Agnico Eagle Mines Restricted (NYSE:), a number one gold mining firm, introduced its third consecutive quarter of report monetary and operational outcomes.
The corporate reported report adjusted EBITDA of roughly $1.2 billion and free money circulation of over $0.5 billion in Q2, marking an distinctive quarter with sturdy operational efficiency and glorious price management. Agnico Eagle additionally highlighted its dedication to shareholder returns, with $50 million in share buybacks and nearly $200 million in quarterly dividends.
With a concentrate on security and sustainability, the corporate is advancing tasks which can be anticipated to contribute to important gold manufacturing development, such because the Higher Beaver mine and the enlargement of Detour. Agnico Eagle’s CEO, Ammar Al-Joundi, emphasised the corporate’s technique to be one of the best funding selection within the gold area, with a concentrate on low-risk jurisdictions, high quality manufacturing, and monetary returns.
Key Takeaways
- Agnico Eagle achieved report free money circulation for the third consecutive quarter.
- The corporate repaid $250 million of debt and distributed important shareholder returns.
- Agnico Eagle plans to put money into key tasks to probably produce over 1 million ounces of gold yearly.
- Sturdy operational leads to Q2 with manufacturing near 1.9 million ounces of gold at a money price of $870 per ounce.
- The Odyssey undertaking is on monitor to grow to be Canada’s largest underground mine.
- Elevated liquidity to $2.9 billion and diminished internet debt to beneath $1 billion.
- Dividend payout ratio stands at 36%, with direct returns to shareholders at about 50% of free money circulation.
Firm Outlook
- Agnico Eagle is targeted on increasing its operations, particularly on the Detour, Malartic, and Hope Bay tasks.
- The corporate is creating the Higher Beaver mine and increasing Detour, with plans to extend drilling and exploration budgets.
- Agnico Eagle goals to be the highest funding selection within the gold sector by specializing in low-risk mining jurisdictions and high-quality manufacturing.
Bearish Highlights
- The corporate famous the necessity to transfer extra waste in lower-grade ore to take care of tonnage.
- Upcoming shutdowns and upkeep at LaRonde, Canadian Malartic, and Detour might influence operations.
Bullish Highlights
- File monetary outcomes for the third consecutive quarter.
- Agnico Eagle’s mines, together with Canadian Malartic and LaRonde, noticed increased gold recoveries and grades, contributing to sturdy efficiency.
- The Odyssey undertaking is creating on monitor, and different tasks like Detour Underground and Higher Beaver present potential for development.
Misses
- No particular misses have been reported within the name abstract offered.
Q&A Highlights
- CEO Ammar Al-Joundi mentioned the capital return program, stating the dividend payout ratio is comfortably at 36%.
- Labor availability is stabilizing, with wage will increase anticipated to be round 3% to 4%.
- Prices are stabilizing regardless of some inflation traits in diesel, metal, and cyanide.
- The corporate plans to repay the remaining time period facility by April 2025, with personal notes having favorable phrases.
- Mine security has been a robust focus, with the corporate profitable security awards and emphasizing danger administration.
- The Canadian greenback has positively impacted prices, with the corporate budgeting for a price of $1.34 for the complete 12 months.
Agnico Eagle’s sturdy monetary place and operational excellence underscore its standing as a gold mining chief. With a disciplined method to capital allocation and price management, the corporate is well-positioned to ship on its technique of offering high quality manufacturing and monetary returns. The concentrate on security, sustainability, and strategic undertaking investments demonstrates Agnico Eagle’s dedication to long-term worth creation for its shareholders.
InvestingPro Insights
Agnico Eagle Mines Restricted’s (AEM) latest efficiency out there is a testomony to its strategic focus and operational effectivity. Based on InvestingPro information, the corporate boasts a market capitalization of roughly $37.5 billion, underscoring its important presence within the gold mining sector. With a P/E ratio of 60.36, AEM trades at a excessive earnings a number of, which can recommend investor confidence in its future development prospects, as mirrored within the upward earnings revisions by 4 analysts for the upcoming interval. This optimism is additional supported by AEM’s sturdy income development, with the final twelve months as of Q2 2024 displaying a 20.51% improve.
InvestingPro Ideas spotlight AEM’s capability to generate excessive returns, with a notable value complete return of 59.39% over the previous 12 months, indicating sturdy investor positive factors. Moreover, the corporate has maintained dividend funds for a powerful 32 consecutive years, offering constant shareholder worth. These dividends are sustainable, as AEM’s money flows can sufficiently cowl curiosity funds, showcasing monetary stability.
For buyers looking for extra complete evaluation, there are further InvestingPro Ideas out there at https://www.investing.com/professional/AEM, providing deeper insights into AEM’s monetary well being and market place.
Full transcript – Agnico-Eagle Mines (AEM) Q2 2024:
Operator: Good morning. My title is Lara, and I can be your convention operator at the moment. Presently, I want to welcome everybody to the Agnico Eagle Q2 2024 Convention Name. All strains have been positioned on mute to forestall any background noise. After the audio system’ remarks, there can be a question-and-answer session. [Operator Instructions] Thanks. Mr. Ammar Al-Joundi, chances are you’ll start your convention.
