© Reuters.
Agnico Eagle Mines Ltd. (NYSE:) introduced strong monetary and operational outcomes for the fourth quarter and full 12 months of 2023. The corporate reported file gold manufacturing, important money from operations, and a rise in mineral reserves. Regardless of a web loss within the fourth quarter on account of non-cash impairment expenses, Agnico Eagle achieved an working margin of $979 million and generated $300 million in free money circulate. The corporate’s concentrate on stability and high quality was underscored by their finest annual security efficiency on file.
Key Takeaways
- Document gold manufacturing of 903,000 ounces in This fall and robust money from operations.
- Working margin reached $979 million in This fall, with an annual security milestone.
- Internet loss in This fall on account of non-cash impairment expenses at Macassa and Pinos Altos.
- Debt compensation and a brand new $2 billion credit score facility strengthened the steadiness sheet.
- Lifetime of the Amaruq deposit prolonged to 2028, including 500,000 ounces of manufacturing.
- Optimized operations in Quebec and Nunavut, with key initiatives highlighted.
- Exploration and growth plans embrace potential shafts and elevated manufacturing.
- Reserve additions of 5 million ounces, with a ten% enhance in reserves per share.
Firm Outlook
- Regular manufacturing outlook from 2024 to 2026.
- Concentrate on exploration and growth plans, together with aggressive drilling.
- Integration of recent materials resulting in a 57% development in Odyssey South.
- Plans for Akasaba and Goldex to contribute considerably to every day output.
Bearish Highlights
- Non-cash impairment expenses led to a web loss within the fourth quarter.
- Price will increase on account of mine sequencing and inflation, with a 4% year-over-year enhance.
Bullish Highlights
- Robust efficiency and reserve alternative at Macassa and Detour mines.
- Excessive-grade ore discoveries at varied websites.
- Optimistic outcomes and robust money flows with steady enchancment initiatives.
Misses
- Regardless of larger volumes, value will increase at varied property have been a priority.
Q&A Highlights
- Dialogue on fluctuating grades and sources at Hope Bay and Odyssey.
- Concentrate on gold initiatives and potential ventures in property.
- Updates on Detour and Higher Beaver initiatives anticipated within the first half of 2024.
- Lengthy-term funding in Canada Nickel, not an instantaneous partnership.
Agnico Eagle’s 2023 Earnings Name showcased a 12 months of operational excellence and monetary energy, regardless of challenges resembling impairment expenses and price will increase. The corporate’s strategic concentrate on worthwhile ventures and price optimization, together with its dedication to security and stability, positions it for continued success within the coming years. As Agnico Eagle strikes ahead with its exploration and growth plans, the mining neighborhood and traders will carefully monitor its progress and the potential for additional development in reserves and manufacturing.
InvestingPro Insights
Agnico Eagle Mines Ltd. (AEM) has demonstrated a powerful monetary place, in accordance with current knowledge from InvestingPro. With a market capitalization of $23.77 billion and a P/E ratio of 11.8, the corporate exhibits a compelling valuation within the mining sector. Notably, the adjusted P/E ratio for the final twelve months as of This fall 2023 stands at 16.57, reflecting the market’s adjustment to the corporate’s earnings capability.
InvestingPro Suggestions present additional insights into AEM’s monetary well being. Analysts have famous that the corporate’s money flows can sufficiently cowl curiosity funds, which is a vital indicator of monetary stability. Furthermore, Agnico Eagle has maintained dividend funds for a formidable 32 consecutive years, signaling a powerful dedication to returning worth to shareholders. Moreover, there are 6 extra InvestingPro Suggestions accessible for AEM, offering a deeper evaluation of the corporate’s monetary metrics and future outlook. Buyers concerned about these detailed insights can use the coupon code PRONEWS24 to get a further 10% off a yearly or biyearly Professional and Professional+ subscription.
The corporate’s income development additionally stands out, with a 15.43% enhance within the final twelve months as of This fall 2023. This development is a testomony to Agnico Eagle’s operational effectivity and market demand for its merchandise. Moreover, the corporate’s gross revenue margin of 55.74% throughout the identical interval signifies a powerful capability to manage prices and maximize profitability.
Agnico Eagle’s upcoming earnings date on April 25, 2024, might be a key occasion for traders to observe. The corporate’s constant profitability over the previous 12 months, mixed with its strategic concentrate on exploration and growth, means that Agnico Eagle might proceed to offer engaging funding alternatives within the mining sector.
Full transcript – Agnico-Eagle Mines (AEM) This fall 2023:
Operator: Good morning. My title is Julie, and I might be your convention operator immediately. Presently, I wish to welcome everybody to the Agnico Eagle’s Fourth Quarter and Full-12 months 2023 Convention Name. All strains have been positioned on mute to forestall any background noise. After the audio system’ remarks, there might be a question-and-answer session. [Operator Instructions] Thanks. Mr. Ammar Al-Joundi, chances are you’ll start your convention.
Ammar Al-Joundi: Thanks, operator, and good morning, everybody. First, let me say thanks once more for becoming a member of us this morning. It is all the time nice to have our homeowners and our mates and analysts becoming a member of us. This morning particularly, my colleagues and I are excited to speak to you about our fourth quarter and full 12 months outcomes. The outcomes, as you’ll hear, are very robust. However whereas these outcomes are robust and we’ll discuss them, we’re extra excited to speak about our future, not simply our steerage for 2024 and ’25 and ’26, however the subsequent a number of years. And importantly, we’ll discuss just a little bit about among the key initiatives that can propel Agnico Eagle ahead. It’ll propel us ahead by delivering extra worth per share at mines that importantly, we already function in areas we have been in for many years and with individuals and groups already in place. We’ll undergo a lot of slides this morning and you may hear from a lot of our most senior executives concerning the enterprise and the way it’s going. However actually the message we wish to go away with you is an easy message. It is a message of stability, consistency, and of high quality, high quality of the initiatives, high quality of the property, and the standard of our individuals. It is a message, hopefully, that you simply’ll stroll away pondering and appreciating that Agnico has constructed a novel place on this {industry}. With among the largest longest dwell gold mines on this planet, working within the most secure jurisdictions with nice exploration potential, persevering with nice exploration potential, nice working outcomes and nice initiatives. It is an organization with 66-year historical past of fiscal prudence, capital self-discipline and per share focus. Earlier than I leap in, I might recommend and word that there are forward-looking statements. And if I would ask operator, if we are able to leap to Slide 5. Good. Thanks. So in discussing our fourth quarter and full-year 2023 highlights, so for 2023 highlights and full-year, 4 essential milestones and achievements. One, file gold manufacturing. Greatest ever within the quarter, finest ever for a full 12 months. That is spectacular for any firm. It is particularly spectacular, I believe, for an organization that is been round for 66 years. Two, file money from operations. Greatest ever in 1 / 4, finest ever in a 12 months. Three, file mineral reserves, up 10%. It is virtually 54 million ounces. So it exhibits not solely are the operations doing properly, however the reinvestment into the enterprise and into the longer term is doing properly. After which 4, most pleased with all, the perfect annual security efficiency within the firm’s historical past. I’ve had the pleasure of speaking about strong security efficiency on a lot of