we were expecting to have a 4 Richter magnitude at some point, which we did.

Dominique Girard: The good thing is that we understand where it is.

Dominique Girard: Sub-parallel geological structure down at 2.9 km, and at those depths, our level design is adapted, our ground support is adapted, and it shows a good result as it resisted the event.

Speaker Change: that we had at the end of June.

unknown: So 30 years ago I went underground at a place called Elon's Round in South Africa that had 50 deaths a year, one a week.

Speaker Change: So 30 years ago, I went underground at a place called Elansrand in South Africa that had 50 deaths a year, one a week. I didn't go back. I go underground with AgnicoEagle. Thank you.

unknown: I didn't go back; I go underground with Agnico Eagle, thank you.

unknown: Thank you.

Michael Parkin: Our next question comes from the line of Mike Parkin from National Bank. Go ahead, please.

Speaker Change: Thank you. Our next question comes from the line of Mike Parkin from National Bank. Go ahead please.

unknown: All my questions have been answered. Thanks very much.

Mike Parkin: All my questions have been answered. Thanks so much.

Tanya Jakusconek: Thank you. Our next question comes from the line of Tania Jacuzkoenek from Scotia Bank. Go ahead, please. Good morning, everyone. Thank you so much for taking my questions, and congratulations on a good quarter.

Speaker Change: Thank you. Our next question comes from the line of Tania Jekuskonek from Scotiabank. Go ahead please.

Unknown Speaker: Good morning everyone. Thank you so much for taking my questions and congratulations on a good quarter. Jamie, over to you first. Can I ask about the Canadian dollar's impact on your minds this quarter? Obviously, I think that helped a bit on the costing front and just remind me of your sensitivity. I think you budgeted at $1.34, but I just want to be reminded of the sensitivity for the remaining portion of the year on what we have. Thanks, Tanya. Yeah, that's absolutely right. We budgeted $1.34 for the full year.

Tania Jekuskonek: Good morning everyone. Thank you so much for taking my questions and congratulations on a good quarter. Jamie, over to you first. Can I ask about

James Porter: Jamie, over to you first. Can I ask about the Canadian dollar impact on your minds? This quarter, obviously, I think that helped a bit from the cost in France and just remind me your sensitivity. I think you budgeted it as a dollar 34, but I just want to be reminded of the sensitivity for the remaining portion of the year on what we have. Thanks, Tania. Yeah, that's absolutely right. We budgeted 134 for the full year. Our realized that fact in the second quarter was 137, so we are benefiting the unique period where we have both the benefit of higher gold prices and a weaker Canadian dollar.

Tania Jekuskonek: the Canadian dollar impact on your minds this quarter? Obviously, I think

Speaker Change: That helped a bit on the costing front. And just remind me your sensitivity. I think you budgeted at $1.34, but I just wanna be reminded of the sensitivity for the remaining portion of the year on what we have.

Jamie Porter: Our realized FX in the second quarter was $1.37, so we are benefiting from a unique period where we have both the benefit of higher gold prices and a weaker Canadian dollar. The impact on our cash costs in Q2 was about $18 an ounce, so it is certainly helping. I will point out, and I think Amar mentioned it in his remarks, Based on where the Canadian dollar is now, I'd expect, you know, a similar $15 to $20 benefit arising from the weaker capital. Now, talk about Upper Beaver potentially coming in 2030 or there about.

Speaker Change: Thanks, Tanya. Yeah, that's absolutely right. We budgeted $134 for the full year.

Speaker Change: Our realized FX in the second quarter was $1.37, so we are benefiting from a unique period where we have both the benefit of higher gold prices and a weaker Canadian dollar. The impact on our cash costs in Q2 was about $18 an ounce, so it is certainly helping. I will point out, and I think Ammar mentioned it in his remarks,

James Porter: The impact on our cash cost in Q2 was about $18 an ounce, so it is certainly helping. I will point out, and I think Amar mentioned it in his remarks, we do, in this higher gold price environment, pay higher royalties expense. So, if you look at the benefit from the weaker Canadian dollar, it's more or less entirely offset by the higher royalties cost. For the second half of the year, based on where the Canadian dollar is now, I'd expect a similar $15 to $20 benefit arising from the weaker. Yeah, it's just that there are some views out there that this Canadian dollar is going to continue to go down versus the US, and therefore Agnico is going to benefit.