Ammar Al-Joundi: Good morning and thanks for becoming a member of us at the moment. We’re very excited to be reporting one other distinctive quarter and to share with you a few of the vital work that groups are targeted on to create further worth. Among the highlights this quarter embody continued sturdy operational efficiency with glorious price management. This concentrate on price management has allowed us to ship for our homeowners’ great leverage to elevated gold costs as demonstrated by our third consecutive quarter of report free money circulation. A considerably strengthened investment-grade stability sheet with over $900 million of money at quarter-end and $250 million of debt repaid in July. We proceed our long-standing dedication to shareholder returns with $50 million in share buybacks within the quarter and nearly $200 million paid out within the quarterly dividend, marking over 40 years of consecutive quarterly dividends. Prudent, measured and importantly economically-driven reinvestment into the enterprise, together with roughly $50 million of supplemental exploration finances targeted totally on Detour, Malartic and Hope Bay and based mostly on distinctive ongoing exploration outcomes and saying the subsequent steps to creating the Higher Beaver mine and increasing Detour to probably over 1 million ounces a 12 months of annual manufacturing, each investments based mostly on distinctive projected risk-adjusted financial returns. We proceed to ship secure, dependable, constant operational outcomes safely and responsibly in probably the most potential and probably the most politically secure jurisdictions on the planet. With our sturdy first half outcomes, we’re very nicely positioned to reiterate our manufacturing and price steering for 2024. Nevertheless, earlier than we get into the operational and monetary particulars, I might wish to take a second to speak about security and sustainability. The protection of our individuals, our companions, our communities, and the environment is paramount. Nothing is extra vital. I am proud to say we had one other sturdy quarter on the protection and sustainability entrance. This efficiency has been acknowledged by our friends with our groups lately profitable a number of business awards, together with to call only a few, on the protection entrance from the Canadian Mining Institute – I’m sorry, from the Canadian Institute of Mining, the John T. Ryan Security Awards for 2023 for Jap Canada to Canadian Malartic, for the Prairie Provinces and Territories to Meliadine, and for Canada nationally to Goldex. Our mine rescue competitions – on the mine rescue competitions, our mines received a complete of eight awards, together with 5 first place awards. On sustainability entrance, Agnico Eagle’s LaRonde Advanced was awarded the 2024 in the direction of Sustainable Mining Environmental Excellence Award, introduced by the Mining Affiliation of Canada, and we additionally lately launched our inaugural Reconciliation Motion Plan and our 2023 Local weather Motion Report. As Sean Boyd, our Chairman and longtime CEO, typically says, it isn’t simply what you do, however the way you do it. So nicely carried out to the groups. In our first quarter name earlier this 12 months, with gold costs and our income up considerably, we selected in that decision to not concentrate on the report money flows we generated, however as an alternative to concentrate on price management. We wished to emphasise price management as a result of whereas we do not management the gold value, we are able to work arduous to regulate prices and it’s our strongly held and basic view that the advantage of increased gold costs should go to our homeowners, to not increased prices and positively to not dangerous tasks. Our efficiency on this second quarter demonstrates that this concentrate on price management is actual, and this focus is delivering outcomes for our homeowners with Q2 money prices at $870 an oz.. I can let you know with fairly a little bit of satisfaction that at each mine, at each name, at each assembly, the groups stay laser targeted not solely on price management however on steady enchancment to make our operations extra environment friendly, extra productive and to offset price inflation the place we are able to. And as we proceed to ship report money flows and as we proceed to accrue money on our stability sheet, our focus just isn’t solely on continued price management but in addition on continued self-discipline in the case of capital allocation. That is your cash. We stay as dedicated to self-discipline capital allocation at $2,300 gold, at $2,400 gold, as we have been at $1,800 gold. Actually, the tasks we’ll speak about at the moment, Canadian Malartic, Detour Underground, Higher Beaver, are precisely the identical tasks we talked a couple of 12 months in the past when gold costs have been $1,800. We’re transferring forward in precisely the identical method, at precisely the identical measured tempo as we guided firstly of the 12 months. As a reminder, at Detour Underground, we’re investing in an exploration ramp and bulk pattern to de-risk the undertaking. At Higher Beaver, we’re investing in an exploration shaft, a shallow ramp, and bulk samples to derisk the undertaking. Once more, these are the identical tasks and the identical steps we guided in each February and April. Complete spent for each of those mixed is anticipated to be about $100 million a 12 months over the subsequent three years. It is a measured and accountable method. These are nice tasks with nice economics, with great upside to develop and lengthen mine lives. They’re straight down the golf green of what we do and what we have carried out. These will not be new tasks in international locations we have by no means been to earlier than, they’re in our yard and we have carried out our homework. We’ve got the individuals, the abilities, the assets to take these tasks prudently to the subsequent stage. Once more, we’re speaking about $100 million a 12 months over the subsequent three years. Our purpose is to ship tasks that not solely have an ideal return on capital, but in addition an ideal risk-adjusted return on capital. That is what we imply by disciplined capital allocation, and that is what we goal to ship with these investments into the enterprise. And with that introduction and abstract, I now flip the presentation over to our CFO, Jamie Porter, who will go over our monetary outcomes. Jamie?
