Q2 2025 Agnico Eagle Mines Ltd Earnings Call
One <unk>.
So the Agnico Eagle mines limited second quarter 2025 conference call.
It's really lowering the water levels. We are in at the, on the south and the north as I said earlier. Um, and but to lower the water levels. What's important is to get back into the fee, the plus 5% copper
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The water levels, it should happen in this year is a quarter 4 in the show, we should start seeing an improvement in the mine grade on the western side. So I think all in all um it's really getting the water levels down reestablishing, the east as a worst case scenario and then getting the mine up and up and going. And we're talking about this mine only.
Please press Star then the number two.
in terms of where we are, um,
Thank you Mr. Omar Oh, Judy you May begin your conference.
I think the next milestone for us.
Thank you.
Good morning, and thank you all for joining our Agnico Eagle second quarter Conference call.
Will be to to come back to, to the market and the people that are listening on this call.
It's always a pleasure to speak to all of you and particularly a pleasure when things are going well and we have good news to share this morning.
Before we come to our call. However.
However, I'd like to remind everyone that we will be making a number of forward looking statements. So please keep that in mind and refer to the disclaimers at the beginning of this presentation.
And explain, what what things look like, um, for the future, short-term future, I will have something by September, um, which will look, um, at the remainder of 25, which has already been forecast, 26, and 27, and then I'll and probably I look forward to what the steady state looks looks like.
I'm personally quite upbeat that we will be.
The message will be sharing with you. This morning is frankly, the same positive message we've been sharing for the last several quarters.
Um, in the year 2027, we'll be up and around the numbers that we're aiming at before. That's where I am personally, and we'll have to come back to you on those issues. And then we will.
One we.
We continue to report record financial results driven by strong and consistent operational performance too we continue to strengthen the company to strengthen the balance sheet and to return record amounts of cash flow to our owners and three we continue to invest heavily in building the foundations of our future growth and we're excited to talk.
Complete a full life of mine. Integrated development plan by 4 to 1 2026 with the right building blocks.
With the right sequencing of all these minds for the next 40 years, it still remains a fantastic whole body, the best body in the world.
um,
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By any measure we've had another strong quarter gold prices are up gold production is strong and our costs are under control.
With that we're making a lot of money for our owners and reporting once again record financial results.
We've managed to look at a number of opportunities. Um especially around kamoa, 1 and 2 and um consulo in fact as well which opened up more opportunities for us short-term and long-term and obviously we'll have to completely relook at um geotechnical at the way we've been mining. Um,
Record free cash flow at $1 3 billion.
At at Cula.
But I think all in all, um,
Record adjusted EBITDA at $1 9 billion.
Record adjusted net income at $1 94, a share and remember it's always the per share metrics that matter most.
The long-term prognosis to me is is is solid solid as as you'd like to see. Thank you next slide.
We've returned record cash flow to our owners in the form of $200 million in dividends and $100 million in share buybacks add to that a further $550 million of debt repayments.
Do you want to talk about the processing strategy? Alex? Yeah. Thanks Mark. I think it's, it's back to me on this 1. So, um, uh, this is talking about the concentrators and we did show a similar slide to this on a previous conference call. Um, this is really the processing strategy for the remainder of, um, 2025
And while delivering those record financial results. These record financial results, we continue to make great progress and in some cases accelerating progress towards building the best project pipeline we've ever had.
And we continue to have great success with the most aggressive exploration program we've ever had.
With 866000 ounces of safe responsible gold production at peer leading costs I want to take a moment to thank all of our agnico Eagle family for delivering these results.
Um, so in the bar, charts on the right hand side, first of all, looking at the left hand bar, that's the phase 1 and 2 concentrators with 9.2 million tons of named Blake capacity. Um, really our aim and where we are right now is filling. Those concentrators, uh, roughly 80 to 85% of um, total capacity or potentially more if we can possibly, um, possibly manage it. So today around 50% of that capacity is being fed.
We know it's not easy.
We know your work under difficult conditions, whether its three kilometers underground at <unk> or at minus 50 degrees and none of it we know.
You always work hard there are always challenges when you push yourselves.
You all do a great job quarter after quarter reliably safely responsibly and I just want to acknowledge and.
And appreciate that we all do.
I'm proud to say that as gold is up $400. This quarter, our cash costs are up a relatively modest $30 per ounce compared to Q1.
This means that we are delivering 93% of this remarkable gold price increase.
To our owners Jamie.
Jamie we'll go through that in a bit more detail, but again to our teams on the ground.
Great work on cost control.
From the, um, the all stock piles that we have at a grade of 2 to 2.5% copper, um, and the remaining 50% is being fed, um, from the successful restart of mining operations from kukula West albeit, um, in that kind of limited Footprints until the dewatering advances. So that is sort of roughly, a 3%, grade. Uh, we'll hopefully be a 4 percent grade before too long, and then getting back up towards 5% grade by the, um, by the end of the year, um, through the year, you will start to see a bit of a shift in this balance. Um, probably in favor of more autons coming from the Run of mine, um, both from kukula and then also potentially, um, supplemented by, um, run of mine or coming from the kamoa side. And obviously, that stockpile contribution will also start to, um, to reduce. Um, in terms of those stock piles, we do have enough to basically keep on running until they're depleted, um, in q1 of next year. And by that time we should have ramped up other mining areas to, um, to support the
Of course, one should expect record financial results when we have record gold prices.
Why people invest in in a gold company and while we are naturally proud to be able to deliver these financial results. We want to emphasize that we remain regardless of gold price.
Absolutely laser focused on operational improvements on controlling our costs on capital discipline and on continuing to build value per share for our owners.
the concentrator. Um, the right-hand bar is showing phase 3 which as I mentioned, is um, continuing to be the star performer. Our intention is to basically run phase 3 at, um, it's 6.5%, um, capacity, which is well in excess of its name plate. Uh, and really squeeze as many tons out of that side of the mining operation as we can. Um, so we are very much On Target to meet the revised 2025 production guidance for which was, uh, 370,000 to 420,000 tons of copper in concentrate. Um, but no,
Consider the following examples in this quarter alone.
At Odyssey.
<unk> gold production and record underground development at.
Noting that year to date, um, and this is just up until the end of June. We've produced already 245,000 tons of, um, of copper in concentrate.
<unk> record tonnes process.
Uh next. Slide please.
At Macassar record gold production at Detour, the best mill throughput for our second quarter ever and at our exploration sites <unk> and his team have delivered I think quite remarkable 9% reduction in cost per meter drilled.
These are all just a few examples individually they may not seem material, but collectively quarter over quarter. This focus on improvement and adds up and makes a big difference and it also illustrates par.
Part of the culture at Agnico Eagle, where everyone. At every level is encouraged and authorized to look at all options to do things better.
At the same time, we continue to invest in the future as we make steady progress on our five key value drivers.
Ongoing work to get detour to over 1 million ounces a year.
Our vision to get melodic to over 1 million ounces a year.
Excellent construction progress at upper Beaver, our brand New mine in a great region that could add over 200000 ounces a year.
Continued great drill results and accelerating on site activity at Hope Bay with a target of over 400000 ounces a year.
<unk> continued progress at San Nicolas Our high grade High return copper project in the best mining jurisdiction in Mexico.
These projects cumulatively represent.
Approximately 1% to $1, one three to $1 5 million ounces of potential production all.
A fully integrated um, underground underground mine to um blister copper or anode copper operation. Um, so we look forward to updating you on that in our, our next results. Uh, and as David mentioned, we do have a lot of copper in inventory at present. Um, there's 31500 tons of copper, uh, the smelter ready to support the startup. Um, so we're looking forward to working down that balance to, um, to roughly 17,000 tons, which will be the sort of working capital in the circuit at the smelter retain at a normal point in time. Um, we've spoken many times as well about the dramatic reduction in C1 costs that the smelter will bring. Um, if anything that is more pronounced currently because as we've produced all from lower grade sources that does produce a slightly lower grade concentrate than what we would typically get from cacula. Um so that has higher Associated uh Logistics and realization charges. And so the smelter um, you know, really can't come soon enough from that point of view to um, to assist with what David was saying to
To bring those cash costs back down again.
All from assets, we already own in regions, we have been operating for decades and in most cases leveraging off existing infrastructure already in place.
Dominic and Natasha will provide a brief update on some of these projects and Jamie will describe how at these gold prices. We can not only fund acceleration of these projects, but continue to strengthen our balance sheet and continue to increase returns to our shareholders.
Uh, the next slide is, um, moving on to power. Uh, and power availability was really the big challenge that we um, we used to discuss in the previous quarters. It really feels quite trivial in comparison to um some of the operational issues that we've we've faced during the second quarter. Um, but, you know, I think 1 of the Hallmarks of this world class team is the ability that we've shown to address key challenges over time. Um, making
And finally once again <unk> will be the star of the show is the spend a few minutes highlighting some of the exciting exploration results. Our team is delivering at some of the most promising ore bodies in the world.
And with that I'll now turn it over to our CFO, Jamie Porter to review the second quarter financial results.
Thank you Omar and good morning, everyone.
We've had an excellent first half of the year with another strong quarter of operating results and good cost performance by delivering on our production targets and controlling costs. We continue to ensure that the benefit of margin expansion and a higher oil price environment accrues directly and indirectly to our shareholders through both direct shareholder returns and the.
The strengthening of our balance sheet.
Our strong operational performance and cost control paired with higher gold prices drove record financial results, including record revenue of $2 8 billion.
The plan and then execute on that plan, very successfully and in power, I think you will very soon, see the fruits of our labor. Um, as the, the Giants injure turbine number 5 is now mechanically complete. Um, so that's what you can see on this image. Um, the pre-commissioning activities have already started and then the wet commissioning of that turbine is on track for uh early next quarter, which will start to supply 178 megawatts of clean energy into the grid. Um in terms of the supply of that energy into uh colorways and ultimately commercial cooler, there is a big milestone taking place in q1 of next year when we will complete a new static compensator at the substation. Um so that will basically allow for much more stable voltage coming from injure to reach, komoka, cooler. Uh, and so, I think it's very realistic to say that, by early next year, we will have broken the back, um, of our of our power challenges and that also dovetails, um, quite nicely onto the next slide.