Speaker Change: We do in this higher gold price environment. We do face higher royalties expense So if you look at the benefit from the weaker Canadian dollar, it's more or less entirely offset by the the higher royalties cost for the second half of the year

Speaker Change: Based on where the Canadian dollar is now, I'd expect a similar $15 to $20 benefit arising from the weaker cap.

Speaker Change: It's just that there are some views out there that the Canadian dollar is going to continue to go down versus the U.S.

James Porter: I seem to remember, and Jamie, correct me if I'm wrong, for attempts to move in a Canadian dollar, it's about $50 to $55 per ounce on your cost structure. Am I in the ballpark? Yep, that sounds correct.

Jamie Porter: and therefore Agnico is going to benefit. I seem to remember, and Jamie correct me if I'm wrong, for a 10% move in the Canadian dollar, it's about $50 to $55 per pound on your cost structure. Am I in the ballpark? Yeah, that sounds correct.

James Porter: Thank you for that.

Ammar Aljundi: My second question is for you, Amar. I wanted to come back to two things. One is just the strategy and the capital discipline, and you just want to look at the projects that you have. And then the second one has to do with this investment strategy in juniors. So just on the first one, which is just the capital discipline, as we think about these projects, so you've got Detour on the go. Potentially can need a malarctic with another shot. We now talk about Upper Beaver, potentially, you know, coming in 2030 or there about, and then we have Hope Bay that is telling us in a year from now we'll have some sort of, you know, outlook to where that can fit in.

Jamie Porter: Okay Thank you for that My second question is for you Ammar. I wanted to come back to two things one is just that some

Speaker Change: the strategy and the capital discipline and you just want to look at the projects that you have and then the second one has to do with this investment strategy in juniors.

Ammar: So just on the first one, which is just the capital discipline, as we think about these projects, so you've got Detour on the go, potentially Canadian Malartic with another shaft.

Jamie Porter: We now talk about Upper Beaver potentially, you know, coming in 2030 or thereabout. And then we have Hope Bay that Guy is telling us in a year from now we'll have some sort of, you know, outlook to where that can fit in.

Jamie Porter: And then we have Hope Bay, and he's telling us in a year from now, we'll have some sort of, you know, outlook on where that can fit in. You know, again, it's a ramp. It's a pace plant.

Ammar Aljundi: Where do we see your total capital budget going to? Right now it's 1.6 to 1.7 million.

Speaker Change: Where do we see your total capital budget going to? Right now it's 1.6 to 1.7 million.

Ammar Aljundi: Trying to just get a handle to where do you see this going longer term. Do we max up to billion as we phase these in? And that's my next portion: how do we look at phasing these in because you can't just bring them all in at once. Yeah, very, very good question, Daniel. You know, I spent most I'm an engineer, but I've also spent most of my career on the finance side, so we start with just a very practical approach, which is: are these good investments? You know, and I know that sounds like an obvious question, but what sometimes gets big companies like ours in trouble are people who are more focused on growing the business or doing a deal rather than do they actually make money.

Speaker Change: trying to just get a handle to where do you see this going longer term? Do we max at $2 billion as we phase these in? And that's my next portion is, how do we look at phasing these in? Because you can't just bring them all in at once. Yeah, very good question, Tanya.

Speaker Change: You know, I've spent most, I'm an engineer, but I've also spent most of my career on the finance side, so we start with just a very practical approach, which is, are these good investments?

Speaker Change: you know and I know that sounds like an obvious question but what sometimes gets big companies like ours in trouble are people are more focused on growing the business or doing a deal rather than do they actually make money.

Ammar Aljundi: So everything we do starts with: does it make money, and is it a good return for the amount of risk we're taking on. So again, something like a detour underground, you know, again, it's a ramp. It's a paste plant. It's an extra 300 plus 1000 ounces a year for decades. Honestly, that's a pretty easy decision. You know, a second shaft at Melardic; we've got the mill there. We will have just built a shaft. You know, when Guy and his team tell me I'm comfortable with the exploration. This is what's underground. This is what's there. Honestly, that's a pretty easy decision.