Jamie Porter: Thanks, Ammar. As talked about, we have now had a really sturdy first half of the 12 months, delivering constant operational outcomes and glorious price efficiency. Within the present increased gold value atmosphere, our focus has been on making certain that the advantage of increased costs accrues to the underside line and that we ship sturdy monetary outcomes, and we have definitely demonstrated that this quarter. We generated report monetary outcomes for a 3rd consecutive quarter, with adjusted EBITDA of roughly $1.2 billion and free money circulation of over $0.5 billion within the second quarter. One of many key drivers to our sturdy monetary outcomes has been our concentrate on price management. Money prices have been beneath the low finish of our steering within the quarter, pushed by the sturdy working outcomes and the advantage of the weaker Canadian greenback, which was partially offset by increased royalty prices, that are linked to the gold value. With respect to all-in sustaining prices, we got here in at $31 an oz. beneath the low finish of steering. This was pushed by the decrease money prices in addition to deferred sustaining capital. We do count on our all-in sustaining prices to extend within the third quarter as we atone for sustaining capital. Our all-in sustaining prices are tons of of {dollars} per ounce beneath our friends, and our all-in sustaining price margin elevated to 50% within the quarter, which is amongst one of the best in our business. Taking a more in-depth take a look at our monetary highlights, our revenues elevated by 21% over the second quarter of 2023 to over $2 billion. Importantly, our adjusted EBITDA elevated by 33% and our free money circulation elevated by over 80% when in comparison with the prior 12 months interval. On an adjusted foundation, internet revenue per share was $1.07 within the second quarter, a 65% improve relative to the prior 12 months. General, we had sturdy monetary outcomes for the quarter and first half of the 12 months. We transfer on to Slide 5. Through the quarter, we considerably strengthened our stability sheet, elevated our liquidity to $2.9 billion, and diminished our internet debt to beneath $1 billion, all supported by record-free money circulation. We additionally elevated returns to shareholders by way of 50 million of share buybacks. In July we repaid $100 million of senior notes on maturity. We additionally made an accelerated cost of $150 million on our $600 million time period mortgage facility, bringing our complete debt compensation subsequent to quarter-end to $250 million. We proceed to prioritize returns to shareholders with our dividend and share buybacks representing almost 50% of the free money circulation we generated within the first half of the 12 months. We plan to proceed to strengthen our stability sheet, reinvest within the enterprise, and opportunistically purchase again shares. We transfer on to Slide 6. This slide actually highlights our disciplined method to capital allocation. When evaluating to what we budgeted in the beginning of the 12 months utilizing the $1,800 gold value, we now forecast producing an extra $1 billion of incremental after-tax money circulation. We count on that roughly 80% of that incremental after-tax money circulation can be allotted to continued strengthening of our monetary place and share buybacks. We additionally proceed to reinvest in our enterprise. We concentrate on tasks with stable risk-adjusted returns and advance them in a phased, measured method with incremental capital spending. We’re additionally offering a supplemental exploration finances of $50 million for this 12 months based mostly on the constructive drill outcomes we have seen at a few of our key tasks that Man will go over later within the presentation. Whereas we proceed to concentrate on our portfolio of high-quality inside development tasks, we complement this with our technique of buying strategic toehold positions in rising high-quality alternatives, which is one thing that Agnico Eagle has carried out for many years. The theme of our first quarter convention name was price self-discipline. This quarter we need to spotlight that we additionally stay very targeted on capital self-discipline. We’re taking a measured method with our natural development tasks, once more, to make sure that the advantage of rising gold costs accrues to our stability sheet and to our shareholders. I am going to now flip the decision over to Dom, who will present an summary of our operational outcomes.