Record adjusted earnings of $976 million or $1 94 per share and record adjusted EBITDA of $1 9 billion and record free cash flow of $1 3 billion.
Free cash flow more than doubled quarter over quarter benefiting from favorable working capital adjustments, primarily due to an increase in accrued taxes payable.
Gold production in the second quarter was approximately 866000 ounces at total cash costs of $933 per ounce and all in sustaining costs of $1289 per ounce gold production was better than anticipated this quarter, primarily due to better grades at <unk> Canadian <unk> and macassar with this.
So the additional power that we will be generating from Ingo which is close to 180 megawatts will also be quickly followed up by the completion of a 60 megawatt. Um, battery solar energy project. Um so that's now in execution, the site's clearance and early Earthworks are underway. Um, that's actually built into 2 modules of 30 megawatts each. Uh, and they are both, um, separate independent power providers that are funding that capex and will complete that project by by mid 2026. So komoka cooler will be the
Outperformance, partially offset by lower production at our Nunavut operations due to an extended caribou migration and lower gold production at detour.
Off taker of that power and that power will cover up to 25% of kamoa pakula's. Um, total energy requirements coming from a a captive and uh, and very green source.
I am pleased to report that costs were within our guidance range, while our total cash cost of $9 33 per ounce were $30 per ounce higher than in the first quarter the quarter over quarter increase was primarily due to higher royalties as a result of higher gold prices and a weakening Canadian dollar, which on a combined basis.
Um the project is also very scalable. So we we plan to move up to 120 megawatts. There's no reason that we can't continue to move beyond that and so we are now actually facing a realistic possibility. It didn't seem so real realistic a few years ago but um we may actually have a a surplus of Power by, by this time next year.
Cents, an increase of about $46 per ounce.
um so with that that really concludes uh kamo cooler um and I'll pass back to Mark far to take you through some of the um
Progress. We've been making at cushy.
If we exclude the impact of royalties and foreign exchange, our cash costs were actually lower than in the first quarter, which is again a testament to the ongoing optimization efforts that dominant tasha will talk about later in the presentation.
Thanks Alex. Um, okay, so cushy just in a nutshell.
No, no big surprises. Um we we busy with basically a few 2, big shots through the year.
For the full year, we are maintaining our cost guidance and expect cash cost to be within the guided range of $9 15 to $9 65 per ounce.
All in sustaining cost per ounce were higher than the previous quarter, primarily due to the increased cash costs and the timing of sustaining capital spend we continue to expect to be within our guidance for the full year at between $250 to $13 per ounce.
Um, which will will really to finish the debut bottlenecking in a bit of upgrade, to take the circuit to be able to produce uh, around about 250,000 tons per hour. Think that whole project plan has gone very well.
Um, you'll see the first half, basically we've done, 84,000 tons of zinc.
Our all in sustaining costs continue to be one hundreds of dollars per ounce below those of our peers. This is the result of our focus on controlling costs continuous improvement initiatives and the benefits of our regional strategy.
And we forecast 182 40, I think or thousand tons of zinc.
Uh, and we maintaining guidance, which means that it's sort of back-end loaded.
We've got, if you can go to the next line, I think it's better.
As an example of the benefits of that regional strategy, our Abitibi platform in Quebec, and Ontario outperformed in the first half of 2025 with over 1 million ounces of gold production at total cash cost of only approximately $850 per ounce and a realized operating margin of 73%. This.
Um so so there's 1 more big shot that's going to happen in August and then we finished the debottlenecking and then that sort of unlocks in additional 20% capacity.
That form host five of our 10 operating mines, including the two largest gold mines in Canada with multiple decades of mine life and strong potential across the region to continue to grow and expand.
And then we should be at the right of running at Beyond.
If we move on to the next slide the record free cash flow. We generated this quarter allowed us to continue to strengthen our balance sheet ending the quarter with net cash of almost $1 billion improve.
Improving from a net debt position of $5 million at last quarter end and.
In addition, given our strong cash position, we decided to prepay $510 million of long term debt. In addition to the $40 million of debt that matured in the quarter.
20,000 tons of zinc per per month, um, short term, and then longer probably 25 or thousand tons of zinc. So, all in all kopushyan,
Okay. Next slide.
Over the past 15 months, we have significantly deleveraged the balance sheet, reducing our gross debt in that period by $1 3 billion.
I think I've discussed this. Um, no sorry. Yeah, Platte Reef.
We will look for further opportunities to reduce debt in the third quarter and intend to continue to strengthen the balance sheet and increase our financial flexibility while at the same time increasing returns to shareholders.
We move on to the next slide.
We delivered as Omar mentioned, we delivered record shareholder returns this quarter totaling approximately $300 million and $550 million for the first half of the year, bringing the cumulative shareholder returns in <unk> history to approximately $4 7 billion majority of which has been returned in the last several years.
Platt tree. If you crossed your minds back, um we planned a small. The small Phase 1 concentrator that you see in the in the in the foreground over there. Um and that was going to be fed with the shaft 1 mine which, which was really a bulk, a bulk sample shaft in the beginning and then we made a decision last year to do, um, shaft number 3, to equip it for Westing and to move quickly into, um, let's call it Phase 2 into phase 2 and then shed shed to all the phase 2 concentrated to to go with that.
so,
From a capital allocation perspective, we remain well positioned in this gold price environment to continue to take a balanced approach. We expect to continue to increase shareholder returns through increased share buyback activity in dividends. We also expect to continue to strengthen our financial position and flexibility by increasing our net cash position and potentially repaying additional.
The Phase 1 concentrator is ready. Um, we are mining um in reef at the moment and we will feed that first uh, concentrator in quarter 4, which is exciting for us. Um, at the moment we are mining development or we stockpiling and on Surface and we will um and we will um start commissioning that concentrator in quarter 4 this year.
<unk> debt.
Lastly, and importantly, we will continue to reinvest in our business in order to bring our high return organic growth projects online. We have five key value drivers projects between detour underground filling the mill, a Canadian mill Arctic Upper Beaver Hope Bay, and San Nicolas all of which generate.
Solid returns at gold prices of $1000 or more below current spot levels, we have a strong balance sheet and we'll look for opportunities to accelerate reinvestment in the business to drive growth and value creation.
Um, at the same time we are completing um the construction of shaft number 3, which really is a game changer for us. It takes a western capacity to 5 million tons per Anum. And as part of that, we are going to accelerate. And we have committed to accelerate um Phase 2, which were basically unlocked flat Reef the next slide.
At current gold prices, we are generating a lot of cash and we'll remain disciplined with our measured capital allocation approach, which is focused on increasing returns to shareholders over the long term.
Um, so this job that you're looking at um the 1 there here in front of you with the blue roof. Um Robert the roof is now on
Um, this is shaft number 2. It's a 10mm diameter shaft.
With that I'll turn the call over to Dominique who will provide an overview of our Quebec, none of it in Finland operation.
Thank you Jimmy Good morning, everyone first I would like to thank the teams or the exit on quarter to continue to keep improving safety focusing on cost and production productivity.
Um it it can be used for um some of phase 2 work, but it's actually um the phase 3 expansion shaft, this shaft can waste 8 million tons. So if you add that you'll you can you can add 5 and 8 to 13. So there's a massive amount of wasting capacity that goes in when the shaft is complete,
While protecting the environment and the wildlife.
The quarter was led by our own production was led by Ireland, and Canadian Arctic mainly because of upside grade. So at <unk>. We had three of the 25 still better than expected and at Canadian <unk>.
Um, as we go with Phase 1 and Phase 2, um, we will, we will also be scheduling phase 3. Um, that is in the published. Um, study that we've released thank you next off the next next slide.
I think.
I think more up more tons at good grade around the old workings, which is a positive surprise.
Very good timing because it upset some challenges at Nunavut, where we have the longer a longer caribou migration then planted in our forecast.
Tailwind for a change on the platinum on the Platinum side is really going to is really going around pricing. Um it's been a massive change in Platinum and Palladium prices in this. In this year alone it has a massive impact on, you know, on on our new, um, Net Present Value running running through our fs and and our phase 3 PA,
Some years are better late last year and some years are required more stop age like this year.
It is very variable and depending of the Cariboo bat. So we don't control that one but our plan our adjusted to it and wildlife protection will remain always a priority.
Um, so, I mean, if you have a look at sensitivities, it takes the NPV from $1.7 billion to $3.8 billion, and that's in a, you know, long lead time to get to Phase 3.
So we we are I think we are here.
Is we?
But despite those challenging Q2 and none of it both mid at Dean and Middle Bank, we remain on track to achieve this year guidance.
we walking into this year, the quarter to 4,
um, we will start producing pgms and selling them.
Moving to the optimization I.
I would like to thank specifically, the kittila team, where and congratulate them because they're are doing significant change management and they're way too.
And I think you'll start seeing the major shift from Q1 when shaft number 3 is running. So, Q2 of next year should show shaft number 3 running, and we can accelerate the development of Phase 2. In my opinion, that then gives you sort of the right kind of scale that you want.
<unk> approach underground production, and we see 10% to 15% improvement in productivity underground, which lead to a 4% decrease in cost per ton. If we compare the first half of 'twenty five compared to the second the first half of 2024, so a very good there.
Um what's also, very important here is our 599 dollar per ounce of um 3E.
um,
It's going to be.
The lowest in the industry I believe, I'm not sure that anyone will to beat this cost.
But the thing I would like to bring your attention is.
Thank you next slide.
Both fleet management system.
Currently our underground mine operating mainly based on radio communication in Manuel scheduling. So a driver truck driver could often wait are doing unnecessary traveling due to change of for example in an equipment is down or just the timing.
Alexa, you're going to, you're going to cover this. Yes, thanks Mark. Um, I'll I'll close out the presentation as usual um, with an update on exploration and starting with the Western forums.
Truck drivers are.
Fully efficient right now.
Imagine that you have you are in the trucks underground into a tunnel you don't have a visibility of what it is they say 234 kilometers away, it's very difficult to be to be optimum. What is a fleet management system is a system that gives you a real time track and formation about the equipment and the people that.
You could track so the system knows exactly where each one is how fast it's moving and if it is waiting.
So with the fleet management system with algorithm and.
Artificial intelligence, we will be able to optimize into regards need to fleet.