these calls. we’re enthusiastic about it. I am going to say it once more, there’s nothing extra essential, nothing extra essential than conserving our individuals protected, our neighborhood protected, and the surroundings protected. And I wish to say a particular thanks to all of our staff who’re listening in, not just for taking the accountability to maintain your self protected, however the accountability to maintain your colleagues and associates protected. After which we’ll additionally discuss concerning the future. We’ll discuss our steerage, strong three-year manufacturing steerage with {industry} main prices. And we’ll discuss, once more, we’re most excited concerning the initiatives that now we have in place, that we expect will add important worth, and we’ll discuss among the steerage that we’ll give extra readability on that in the direction of the center of the 12 months. Subsequent web page please. So these outcomes, which we’re very pleased with, are clearly a perform of the property now we have, however actually none of this might occur with out the standard of the people who now we have. We talked about security. It is spectacular sufficient by itself, a 35% discount versus what have been already aggressive targets. However actually fascinating is that each single operation, everybody met or exceeded their security targets final 12 months. It is also about an engaged workforce, a cheerful workforce. In 2023, we proceed to enhance the outcomes of inner surveys on the subject of worker satisfaction. We had 80% of staff fill out the survey, that is distinctive. And virtually 80% of our staff mentioned Agnico Eagle was an important place to work. Not a great place to work, an important place to work. Agnico Eagle was acknowledged in Forbes record of Canada’s 50 Greatest Employers. We’re doing extra coaching. We’ve got extra indigenous staff and colleagues, and now we have decrease turnover. It is not simply the property, it is not simply the areas, it is the people who we expect give Agnico Eagle a tangible aggressive instance. And I am going to provide you with certainly one of my favourite actual life examples of Agnico. If you go underground at Agnico and also you’re speaking to a younger succesful particular person they usually inform you that their uncle and father labored at Agnico they usually inform you that certainly one of their grandparents labored at Agnico. You aren’t getting that in all places. Subsequent web page, please. So wanting ahead, 2024 to 2026 manufacturing outlook, actually two phrases, regular, dependable. Our steerage for 2024 is precisely what we mentioned it might be. Our value steerage between 8.75% to 9.25%, is up just a little bit from what we have been in a position to do in 2023, but it surely’s solely 4%. And we’re hoping to, similar to we did in 2023, do the perfect we are able to and now we have a observe file of with the ability to do this. Our 2025 steerage stays the identical at 3.4 million to three.6 million ounces, similar steerage that we gave final 12 months, and 2026 exhibits regular manufacturing. Once more, regular and once more dependable. Subsequent slide, please. So I’ve acquired two extra slides. So this web page, I wish to discuss the place we’re within the consolidation of our Abitibi platform, together with not solely 2 of the ten largest gold mines on this planet with Detour and Malartic, but in addition the place we’re on consolidating form of the Cadillac Fault and Higher Beaver and Wasamac and Amalgamated Kirkland, et cetera. At Detour Lake, and Natasha will undergo this in additional element. It’s already, whereas competing, frankly with Malartic, to be the most important gold mine in Canada. It is good, we have got each of them competing with one another. Mine life previous 2050. It’s a nice ore physique. Man will discuss concerning the exploration success we have continued to have. Natasha will discuss how we reap the benefits of that by rising the mill, by taking a look at underground. And we’re aiming to offer extra particular steerage by midyear. And that steerage actually goes to be about what is the subsequent step. And the following step, if all goes properly, and we’re nonetheless doing our evaluation, could be what you’ll anticipate, probably seeking to put in exploration ramps to have the ability to probably take some bulk samples, verify grade continuity, verify floor situations, the sort of issues that you’d anticipate knowledgeable mine firm to do after they have such an important asset as that. With Canadian Malartic, Dominique will discuss that. Three objects there: One, proceed the concentrate on constructing and optimizing the underground, placing within the shaft, how the mining goes. Dominique will discuss, we’re forward of schedule on improvement. We’re getting optimistic tonnage reconciliation with the interior zones. The whole lot goes properly. However Dominique may also discuss just a little bit about the place we’re early, however the place we’re on wanting on the second shaft. And three, the work that we’re doing to have a look at filling the mill as mill capability turns into accessible later this decade. And the third merchandise that you simply see on the backside of this web page is one thing truly we’re actually fairly pleased with. And I’ll begin with in all probability the smallest one, Amalgamated Kirkland and close to floor. So, Amalgamated Kirkland, the explanation we’re significantly proud to speak about that’s, when you return two years once we did the merger and we talked about synergies, and everyone knows that now we have delivered roughly double the G&A synergies that we talked about. What we particularly talked about some low-hanging fruit together with Amalgamated Kirkland. And we mentioned, look, that is inside tens of meters from present Macassa infrastructure. If we are able to entry that at very low capital and produce perhaps 25,000 or 40,000 ounces a 12 months, that is only a easy instance of the way you create worth by means of synergies and thru consolidation. I am proud to say that, it is already now, Amalgamated Kirkland and close to floor. It is in our mine plan. There’s going to be 19,000 ounces in 2024, 35,000 ounces in 2025, 50,000 ounces in 2026. Once more, I am going again two years, however we promised you, we’d discuss that and ship and it is a pleasure to have the ability to level that out. At Higher Beaver, it is a lengthy life prime quality asset, very low value. We’re persevering with to do the work there. We might be giving an replace in the direction of the mid-year, and once more, it will likely be about subsequent steps. Will we put in an exploration ramp or an exploration shaft to proceed to maneuver that undertaking ahead? Once more, we’ll give steerage in the direction of the center of the 12 months. After which Wasamac, we’re making progress on that. I believe most of you understand that, once we acquired the Canadian property of Yamana, actually we have been primarily centered naturally on Malartic and Wasamac good asset, however we weren’t satisfied that the plan that Yamana had would meet our hurdle charges. I am happy to say that the work we’re doing and our engineers have accomplished one thing sort of distinctive within the gold mining house. They’ve checked out a smaller undertaking that will get a greater return on capital. And so we have made some progress on that. We’ll give extra steerage. That is in all probability one thing in early 2025 that we’d discuss. However once more, making good progress on that. Subsequent web page, please. After which Nunavut, very pleased with the crew at Meadowbank, added 500,000 ounces of manufacturing, prolonged the mine life for 2 years. Dominique is happy about extending it additional, however we’re not going to speak about that proper now. This can be a mine that is acquired infrastructure in place, low threat, very properly accomplished by the crew. After which Hope Bay, Man will discuss among the exploration outcomes which might be very promising there. And so earlier than I flip it over at a really excessive degree, very pleased with the crew for the ends in 2023, strong steerage and good progress on some glorious initiatives leveraging off present infrastructure in locations we’re already snug with. And with that, I am going to flip it over to our CFO, Jamie Porter.