Dominique Girard: Thanks, Jamie. Good morning, everybody. In the present day, I’ll cowl all of the operations I preferred on behalf of Natasha and myself. I can even present an replace on the DC and Natasha will present an replace, present updates on Detour and Higher Beaver pipeline undertaking. In Q2, glorious operational efficiency all throughout the board with the quarterly manufacturing near 900 million, 1,900 ounces, at a money price of $870 per ounces, and report working margin of $1.3 billion. Among the highlights embody at Canadian Malartic, delivering one other sturdy quarter with the gold manufacturing forward of the plan, primarily with increased throughput on the mill, increased gold recoveries, and better gold grade as we entry increased grade zone forward of the schedule. So total, a wonderful quarter, a wonderful first half of the 12 months for Canadian Malartic. LaRonde additionally benefited from increased gold grade from the favorable mining sequence. In Ontario, Macassa continued to ramp up its mill throughput, setting one other quarterly report in Q2. And at Detour, they achieved a brand new historic quarterly report about mill availability at 93%, finances was at 91.6. The common mill throughput improved by way of the quarter with an introduction of recent grinding media and a few new controls, and so they reached in June 81,000 tonnes per day common. At Fosterville, the mine web site targeted on rising mill and mining price, and so they set additionally new information, so quarterly information on the tonne mine and the month-to-month report on the tonne mill in June. In Nunavut, Meadowbank, Meliadine proceed to outperform. Each operations have made good progress to unlock their underground potential, and it’s paying off. Sturdy efficiency is a key driver to our glorious complete money price for the quarter at $870, which is beneath the low finish of our annual steering. However as Ammar talked about, our price efficiency can also be pushed by steady concentrate on price management and optimizing our operations. Here is some examples. Our Nunavut websites deserve a gold medal. They’ve applied a robust steady enchancment tradition, setting stretch targets and beating them. And on high of that, each of them attain well being and security information in Q2. The principle positive factors are on the productiveness enchancment, which have an effect on superb money price efficiency, but in addition they’re benefiting from price administration self-discipline, specializing in what issues from them, like the availability chain, flight, [indiscernible] stock, and in addition power financial savings. For instance, extra lately, they took motion to cut back their footprint by closing some buildings that have been not required saving on upkeep, but in addition extra importantly, on power prices. What we have discovered from it, and what’s the magnificence concerning the Nunavut success is the way in which this has been carried out, 100% carried out by web site administration. It’s so nice to see the groups happy with their achievement. We imagine that is the way in which to develop our expertise and to attain our enterprise objectives. So total, with our sturdy efficiency within the first half, we’re extremely assured that we are able to obtain our manufacturing price steering – manufacturing and price steering for the full-year. Subsequent slide. With Odyssey undertaking, very nicely, it’s creating on monitor. So report quarterly mining price and gold manufacturing on the – from the Odyssey South deposit. The ramp improvement was forward of the schedule, helped by extra tele-remote scope operation and the addition of the brand new 65 tonner truck for the hauling fleet. On the quarter-end, the ramp reached the third manufacturing stage at East Gouldie at 832 meter beneath surfaces. Shaft sinking can also be advancing nicely, reaching 680 meters depth on the quarter-end. General, Odyssey is creating as deliberate and is anticipated to be the biggest underground mine in Canada. However keep tuned. We’re ramping up the drills from 16 within the first half of the 12 months as much as 23 within the second half of the 12 months. It’s our largest drilling program ever at Canadian Malartic. On that, I’ll now move on this to Natasha, who will focus on different tasks, key worth drivers, Detour Underground and Higher Beaver.
Natasha Vaz: Thanks, Dom, and good morning, everybody. So I am going to contact on the 2 tasks in Ontario that we’re fairly enthusiastic about as a result of it is a possibility. It is a possibility to develop low-risk, worthwhile manufacturing in a province that, for my part anyway, is likely one of the finest mining jurisdictions on the planet. So the primary undertaking is Detour Underground. We offered an replace on this undertaking in June, and it outlined a pathway for Detour to be a 1 million ounce producer yearly for over a 14-year interval starting as early as 2030. Now if we have been to make use of the present gold costs, throughout that point interval, we’d generate over $1 billion in free money circulation per 12 months from Detour alone. The Detour Underground undertaking is not only a very good return on capital. As Ammar talked about, it is a good risk-adjusted return on capital. Now Dom already touched on this from an working standpoint, however I simply wished to focus on this once more, and that is our concentrate on price and capital self-discipline in all points of our enterprise. Now as Ammar and Jamie mentioned, from a undertaking perspective, we’re taking a fairly disciplined and phased method to additional derisk the undertaking with a measured funding of $100 million in capital over the subsequent three years. And that is to develop – to first develop an exploration ramp after which to gather a bulk pattern after which on the identical time facilitate infill and enlargement drilling to transform after which probably develop the present mineral useful resource. And talking of drilling, we proceed to see constructive exploration outcomes from alongside the western plunge of the deposit, and Man will focus on this in a while in his presentation. Now transferring over to the Higher Beaver undertaking. That is one other low-risk alternative to develop the manufacturing profile in a camp that we all know fairly nicely. Actually, we count on this undertaking to leverage and profit from our technical experience and our workforce at Macassa. With the inner evaluation that we have accomplished, we have outlined a standalone mill idea, however we proceed to guage ore transportation choices, particularly at LaRonde. So based mostly on this inside evaluation, we see the potential for Higher Beaver to be a low-cost, long-life undertaking, with a stable risk-adjusted return and upside potential that helps transferring us to the subsequent part. And so like Detour Underground, we’ll be taking a gradual and a disciplined method to derisk and optimize this undertaking, beginning with a measured funding of $200 million over a three-year interval. And that is to first develop an exploration shaft after which an exploration ramp, after which gather two bulk samples, one within the higher stage of the deposit, utilizing the exploration ramp to check the shallow mineralization within the basalt. After which the second is – bulk pattern can be utilizing the shaft to check the deeper porphyry mineralization that hosts a big portion of our assets. As nicely, throughout this timeframe, we’ll be creating underground drilling platforms to transform after which develop the present mineral assets. However we do not simply see the exploration potential at depth. We additionally see the chance for Higher Beaver to unlock the potential within the area. And so with that, I am going to move it over to Man to clarify the potential a little bit bit extra.