Two reassigned to trucks or two bidder route.
If needed if something happened.
So the result of that as an example, currently a truck could do maybe five trips into a shift if we bring that to 700 chips into a shift that's a 40% improvement.
Simple like depth, it's also reducing fuel consumption because there is less idle time and less route that traveling that you do which is unnecessary.
Um, we almost doubled the Total Resource and we are fast closing in on 10 million, tons of contained copper. Uh, and really to put it in context in terms of the efficiency of what we're doing. In the western forums, that probably came at a cost of somewhere in the region of 30 to 40 million dollars to basically add another 4 or 5 million tons of contained copper. Um so the strike rate is is exceptionally High um on that plan. On the right hand side, you can see the increased dimension of the new resource base. Um, so in red it's a little bit faint but you can see the um the inferred resource outline of the 2023 update. And so now what we've added to that footprint at makoko is the new discoveries at makoko West and Koko. Uh and then we've significantly infilled the ground between makoko West, kitoko and makoko. So they're not really new discoveries anymore. They're really shaping up to be a, a new combined, um, um, sort of cohesive copper District, uh, which we sort of refer to as Meiko.
What is our plan is to use as its five and to pilot New fleet management system for underground.
The lead the <unk> team I have been the leaders to implementing the first LTE communication stemming the world underground.
Seven to eight years ago, they've been the leaders into implementing remote operation underground, where right now 25% of the ore is out of the mine without any truck driver operating from surfaces.
Koko now. And that is really already comparable in scale, to for example a um a kamoa mine, so it does feel um, quite similar to to that Discovery story from 2008 onwards. Um, the mineralization is open in multiple directions, including to the South. Um, and so you can see there's a zone that we are planning to infill, uh, which is really between the bottom edge of the resource shell. And then, there is a step out holder, you can see labeled, um, ktk 48, which is well, mineralized that's 2 km.
And the next chapter for them is to develop their fleet management system for undergone.
To the south, um, there's a lot of potential to keep on adding to this resource. Um, it was really a technical cutoff at a point in time to, um, update and QP the statement that we've continued drilling since then.
Let the result, we could expect from that when we look historically using dose systemic two open pits open pit, which we do.
um, if you move to the next slide,
Could be 10% to 15% improvement. So we expect to reach that also firmed ergo remains to be seen the remains to be done.
But we count on as at 5% to develop that.
We're going to pilot in 2025, the loading in the hauling.
In 2026, starting went after positive results starting to implement that also to other mines, which already.
This is really just looking at the Western falland, what we've discovered alongside, komoka, cooler on a global scale and I think you can already see is certainly 1 of the largest discoveries of the past decade or more. Um, we we count number 5, but, um, you know, still very much growing and the stars, as always are highlighting the grade that we have at the Western falland which is very similar to kamo cooler. Um, you know, in between 2.5 and 3% copper, uh, and it really is a sort of unsurpassed on a, on a global scale.
Equipment connected to the system.
Moving to the next slide.
I would like to bring your attention to the figure on the right.
So you could see in black. This is the what is done concerning the ramp and the chef.
<unk> development shaft sinking the good news we are on target we are in cost and even though the shaft sinking is four to five weeks in advance compared to the plan very good news.
The second thing on the <unk> you could see the dotted line that was their resource use when we did that to June 'twenty three study.
Um, just repeating. I see the number the resource number again. So now we have over 500 million tons of um, resource tonnage. Um, so this really already has the scale to be a major development and a standalone mine, or in fact, multiple Standalone Minds. Um, but we are, by no means finished. The drilling is underway. We're in, we're in the middle of the dry season. Now, uh, we have 9 bricks turning in the western fall, and, um, and we are focusing on some new licenses that we acquired in the western fall. And so, um, so I would watch this space very carefully over the next, um, next quarter and Beyond.
And he is going to show you that.
<unk> just keep growing.
Right now we take all the resources together.
Looking to 20 million ounces into that ore body. So that bring me to my the point number one and two or below.
We're shaft number one the team came with a good idea to improve it we're going to go slightly deeper 70 meters deeper.
With the shaft number one and we are going to also add a second loading stations.
To build flexibility to help the production and to save on costs.
With this one so thats the first thing now new into the story.
And the second one about the second shaft.
The team is finalizing where it's going to be and the capacity of this one but it looks like it's going to be close to this one.
Two because.
The reason is simple because that's the center of the math I know it is also bringing some flexibility or synergy to work with the first shaft. So again, where we're not yet finalized on that one but this is where we're heading and it's also <unk>.
Uh, the final slide in the presentation. And moving to um, our new exploration Horizons, the the logo of Ivan ho Ms. Did used to say New Horizons, but we dropped it at a point in time. Um, but we are now very active, um, in our neighboring countries Angola and Zambia, as well as, um, much further a field in Kazakhstan. Um, but all of this is following a similar thesis, which is chasing sedimentary copper which we know as much as anybody in the world about from what we've done at kamaka cooler and in the western Falls. Um, so in Angola, we are making steady progress on a massive land package. This is very Greenfield exploration. Um, but we have a first drilling contract that's been awarded to, um, to drill, uh, over 6,000 meters that will commence later on this year and progress into 2026. Um, and in Kazakhstan, I think you'll recall that we announced in January, we signed a vending, um, exploration partnership to stake, a very large Basin in position in the 2 in Kazakhstan, uh, the 2.
Strategically we need to position that shaft into good drug.
So with the shaft number one at 20000 ton per day, including the Ram plus chef number two let's say potentially 10000 ton per day, we're going to be 30000 ton per day coming from that ore body and potentially getting to $7 50 to 800000 ounces per year from one ore body.
Sarasu belt is thought to be the third largest sedimentary copper belt in the world. Uh and so since January, we've actually moved very quickly there together with our joint venture partner. Um, we've been awarded already close to 17,000 square kilometers of licenses in the space of 6 months. Um, so that's a licensed position roughly 7 times larger than the Western Poland. It's kind of quite comparable to what ivanho mind started with in the DRC going, way back to the late 1990s. Um, and as always, our thesis is to
So thats going to be definitely the biggest underground mines in Canada.
In terms of production of gold.
But we still have room at the mill, we're at a 60000 ton per day, we're going to use <unk> just for that ore body. This is why number three and four were looking to Marvin pit, which is a 13 kilometers away a satellite pit of the kinase MLR.
Focus. Very much on drilling as much as possible within the confines of our budget. Um, so the drilling has already commenced in, in this month of July and we have 17,500 M planned, and some exciting initial targets to, to focus on. Um, so with that, I think we will wrap up the presentation on our pass, back to Matt keble to chair our our q and A's.
We're going to truck it to the mill and we have the <unk> underground satellite project, which is 100 kilometers away.
If we have some time at the end, we'll answer any web questions uh as uh the time allows so operator, please do uh proceed with uh the questions on the phone.
From the <unk> mill.
When you add all of them together, we're going to be around $45 to 50000 ton per day, and we're getting to the 1 million ounces production per year. So that vision is realistic and this is what we're working on all of those piece of the puzzle, let's say number two to four going to gate came together with <unk>.
Thank you, ladies and gentlemen, we will now begin the
Vince studies more in early 2027, we're going to be in position to give you more detail on that.
On this I will pass the microphone to <unk>, Thanks, Tom and good morning, everyone. So I'll cover the operational highlights for Ontario, Australia and Mexico.
800,000 Oz per year from 1 or body. So that's going to be definitely the biggest undergone mind in Canada.
In term of production of gold.
The regions they delivered another strong quarter when it came to safety operating and cost performance.
At Mckesson as Martin mentioned, the team peak near record on gold production for the second consecutive quarter.
Strong quarter was really on the back of one patent sale area that over performed with higher than expected.
But we still have room at the meal where I have a 60,000 done per day. We're going to use 30, just for that everybody. This is why number 3 and 4 we're looking to marban pit which is a 13 kilometers away. Satellite bit of the the Canada male. We're going to truck it to the mill and we have the West MX underground satellite project which is 100 kilometers away.
From the malerich mill.
Over at Detour.
Have the highest Q2 mill throughput and that's a good sign that we're starting to stabilize the highest throughput.
But the ounces for the quarter were affected by lower grades.
During the first half of the year mining was within a low grade domain, which did result in some localized negative or tonnage reconciliation. So we ended up.
Supplementing this shortfall with ore from low grade stockpiles.
When you add all of them together, we're going to be around 45 to 50,000 ton per day and we're getting to the 1 million ounces production per year. So that vision is realistic and this is what we're working on. All those pieces of the puzzle. Let's say number 2 to 4, going to get came together with Advanced Studies more in early 2027. We're going to be in position to give you more detail on that 1.
Now mining activities are going to remain in this low grade domain throughout Q3, and then we expect the grade to improve in Q4 as we move into high grade.
On this, I will pass the microphone to Natasha. Thanks, Tom and good morning everyone. So I'll cover the operational highlights for Ontario, Australia, and Mexico.
So given that the year to date gold production, we now expect to be around the lower end of the full year production guidance range at detour.
The Region's, um, they delivered another strong quarter when it came to safety, operating and cost performance.
With respect to San Nicolas through the joint venture we are continuing to advance the feasibility study, which remains on schedule to be completed by the year by the end of this year.
Um, at massah as Amar mentioned the team, beat their record on goal production for the second consecutive quarter.
And we're also continuing to engage with the government authorities and stakeholders with respect to our key permits which is specifically.
The strong quarter was really on the back of 1 cut and fill area that overperformed with higher than expected grades.
Environmental impact assessment, and then following that the change of land use.
Over at Detour, they had their highest Q2 million throughput, and that's a good sign that we're starting to stabilize the higher throughput.
This quarter the JV.
But the answers for the quarter were affected by lower grades.
We also received an exploration permit authorizing additional drill pad across the property. So we're going to take this as a slightly positive signal from an overall permitting standpoint.
Now, during the first half of the Year mining was within a low-grade domain which did result in some localized negative or tonnage reconciliation.
And with respect to the plan to approve the project. This really hasnt changed its expected to follow dependent on the receipt of the permits and the results of this study.
So we ended up supplementing, the shortfall with ore from our low-grade stock files.
Now moving into the antenna.
Now, mining activities are going to remain in this low-grade domain throughout Q3 and then we expect the greater improve in Q4. As we move into higher grades domains.