Jamie Porter: Thanks, Ammar, and good morning, everybody. As Ammar talked about, 2023 was a file 12 months on a lot of fronts. We had the most secure 12 months within the firm’s 66-year historical past, and file quarterly and full 12 months gold manufacturing. This glorious security and working efficiency led to very robust monetary outcomes. We generated an working margin of $979 million within the fourth quarter, which was pushed by our two largest mines, Detour and Canadian Malartic. Gold manufacturing within the fourth quarter was a brand new quarterly file at 903,000 ounces, and for the total 12 months, we hit the very prime finish of our manufacturing steerage of three.44 million ounces. We have been additionally very happy to report that we achieved our value steerage with our whole money value for the 12 months coming in on the actual midpoint of our steerage of $865 per ounce and our all-in sustaining prices of $1,179 per ounce, properly inside our guided vary. We’re pleased with the work our groups have accomplished on controlling prices in what’s been an inflationary surroundings over the previous a number of years and on the crew’s concentrate on steady enchancment. A tangible instance of this concentrate on value is in Nunavut, the place value optimization efforts are driving prices decrease by about $100 an oz in 2024. This has helped allow us to increase the lifetime of the Amaruq deposit as Ammar simply alluded to, from 2026 to 2028 including 500,000 ounces of manufacturing. If we transfer on to Slide 12. We have a look at our monetary highlights, file gold manufacturing drove file working money circulate for each the fourth quarter and the total 12 months. Whereas we recorded a web loss per share of $0.77 within the fourth quarter. This was pushed by non-cash impairment expenses associated to Macassa and Pinos Altos. On an adjusted foundation, web revenue per share was $0.57 within the fourth quarter, which represents a 50% enhance relative to the prior 12 months interval. I wish to briefly contact on the impairment expenses that have been recorded within the quarter. At Macassa, we acknowledged the web of tax impairment cost of roughly $600 million, primarily reflecting the write-down of goodwill that was acknowledged on the time of acquisition again in early 2022. Macassa had a wonderful efficiency in 2023 when it comes to manufacturing, value management and reserve alternative. And this can be a mine that has produced over 6 million ounces in its 100-year historical past. We see large exploration upside. We see manufacturing rising by 50% over the following three years. And the potential to proceed to interchange reserves for years to return. Nevertheless, we aren’t in a position to acknowledge all of this worth in an impairment mannequin. And this, mixed with larger prices and capital estimates that have been assumed again in 2022 led to the impairment cost. At Pinos Altos, we acknowledged a web of tax impairment cost of roughly $70 million, reflecting larger anticipated working capital prices partially associated to the energy within the Mexican tempo during the last 12 months. Regardless of these accounting expenses, the enterprise stays very robust. We generated a file $300 million of free money circulate within the fourth quarter, and that is after investing practically $0.5 billion in capital and exploration spending. We proceed to pay a powerful quarterly dividend and repaid $100 million of debt within the quarter. For the total 2023 12 months, we generated $947 million of free money circulate, declared dividends of roughly $800 million and continued to reveal our dedication to delivering robust returns to shareholders. At present gold costs, we anticipate to proceed to reinvest roughly two-thirds of our money circulate into sustaining, rising our enterprise, exploring to search out extra ounces and one-third of our money circulate into delivering returns to shareholders and persevering with to strengthen our steadiness sheet. We transfer on to Slide 13. I am happy to report that we have been in a position to proceed to strengthen our steadiness sheet within the fourth quarter. We repaid the excellent steadiness on our credit score facility and diminished our web debt place to roughly $1.5 billion. We have additionally not too long ago considerably improved our general liquidity. Earlier this week, we closed a brand new upsized revolving credit score facility within the quantity of $2 billion. This new facility displays Agnico’s measurement and scale and investment-grade standing. It offers us with further monetary flexibility, and we have been very happy to have had robust assist from our many banking companions. We do have elevated debt maturities in 2025, and we’ll look to refinance or repay these from extra money on the applicable time. Total, the steadiness sheet stays very robust, and we’re always working to make it stronger, bettering our liquidity and general monetary flexibility. With that, I am going to flip the decision over to Dom, who will present an outline of our Quebec and Nunavut operations.
Dominique Girard: Thanks, Jimmy. Good morning, everybody. So within the coming slides, I’ll cowl the 2 areas in Canada on my aspect, Quebec and Nunavut, and Natasha will observe with the opposite areas. However perhaps earlier than going to these highlights, Ammar, I might similar to so as to add one thing or to construct on what you talked about about why and why — I believe why we’re in that place proper now. There’s the side of the individuals, there may be the side of the area the place we’re. However there’s additionally a secret ingredient. It is a bit private, however I strongly consider in that, which is the how we do stuff. How we work all collectively right here on the company workplace with Natasha, Jamie, underneath your management, Ammar, Caro, Jean and Man. I believe that is what makes the distinction. That is what I felt after I began in 1998 at Laurent. And once more, 26 years after underneath your management, Ammar, that is what we’re doing. And whenever you go at website, you continue to really feel that very same factor the place we’re in Toronto workplace, we work collectively. And because of this the consequence we’re immediately, right here they’re speaking by themselves. So on that, I’ll transfer to the Quebec area. So we produced over 1 million ounces at a money value of $850 million, producing an working margin of over $1 billion. So I am very proud and thanks for the crew to manage the prices and to proceed to optimize the enterprise and to leverage on all of the synergy. So Quebec is a well-established platform. And you are going to see within the coming slides, that is only the start. We’ll continue to grow that one. When you concentrate on that inside 100 kilometers, now we have three mines and a really monumental geological potential. Perhaps earlier than going to the Odyssey undertaking, I might similar to to spotlight that Canadian Malartic goes to be the most important mine in Canada in 2024. Natasha, you are going to win the most important open pit. However Canadian Malartic goes to be again the primary greatest mine, and within the coming slide, you are going to see we’ll transfer to have the most important underground mine and perhaps with Section 2, probably the most important mine once more. However let’s discuss that. Subsequent slide. So the Odyssey undertaking, it’s the Section 1 of the underground. We’ll lend out the research, which is 20 years lifetime of mine at 550 ounces per 12 months. That is the PA that we launched. And extra not too long ago, we up to date the PFS, the place we’re going to flip 5.2 million ounces into reserve. The spotlight of the undertaking, Odyssey south ramp-up goes properly. I might say it is accomplished. We’re proper now producing 3,500 tonnes per day, which goes to carry roughly 80 ounces per 12 months within the coming two years. You might see on the map the ramp. So we’ll attain the highest of the East Gouldie deposit, which is the pink zone. We’ll be there in a few weeks. And the crew is now on the lookout for alternative, how might we begin to mine that zone on the prime and to carry solutions probably in ’26. So we do not have the clear element but, however the crew are engaged on that. Ammar talked about about that we’re prematurely on the ramp. And one of many causes of that, once more, is again to the synergy and the way we have been in a position to switch the information and to be quick on the automation. So proper now, in the course of the shift, in the course of the crew change, we’re in a position to function remotely the mine from the surfaces, and that is giving us between 10% and 20% enchancment. That was not into the plan, and because of this we’re higher than the plan. Different excellent news, the interior zone, which is in between the — that is south on the prime and the Odyssey north on the backside within the purple-ish shade. We nonetheless see some upside coming from these zones and extra tonnes on the similar grade. In order that’s a excellent news. I perceive it is rather difficult to carry them into the mannequin. We’re making an attempt. However once more, it is a excellent news for operation. Once we’re there, there’s greater than the mannequin. On the shaft pondering, we noticed a really nice enchancment December, January. So congratulations to the crew. We’re not off course, and the floor development 65% accomplished. Earlier than I’ll the following slide, which is — I’ll discuss extra about Section 2 about this, I might similar to to spotlight on that one. On this one, we see we’re wanting with and also you see two zones. The East Gouldie Zone, which is within the sediment deposit, and there may be the Odyssey South-North, which is on the border between the sedimentary rock and the volcanic rock, however there may be one other one, extra on the north, which is on the contact of the volcanic and different sort of rock. So I stole a slide from Man’s presentation as a result of I am enthusiastic about. So I’ll discuss it. And when you have questions, Man might assist me. However subsequent slide, you might see now we’re wanting north. On that slide, within the center — proper within the center, you see the East Gouldie. The orange half is what we transferred to order, the 5.2 million ounces. So this zone proceed to extend as we’re infilling it and doing extra drilling. So that is one half that might be Section 2. If we proceed to develop that