Man Gosselin: Thanks, Natasha, and good morning, everyone. To begin with, I am very glad to supply further info on the Higher Beaver undertaking. Occurring to Slide 11, because the earlier PFS examine in 2017, there’s been numerous work carried out by the exploration workforce on web site, by our technical companies group, and by our undertaking examine workforce, integrating greater than 225,000 meters of drilling and 440 drill holes accomplished over the 12 months because the final examine. This extra drilling helped the risking the geological mannequin by infilling, but in addition by increasing the assets base. The interpretation of the ore physique was utterly refreshed, and the up to date mineral assets system for the brand new inside PE examine now complete 3.4 million ounces of indicated assets, with an extra 0.4 million ounces of inferred assets. These outcomes present considerably increased potential than the 1.4 million ounces mineral reserves contemplated to be mined by the historic examine in 2017. We now count on that a big portion of the brand new indicated assets can be dropped at mineral reserve at [Rand]. This new PE examine and the three-year superior exploration part that we’re about to undertake will enable to additional [indiscernible] the undertaking by way of the gathering of the majority pattern that was described by Natasha. Whereas we proceed exploration round Higher Beaver deposit and the adjoining deposit within the camp corresponding to Higher Beaver, corresponding to Higher Canada and Anoki-McBean to develop the complete potential of the Kirkland Lake camp that we now personal 100% from the Macassa mine to the Higher Beaver undertaking following the merger with the power of leveraging operational synergies, increasing our world mineral reserve and assets on the camp that already exceed 10 million ounces in all classes. All of that inside a camp that has over 100 years of mining historical past and greater than 40 million ounces of historic gold manufacturing. Subsequent, we’re additionally happy to announce that following the exploration outcomes acquired within the first half of 2024, specifically in Canadian Malartic, Detour and Hope Bay, that we’re rising the exploration finances by $50 million for the second half. We imagine that it will result in one other profitable 12 months of development in mineral reserve and mineral assets at our Key Worth Driver undertaking. At Malartic on Slide 12. Within the East Gouldie deposit at Odyssey mine, latest exploration drilling continues to reveal the potential to develop the deposit laterally with good outcomes each on the japanese and western extension outdoors of the present footprint of the mineral reserve define. The outcomes from the continued exploration program are anticipated to have a constructive influence on mineral assets system at Rand and proceed to help our view to enhance the throughput of the underground mine sooner or later as reserve and assets proceed to develop laterally and in addition supporting the potential to develop new underground mining space. That is core to our fill the mill technique in Malartic. Transferring to Slide 13, a Detour Underground. Infill drilling, as beforehand talked about by Natasha, proceed to ship high-grade leads to the high-grade core of the deposit beneath into the west of the reserve open pit. This continues to substantiate good grade and continuity of the high-grade hall that we described at our June replace. As demonstrated by latest outcomes, corresponding to 4 gram over 22 meter, 4.4 over 30, 20 gram over 5.4, all of that between 300 and 550 meter close to the proposed exploration ramp lately introduced in June. These outcomes proceed to help our view that the underground undertaking first introduced in a couple of month in the past in June, has nice potential to proceed to develop and can assist at bringing Detour mine web site, combining open pit the underground to the choose membership of one million ounces of gold per 12 months producer for years to come back. And at last, on Slide 14, within the Madrid deposit within the Patch 7 zone, exploration drilling continued to return glorious outcomes as much as 17 grams over 25 meters estimated by way of thickness, simply at 400 meter depth. Additional confirming the bigger thicknesses and better gold grade on this new zone in comparison with the so-called mineral reserves and assets at Hope Bay mine. These outcomes are anticipated to result in a major improve in grade and complete mineral assets at year-end 2024, supporting our view for the potential to develop a bigger operation at Hope Bay within the close to future. In closing, Agnico Eagle has a robust pipeline of inside exploration tasks with world-class exploration potential, and extra importantly, round current infrastructure in secure jurisdiction that we are able to leverage with our personal inside experience. And on that, I’ll return to Ammar for some closing remarks.