Now in terms of the operational and cost improvement efforts there are ongoing with a strong focus on extracting the full potential.
So given the the year to date goal production, we now expect to be around the lower end of the full year, production guidance range at detour.
At all I think and we've just included a couple of examples here on this slide.
One of them is the <unk>.
<unk> of the maintenance work on the 785 trucks at detour.
With respect to Saint Nicholas through the joint venture, we're continuing to advance the feasibility study which remains on schedule to be completed by the Year by the end of this year.
Team is progressing very well on this.
And it does have a cost savings of about $5 million a year, but Moreover, we're developing the in house expertise and sustaining an internal knowledge base.
And we're also continuing to engage with the government authorities and stakeholders with respect, to our key permits, which is specifically, um, the environmental impact assessment, and then following that the change of land use,
On these ultra class trucks, which to me is really invaluable.
Another example is at Mcarthur. The mine has over 90 years of operations and with the recent infrastructure upgrades. We are now in the very early stages of connecting the mine.
Quarter the JV. Um, they also received an exploration permit authorizing additional drill pads across the property. So we're going to take this as a slightly positive signal from an overall permitting standpoint.
And so with the work ongoing for the next say two to three year similar to what Don was saying with respect to all of that five Mckesson will also be able to leverage technology to help us optimize our processes, even further than the team already has our GM at Mckesson Mariana said that well she says connecting this mine will.
And with respect to the plan to approve the project, this really hasn't changed its expected to follow dependent on the receipt of the of the permits and uh the results of the study.
Help us quote unquote turn on the lights, which I agree because we'll be able to track in real time personnel and equipment provide situational awareness automate and enhance the reliability of the data that we have make it easier to diagnose equipment health.
now moving into the terms now in terms of the operational and cost improvements um their ongoing with a strong focus on extracting the full potential um at all our sites and we've just included a couple examples here on this slide
One of them is the internalization of the maintenance work on the 795 trucks that detour.
Utilized fleet management system.
And enable us to obtain short interval control and of course of course, Makassar will be utilizing the learnings amounts at five so that as they go through their journey. So that we'll be able to make quicker decisions become more agile and become more productive and as a result optimize our costs.
The team is progressing very well on this. Um, and it does have a cost savings of about $5 million a year. But moreover, we're developing the in-house expertise and sustaining an internal knowledge base, um, on these ultra-class trucks, which to me is really invaluable.
Another example is, at Masa.
The mine has over 90 years of operations, and with the recent infrastructure upgrades, we're now in the very early stages of connecting the mind.
Moving to the next slide I'll give you a quick update on the two projects in Ontario that we continue to be excited about because it does give us an opportunity to grow low risk <unk>.
Stable production and one of the best mining jurisdictions in the world.
And I wanted to talk to you first about detour Lake and the underground project.
This is a world class asset we outlined a pathway for <unk> to be a 1 million ounce producer annually for over a 14 year period.
It's still early days, but this quarter, we received a permit to take water.
Upon receipt of that permit we established the box cut for the ramp.
And so with the work ongoing, uh, for the next say, 2 to 3 years, similar to what Dom was saying, with respect to L that 5 ml will also be able to leverage technology to help us optimize our processes even further, um, than the team already has our GM at massah Marana, said that. Well, uh, she says that connecting this mine will help us quote unquote, turn on the lights, which I agree, uh, because it will be able to track in real time personnel and Equipment provide situational awareness, automate, and enhance the reliability of the data that we have make it easier to diagnose equipment helps.
Mobilized the development contractors and as you've seen that picture.
Utilize sleep Management Systems.
Our first round in July.
We're also continuing with the infill and expansion drilling and continuing to see positive results Mcgee will discuss this later in the presentation.
As Robert Veeva again, this is another low risk opportunity to grow the production profile in a camp we know well.
learning from LDS at 5 so that, um, as they go through their Journey, so that we'll be able to make quicker, decisions, become more agile, become more productive and as a result, optimize our our costs
And when we can leverage the <unk> and the benefit of our technical expertise and our workforce at Mckesson.
This quarter, we continued to advance on both the surface setup needed for shaft thinking and the site preparation for the ramp.
Moving to the next slide, I'll give you a quick update on the 2 projects in Ontario that we continue to be excited about because it does give us an opportunity to grow low-risk.
Profitable production in 1 of the best mining jurisdictions in the world.
Those of you that joined US on our site visit earlier this quarter you got to see that firsthand.
And I want to talk to you first about Detour Lake and the underground project.
Our construction team.
Average debt past experiences from building our other mines has advanced very well on the installation the steel installation of the headframe and the installation of <unk>.
This is a world-class asset. We outlined a pathway for Detroit to be a 1 million Oz producer annually for over a 14 year period.
It's still early days but this quarter we received the permit to take water.
We're expecting all of this infrastructure to meet commission in in early Q4. This year and then commenced shaft thinking right after that in the same quarter.
Upon receipt of that permit, we established the box cut for the ramp.
Mobilize the development contractors. And as you see in that picture took our first round in July.
As for the exploration ramp the box cut was completed in Q1 and in Q2 the team finalized the supporting infrastructure.
We're also continuing with the infill and expansion Drilling and continuing to see positive results. But we will discuss this later in the presentation.
Is it storage bays.
The temporary air and water services and we also made the decision to self perform this ramp development and we successfully recruited the team there.
As for Robert bever again, this is another low-risk opportunity to grow the production profile in a camp. We know well,
So now we're expecting to commence the ramp development a little sooner than we had originally planned in Q3 rather than in Q4.
And where we can Leverage The and the benefit of our technical expertise and our Workforce at Mikasa.
I know I've mentioned this before but with the inclusion of these two projects, we could see gold production from our Ontario operations to grow by 50% by the early 2013.
This quarter we continue to advance on both the surface setup needed for shaft syncing and the site preparation for the ramp.
So we're looking forward to continuing to advance these projects throughout 2025.
And finally to conclude similar tomo and Dominic I just wanted to thank all of the operating sites and the project team.
Those of you that joined us on our site visit earlier this quarter, um, you got to see this first hand. Um, our construction team, who leveraged their past experiences from building our other mines, has advanced very well on the installation, uh, the steel installation of the headframe and the installation of the hoist.
For all their efforts in achieving our objectives to date and for your focus on business improvement.
Not just on cost on all fronts, including safety.
We're expecting all of this information to be commissioned in in early Q4 this year and then cumin shaft thinking, right? After that, in the same quarter,
And with that I'll just pass it authenticity.
Thank you Natasha and good morning, everyone.
First of all I would like to take a moment to highlight the work of our great exploration team, both mine site and regional exploration through the portfolio.
The first half of 2025 has been excellent. We currently have 120 diamond drill rigs in operation on mine site and regional exploration. Our <unk> safety performance continues to improve overall as our team is committed through our boots in the field program to improve our safety performance in every single aspect.
As for the expiration ramp, the box Cut was completed in q1. And in Q2 the team finalized, the supporting infrastructure, um, such as the storage Bays, the um, the temporary air, and water services. And uh, we also made the decision to self-perform this ramp development, and we successfully recruited the team there. Um, so now we're expecting to commence the ramp development, a little sooner than we had originally planned in Q3 rather than in Q4.
In collaboration with our various diamond drilling entrepreneur.
I know I've mentioned this before but with the inclusion of these 2 projects, we could see goal production from our Ontario operations grow by 50% by the early 2030s.
This concurrently with our drilling explain our excellence program.
so, we're looking forward to continuing to advance these projects throughout 2025
Led to the safe delivery of our first six months of drilling slightly ahead of the program with 670 kilometer of drilling completed with expenditures spending at about 9% below our budget.
I am extremely proud of the improvement observed since 2022, where we have reversed the trend and safety productivity and unit costs after COVID-19.
And finally, to conclude similar to Amar and and Dominic, I just wanted to thank all the operating sites and the project teams um for all their efforts in achieving our objectives uh to date and for your focus on business Improvement, um not just on cost, but on all fronts, including safety.
Um, and with that, I'll just pass it over to G.
Thank you Natasha and good morning everyone.
Among the highlights I would like to mention.
Detour Lake exploration, just celebrated five years with 1 million meter of court being drilled with our entrepreneurs NPL, aged and take what Doug Anmuth partner.
First of all, I would like to take a moment while I light the work of our great exploration, team both mindsight and Regional expiration through the portfolio.
Monarch <expletive>.
Artist in Odyssey and regional exploration around the mine.
That is just celebrated seven years without a reportable accident and 2 million meter of core drilled in process at the regional Court shack facility in Mecca Psi exploration team on the ground.
The first half of 2025 has been excellent. We currently have 120 Android operation on mine site and redraw expiration our health and safety performance continue to improve overall. As our team is committed to our boots in the field program to improve our safety performance in every single aspect in collaboration with our various Diamond, drilling entrepreneurs.
With the entrepreneur Boardsailing gear, and which would you walk out and partner that celebrated two year and 300000 meter of drilling done without a reportable accident.
So across the board World class exploration team delivering safe and exciting drill result on world class assets.
And from a results standpoint, I would like to comment on three of our key value driver project Kenyon of Arctic Detour and Ob.
On slide 12.
At Odyssey.
We currently have 26 drill rig working surface and underground and around the mine.
And are getting some very exciting results in three area that I would like to highlight.
In the upper eastern portion of the EC <unk>, we've seen some great results such as $5 seven Gram over 17 meter around 900 meter, which is the upper part of the east Goldie deposit so we see that area.
That is progressing well and expand the deposit and will likely get into reserve at our next year end mineral reserve and being reorder resources.
Update.
And then in the lower East extension of East Goldie, which result up to $3 for over 36 meter and $3 five over 19.
Outside of the current mineral reserve and resources, extending the zone below two kilometer depth and still open at depth by the way.
we have our key value driver project can in an Arctic detour and OB
on slide 12.
And also the eclipse parallel zone with results up to $3 a gram over 14 that continue to demonstrate the potential to add parallel zone in proximity of the existing zone. Currently in the mine plan offering potential for additional optionality and flexibility for future mining.
At Odyssey.