Speaker Change: So, everything we do starts with does it make money and is it a good return for the amount of risk we're taking on. So, again, something like a detour underground.

Speaker Change: You know, again, it's a ramp, it's a pace plant.

Speaker Change: It's an extra 300 plus thousand ounces a year for decades.

Unknown Speaker: Unknown Speaker You know, you know, a second shaft that at Malartic, we've got the mill there, we will have just built a shaft when Guy and his team tell me I'm comfortable with the exploration, this is what's underground, this is what's there. Honestly, that's a pretty easy decision. So it depends, as you would expect, like any investment, you know, what the investment opportunity is. I'm not skirting the issue, I'm just being honest; it depends on the investment opportunity.

Speaker Change: Honestly, that's a pretty easy decision.

Speaker Change: You know, a second shaft at Mallardic, we've got the mill there, we'll have just built a shaft, you know, when Guy and his team tell me I'm comfortable with the exploration, this is what's underground, this is what's there, honestly that's a pretty easy decision.

Ammar Aljundi: So it depends, as you would expect, like any investment. You know, what is the investment opportunity. I'm not skirting the issue. I'm just being honest. It depends on the investment opportunity. Now, you ask a very good question: is it's not just financial capacity. It's human capacity. So we take that very much into account. We assess the people we have. We like to use our own people. I get a lot more confidence when it's, you know, Daniel Puray and his team building a project rather than an outside consultant, who we've never used before.

Speaker Change: So, it depends, as you would expect, like any investment, you know, what is the investment opportunity. I'm not skirting the issue, I'm just being honest. It depends on the investment opportunity.

Unknown Speaker: Now you ask a very good question: it's not just financial capacity; it's human capacity. So we take that very much into account, we assess the people we have; we like to use our own people. I get a lot more confidence when it's Danielle Perret and his team building a project rather than an outside consultant who we've never used before. So the long answer is it depends on the project.

Speaker Change: Now you ask a very good question. It's not just financial capacity, it's human capacity. So we take that very much into account. We assess the people we have. We like to use our own people.

Speaker Change: I get a lot more confidence when it's, you know, Danielle Perret and his team building a project.

Ammar Aljundi: So, you know, long answer is it depends on the project, but to your specific question, you know, is there a total capex number in mind? And, you know, we've said at current levels, you know, 1.7-ish, you know, could it get to two? If it makes sense, it could, but we are going to spread out both our financial requirements and our human requirements based on the capacities that we have. And then it's just because of our, we all remember, you know, time when, you know, we tried to build several five minds or there about all in one go.

Speaker Change: rather than an outside consultant who we've never used before.

Unknown Speaker: But to your specific question, you know, is there a total CapEx number in mind? You know, we've said at current levels, you know, 1.7 ish, you know, could it get to two if it makes sense? It could, but we are going to spread out both our financial requirements and our human requirements based on the capacities that we have. And it's just because Ammar, we all remember, you know, a time when, you know, we tried to build several five mines or there about all in one go. And just, you know, those things are just hard on human capacity, as you know. They are hard.

Speaker Change: Long answer is it depends on the project, but to your specific question...

Speaker Change: You know, is there a total CapEx number in mind? You know, we've said at current levels, you know, 1.7-ish. You know, could it get to 2, if it makes sense?

Speaker Change: It could, but we are going to spread out both our financial requirements and our human requirements based on the capacities that we have.

Speaker Change: And it's just because, Ammar, we all remember, you know, a time when, you know, we tried to build several five mines, or thereabout, all in one go, and just, you know, those things are just hard on human capacity, as you know. They are hard. You're absolutely right.

Ammar Aljundi: And just, you know, those things are just hard on human capacity, as you know. They are hard. You're absolutely right.

Unknown Speaker: You're absolutely right. Okay, so if we were to think of these four additional projects, as we spaced them out on human capacity, we may be, we may get to the 2 billion, but we try and keep that margin, you know, 2 billion, you know, total capital, and then everything else would be available for from a from an upside for our shareholders. Would that be a good way to look at it?