reserve and probably have a second shaft near that one and convey extra tonnes to the mill, that is an possibility. There isn’t a clear view or clear plan at this stage as a result of we have to proceed to drill. However the crew is already planning the place that shaft goes to be and planning all of the infrastructure that we have to construct to guarantee that we’ll have a great room, a great place for that shaft. Extra to return, however we nonetheless have to proceed to drill. But additionally thrilling, if we step out a bit, you might see the 16.5 kilometer strike land that now we have. Now we’re — once more, we’re wanting north, and there is three zones, mineral horizon in that space, the Odyssey — sorry, the East Gouldie in our vary. Within the center at roughly 600, 700 meters, there may be the Odyssey South. And you might see on the best additionally the purple one, that zone proceed, I do not know, 5 kilometers on the west. And there is one other zone, which was the Malartic goldfield mine prior to now, which can be there. So there may be at the moment no drilling occurring there, however we’ll come again, I might say, within the subsequent two years. We’re seeking to have an aggressive plan to drill that. And this might be a sport changer to carry — if we discover one thing to carry solutions to Canadian Malartic. So again within the days, the Goldfield mine has mined 9 million tonnes at 6 grams per tonne, 1.7 million ounces. That was in 1939, 1965. So now we’ll come again there. We’ll drill round that and see if we might carry one thing into the plan. Subsequent slide. So for the Nunavut enterprise, once more, nice work to the crew. I might similar to additionally to spotlight Martin Cland’s work right here with us within the room. He did superb work to optimize Meliadine and at Meadowbank to enhance the productiveness and prices. And this allowed us to look to develop Meadowbank. It is a part of that to be extra environment friendly. So we added 500,000 ounces into the plan for ounces coming in ’26, ’27, ’28. These ounces are coming from a greater reconciliation, which concerned extra tonnes, a pushback on the IVR pit and likewise extra mining from underground. Man’s going to speak extra about that one. And perhaps the opposite side is the Meliadine, we’re doing at the moment the Section 2 development. You see the Meliadine image within the center. This is occurring funds, on time. This can be a excellent news. And the imaginative and prescient right here in Nunavut is to keep up a platform of 800,000 ounces. That is what we produced, when you look to the total 12 months 2023. In 2024, we’ll carry that round extra 860,000 ounces with extra ounces coming from Meadowbank. As we talked about prior to now, extra deep we go into the open pit, the grade is larger and supplemented with the underground mine or larger grade ore. That is the place the ounces are going to return. However Meadowbank, we see it ending now in 2028. That is an excellent information. We proceed to work to develop that. That is the primary objective and what might, in my thoughts be very, very fascinating. Man’s going to speak about one thing we see additionally at Amaruq. However the different undertaking that’s coming into play is the entire huge one. And once more, I’ll let Man discuss what we see. This Nunavut is a high-risk area, but it surely’s additionally a excessive reward area. And on the danger aspect, I have to say, I am very snug as a result of we’re mining there since 17 years. We have constructed Meliadine, $1.2 million undertaking. We did it on value, 6-month prematurely. And now we might be doing Section 2 of Meliadine at a time, which isn’t straightforward, and we’re nonetheless on time and on value. So I am assured that the crew goes to work on a research at Amaruq, which goes to be a strong one and it should fly. So on that, I’ll now move it to Natasha, who will talk about the remaining of the enterprise.
Natasha Nella Vaz: Thanks, Dom, and good morning, everybody. I am going to begin with the operations in Ontario. We had a powerful 12 months and strong efficiency at each of our operations. As you possibly can see on this slide, we generated over $1 billion in working margins in 2023 with industry-leading prices. Now at each of our operations, Macassa and Detour have been we’re centered. We’re always centered on optimizing our property by means of a lot of steady enchancment initiatives. It is simply a part of the DNA. And I am going to provide you with just a few examples of that. And I am going to begin with Macassa. So one of many huge initiatives right here at Macassa are the productiveness beneficial properties that we have been in a position to maintain in 2023. We first began that with the commissioning of quantity 4 shaft. After which later within the 12 months, we upgraded the air flow system. And these beneficial properties collectively have resulted in a manufacturing — in manufacturing developing simply above the highest finish of steerage. So congratulations to the crew on that. Now when it comes to creating additional worth at Macassa, now we have now built-in the AK and the close to floor deposits into the manufacturing profile. And as Ammar talked about, on the time of the merger, we recognized AK as a near-term alternative to floor worth. And so once more, right here, we’re very, very pleased with the crew for the work that they’ve accomplished to appreciate this potential. Now simply staying within the Kirkland Lake space for a minute, I simply needed to the touch on Higher Beaver. There’s an inner evaluation that is underway, and it is contemplating both an exploration shaft or an exploration ramp to additional convert and likewise discover the deeper parts of the deposit. Now shifting to Detour. As I’ve talked about earlier than, this website has a observe file of delivering on enchancment initiatives. Our present focus, as you understand, is the persevering with — it is persevering with to advance the mill optimization efforts. We now anticipate to succeed in the mill throughput price of 28 million tonnes a 12 months. Later within the second half of this 12 months, 2024, which, once more, I am very, very pleased with the crew to have the ability to say that is one 12 months sooner than anticipated. Along with that, we’re additionally — we additionally consider that now we have a greater understanding of the potential to succeed in a mill throughput of now 29 million tonnes a 12 months. And we consider that we are able to do that in a time line that might be as early as the tip of 2026. And we’ll proceed to work on this, however we’re additionally seeking to do higher. And Ammar talked about it, however we’re within the early levels of it, however we’re evaluating the potential to transcend 29 million tonnes a 12 months. That might be a 30 million tonnes, that might be a 32 million tonnes a 12 months. Now simply relating the Detour underground research. It is advancing, and we’ll present an replace in a while within the 12 months. Now shifting to the following slide, Slide 19. I adopted Dom’s queue, and I swiped the slide from Man, sorry Man, but it surely’s a great slide. It offers just a little bit extra shade on the continued exploration efforts at Detour. So on the finish of this 12 months, we declared an preliminary underground inferred useful resource of near 22 million tonnes at a median grade of two.23%. So it totaled about 1.56 million ounces. And on the picture beneath, you possibly can see the place that useful resource sits. It is a darker blueish grey, perhaps greenish, which is just under and to the west of the blue useful resource pit shell. That is the world that we’re at the moment evaluating within the underground research. It is the darker blue space, but in addition the useful resource as a complete. On the decrease picture, it’s also possible to see — barely see a purple line, a faint purple line, and that’s the potential location of an exploration ramp to get nearer to the useful resource and being in a reasonably good place to raised outline it. After which over and above that, we’re nonetheless making progress exterior that useful resource space. We’re persevering with to drill the Western half, and we see a cluster of excellent drill holes, about 900 meters or so west of the useful resource pit. Now shifting on to Slide 20. I am going to contact on the opposite property in a short time, beginning with Finland. Right here at Kittila, the working allow was restored to 2 million tonnes a 12 months on the finish of October 2023. And now having accomplished the mill growth, the shaft undertaking, the environmental upgrades, the mine is realizing its potential and producing robust money flows. We’re additionally seeing some optimistic — sorry, optimistic exploration outcomes extending the deposit, not simply at depth, but in addition close to floor. Now shifting to Australia. Fosterville, it continues to generate robust money circulate regardless of reducing charges. The crew is engaged on securing a long-term manufacturing degree of someplace within the vary of 175,000 to 200,000 ounces per 12 months, and we anticipate to have preliminary outcomes of that in a while this 12 months. Not too way back, Fosterville was a website that generated earlier than exploration expenditures that generated near AUD 1 billion in money circulate a 12 months for 3 consecutive years. So sure, we consider within the website, we consider in our crew there. We consider within the exploration potential to search out the following high-grade deposit, and Man will talk about that in a while within the presentation. Lastly, Mexico, La India, efficiently and sadly accomplished mining actions in This fall 2023 and is now producing from the residual leaching actions this 12 months. Pinos Altos, it is a mature website with steady manufacturing and an important crew, and our efforts are transitioning increasingly more now to the San Nicolas undertaking. After which simply earlier than I move the decision over to Man, I simply wish to echo what Ammar mentioned and what Dom mentioned. We simply wish to commend the websites, all of the working websites for an unimaginable 12 months. There have been many challenges that we encountered, however we overcame them as a crew. We overcame them safely. So thanks on your laborious work. Thanks on your dedication to repeatedly try for enhancements in all facets of our enterprise. So with that, I am going to move it over to Man.