We currently have 26 rail, rig, working, surface and underground, and around the mine.
and are getting some very exciting results in 3 area that I would like to highlight
The strong result in the lower east and Eclipse.
in the upper eastern portion of the East guli, we've seen some great results, such as 5.7 gram over 17 meter around 900 M, which is the upper part
Continued to extend his own laterally and should lead to a substantial amount of our resources addition at year end this year.
Of the East Goldie deposit. So we see that area.
And continue to enhance our scenario for the location of this again chef as what it was described by dominate carrier.
At uh is progressing well and expand the deposit and will likely get into Reserve at our next uh year end a mineral reserve and been on a resources uh update.
Now on slide 13 of detour drilling continue with a drill rigs that continued to infill the deposit in the area that are targeted for the underground mine project both below the pit in the saddle and.
And then in the Lower East extension of East Goldie, which result up to 3.4 over 36 M and 3.5 over 19.
In the central portion of the deposit, which result up to $3 four Graeme over six seven meter are over 67 meter.
Uh, outside of the current mineral reserve and resources, extending the Zone below 2, kilometer depth and still open at depth. By the way,
And to the west of the Pip next to the plant exploration ramp would result up to two nine over 32 and $1 seven over 113 meter.
And also the eclipse parallel Zone with result up to 3.8, Graham over 14, that continue to demonstrate the potential to add parallel Zone in proximity of the existing Zone currently in the mine plan offering potential.
The western extension of the deposit outside and to the west of the open pit and next to the proposed exploration ramp continue to deliver strong results.
For additional optionality and flexibility for future mining.
The strong result in the Lower East.
And eclipse.
That could potentially outline an area where underground production could be accelerated in our underground mine development scenario.
Continue to expand the zone laterally and should lead to a substantial mineral resources Edition at year end this year.
And last but not least on slide 14, Adobe we have six drill rigs in operation and have completed almost 70000 meter.
And continue to enhance our scenario for the location of the second shaft as what it was described by Dominic earlier.
Year to date and.
And we continue to see strong result in two very interesting area.
First of all close to serve phase in <unk>, seven with 16 ground over four meter and five seven gram over 12 meter at around 300 meter that.
Now on slide 13. A detour drilling continue with a drill rigs that continue to instill. The deposit in the area that are targeted for the underground line project, both below the pit in the saddle.
<unk>.
That could potentially be accessible early.
In the central portion of the deposit, which result up to 3.4, Graham over 6.7 M or over 67, m.
And mine plan and the mine plan closer face an hour in our project development scenario.
But more importantly.
And to the west of the tip next to the plan, expiration ramp, which result of 2 2.9 over 32 and 1.7 over 113 m.
I would like to bring your attention to the deep resolve we just got in the gap between solar can patch with one of the best drill result to date Adobe that we can see in our core box below that long section and old $3 45 that returned 53 gram over $8 four meter.
The Western extension of the deposit outside and to the west of the open pit. And next to the proposed expiration, Ram continue to deliver strong results that could potentially outline an area where on the ground production could be accelerated in our underground line development scenario.
We are using $25 seven using capping of the high grade assays at 50 Gram.
But that drill intercept is quite spectacular as you can see visually simple quarter Zane visible gold and that drill hole sits at 750 meters below surface, where it is on remains open at depth showing great potential for mineralization to continue to expand at much greater depth.
And last but not least, on slide 14 at obey, we have 6, drill rig and operation and I've completed almost 70,000 meter.
Here to date.
And we continue to see strong results in 2 very interesting area.
First of all, close to surface and Patch 7.
That we currently know.
with 16 gram over 4 meter and 5.7 gram over 12 meter at around 300 meter that
So we anticipate that these results will have a positive impact on the morale reserve for obey at year end.
That could potentially be accessible early.
So mid year, we're very confident that we are in a good position to replacement around reserve from ongoing production depletion and potentially grow our overall year over year bottom line reserve total.
In mine plan in the mine plan. Close to surface and our in our project development scenario,
but more importantly,
I would like to bring your attention to the uh, the Deep result we just got in the gap between sudo and patch.
And as we continue to de risk our key value driver project.
And deliver economy studies that pertains to each of them.
And on that I would like to return the microphone to EMR for some closing remarks.
With one of the best drill results to date at OBY, we can see in the core box below that long section in all 345, which returned 53 grams over 8.4 meters.
Thank you and everyone else.
We're using 25.7 using capping of the high-grade assets at 50 Graham.
We began today's call by saying our key messages are largely the same as those over the past several quarters.
Good production good cost control, great progress moving forward and accelerating the best pipeline, we've ever had and as <unk> just discussed.
Excellent exploration results.
But that drill intercept is quite spectacular. As you can see, visually simple quartz vein visible gold and that the whole sits at 750 metre below surface where it is on remains, open at depth showing great potential for the mineralization to continue to expand at much greater depth.
The most aggressive exploration the company's history.
That we currently know.
All of this as gold prices continue to reach new highs as.
So we anticipate that these results will have a positive impact on the mara reserve for Old Bay at year end.
As we continue to generate record cash flows as we strengthen the balance sheet.
As we return record amounts of cash to our owners.
I have to say in this case it is a pleasure to be repeating the same good news message quarter over quarter.
So mid year we're very confident that we are in a good position to replace mineral Reserve from ongoing production, depletion and potentially grow our overall year-over-year. Bottom line Reserve total
At Agnico Eagle, we will continue to work hard for all of our stakeholders.
and as we continue to the risk, our key value driver project,
And deliver economic studies.
And we will continue to build off the same foundational strategic pillars that have served us well over the past 68 years.
That pertain to each of them.
And on that, I would like to return the microphone to Amar for some closing remarks.
We will focus on the best mining jurisdictions based on geologic potential and political stability.
Thank you again and everyone else.
We will be disciplined with our owners money, making investment decisions based on technical and regional knowledge and creating value through the drill bit.
Key messages are largely the same as those over the past several quarters.
We believe we are uniquely well positioned with a quality project pipeline leveraging existing assets in the best regions in the World, where we believe we have a competitive advantage.
Good production, good cost control, great progress, moving forward and accelerating the best pipeline we've ever had. And is Gee, just discussed, uh excellent exploration results. Uh with the most aggressive, exploration companies history,
And we will continue to focus on creating value on a per share basis and on being leaders in our industry and returning capital to shareholders as evidenced by over 42 years of consecutive dividend payments and increasing share buybacks.
All of this is gold prices, continue to reach new highs.
as we continue to generate record cash flows, as we strengthen the balance sheet, uh, and as we return, uh, record amounts of cash to our owners,
Thank you all for your time, and operator May I ask Hugh.
I have to say, in this case, it is a pleasure to be repeating the same. Good news message quarter over a quarter.
To open up for questions.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one I know touched on filings should you wish to cancel your request. Please press the star followed by the tail. If you are using a speaker phone. Please lift the handset before pressing any case.
At agno Eagle. We will continue to work hard for all of our stakeholders.
And we will continue to build off the same foundational. Strategic fillers that have served us well over the past 68 years.
We will focus on the best mining jurisdictions based on geological potential and political stability.
Once again that is star one should you wish to ask a question.
We will be disciplined with our owner's money. Making investment decisions based on Technical and Regional knowledge and creating value through the drill bit.
And your first question is from Fahad Tariq from Jefferies. Your line is now open.
Hi, Thanks for taking my question congratulations on the quarter generated free cash flow about $1 3 billion and then repurchase shares of about $100 million, maybe can you walk us through your thought process on buybacks versus dividends and does the current share valuation play a role in determining which option you choose to return capital to shareholders.
We believe We Are uniquely well, positioned with a quality project pipeline leveraging. Existing Assets in the best regions in the world where we believe we have a competitive advantage.
And we will continue to focus on creating value on a per share basis and on being leaders in our industry, in returning, Capital to shareholders as evidenced by over 42 years of consecutive dividend payments and increasing, share BuyBacks.
<unk>.
Yes, Thanks, a lot for the questions Jamie here.
As I said in my remarks today, where were doing what we said we're going to do.
Thank you all for your time and operator, uh, may I ask you uh to open up for questions.
We're taking advantage of higher gold prices to strengthen the balance sheet to reinvest in the business and increase returns to shareholders. So we pay a hefty dividend $800 million annually.
Thank you, ladies and gentlemen, we will now begin the question and answer session.
We've dramatically increased our level of activity on the share buyback and we doubled it in the second quarter relative to the first and I think there is room through the rest of the year to do even more.
Should you have a question please? Press the star followed by the 1 and a touchdown bone. Should you wish to cancel your request? Please? Press the star followed by the 2 if you're using a speaker-phone. Please. Lift the handset before pressing any case once again that is star 1 should you wish to ask a question?
We're at $550 million for the first half of the year. If you annualize that so just assuming we did the same we're at $1 1 billion, but what we've been saying consistently over the past several years is that we're targeting about a third of our free cash flow being returned to shareholders. So if the gold price stays where it is.
And your first question is from a pad, Tariq, from Jeffrey's, your line is now open.
That total return to shareholders could get up to 1.3 billion, which implies a lot more activity on the share buyback in the second half of the year and I think thats what were favoring in the near term, we'll certainly be evaluating the dividend as we get into our budgeting season, and if there is room for an increase there.
Hi. Thanks for taking my question. Um, congratulations on the quarter. Generated free cash flow of about $1.3 billion and then repurchased shares of about $100 million. Maybe can you walk us through your thought process on buybacks versus dividends and does the current share valuation play a role in which option you choose to return capital to shareholders?
Would likely be later this year early next.
Okay. That's clear and then maybe just switching gears to macassar, maybe this question for Natasha, but can you talk a little bit about how to think about grades in the second half.
Consecutive quarters, now pretty high grade I understand it's one or two or maybe three stopes, but.
You talked through how to think about grades in the second half.
Yes. Thank you for the question. So both quarters, we did see some localized positive grade reconciliation. So we are not factoring that in in the second half and we're expecting to be.
We have the software.
Second half, but still meeting guidance.
Okay. Thank you.