Ammar Aljundi: Okay, so if we were to think of these four additional projects as we space them out on human capacity, we may get to the two billion, but we try and keep that margin, you know, two billion, you know, total capital and then everything else would be available for from an outside for our shareholders. Would that be a good way to look at it? That's a good way to look at it. Now, the one thing I would say is everything we invest in is upside for our shareholders. That's the only reason we invest in these things is to make them money.

Speaker Change: Okay, so that's, so if we were to think of these four additional projects as we space them out on human capacity, we may get to the two billion, but we try and keep.

Speaker Change: that margin, you know, $2 billion total capital and then everything else would be available from an upside for our shareholders. Would that be a good way to look at it?

Unknown Speaker: That's a good way to look at it. Now, the one thing I would say is that everything we invest in is an upside for our shareholders. That's the only reason we invest in these things is to make them money. Okay, thank you.

Speaker Change: That's a good way to look at it now. The one thing I would say is everything we invest in is upside for our shareholders. That's the only reason we invest in these things is to make them money.

Ammar Aljundi: Okay, thank you for that. And just coming back to your strategy on investment, so you've got the exploration, which he gave us a rundown on. Maybe we could talk about how you're looking at the strategy of investment in these juniors. Two things I'm trying to understand on that is one, you know, you usually run a portfolio, I think it's about 150 to 200 million or thereabouts, if I can remember. But what I've noticed thing is that your investments are more in non-world juniors. So I have two questions. Is it because they are these non-world opportunities are in camps that you're located in and therefore you can see your mining expertise helping.

Unknown Speaker: And just coming back to your strategy for investment. So you've got the exploration which Guy gave us a rundown on. Maybe we could talk about how you're looking at the strategy for investment in these juniors.

Speaker Change: Okay, thank you for that. And just coming back to your strategy on investment, so you've got the exploration, which Guy gave us a rundown on. Maybe we could talk about how you're looking at the strategy of investment in these juniors. Two things I'm trying to understand on that is, one, you know, you usually run a portfolio, I think about $150 to $200 million or thereabouts, if I can remember.

Unknown Speaker: Two things I'm trying to understand on that are one, you usually run a portfolio, I think about 150 to 200 million or thereabouts, if I can remember, or is it that you are going to be moving more into non-bold over the longer term? No, we are going to continue to be the premier, at least in our minds, gold company in the world and certainly in Canada. So we're going to continue to be a gold company. We're going to continue to be a focused gold company. That said, for example, our investment in foreign that is a very good project. It is copper, but it's a large VMS.

Speaker Change: But what I'm noticing is that your investments are more in non-gold juniors. So I have two questions. Is it because they are these non-gold?

Speaker Change: opportunities are in camps that you're located in and therefore you can see your mining expertise helping.

Ammar Aljundi: Or is it that you are going to be moving more into non-world over the long term? No, we are going to continue to be the premier, at least in our mind, a gold company in the world and certainly in Canada. So we're going to continue to be a gold company. We're going to continue to be a focused gold company. That said, for example, our investment in foreign; that is a very good project. It is copper, but it's a large VMS. This is something we know how to do. We think it has potential. It's early. But really, Tanya, it's more of what we've done historically, which has taken early position on things that are promising in the regions we operate.

Speaker Change: Or is it that you are going to be moving more into non-bold over the longer term?

Speaker Change: No, we we are going to continue to be

Speaker Change: The premier, at least in our mind, gold company in the world and certainly in Canada. So we're going to continue to be a gold company. We're going to continue to be a focused gold company.

Speaker Change: That said, for example, our investment in 4N, that is a very good project. It is copper, but it's a large VMS. This is something we know how to do. We think it has potential. It's early.

Unknown Speaker: This is something we know how to do. We think it has potential, but it's early.

Unknown Speaker: But really, Tanya, it's more of what we've done historically, which is take an early position on things that are promising in the regions we operate in. And again, I want to emphasize what I said earlier. Part of our capital discipline is based on knowledge.

Speaker Change: But really, Tanya, it's more of what we've done historically, which is take an early position on things that are promising in the regions we operate. And again, I want to emphasize what I said earlier. Part of our capital discipline is based on knowledge.