Man Gosselin: Thanks, Natasha. Good morning, everyone. Beginning with the year-end reserve and sources assertion at Web page 21. It’s been an excellent 12 months when it comes to mineral reserve alternative. You may see the constructing block highlighted the completely different classes on the higher left-hand nook of that slide. However extra importantly, like talked about, by Ammar within the introduction feedback, rising the variety of mineral reserves per share once more. So we have been profitable at doing it, including this 12 months 10%. So 5 million ounces addition to the reserve seeing sources being steady within the measured and indicated class and rising inferred by 26% year-over-year. We have been addressing our gold worth assumption to 1,400, however that was principally to mirror on the long-term structured value of our enterprise. And none of that resulted in a decreasing of the cut-off grade. As a matter of reality, the grade of reserves are 2% up year-over-year. So we’re not solely including reserves, we’re additionally bettering the standard with a grade that’s larger. And it’s also possible to see within the decrease left nook, the waterfall that explains the assorted block from mining depletion, addition of East Gouldie with 5.17 million ounces. The acquisition of the opposite half of Canadian Malartic and our 50% curiosity in San Nicolas plus the contribution of every of the opposite mine that’s properly illustrated in that waterfall graph. Shifting to particular initiatives, like talked about by Natasha, it has been an important 12 months in Macassa and an important 12 months from a manufacturing standpoint and a really nice 12 months when it comes to reserve alternative as well as. So not solely we managed to interchange the 235,000 ounces that have been mined Q2. However on the highest of that, we have added a further 224. So there’s been a web — a major web development of the full mineral reserves at Macassa, and very happy to see the evolution on the AK Zone nearer to floor, not solely the reserve — mineral reserves have grown to 160,000 ounces in a shallow portion of the deposit. However the grade is considerably up in comparison with final 12 months. Now we’re including 160,000 ounces at 6.7 gram and whereas final 12 months, our first estimate was 5.2%. So good high quality, comparatively high-grade ore, very shut floor that can present quite a lot of optionality as properly described each by Ammar and Natasha. Shifting on Slide 23. Ammar, simply to pile on what Dominique talked about. It has been an important 12 months from an operations standpoint that the metric we have seen from a value and manufacturing have been excellent. And we proceed to see the advantage of a really optimistic reconciliation. In order we’re getting into into the central portion of the deposit, we proceed to see this 12 months 22% extra ounces than predicted by our block mannequin. We have managed to combine a few of that into our assumption adjusting the mannequin, addressing among the capping parameter, which is a part of the extension of the lifetime of mine. And as we’re additionally including time and increasing the lifetime of mine, we proceed to analyze at depth the place the deposit stays open and we proceed to be fairly happy with some good outcomes now reaching near kilometer beneath floor with some nice good high-grade hip with good thickness. So opening up some alternative to additional prolong the lifetime of mine above and past what we’re mentioning. Shifting to Slide 24, at Hope Bay, the main target shift from investigating Doris final in 2022 to investigating within the Madrid space. And really an space that we might like once we have been evaluating the undertaking is that extension of Madrid in the direction of the south within the Patch 7. And we proceed to see glorious outcomes, among the finest draw gap that we have ever seen on the undertaking, 16.3 grams over 28 meter at not even 400 meter beneath floor. That space shouldn’t be yield drilled tight sufficient to make it infra sources and — however it’s precisely what we’re at the moment addressing in filling that space. And we have been aggressively ramping up drilling rapidly after New 12 months when the excessive thicknesses was adequate in order that we are able to safely reaccess that portion underneath the from ICE-based drilling. And we’re aggressively drilling in that space that we expect will transfer the needle to carry the undertaking to a profitable choice sooner or later. And final however not least shifting to Fosterville on Web page 25. We have seen by means of the 12 months a continuation of excellent consequence within the Robbin’s Hill space and now to a sure extent as properly within the Decrease Phoenix inside the Cardinal fleet. That led to an entire alternative of reserves. Clearly, the grade as was mentioned goes down as a result of we’re finishing the depletion of the Swan Zone. However we have been fairly happy to see a full alternative with the reserves that now stand at round 6.1 gram. And we’re at the moment working to deal with the mine plan with the thought of optimizing the manufacturing profile of the operation with that 6 gram per ton materials. And on that, I’ll return again to Ammar for some closing remarks.
Ammar Al-Joundi: Nicely, thanks, everybody and we have lined quite a bit, however I am going to simply end on the following slide please on what we’re all about. We try to construct a top quality enterprise. We expect there’s quite a lot of alternative. We do not care about absolute measurement. We care about worth and worth per share for our shareholders and doing it the best means within the communities we function. We would like a low threat enterprise in the perfect jurisdictions. We outline the perfect jurisdictions no less than for Agnico Eagle as having the perfect geologic potential for a number of mines and having the political stability to function a number of mines and to maintain issues easy. We wish to concentrate on high quality for us contains the perfect ESG that we are able to probably do. Not solely is it the best factor to do, but it surely’s a necessary factor to do. In case your technique is, I wish to be in a area for a number of many years and construct a number of mines, you higher be welcome in that area and also you higher deal with the individuals and the communities and the surroundings the best means. We wish to proceed to have disciplined capital funding and disciplined capital funding is basically about information. And so, once we make investments, we love to do them in areas we all know, with companions that we all know, with groups that we all know. We expect we’re uniquely-positioned within the {industry}. We’re in good areas which have a number of many years, in some instances century of confirmed mineral potential. We produce extra gold in Canada than the following eight firms mixed that provides us the benefits you’ll anticipate from that and now we have distinctive mining expertise in Nunavut. After which lastly and importantly, we have all the time been an organization that has centered on fiscal conservatism. We concentrate on per share metrics. We concentrate on optimizing money circulate and we concentrate on making an attempt to get the perfect return, the perfect risk-adjusted return on capital by leveraging present property the place we are able to. I believe what you heard this morning is, there’s an abundance of alternative to try this. With that, operator, thanks and we’ll flip it over to questions.
Operator: [Operator Instructions] Your first query comes from Josh Wolfson from RBC Capital Markets. Please go forward.
Josh Wolfson: Thanks very a lot. First query I had was on Amaruq and the mine life extension. It appears just like the reserves did not actually change right here except for depletion. I am questioning, was this an adjustment within the present mine plan? Or what’s form of behind the extension there? I believe the 0.5 million ounces that have been outlined as form of being added to it. Thanks.
Man Gosselin: Sure. When you do the mathematics, you take away what we mined final 12 months and with the addition of the excessive grading, we have seen the optimistic reconciliation that contributes to a portion of these ounces’ additions. We didn’t utterly deplete what was mined and that extension of 500,000 ounces was accomplished after the reserve train. A few of these ounces might present up, whereas we’ll be doing the following reserve replace and a few of them are additionally, I might say, barely decrease grade materials that also will generate quite a lot of money circulate, however perhaps that not all meet the set off to change into reserve.
Josh Wolfson: Okay. Obtained it. So it is not mirrored within the reserve. Perhaps maybe alongside the identical strains, the Detour preliminary underground useful resource at 1.5 million ounces, I am assuming there is a bigger alternative right here. I assume, I am simply questioning, is that this useful resource going to be the idea for the June replace, or ought to we anticipate the potential for added drilling or useful resource replace with that launch?
Man Gosselin: Nicely, there might be just a few facets to reply your query. That as you noticed is sources that we have declared is exterior of the useful resource pit. What we’ll be offering you with some extra readability is on that blue, as an instance, sources pit. So this 12 months, we have principally have not touched for the 12 months finish reserve and sources assertion. We’ve not touched the reserve pit and the sources pit. We simply present some readability on what’s exterior of the pit. What we’ll be aiming to offer is a few extra readability on the tradeoff between what’s within the sources pit, the sunshine blue or what might be mined by underground extra profitably into the underground plan we’re serious about.
Josh Wolfson: After which closing one simply on San Nicolas, following among the feedback we have seen out of Mexico on open pit mining, ought to we nonetheless take into consideration that sort of 2027 timeframe as a goal for manufacturing or is that possible going to be deferred a bit? Thanks.