Yeah, thanks a lot for the questions, Jamie here. Um, you know as as as I I said in my remarks today, we're we're doing what we said we're going to do. Um you know, we're taking advantage of of higher gold prices to to strengthen the balance sheet to reinvest in the business and and increase returns to shareholders. So, you know, we pay a hefty dividend 800 million annually. Uh, We've dramatically increased our level of activity on the share buyback and we doubled it in the second quarter relative to the first and I think there's room through the rest of the year to do even more. Uh, we're 550 million for the first half of the year if you annualize that. Uh, so just assuming we did the same, you know, we're at 1.1 billion. But what we've been saying consistently over the past several years is that we're targeting about a third of our free cash flow being returned to shareholders. So you know if the gold price stays where it is uh that total return to shareholders, could get up to 1 Point 3 billion. Uh which implies you know a lot more activity on the
Thank you and your next question is from Josh Wolfson from RBC capital markets. Your line is now open.
Yes, thanks very much I think this question is probably best for Jamie some of the free cash flow beat this quarter. It looks like it was attributed to the tax deferrals I'm just wondering.
Share buyback. And in in in the second half of the year and I think that's what we're favoring. Uh, in the near term. We'll uh we'll certainly be evaluating the dividend as we get into our budgeting season and you know, if there's room for an increase, there would likely be later this year or early next,
How should we think about that going forward and when that liability maybe reconciles.
And would be a headwind as opposed to free cash flow.
Yes, Hi, Josh Thanks for the question.
Okay, that's clear. And then maybe just a Switching gears to Masa maybe this question for Natasha, but can you talk a little bit about how to think about grades in the second half? There's been 2 consecutive quarters. Now, pretty high grade. I understand it's 1 or 2, or maybe 3 stops, but
Yeah, no you're absolutely right I mean that was a big swing this quarter I think pre change in taxes payable our free cash flow is about $800 million. So it's almost a <unk> $5 billion.
Swing as a result of taxes, if we look at our cash taxes for 2025, we've paid about $600 million in the first half of the year and we plan to pay about $600 million in the second half of the year. So around $1 2 billion for 2025 and cash taxes now are.
We talked through how to think about grades in the second half. Thanks, yeah, thank you for the question. Um, so both quarters, we did see some localized positive grade reconciliation. So we are not factoring that in in in the second half and we're expecting to be uh, we have a softer. Um, so I can have it but still meeting guidance.
Okay, thank you.
Income tax expense is substantially higher than that but the way. It works, we pay installments based on the prior year's profitability. So if the gold price stays where it is we will have a significant catch up payment in Q1 of 2026.
Thank you. And your next question is from Joshua Wilson from RBC Capital markets. Your line is now open.
Just as we did this year this year in Q1, we paid $400 million in relation to 2024 and at these gold prices in Q1 of 2026, we could have upwards of a $900 million catch up payment in relation to 2025, so youre going to see this volatility in periods, where the gold price is.
Uh, I think this question is probably best for Jamie. Uh, you know, some of the free cash flow beats. Uh this quarter looks like it was attributed to the tax deferrals. I'm just wondering, you know, how should we think about that, going forward? And and when that liability maybe reconciles, um, you know, and and would be ahead when I suppose to free cash flow. Thanks.
Rising.
Great as it has been.
Got it thank you.
Then on on Detour just on the operating side.
Hi.
What should we think about sequencing in the second half of the year and maybe more specifically what sort of grade can we expect in the fourth quarter. When we're out of this or others may be even more challenging zone.
Yeah. Hi Josh. Thanks for the question. Um, yeah. No, you're absolutely right. I mean that that was a big swing this quarter. I think pre-change in in taxes payable, our free cash flow is about 800 million. So it's almost a half a billion dollar, uh, swing as a result of of taxes. We look at our cash taxes for 2025. Uh, we've paid about 600 million in the, uh, the first half of the year and we plan to pay about 600 million in the second half of the year. So, in around 1.2 billion for, for 2025, in cash taxes, now our
So as mentioned earlier the Q3, we're still going to be in the lower grade domain in Q4, we're expecting to be in higher grade I would say somewhere.
<unk> 907 in one.
Okay, that's solid and then on the on melodic similar sort of question here for <unk>.
And when when does the contribution from that area taper off.
Good.
Joseph <unk>. So that's something we're going to see through the reminder of the Barnett of the open pit as we experienced back into Devon and Canadian on R&D and as you get towards the bottom of the cone of the pit, we're getting closer to the old workings.
income tax expense is substantially higher than that. Uh, but the way it works, you know, we pay installments based on the prior years profitability. So if the gold price stays where it is, we will have a significant catch up payment in q1 of, uh, of 2026 this year. Just as we did this year this year in q1. We paid 400 million in relation to 2024 and at these gold prices. Uh in q1 of 2026, we could have upwards of a 900 million dollar catch up payment in relation to 2025. So uh, you're going to see this volatility periods, where the gold price
Is is rising at a rate as it has been.
Got it. Thank you. Um, and then on on detour uh just on the operating side. Uh
And around the old workings at the basically it was some time.
Or kind of.
<unk>.
Taken a conservative approach about the pillar that were left around the old workings. So theres more tons left then plan on our avoid model and the grade is better also so that trend is expect to go but it could be variable, but theoretically and hope for the rest of the open pit at Barnett, we should see that pause.
You know, what should we think about sequencing in the second half of the year and and maybe uh, more specifically what what sort of grade can we expect in the fourth quarter? When we're out of this, uh, more of this? Maybe more challenging Zone?
Um so, so as mentioned earlier, so with Q3, we're still going to be in the lower grade domain. In Q4, we're expecting to be in higher grades, I would say somewhere
The trend in with a little bit more ton left behind by the old miners.
Between 0.97 and 1.
Great. Thank you very much.
Uh, you know when the contribution from that area tapers off?
Thank you and your next question is from Anita Soni from CIBC World markets. Your line is now open.
Thank you.
Omar Damien just a quick question.
I just wanted to ask about the <unk>.
Exploration results at East Goldie I think you said that you're right.
<unk>.
Deepening the shaft as well as doing a second shot on the shaft deepening side do you have an idea of how much that would cost in terms of.
Good. Yeah, Josh it's G. So that's something we're going to see through the reminder of the bar and apps of the open bit. Uh, as we experienced back in the day, even in Canadian minority and as you get towards the bottom of the cone of the bit, we're getting closer to the old workings and around the old workings. That's basically their it was sometime. Uh, we are kind of, uh,
Moving loading station.
And to understand is does that loading station is not built yet.
It's just a matter from a design standpoint of actually moving not loading pocket further down and then adding one.
Little higher up, but what would that do to the capex for the asset.
Yes, deepening the shaft number one by 70 meters, including doing.
Taken conservative approach about the pillar that were left around the old workings. So there is more time left than plan on our void model and the greatest better also. So, uh, that trend is expect, uh, to go. But it could be variable. But theoretically, you know, for the rest of the open Beta Barnet, we should see that positive trend and with a little bit more time left behind by the old miners.
Great, thank you very much.
Third loading station, which means.
All of the infrastructure plus a crusher were talking up Proximately 40, 40 million U S to do that but it is a payback projects. So we're going to save on trucking, we're going to save on fuel we're going to be more effective. So that's the overall that's a positive thing and has the geese.
Thank you and your next question is from Anita Sunny from CIBC World Markets. Your line is now open.
Showing these slides.
These days getting deeper than expected so.
The 70 meter, let's say, we're going to be at the $8 eight 1870 meter with the shaft. It is like the limit of the.
Deep we could go with that technology in the shaft, we're having in hand.
Okay 49.
There are reasonable.
In terms of capital allocation for Jamie I think you mentioned, one third capital return to shareholders.
I could be wrong about the one third budget catch $1 3 billion at these gold prices, but could you talk about how you.
Thank you. Um, question, I'm just asked about, uh, the exploration results at East School. Do you think you said that? You're, you know, you're evaluating, um, deepening the shaft as well as doing a second shaft, on the shaft. Deepening side, do you have an idea of how much that would cost in terms of um uh the the moving loading station? I I'm trying to understand is that that loading station is not built yet it's like it's just it's just a matter of from a design standpoint of actually moving that loading pocket further down and then adding 1 uh a little higher up. But what would that do to the capex for the asset?
Other portions of the other two thirds and how that split.
Could we see you guys.
Some accelerated investment in <unk> your organic opportunities going into the next couple of years or at least action.
Yes. Thanks.
Yes, I think absolutely I mean, we will continue to strengthen the balance sheet, we still have.
Almost 600 million of debt on the balance sheet will look for opportunities to prepay some of that and as we alluded to in our remarks on the call I think there will be opportunities for us to accelerate development of some of our projects. So.
Yeah, dipping the shaft number 1 by 70 M including uh doing uh a third loading station, which means uh all the infrastructure plus a crasher, we're talking approximately 40, 40 million us to do that but it is a payback project. So we're going to save on tracking, we're going to save on fuel, we're going to be more effective. So that's the overall, that's a positive thing and as ghee show in his slides, uh, this is getting deeper than expected. So
That's what we should be doing and these gold prices, we're generating high returns we should be reinvesting in high return projects, we could well see higher capital and in the years ahead in order to do that and unneeded Omar here.
With the the shop, it is like the limit of the cap, the Deep we could go with that technology and the shaft we're having in head.
Okay, no. I
To the extent that we are accelerating it is only because they are good projects.
Only because they are good projects and frankly the team is doing a very good job and these are there's a lot going on these are in the future.
But having been in this business a long time I can tell you.
Pleasantly surprised that the quality of the work and the potential of the project and the ability to actually move these things forward. So.
40 million pounds variable. Um, in terms of the capital allocation for Jamie, I think you mentioned 1, third uh, Capital return to shareholders and I could be wrong about the 1 third but I did catch 1.3 billion at at these gold prices but could you talk about how you, you know, the the other portions of, you know, the other 2/3 and how that split and you know, could we see, you know, um, some accelerated investment into your get organic opportunities going into the next couple of years or at least next year,
It's not because we're going to have extra money at these levels that we are looking to accelerate its primarily because.
They are even in some cases better than we thought and we're making faster progress than we thought.
No for sure I think.
Demonstrated to have certain capital allocation and I think it was this time last.
I was worried about you guys building a second Johnson I'm, hoping you held the second shaft.
Changes in a year.