Ammar Aljundi: And again, I want to emphasize what I said earlier. Part of our capital discipline is based on knowledge. And we have a pretty good knowledge of that part of Canada. We have a good knowledge of that project. We have a good knowledge, not just of that project, but of that region, and we have a good knowledge on VMS deposits. So it's driven by a knowledge-based assessment of investment potential.

Unknown Speaker: And we have a pretty good knowledge of that part of Canada. We have a good knowledge of that project. We have a good knowledge, not just of that project, but of that region. And we have a good knowledge of BMS deposits. So it's driven by a knowledge-based assessment of investment potential.

Speaker Change: And we have a pretty good knowledge of that part of Canada, we have a good knowledge of that project, we have a good knowledge not just of that project but of that region, and we have a good knowledge on BMS deposits.

Speaker Change: So it's driven by a knowledge-based assessment of investment potential.

Ammar Aljundi: Okay, so we should think about this as, you know, areas that you operate in, opportunities, gold, non-gold, where you can add value and you have expertise. And do we have, you know, this portfolio that you're working, as we have an expiration budget, do you have a budget on investments as well? So, first of all, I think you summarized it pretty well. So that was good. We agree with that. You know, we're pretty flexible. We're a little bit bigger. You're right. Typically, it's been sort of between 100 and 150 million. I'm looking at John Robita here.

Unknown Speaker: Okay, so we should think about this, as you know, areas that you operate in opportunities, gold, non-gold, where you can add value and you have expertise. And do we have this portfolio that you're working on as we have an expiration budget? Do you have a budget for investments as well?

Speaker Change: Okay, so we should think about this as, you know, areas that you operate in, opportunities, gold, non-gold, where you can add value and you have expertise and do we have, you know, this portfolio that you're working, as we have an expiration budget, do you have a budget on investments as well?

Unknown Speaker: So first of all, I think you summarized it pretty well. So that was good. We agree with that. You know, we're pretty flexible. We're a little bit bigger. You're right. Typically, it's been sort of between $100 and $150 million.

Speaker Change: So first of all, I think you summarized it pretty well, so that was good, we agree with that.

Unknown Speaker: I'm looking at John Robitaille here. It's considerably – it's above that right now. Part of that, frankly, is we made some investments that have done very well, and they're kind of sizable. But, you know, as we grow, that, Okay, well, thank you. I appreciate you taking the time to answer my question. Well, it's our pleasure. And thank you, Tanya. It is always a pleasure. And with that, we are now past noon. So again, thank you, everyone, for taking time out of your day.

John Robitaille: You know, we're pretty flexible. We're a little bit bigger. You're right. Typically, it's been sort of between $100 million and $150 million. I'm looking at John Robitaille here. It's considerably – it's above that right now. Part of that, frankly, is we made some investments that have done very well.

Ammar Aljundi: It's considerably; it's above that right now. Part of that, frankly, is we made some investments that have done very well, and they're kind of sizable. But, you know, as we grow, that has grown, but it's really it's just the same strategy we've always.

Speaker Change: and they're kind of sizable but you know as we grow that that has grown but it's it's really it's just the same strategy we've always had.

Ammar Aljundi: Well, thank you. I appreciate you taking my question.

Unknown Speaker: And for everybody at Agnico who's listening, thank you for all your hard work. Have a nice day. Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

unknown: It's our pleasure, and thank you, Tanya; always a pleasure.

Speaker Change: Well, thank you. I appreciate you taking my questions. Well, it's our pleasure. And thank you, Tanya. Always a pleasure.

unknown: And with that, we are now past noon. So again, thank you, everyone, for taking time out of your day, and for everybody at Agnico who's listening. Thank you for all your hard work.

Speaker Change: We are now past noon, so...

Speaker Change: Again, thank you everyone for taking time out of your day. And for everybody at Agnico who's listening, thank you for all your hard work. Have a nice day.

unknown: Have a nice day.

unknown: Thank you, sir.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line. Have a lovely day. Thank you.

Speaker Change: Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

Speaker Change: Have a lovely day

Speaker Change: [inaudible]