Ammar Al-Joundi: Hello, Josh. It is Ammar right here. On the subject of the proposed modifications to the structure on the subject of open pit, it might be a constitutional change. It might require two-thirds of the vote. There’s an election developing very quickly. And so, it is our view is the entire thing is in flux. And I am going to simply provide you with an instance. In principle, if there is no open pit mining that additionally applies to aggregates. So you possibly can’t mine for gravel, you possibly can’t mine for sand. Meaning you possibly can’t construct roads; you possibly can’t construct buildings. So, it is commonplace to form of see this stuff simply earlier than an election. We’ve got superb relationships with the governments and we’re optimistic that the mining {industry} is a giant {industry} in Mexico. On the subject of, does it have an effect on timing? I do not assume so at this level. We’re to make sure although, we’re nonetheless engaged on the plan and I believe we’d give extra steerage with particular reference to timing as that turns into accessible.
Operator: Your subsequent query comes from Ralph Profiti from Eight Capital.
Ralph Profiti: Ammar, can I get some context across the optimistic tonnage reconciliation from the interior zones at Malartic? How a lot of a contribution was it in 2023? Is there something within the mannequin within the 2024 steerage? And will we be serious about this 52,000 tonne per day assumption as a comparatively low bar for throughput?
Ammar Al-Joundi: Nicely, if I begin by commenting in your query concerning the reconciliation, what we have seen thus far this 12 months, when mining the Odyssey South, we’re mining the interior zone that’s adjoining. So when wanting on the stope that we’re mining this 12 months, we managed so as to add and there is one thing like 40% extra ton by including that materials adjoining and that turned out to be on the similar grade globally. So it has been sort of including 40% extra ton, 40% extra ounces. However now we’re integrating a few of that into our reserve and sources estimate. As a matter of reality, this 12 months, we have been integrating — virtually we have seen a development in Odyssey South by 57% on account of these additions and a development to the sources. So we’re baking that optimistic reconciliation, addition of ton in our mannequin as we’re shifting ahead. However we are able to anticipate that some further ton may also present up.
Ralph Profiti: Obtained you. Very useful. Natasha, I see that, there was an influence outage in This fall. I used to be simply questioning if this relates again to the transformer, as a result of it nonetheless sounds very assured that the facility state of affairs is in superb form forward of this 28 million tons situation introduced ahead. I am simply serious about what are among the excellent points as we take into consideration that optimization waterfall chart that confirmed that final 30 million ton run price.
Natasha Nella Vaz: The ability outage that you simply communicate of at Detour, it was only a minor one and we recovered from that pretty rapidly. With respect to the getting to twenty-eight million tonnes a 12 months, now we have a lot of initiatives, however we are able to group that into like perhaps 5 major ones. And that is simply components in one-time enchancment. We’ve got all the most important infrastructure in place. We’re simply tweaking the system proper now. For instance, the refeed system. We’re simply making it — permitting it to function higher within the winter months and simply modifying among the display screen configurations in order that it might tackle extra capability, these sorts of issues.
Operator: Your subsequent query comes from Anita Soni from CIBC World Markets. Please go forward.
Anita Soni: Hello. Good morning, Ammar and crew. Thanks for taking my questions. I simply have a few modeling questions proper now. How a lot of the AK deposit, sorry, the Akasaba deposit is the tonnage at Goldex? And like how will that play out for the following, it is going to look, my assumption is about 10% and does that simply form of keep at that 10% degree till it is run out? When you might give us some shade on that, it might be nice.
Dominique Girard: Hello, Anita, Dominique talking. The plan is to have 1,000 tonne per day coming from Akasaba and seven,000 ton per day coming from Goldex.
Anita Soni: Till Akasaba is run out, proper?
Dominique Girard: Sure. Now what we name it, 4, 5 years.
Anita Soni: Okay. And so for that motive then, I imply the associated fee enhance when it comes to unit value that ought to, I imply what portion of that’s associated to the Akasaba ore and the way lengthy ought to we be utilizing these sorts of unit prices?
Dominique Girard: That is a great query. And it is not simply solely Akasaba. There’s completely different ingredient into play. As we’re going from Deep I to Deep II at Goldex, it’s altering the associated fee construction in addition to we’re mining extra of the south zone, which is larger value tonnes, however larger grade tonnes. Total, the prices are rising. It is primarily associated to that.
Anita Soni: Okay. After which equally an identical query for Macassa and the proportion of ore that you’d see from the AK deposit.
Natasha Nella Vaz: Hello, Anita. With the AK deposit, we’ll be doing a bulk pattern this 12 months, sending that to the LZ pit, however we’ll be ramping — LZ mill, sorry, after which we’ll be ramping as much as about 500 tonnes per day on common for the AK deposit. After which Macassa, when it comes to the underground potential, I might say, in all probability 1550 tonnes per day, the mill capability, sure. And that at peak in all probability 1650.
Anita Soni: That is it for my questions for now. I am nonetheless modeling, I would get a few of you guys offline in a while.
Operator: Your subsequent query comes from Greg Barnes from TD Securities. Please go forward.
Greg Barnes: Thanks, operator. Ammar, are you able to discuss just a little bit about the way you see the manufacturing profile evolving past 2026? You are sustaining 3.5 million ounces roughly by means of that timeframe. Then what does it appear like past that?
Ammar Al-Joundi: Nicely, Greg, we do not give particular steerage past three years. Folks have requested us why do not we. What I might say is, I believe whereas some others have given for much longer time period steerage and we did not. I believe we are the ones who’re truly rising manufacturing and among the different individuals aren’t. So one of the simplest ways to reply that’s, and Greg, you understand, our property fairly properly. We’ve got good property. We’re reinvesting in these property. We’re good in getting good exploration outcomes. So we’re fairly assured about our — we have elevated reserves by 10%. So, with out giving steerage or any quantity, I might say, we’re fairly assured that we’ll proceed to have the ability to run an excellent enterprise.
Greg Barnes: Secondarily, you talked about within the press launch, larger or an elevated throughput price, I believe, at Hope Bay. I do know you’ve got set the bar at roughly 300,000 to 350,000 ounces a 12 months as a result of that is what’s financial within the North. However what sort of measurement are you serious about above and past that at Hope Bay going ahead?
Dominique Girard: Dominique talking, Greg. The groups are doing the tradeoffs concerning the tonnage. There’s two facets into it. First is how might we use as a lot as we are able to the present infrastructure and to attenuate the CapEx. So that is bringing us to a sure tonnage. Then how might we develop from these infrastructure and to carry it to larger tonnage? I’ll say, I see Hope Bay as a Meliadine undertaking in time period of 6, 7 gram per ton. If we might carry it additionally on the tonnage of Meliadine 5,000, 6,000 ton per day, that might be fascinating. That is likely to be the candy spot, however we’re nonetheless doing tradeoffs.
Operator: Your subsequent query comes from Carey MacRury from Canaccord Genuity.
Carey MacRury: Plenty of, properly, a few of your friends have made or are chasing development in copper. Simply questioning the way you guys take into consideration copper and extra broadly base metallic publicity?
Ammar Al-Joundi: Nicely, I imply, I believe copper has acquired an important future frankly. I believe the world is transitioning. I believe we expect world is transitioning in the direction of electrical versus fossil fuels, and copper will play a job there. We’re fairly excited concerning the potential at San Nicolas. As you recall, Carey, we did not do San Nicolas as a result of it was copper. We did it as a result of it makes some huge cash in a area we wish to be in with a associate we wish to be with. However definitely, we like copper. And we’re a gold firm, however our job is to become profitable for our shareholders in a accountable means.