Yeah, thanks, Anita. Yes, I think absolutely. I mean, we'll continue to strengthen the balance sheet. We, we still have, uh, uh, almost 600 million of debt on the balance sheet. We'll look for opportunities to prepay some of that. And, uh, yeah. As we alluded to and, and, and our remarks on, on, on the call, I think there will be opportunities for us to accelerate development of, of some of our projects. So, um, you know, that's what we should be doing. And, and these gold prices were generating High returns. We should be reinvesting in in high return projects. Uh, we could well see, higher capital in, uh, in the years ahead in order to do that. And Donita, it's Amar here. Um,
Well said.
Yeah.
That's it for my questions.
To the extent, uh, that we are accelerating. Uh, it's only because, uh, they're good projects.
Okay.
Thank you and your next question is from Tanya <unk> from Scotiabank. Your line is now open.
Hi, Yes. Good morning, Thank you very much for taking my questions and congrats on a good quarter, Jamie just coming back to you on that capital allocation just a lot of cash and I. Appreciate there is some of that $600 million of that you want to pay.
It's only because they're good projects. And frankly, the team is doing a very good job. And, you know, these are there's a lot going on. These are in the future, uh, but having been in this business a long time, I can tell you, I'm pleasantly surprised that the quality of the work and the potential uh of the projects and the ability to actually move these things forward. So um,
Buyback.
I understand youre going to be scaling back up again, and maybe third quarter fourth quarter or early next year.
It's not because we're going to, you know, have extra money at these levels that we are looking to accelerate. Its primarily because
Hey, Microsoft what minimum cash balance you feel comfortable keeping on your balance sheet to run your business first one and number two if we were to see additional capital.
They're even in some cases better than we thought and we're making faster progress than we thought.
For project.
Salary, but would it be for detour.
No, for sure. I think. Um you demonstrated that fruit and capital allocation and I think it was this time last year I was worried about you guys building a second chat and now I'm, I'm hoping you build a second shop. So so a lot changes in a year. Well, said,
Good morning.
Lee you highlighted.
That's it for my questions.
Thanks, Tanya for the question.
Yes, no I mean.
On your first question with respect to the minimum cash balance I mean at these gold prices, we could be well north of $2 billion to $5 billion in cash on the balance sheet by the end of this year and I'm certainly comfortable at those levels. I mean, we do we talked about the timing of cash tax payments, we are going to have a significant cash tax outflow.
Thank you. And your next question is from Tanya Jakis Conic from Scotiabank. Your line is now open.
<unk> in the first quarter of next year.
And this goes to your second question, we do anticipate having opportunities to accelerate some of our capital spending to bring some of that production forward.
Uh, yes, good morning. Uh, thank you very much for taking my questions and congrats on on a good quarter. Jamie just coming back to you on that Capital, allocation, she has a lot of cash and I appreciate there's some of that 600 million of debt you want to pay down or buy back. Um, I understand you're going to be reviewing the dividend and maybe third quarter fourth quarter or early next year. Um,
It's really it's across our project pipeline.
We'll be I think talking more about potential the potential to accelerate some of the underground production at detour as an example, but across all of our key value drivers. There there are opportunities for us to do more quicker and bringing that incur incremental production sooner.
Can I just ask what minimum cash balance, you feel comfortable keeping on your balance sheet to run your business? First, 1 and number 2. If we were to see additional Capital, be put to project,
Um The Accelerated would it be for detour? Hoping Canadian malartic with those 3 to 3 that you highlighted.
Okay.
And should I be kind of thinking that we should keep the total capital I'm going to say it.
In a way should we be thinking between the two to $2 5 billion range over the next few years should I be thinking about it that way.
Yes, I'd say, it's too early to give you any.
Formal guidance on that anywhere in the process.
Going through our kind of budgeting and scenario analysis now and.
As we get into the fall, we'll have more clarity in terms of what the capital profile looks like over the next several years.
Okay. Thanks.
And then maybe I could just ask about Tom.
Uh, thanks Tanya for the question. Um, yeah no. I mean the the on on on your first question with respect to the minimum cash balance. I mean, is these gold prices. We could be uh, you know, well north of 22 and a half billion in cash on the balance sheet by the end of this year. And and and I'm certainly comfortable with those levels. I mean we do you know, we talked about the timing of cash tax payments. We we are going to have a a significant cash tax outflow and in the first quarter of next year. Um and you know, this goes to your second question, we do anticipate having opportunities to accelerate some of our Capital spending to bring bring some of that production forward. Um, I think it's really it's a cross. Our
As you are thinking about capital profile can you talk a little bit how you are thinking about your life of mine plans on your reserves and resources.
On the former.
Hi, Robert.
Iraq.
Yes.
Our reserves and resources are Don and how you're thinking about approaching that.
Our project pipeline. Um, you know, we'll we'll be, I think talking more about potential the potential to accelerate some of the underground production to detour as an example, but across all of our key value drivers, there there are opportunities for us to to do more quicker and uh, bring in that incorrect incremental production sooner.
Ill start with that tenure and then maybe I'll ask <unk> to jump in I mean, thats an excellent question.
It's one thing managing your reserve price when gold moves 100 or $200 a year.
Frankly, it becomes a more complex question.
Okay. And, and should I be kind of thinking that we should keep this total Capital? I'm going to say it's, you know, in a, in a way, should we be thinking between the 2 to 2.5 billion range over the next few years? Should I be thinking about it that way?
When the gold price moves $1000 or $500.
So right now we're maintaining an <unk> can get into the specifics a very reasonable number four hour.
Reserves.
He'll get into.
I don't want to steal his thunder, we're doing a good job in replacing reserves.
And as we get into the fall, we'll have more clarity in terms of what the capital uh, profile looks like oh over the next uh, several years.
But there could be opportunities tenure.
I've talked to you about this.
So let's take a look at for example, something like Meadowbank Meadowbank was supposed to run out in 2028.
This is not formal direction to anybody, but we are working on something that might allow us to extend it at a lower rate to say.
Okay. Um thank you. Um and then maybe I could just ask about um as you are thinking about your Capital profile, can you talk a little bit how you are thinking about your life of mine plans and your reserves and resources. I'm given the big discrepancy in the full price where we're at versus, you know, where reserves and resources are done. And how are you thinking about approaching that
2034.
Now those would be.
Lower grade ounces that.
I'll start with that, Daniel, and then maybe I'll ask Gita to jump in. I mean, that's an excellent question.
Werent the best use of our owners' money at $800 environment to make an awful lot of money for our owners at $3300.
So those in that example of course, it makes sense, because you're otherwise going to shut down the mine of course, it makes sense to take advantage of those additional allowances I mean, we're working on that but so it is a function in this very well. It's a function of do you have spare mill capacity.
You know it's 1 Thing uh managing your your reserve price when gold moves 100, or $200 a year. Frankly it becomes more complex question uh, when the gold price moves 000 or $15. Um, so right now we're maintaining and gee can get into the specifics uh, a very reasonable. Uh, number for our um,
Are you extending our mine life, if you bring in lower grade stuff are you displacing higher grade.
Into many years in the future. So it's an excellent question because gold has changed a lot.
And we're looking at all of that I don't know if <unk> you want to jump in yeah exactly. So we're looking at it on a mine by mine approach, but as mentioned by RMR is Paramount for us to continue to send to the mill what was in our guidance, meaning we don't want a lower cutoff grade and change the mining sequence.
Uh, uh, Reserve. Uh, he'll get into, and I don't want to steal his Thunder. We're doing a good job in in, in, in replacing reserves. Um, but uh, there, there could be opportunities, Tanya, and, you know, and I think I've talked to you about this, uh, so let's take a look at, for example, something like Meadowbank, you know, Meadowbank was supposed to run out in 2028. Uh, this is not formal direction to anybody, but
uh, we are working on something that might allow us to extend it at a lower rate to say, uh, 2034
Uh, now those would be, uh,
But on a mine by mine, we're looking if there is extra mill capacity that we can we can.
10 additional ton at lower grade that are profitable and iron ore price environment, and which is the right thing to do and also looking at sensitivity long term. So we've started some analysis of one on what could be the implication on their iron gold price environment looking at sensitivity on each of the deposit which may help us in some.
Some some design and making sure. We're not for example, opening a waste dump next to a business that could be much larger or stuff like that but where we wrangle scenario, but.
Our bottom line remains the same we don't want to lower the cutoff grade we don't want to change our mining sequence. We are committed to deliver the right to send the right answers first right ton a day mill and if there is available additional milling capacity, we're going to do so if they are profitable.
Okay, well. Thank you very much for that I don't want to ask any more questions. Although I do have a loss hopefully someone asks about how your exploration and reserve replacement is going so well.
lower grade Oz that, uh, weren't the best use of our owner's money at 1800 environment to make an awful lot of money for our owners at 3,300. Um, so those those in that example, of course, it makes sense because your otherwise going to shut down the mine. Of course, it makes sense to take advantage of those additional Oz. I mean we're working on that but so it it is a function and, you know, this very well, it's a function of, you know, do you have spare milk capacity? Um, you know, are you extending a mine life? You know, if you bring in lower grade stuff, are you displacing higher grade, uh, into many years in the future, so it's an excellent question because gold has changed a lot. Um, and we're looking at all of that. I, I don't know, gee, if you want to jump in. Yeah, exactly. So we're looking at it on the Mind by mine approach, but as mentioned by Marv, it's Paramount for us to continue to send to the male. What was in our guidance meaning, we don't want to lower.
Lake hopefully to hear on that.
Thank you.
A cut of grade and change the mining sequence. But on the Mind by mind we're looking. If there's extra mil capacity that we can, we can, you know, we send additional time at lower grade and that are preferable and our go price environment.
Thank you and your next question is from Daniel Major from UBS. Your line is now open.
Hi, guys. Thanks for the questions I think come most of the capital allocation questions been Austin.
<unk> saw xylem, but I suppose two questions. One you mentioned about the scope to accelerate capex potentially I think.
Around this time last year, maybe it was Q3 you increased the Capex budget for this year should we assume that.
<unk> ability to accelerate Capex more applies to 2026 2027 and this year's budget is kind of reasonably fixed is that the way they are thinking about it.