Ammar Al-Joundi: Thanks, Man, and really thrilling stuff. Nice work to you and the workforce. At Agnico Eagle, we try to construct a easy, high-quality enterprise that generates nice returns for our homeowners. The mandate our homeowners give us is easy. Our homeowners need Agnico Eagle to be one of the best place to put money into the gold area. Meaning, one, giving them one of the best leverage to extend in gold costs; and two, giving them this leverage with an affordable danger profile. And the technique we use to ship on this mandate is identical technique we have used for over 60 years. One, we need to concentrate on low-risk mining jurisdictions, jurisdictions which have a number of mine, a number of decade geologic potential, and districts which have political stability for a number of many years. We need to concentrate on the areas we all know nicely and we need to have a easy manageable enterprise in these areas. Two, we need to be the highest-quality senior gold producer that we will be. Meaning excessive ESG requirements based mostly on a multi-decade funding horizon. Meaning disciplined capital investments based mostly on information and expertise within the areas we function. And meaning creating worth by way of the drill bit and thru technical experience. We really feel we’re uniquely positioned with sturdy land packages in core mining jurisdictions, with the distinctive potential to leverage current capital and current belongings. We imagine we have now a aggressive – we all know we have now a aggressive benefit from over 50 years of working within the areas the place we’re, and we imagine we have now distinctive mining expertise and experience in Nunavut and the Canadian North. And at last, all the time targeted on monetary returns, with an emphasis on per share metrics, sustaining a robust monetary place to fund undertaking development, to strengthen the stability sheet, and to return capital to shareholders as demonstrated by over 40 years of steady quarterly dividend funds. So thanks all as soon as once more for becoming a member of us and thanks specifically to all of our workers who delivered such an ideal quarter safely. And with that, we finish our presentation and open for questions.
Operator: Thanks, sir. Women and gents, we’ll now start the question-and-answer session. [Operator Instructions] One second please in your first query. Our first query comes from the road of Josh Wolfson from RBC Capital Markets. Go forward, please.
Josh Wolfson: Thanks very a lot. First query on Higher Beaver. I am simply inquisitive about understanding the financial choice to progress this on a standalone foundation. I suppose I am questioning if there are another alternatives to perhaps leverage the infrastructure the corporate has talked about traditionally throughout the Abitibi to cut back a few of that CapEx or is that this one of the best plan going ahead?
Ammar Al-Joundi: Hello, Josh, it is Ammar and thanks for that query. There may be completely a possibility to proceed to think about leveraging current infrastructure. As Natasha talked about, we’re nonetheless wanting on the transport choice to LaRonde, which might clearly materially cut back the capital that we must spend. The numbers we have given, Josh, are based mostly on a on-site mill, as a result of even with an on-site mill, the returns on this are fairly sturdy. At present ranges, it is in extra of 20%. So, given, as you’ll know, that the longest driving issue is the shaft and on condition that the shaft is impartial of the place you will have the plant. What we have determined to do is mainly, we have mentioned “Look, worst-case situation, we construct a mill, it nonetheless makes some huge cash for our shareholders, so let’s get began on that shaft as a result of it is an ideal funding.” However to your level, completely, we’re nonetheless transportation to LaRonde, and if we have been to do this, clearly, it could be as a result of it improves the economics.
Josh Wolfson: Thanks. Subsequent query is on East Gouldie. By way of a few of the infill drilling that is been recognized on what appears to be like like a pretty big space after which the remark, I suppose, rather more clearly this quarter concerning the potential for a second shaft. I suppose I am questioning, on condition that the primary underground undertaking at Malartic was superior with an inferred useful resource, at PE stage. Would this useful resource extension provide the confidence to have the ability to progress or decide for a second shaft? Or what kind of timeframe might we have now the knowledge that may be capable to advance that or not advance that?
Man Gosselin: Hello, Josh, Man talking. We’re nonetheless getting some sturdy outcomes on each side, each to the east to the west and each of them west and east extension will not be, I might say, tightly drilled sufficient but to make these form of. So that is a few of the inside consideration we’re at present having. So by rising the drill program by year-end, we need to tight fill that space the place we have been getting some fairly excessive grade and good thickness within the east in addition to to the west. And that is going to assist additional down the street at making up our mine about what must be carried out and the place?
Dominique Girard: Sure, I imply to make certain we’re very excited concerning the outcomes, Josh, and it is truly progressing in all probability quicker and higher than we had anticipated. However, as Man mentioned, and the place you place the shaft is fairly vital, and that is going to be outlined largely by the ore physique, once more, outlined by drilling. So, we’re not at a place but to say completely that is the fitting place to place a shaft, however definitely we love what we’re seeing.
Josh Wolfson: Bought it. And if I can type of tuck in another, there is a bunch of tasks the corporate is type of evaluating at this level, I suppose extra lately, Detour Underground and Higher Beaver, nonetheless a quantity past that within the pipeline. After which this quarter, there was a big fairness funding made in a junior developer within the base steel area. I simply form of need to perceive what the corporate’s perspective right here is on development and inside versus exterior alternatives, and the way is the corporate going to handle capital with all these totally different choices on the desk? Thanks.