Carey MacRury: So, that results in my second query. I imply, you talked about clearly having a regional focus in good jurisdictions. You are clearly the most important participant in Canada by an extended shot. However within the long-term, are you taking a look at different jurisdictions to develop into or how do you concentrate on worldwide diversification?
Ammar Al-Joundi: We’re open to worldwide diversification. I imply Australia, it is in all probability between Australia and Canada as what’s the perfect place on this planet to mine. So, we’re open to superb mining areas in 4 international locations, 5 areas. Is it unimaginable to go to a sixth? No. It is not unimaginable. Nevertheless it must meet the standards of the geologic potential at first adopted by a view on political stability to truly have the ability to make 10, 20 12 months investments. We’re a gold firm. We’re very robust within the jurisdictions we function in. The following few years actually we’ll concentrate on what we have got and optimizing what we have got. We expect we have got an important platform to construct from. But when there’s a possibility that is smart to create extra worth per share for our shareholders, we’re going to have a look at it.
Operator: Your subsequent query comes from John Tumazos from John Tumazos Very Impartial Analysis. Please go forward.
John Tumazos: Congratulations on the 900,000 ounces, was virtually as a lot as Barrick made within the quarter. Getting huge. There have been a pair locations within the press launch and exploration launch, the place the professionals and the numbers that I used to be making an attempt to — the numbers within the launch have been sort of laborious to place collectively constantly or reconcile. Let me simply ask about Fosterville, the place the 2025 steerage is a midpoint of a 150,000 ounces output and that looks like 700,000 tonnes milled, 7 grams, 94% restoration. The reserve is 6.1 grams, which is just a little decrease than 7 grams. After which the professionals of the presentation talks a couple of 175,000 to 200,000 ounces. Is the 175,000 to 200,000 the common of ’24 and ’25 steerage? Or are you wanting ahead past 2026 anticipating that you’ll hit one thing just a little higher than 6 grams simply reported in reserve?
Ammar Al-Joundi: Would you like me to take it, Natasha? The 175,000 to 200,000 is wanting ahead past that timeframe. I imply, you are precisely proper. These are the numbers that we gave. Fosterville is a good asset, nice individuals. We’re taking a look at form of a long-term regular state 175,000 to 200,000. That is sort of what we’re engaged on. It’s possible you’ll say, properly, look, that is solely 175,000 to 200,000. Why are you guys in Australia? The reply is, we do not have proof, however we expect there’s a couple of very excessive grade zone to be discovered there. Perhaps it is not a Swan, perhaps it is a half a Swan or perhaps it is a two instances Swan, but it surely generates quite a lot of money circulate. When you’re us, what do you do? You place the mine to function properly, to function constantly between 175,000 to 200,000 when you assume you possibly can have that regular and actually provide the alternative to search out that subsequent Swan zone. Man, did you wish to leap in?
Man Gosselin: John, when you have a look at intimately, as a result of once we do the lifetime of mine like that, we do the stope by stope train. So there might be some variation. So sure, the common is 6, however you possibly can assume that some 12 months we’ll be at 7, some 12 months we’ll be at 5 relying on the mining sequence averaging 6 for the remainder of the lifetime of mine in accordance with what now we have. Nevertheless it’s not going to be steady at 6 over time. It should fluctuate as a result of there’s nonetheless some pocket of upper grade mineralization within the system which might be smaller than this one. Nevertheless it’s all about sequencing the extraction of the 6.
John Tumazos: If we have been going to simply leap by means of within the dialogue immediately to Hope Bay. The inferred useful resource at Hope Bay rose by 158,000 ounces. The reserves stayed the identical. We must always interpret out of your good drill outcomes and a great qualitative narrative that the inferred useful resource and the reserves are going to extend much more than 158,000 ounces whenever you get extra infill drilling and extra knowledge, I presume?
Man Gosselin: Precisely. You are proper. There was some small portion which have reached inferred sources classification. But additionally we’re, I might say, ensuring that the, for instance, the dilution assumption. So we have been additionally adjusting the mannequin to — so there’s been some pluses and minuses. And also you’re proper, the underside line is web 170 million with a combination of eradicating among the decrease grain materials, addition of a extra practical dilution. We’ve not touched the reserve in addition to you described. And also you’re proper, with the extra drilling we’ll see within the Madrid, we’re anticipating these ounces to point out up in a while in 2024 and 2025.
John Tumazos: And also you talked concerning the ramp at Odyssey getting nearer to the highest of the East Gouldie deposit, if I understood that accurately? So within the second and third quarter, you can visually anticipate to examine the rock confidence and continuity of the very prime of the East Gouldie Zone, which might put you able so as to add reserves on the finish of 2024 or 2025 from these visible inspections completely different than the a part of the reserve the place you added from drilling final evening. Is that truthful?
Man Gosselin: It is truthful, particularly as a result of, you understand, there’s nonetheless the reserve, as you possibly can see within the lengthy part, goes principally from 800 meter to 1.8 kilometer beneath floor, and there is nonetheless 300 meter of inferred sources on the prime. In order that entry on the highest of the orebody as you described will enable us to enter open up the deposit, but in addition will present a greater place for infilled drilling from a lot nearer within the higher half higher and japanese a part of the orebody the place we see some fast win to potential reserve addition. And likewise when you put that in a much bigger scheme of factor, again on the PEA that we produce with 9 million ounces, we predict that the remainder of the ounces that weren’t convert this 12 months in reserve will present up progressively over the following couple 4, 5 years.
John Tumazos: Nothing higher than with the ability to see and contact the rock. Thanks.
Operator: Your subsequent query comes from Tanya Jakusconek from Scotiabank. Please go forward.
Tanya Jakusconek: Thanks for taking my questions. Can I ask on simply the steerage for 2024 as we search for the 12 months all year long, can I simply ask about how we see manufacturing growing quarter-on-quarter? Are we much like final 12 months the place it was usually equally distributed? Or ought to there be one thing else that we must always concentrate on?
Ammar Al-Joundi: Hello, Tanya. We’re anticipating it to be comparatively equal by means of the 12 months.
Tanya Jakusconek: I like that. By no means like these robust Q4s. Okay, that is good. Thanks for that. Man and Dominic, can I ask on Slide 23, I do know we talked just a little bit concerning the further 500,000 ounces at Amaruq to increase the mine life? I am simply wanting on the longitudinal to sort of see the place you’ll have added these further ounces? After which simply perhaps discuss just a little bit and I do know, Ammar, you mentioned you do not wish to actually discuss extending past 2028, however I am making an attempt to get an concept of the place else might we see the potential extension past 2028 to try to bridge that hole earlier than, as an instance, Hope Bay is available in? As a result of I am making an attempt to know whether or not we are able to use any of the workforce and/or gear and/or different from Amaruq to Hope Bay to assist with the CapEx. Over to you guys on that.
Man Gosselin: I wish to provide you with first a part of the reply to your query. About the place these 500,000 ounces will come from. They are going to come, I might say, from three main issues. As we proceed to see that optimistic reconciliation with extra tonne, higher grade that have been built-in within the mannequin, that can probably characterize as much as perhaps 1 / 4 of the ounces added will come from that. That optimistic reconciliation within the IVR pit that sits on the best hand aspect of that lengthy part, we see sort of some very good grade reconciliation in that half. One of many extensions of the mine contribution is a pushback we’re considering on the IVR pit. And each of these wells additionally by default enable us to proceed to mine underground. The third fold is proceed mining further stope that with the earlier lifetime of mine, when the pit have been depleted and we weren’t in a position to proceed mining underground. Now we’re going to have the ability to prolong the underground, get some extra stopes that have been good grade, good high quality, however that weren’t making sense on their very own with out an extension of the open pit. It is a contribution of these three that results in the addition of 0.5 million ounces. Perhaps Dominique, you wish to remark?