Which is the right thing to do and also looking at, you know, sensitivity long term. So we started some analysis of 1 of what could be the implication under our goal, price environment, looking at sensitivity on each of the deposit which you know, may help us in some some some design and making sure we're not, for example, you know, putting away dumps next to a pill. It could be much larger or stuff like that. So we're you we're running those scenario. But, you know, our our bottom line, remain the same. When we don't want to lower the cut off rate, we don't want to change the mining sequence. We are committed to deliver the right to send the right answers first right. Turn first at the mail and if there's a bit of a additional Milling capacity, we're going to do. So if they are profitable,
Yes. Thanks for the question, Dan I think Thats.
Okay, well, thank you very much for that. I don't want to ask.
Yes.
I think.
Like we're going through the process now of.
Looking at our capital spending outlook I think it will be there will be incremental spending beyond this year's budget. Examples that like Dom just spoke about I mean, the third loading shaft that at Odyssey $40 million, probably has an 80% IRR if theres things like that that we can do to lower costs in the future to bring.
Someone asked about how your expiration and reserve replacements are going, so I'll wait, hopefully to hear on that. Thank you.
Thank you. And your next question is from Daniel, major from UBS, your line is now open.
Production on sooner.
Wrong return projects will.
We'll look at them.
Have an announcement early next year out on whole Bay, that's going to be a new significant mine for the company, but comes with a fairly hefty capital costs. So there is the potential for.
Yes.
An increase in our overall capital spending.
But it's going to result in higher long term returns and value creation for shareholders.
Uh, hi guys. Um, thanks for the questions. I think. Um, most of the capital allocation questions have been asked and um, different ways. So I'll leave that 1 but I suppose 2 questions 1, you mentioned you about the scope to accelerate capex, potentially, I think, um, around this time last year, maybe it was Q3 you, you increase the capex budget for this year. Should we assume that um, that ability to accelerate capex more applies to to 2026 2027 and this year's budget, um, is kind of reasonably fixed is that the right way of thinking about it
Okay. Thanks.
The second one.
Just on the kind of portfolio M&A et cetera on actually more on this streamlining solid you've got a big portfolio of early stage kind of options is this higher gold price environment and opportunity to monetize some of those that don't meet your quality criteria.
Yes, I mean clearly.
Good question good observation.
We don't invest in this as a portfolio to trade and make money, we everything we invest in we take a look.
The long term potential.
That said.
Historically.
Nine out of 10.
We decide.
Don't fit exactly and you're it's a good.
Ration to notice that.
At these gold prices the value of that portfolio has gone up a lot.
Spending Beyond this year's budget examples that like Dom just spoke about. I mean, the third loading shaft that uh, at Odyssey, you know, 40 million probably has an 80% irr. If there's things like that that we can do to lower costs in the future uh to bring production on sooner. Uh, strong return projects will, uh, we'll we'll look at them. Um, you know, we'll have an announcement early next year out on Hope Bay. Uh, that's going to be a new significant mine for the company, but comes with a, you know, fairly Hefty Capital cost. So, uh, there is a potential for, you know, an increase in our overall Capital spending, um, but it's going to result in, you know, higher long-term returns and and, and, uh, value creation for shareholders.
Yes.
I can't really talk much more about it than that but but to say that it is not an unreasonable question.
Okay, thanks. Um, and then the second 1, um,
Thanks.
And then finally, just operational question Great Hospital.
Continued to hold up well into the eights and <unk> that.
It could be tracking well ahead of guidance.
Are you still expecting that great profiles will come off in the second half.
Just on the the kind of portfolio m&a. Etc on actually more on this sort of streamlining side, you've got a a big portfolio of early stage kind of options um is this? Hi Pro gold price environment and opportunity to monetize some of those that don't meet your quality criteria.
Is it on a reconciliation largely and should normalize or is it more.
Yeah, I mean clearly um you know good question. Good observation. Um
It's a sort of hold those rates since the end of the year.
Hi, Daniel filled with Fosterville reconciliation has been actually okay. It's just the mine sequence. So we were expecting a stronger <unk> similar to Mckesson I guess.
You know, we we don't invest in this as a you know portfolio to trade and make money. We everything we invest in, we take a look at what's the long-term potential. You know that said,
We're expecting a lower <unk> off to HTM.
You know, historically, uh, you know, 9 out of 10, uh, we decide, you know, don't fit exactly. And it's a good observation to notice that. Uh,
Great. Thanks.
Congrats on good set of numbers and I'll get back in the queue.
At these gold prices. The the value of that portfolio has gone up a lot.
Thank you and your next question is from John Tumazos from John Tumazos very independent research. Your line is now open.
And, um, you know, I can't really talk much more about it than that, but but to say that it's not an unreasonable question.
Thanks. Um.
Thank you.
The phone will just operational question. Um, grades, that Foster bill.
We'll assume favorable cases of underground development.
The underground at <unk>.
Is it possible that east Goldie shaft has outputs.
In the second half of 2026 or reaches.
Full output sometime in 'twenty eight 'twenty nine.
Continue to hold up. Well, in the 8th, a new that could be tracking, well, ahead of the guidance. Um, are you still expecting that great profile to come off in the second half? Um, is it kind of reconciliation largely and should normalize? Or is it, you know, more likely to sort of hold those rates since the end of the year?
Yes, John Dominique speaking the first shaft the end of the commissioning.
For the mid shaft loading station is mid 2027.
And getting to the the latest loading and where we're going to be at the <unk> now.
Um, hi Daniel. Um, so with fosterville reconciliation has been actually, okay, it's just the Mind sequence. So we were expecting a, a high, a stronger, H1 similar to Masa, I guess. And, and we're, we're expecting a, a lower H2, a softer H2.
Great, thanks. Um,
Don't have that date, but I guess when did we need to <unk>.
got some good numbers and I'll go back to the key.
But the commissioning of the mid points at 27%.
Include from June do we need to win seven it should be a good party at Atmel, Arctic where we're going to start to bring some ore to the tough with that new shaft, you can come to the party if you want John.
Thank you. And your next question is from John Temazo from John Tomaso's Very Independent Research. Your line is open.
Thank you, we'll see favorable cases of underground development.
Thank you.
I can ask the second one.
And the investment portfolio was up to $1 billion in <unk> through June.
At the underground at Mardic. Is it possible that the East Goldie shaft has output?
June 30.
In the second half of 2026 or reaches.
Should we post.
Full output sometime in 28 and 72 of 29.
Every night and on the Investor Relations page of the website.
All you have your total stockholders' just slides, you're a hedge fund manager.
Yeah, John Dominic speaking. This is the first Shaft uh the end of the commissioning at
And how how do you want to safeguard these values some of those by agnico and not foreign and 10 in nickel and all of this stuff. So.
For the mid-shaft loading station, it is mid-2027.
And getting to the latest loading where we're going to be at the turn now. I don't have that date, but I guess we're in 2030.
So good opportunity.
$5 billion off the table since the stocks are up $400 million year to date.
Yes look I want to get to the core of our philosophy on that.
but the commissioning of the midpoints at 27 and you can conclude from that June 2027, it should be a good party at at malerich where we're going to
We talk a lot and I talk a lot about being disciplined with your money.
Start to bring some ore to the top with that new shaft. You can come to that party if you want, John.
Thank you.
And about capital allocation.
I can ask a second one.
It's our belief and again my personal belief that.
I can't be sincere, we can't be sincere and saying we're going to be disciplined.
The investment portfolio was up to $1.063 billion as of June 3, 2025.
um,
Allocating your capital, especially into new investments.
We don't know a lot about those investments if we haven't done our homework.
And so we've always had a view.
Should we post, uh, every night on the Investor Relations page of the website the value of your total stockholders?
We're willing to take small positions and interesting companies early on as you would want us to and regions that we liked with projects with good prospective 80 to get to know more about them.
Just like your hedge fund manager.
And how, how do you want to safeguard these values?
And from that decide.
Based on knowledge, whether or not it makes sense to spend and invest your money.
Since the stocks are up $400 million year to date.
So none of these are.
As a portfolio site I, certainly wouldn't treat it as a hedge position.
Yeah, I look I I want to get to the core of of our philosophy on that. Um,
That said.
As I mentioned before.
We talked a lot, and I talk a lot about being disciplined with your money.
Quite often in fact in most cases, we look at something and we say it doesn't necessarily fit perfectly in some cases it doesn't it's worked well.
And about Capital, allocation.
But we do appreciate that.
The market has gone up and.
To the extent that made sense to divest some of these things.
We're not.
We're not ignorant of market conditions.
Thank you I was just a lot of money.
At least it seems like a lot of money to me. Thank you.
You're welcome and it has a lot of money fairpoint.
Thank you there are no further questions at this time I will now hand, the call back over to Mr. Omar Judy for closing remarks.
And uh it's our belief and again my personal belief that uh I can't be sincere. We can't be sincere in saying we're going to be disciplined and allocating your Capital, especially into new Investments. Uh if we don't know a lot about those Investments, if we haven't done our homework uh and so we've always had a view that uh we're willing to take uh small and positions in interesting companies. Early on as you would want us to in regions that we like with projects with good prospectivity to get to know more about them. And and and from that uh decide based on knowledge, uh, whether or not it makes sense to spend and invest your money.
Well, thank you everyone for taking the time.
There's a lot going on the business is running really well.
And we continue to appreciate the support of everybody on the call both our investors and the analysts who coverage. Thank you.
Uh, so none of these are, uh, as a portfolio. So I certainly wouldn't treat it as a hedge position. Um, that said, um, as I mentioned before, uh quite often, and in fact in most cases, we look at something and we say it doesn't necessarily fit perfectly. In some cases, it does, and it's worked well. Um, but we.
Thank you ladies and gentleman the conference has now ended.
Thank you all for joining you may all disconnect your lines.
We do appreciate that, uh, the market has gone up and uh, you know, to the extent it made sense to divest some of these things. Uh,
You know, we're not, uh, we're not ignorant of market conditions.
Thank you. It's just a lot of money. At least it seems like a lot of money to me. Thank you. You're you're welcome. And it is a lot of money. Fair Point.
Thank you. There are no further questions at this time. I will now hand the call back over to Mr. Amar, alji for closing remarks.
Well, thank you everyone for taking the time. Uh, you know it's uh there's a lot going on. The business is running really well. Um and we continue to appreciate the support of everybody. On the call, both our investors and and the analysts uh who coverage. Thank you.
Thank you. Ladies and gentlemen, the conference has
Thank you all for joining. You may all disconnect your lines.