Ammar Al-Joundi: So I am going to deal with that. So we hold emphasizing the phrase risk-adjusted return on capital, and, in fact, that’s the return on capital on the chance adjusted. So by definition, we have now extra information on inside tasks, by definition and we’re capable of make an evaluation on danger a lot better. So if I had an exterior undertaking at 20% and an inside undertaking at 20%, we’d go together with the inner undertaking, once more, as a result of we’d, in our view, have a greater view on the quantity of danger related to it. However broadly, we take a look at numerous issues, which is what our buyers need us to do. Our buyers need us to make them cash on this area. And the way in which we do that’s we attempt to be in locations which have good geologic potential and we attempt to have a information benefit there. And so we’re all the time a variety of issues and it is truly an excellent factor. I let you know, and I have been on this enterprise for 25 years. It is improbable to have the pipeline of alternatives that we have now. However I can be very clear and we tried to emphasise this explicitly. We’re going to proceed to be disciplined in our capital method. I imply, Detour Underground, it is improbable to get to a 1 million ounces a 12 months. It is a ramp and a tempo plan. I imply, it is easy. That is stuff we do. Malartic, we have been there a very long time. It is the identical mill. We’re at present constructing a shaft. If we construct one other shaft, that is stuff we all know the way to do Higher Beaver, we all know the way to do. So clearly, a few of the issues we take a look at are extra advanced than others, however we’re very snug that we have now the assets, each monetary and folks, to maneuver on the measured tempo that we’re transferring ahead. And truthfully, I like the truth that you are asking about, which of the very many good pipeline alternatives are we going to prioritize as a result of we have now numerous actually good alternatives.
Josh Wolfson: Nice. Thanks very a lot.
Operator: Thanks. Our subsequent query comes from the road of Anita Soni from CIBC World Markets. Go forward, please.
Anita Soni: Hello, good morning. First off, congratulations on a robust free money circulation quarter. My subsequent query can be on Hope Bay. So what can be the subsequent steps as we take into consideration startup timelines for Hope Bay and what you should see extra there to make a go-ahead choice?
Man Gosselin: Hello Anita, it’s Man. Clearly, we have to proceed drilling Patch 7. We’re nonetheless not but on the drill spacing that permits to deliver them indicated and into the plan. So our focus and because of this we’re accelerating the tempo when it comes to drilling. So the plan for us is to deliver the core portion of that new high-grade zone that we predict are the needle mover on the undertaking as shortly as potential to a drill spacing that may enable us to combine them into the plan. So I do know in a 12 months from now we needs to be in a bunch higher place when it comes to our understanding of the grade and Patch 7 and to combine and begin to combine that into some situations.
Anita Soni: Okay. Thanks. After which simply an operational query. Are there any shutdowns or upkeep within the again half of the 12 months that we must always pay attention to at any of the foremost operations?
Ammar Al-Joundi: Sure. Hello, Anita. We had one at LaRonde, which is over. We had 10 days within the mill and 14 days on the bottom at LaRonde have been carried out efficiently. And there is one other one coming on the Canadian Malartic, 10 days shutdown on the mill. It’s to alter the drive system on the tailing stick there.
Natasha Vaz: Hello, Anita, it is Natasha. And with respect to Detour, we have now two extra shutdowns developing, one in August and one in November, nevertheless it’s typical shutdowns. We usually have 4 shutdowns a 12 months.
Anita Soni: Okay. After which simply once more at Canadian Malartic, although, it is delivering fairly good throughput and grade. Is that – ought to we count on that to proceed for the rest of the 12 months? I feel it is outpacing the steering by a major quantity within the first half.
Ammar Al-Joundi: Sure, we must always count on the tonnage to maintain, we will hold a very good tonnage to the tip of the 12 months, however the grade we count on that it is going to be decrease than the primary half. As within the second quarter, we have been mining two inside pits near previous workings, the place we had the upside on the grade. However now we’re transferring extra to a part that we have to transfer extra waste within the lower-grade ore. So we are able to have a very good tonnage, however decrease grade than we had within the first half.
Anita Soni: Okay. I am going to go away it there and let another person ask questions. Thanks very a lot.
Operator: Thanks. Our subsequent query comes from the road of Lawson Winder from Financial institution of America Securities. Go forward, please.
Lawson Winder: Thanks, operator. Good morning, Ammar and workforce. Thanks for the replace at the moment. All the time very useful and fantastic to listen to from you. I wished to follow-up on the capital return theme and simply observing the very, very sturdy money circulation in Q2 and looking to the second half and subsequent 12 months at spot and even decrease than costs, that free money circulation era will proceed to be very sturdy, to place it evenly. And with that as context, whenever you take a look at the capital return program and the elevated concentrate on the buyback lately, is there any thought internally to perhaps shifting that again to the dividend with a probably increased dividend? And when you consider paying a dividend, what’s form of a cushty free money circulation payout on that dividend stage? Thanks.
Jamie Porter: Lawson, it is Jamie. Thanks for the query. Sure, I am going to reply it simply by specializing in the final a part of your query. Our dividend payout ratio was 36% on this most up-to-date quarter, and I feel that is actually a cushty stage. I imply, should you issue together of the dividend and the share buybacks, the 70 million in share buybacks the primary half of the 12 months, we’re operating at a price of about 50% direct returns to shareholders as a portion of our free money circulation. So I feel that the dividends on the proper spot the place it’s at present representing a couple of third of the free money circulation that we’re producing.
Lawson Winder: Okay, very useful. I wished to additionally ask, simply given the theme, Ammar, of your early feedback on price administration and price discount, congratulations on the success there. Within the latest previous, so prior to now type of two to 3 years, there’s clearly been numerous labor and price inflation within the business, however in significantly on labor. And it could be useful simply to get your feedback on what you are seeing within the varied areas at the moment. Is that persevering with to enhance each with respect to labor price, but in addition labor availability? Thanks very a lot.