Dominique Girard: Tanya, it is Dominique. Simply on that, our objective is basically to increase Meadowbank and preserve Meadowbank operating. Now the gear we might reuse and the workforce, there’s completely different side of it that might be the genset, the HPGR, the compressor, pumps, completely different sort of kit. The factor is, we do not know the place they are going to go. Is it going to Higher Beaver, Detour Underground, Wasamac, Dwelling Bay, all these choices exist. Identical factor with the workforce. We’ll be ramping up, as you say, on the time, Detour even have quite a lot of good place open. It is likely to be Hope Bay too, but it surely’s all alternatives.
Tanya Jakusconek: Okay. So there’s a number of capability to make use of that gear and folks as you look out to the tip of the last decade?
Dominique Girard: Sure.
Tanya Jakusconek: And simply perhaps a query for you, Ammar, if I might ask on simply the non-gold part. You talked about you want copper. Clearly, San Nicolas is your first enterprise into form of a copper asset. I noticed another smaller investments in non-gold are being made. Ought to we be pondering that that is a part of your technique is investing in a few of these junior non-gold equities for 2024? Is {that a} technique that is in place? Or are you seeking to additional develop with extra developed upfront or producing copper asset?
Ammar Al-Joundi: So to begin with, we’re fairly centered on the gold initiatives that now we have in our yard which might be the least threat and the best return on capital. Now, we have been round for 66 years. We’re 98% gold proper now. I might say that 60 years sooner or later, are we nonetheless going to be 98% gold? We’ll in all probability produce other metals. The distinction with us is, we’re not going to and I am not knocking this on anyone else, however we aren’t going to a jurisdiction we all know nothing about to chase a selected sort of metallic. Our technique is easy. We attempt to be the perfect within the areas we might be. And if now we have a aggressive benefit in an space we function and a non-gold asset turns into accessible, the place now we have a aggressive benefit, we’d have a look at it. And so, in fact, we’d have a look at copper. We have accomplished a few different small issues individuals learn about. However we’re not going to a special jurisdiction with a special metallic.
Tanya Jakusconek: So it might be in jurisdiction you are at taking a look at the place you might add worth?
Ammar Al-Joundi: And provided that it makes good return for our shareholders. I do know that is self-evident. However we’re not, for instance, we’re not setting a goal that we’ll be X quantity of copper as a result of frankly meaning you are chasing one thing. We’re simply going to be open to good alternatives. Now, to your level, we have had an extended historical past of very early stage investments. 9 out of 10 do not find yourself assembly our standards. We find yourself doing simply fantastic. However, sure, you might anticipate us to maintain our eyes and ears open for alternatives within the areas we function.
Operator: Your subsequent query comes from Jackie Przybylowski from BMO.
Jackie Przybylowski: I simply needed to ask, I do know quite a lot of issues have been requested already, however I simply needed to ask for perhaps just a little bit extra shade on what we are able to anticipate with the replace, later, within the first half of 2024 on the Abitibi optimization? I do know you’ve got talked about research at Detour and Higher Beaver and Wasamac. Is there additionally going to be some dialogue to combine all the district collectively? And perhaps are we going to get some sort of details about mill optimization or infrastructure transportation, something like that as properly? When you can simply perhaps inform us what we must be anticipating that’d be useful. Thanks.
Ammar Al-Joundi: Thanks, Jackie. I believe, properly, I will be clear. We’ll give some extra steerage on the place we’re in subsequent steps on Detour. We’ll give extra steerage on the place we’re in subsequent steps on Higher Beaver. We’re doing the work on transportation choices, however actually one of the simplest ways to consider these is inside the context of these initiatives. We’re going to be giving extra replace on subsequent steps at Wasamac, however in all probability not till the beginning of subsequent 12 months. After all, we’re speaking to everyone inside a sure distance of they usually’re speaking to us inside a sure distance of Malartic on the subject of future alternatives on the mill there. There’s a lot happening. You might be proper. There’s quite a lot of potential, however what you possibly can anticipate center of the 12 months is basically extra centered on Detour and Higher Beaver.
Jackie Przybylowski: Thanks, Ammar. And perhaps that form of solutions my follow-up query just a little. However, we have heard quite a lot of discuss how a lot capability you’ve with perhaps completely different mills and completely together with your experience and your individuals within the area. Is there any ideas or I imply is there something you possibly can perhaps touch upon now about acquisition or perhaps including further properties? Do you see a necessity so as to add further properties to your portfolio within the Abitibi? Or are you going to swap what you’ve got acquired first?
Ammar Al-Joundi: Clearly, we’re centered on what we have got. However with the query on acquisitions, perhaps we’ll be centered extra on return on capital. If someone’s acquired a undertaking that they wish to construct and it will get a greater return for them to make use of our mill, and it is a greater return on capital than us buying the particular person, we’d do this. A easy instance, I might slightly put no further capital and make $50 million a 12 months and put in a $100 million of capital to make $60 million a 12 months. I do know that sounds self-evident, however we’ll have a look at the particular alternatives, however with an actual concentrate on return on capital. And that would imply acquisitions, but it surely might additionally imply that some individuals who have good initiatives determine they wish to use our mill.
Jackie Przybylowski: Thanks. Perhaps yet another follow-up, if I can. Simply to follow-up on among the different themes within the name on base metals. I do know you’ve got not too long ago made an funding in Canada Nickel and it’s within the no less than regionally fairly in an identical jurisdiction. Is there any synergies with Canada Nickel moreover personnel and form of simply experience within the area? Would any of your services select that operation if it have been to be constructed?
Ammar Al-Joundi: Sure. I imply, our view on Canada Nickel is that, it’s — and I hope I do not upset my ex-CFO by saying this, it is a very long-term perspective that they are taking. I do not see something imminent there. Actually, we’re not speaking to them about offering individuals or growing something. It is a imaginative and prescient that they’ve. It is a big comparatively low grade orebody they usually have an fascinating imaginative and prescient. I believe it is higher to assume Jackie, actually that is only a very early stage funding on our half. It is a huge asset in our yard, huge possibility on nickel. However actually, it is the Canada Nickel crew operating this, not Agnico.
Operator: Your subsequent query comes from Martin Pradier from Veritas Funding Analysis.
Martin Pradier: After I have a look at the associated fee enhance, your steerage talks a couple of 4% year-over-year enhance. Now there are some property the place you see a rise in volumes, like Canadian Malartic and your value elevated 12%, Macassa, the associated fee elevated 17% with larger quantity. And Kittila, the associated fee elevated 10% on flat volumes. When you can present some shade on why in a few of them you’ve larger volumes and have a lot larger value? Thanks.
Jamie Porter: Sure. Thanks for the query. It is Jamie right here. It is actually a perform of sequencing, mine sequencing throughout our operations. You are going to have intervals the place tonnage is flat, however prices are on a per ounce foundation are larger or decrease simply given the grade profile of the person asset. However general, whenever you have a look at our value, I imply, we noticed inflation operating round 6% year-over-year and our job as administration is to attempt to do higher than that by means of a better denominator and thru always specializing in optimizing our value. I believe we have delivered that with the 4% enhance in our money value and all-in sustaining value steerage.
Martin Pradier: However you can not present a lot shade on in any of these, Canadian Malartic, Macassa, Kittila, what’s driving that a lot larger?
Jamie Porter: Sure, we are able to attain out offline and stroll by means of that on an asset by asset foundation. However with 11 working mines, it is laborious to offer a generalized reply.
Operator: And there are not any additional questions presently. I’ll flip the decision again over to Mr. Ammar Al-Joundi for closing remarks.
Ammar Al-Joundi: Thanks, operator, and thanks everybody for becoming a member of us but once more. And we want you all a cheerful weekend. Thanks.
Operator: Girls and gents, this concludes your convention name for immediately. We thanks for becoming a member of and chances are you’ll now disconnect your strains. Thanks.
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