Dominique Girard: Hello, Lawson, Dominique talking. We see stabilization when it comes to workforce availability. We nonetheless have a really low turnover between 3% and 6% common in 2023 in Quebec. Additionally it is getting – going good additionally in Ontario. By way of wage improve, we simply count on regular 12 months, regular 3% to 4% form of. So there is no – we do not see huge difficulty on that. And perhaps whereas we’re speaking about inflation, there’s fascinating trending occurring diesel, metal, and in addition cyanide that we had – we see now, that is going to assist a bit extra increased on the road, however aside from that, it’s stabilizing, perhaps getting decrease a bit.
Natasha Vaz: Hello, Lawson. Simply on Ontario, sure, we nonetheless have a decent market, however as Dominique talked about, it’s stabilizing. We’ve got a low turnover and at Macassa specifically, one of many causes that our prices are decrease is that we’re targeted in on internalization of our contractors and we have seen good progress. However total, emptiness charges are fairly low.
Ammar Al-Joundi: And I am going to simply bounce in by saying one thing I typically say, which is a giant driver of quarterly price is quarterly manufacturing. When the groups do an ideal job like they did this quarter and so they ship good manufacturing, they nearly all the time ship nice prices. So it is simply vital to maintain that in thoughts as nicely.
Lawson Winder: Okay, sure. Thanks all for these feedback. After which simply, Man, you made some feedback on Hope Bay and a few of the different belongings and the outlook for useful resource and reserve development for year-end. Possibly might we get simply an early look in your considering when it comes to total reserve alternative for – on a consolidated foundation for Agnico heading into year-end. After which simply any ideas on whether or not there is perhaps an replace to the gold value assumption thought of.
Man Gosselin: It is a bit early within the 12 months, I might say, to commit on a gold value assumption and are we going to maneuver on. So that also must be seen. We’re often finishing our evaluation throughout Q3, This autumn to make up our mine early within the 12 months. So it’s early for that, identical as nicely throughout, it is troublesome. We have been mainly operating a few inside run on some undertaking with simply the Q1 end result. I feel we’re in fairly good condition and I am anticipating, as I discussed in my – so I feel we’re in a very good place to switch what we mine this 12 months. I might say there is no main examine to come back, like after we added the Detour and East Gouldie final 12 months. So we’re not anticipating a giant bump related to the foremost undertaking updates. We’re anticipating extra of form of a flat alternative as I see, nevertheless it’s nonetheless early within the 12 months.
Lawson Winder: Good, improbable. Thanks all very a lot and congratulations on an ideal quarter.
Operator: Thanks. Our subsequent query comes from the road of Ralph Profiti from Eight Capital. Go forward, please.
Ralph Profiti: Thanks very a lot. Good morning. Ammar, after we take a look at this supplemental exploration finances, how a lot of that is strategic and geology-driven and the way a lot if any comes from rising price pressures, proper? So mentioned one other manner, is there any efficiency carryover on what we’re seeing on the working price self-discipline facet into the exploration and discovery price facet of the enterprise, particularly after we take a look at this second half finances?
Dominique Girard: I might say on the contrary, we have seen some easing into our total drill price. So we managed to drill extra, I might say as much as 10% greater than initially deliberate in our first half. So the addition we’re doing within the second half may be very directed to, as you heard, to Detour as a result of together with the exploration ramp and finally our want to deliver the higher a part of the western extension of the deposit to order. So it ties together with the ramp improvement, identical in Malartic, so as to finally commit on further infrastructure, rising the tempo over there to get extra readability ahead of later and Hope Bay with the good end result we have been getting so as, once more, to come back again with some extra readability in 2025 or 2026. So higher price efficiency, higher unit prices, superb. The market is favorable. At present, it is troublesome for lots of the smaller junior to get capital. Subsequently, there’s been so many easing, and we have been fairly happy with our capability to renegotiate contract and get higher charges.
Ralph Profiti: Nice. Glorious reply. Jamie, a capital allocation query on the personal placement debt and the price of that debt as we’re more likely to see the outlook for charges come decrease and we’re seeing a step up within the gold value. As these maturities come due, how are we fascinated with the method of wanting into both paying that off, partitioning or rolling it ahead?
Jamie Porter: Sure, thanks for the query. I might say we do have the remaining $450 million on the time period facility due in April of 2025. So we’ll look to definitely repay that between at times. On the personal notes, the phrases are literally fairly favorable. I feel the typical coupon is within the fours when it comes to what’s excellent and so they’re unfold out actually over the subsequent decade. So I might be glad protecting these in place and paying them off as they arrive due.
Ralph Profiti: Understood. Thanks all.
Operator: Thanks. Our subsequent query comes from the road of John Tumazos from John Tumazos Very Unbiased Analysis. Go forward, please.
John Tumazos: Thanks. May you elaborate on the Mine Security Awards one? LaRonde operates nearly 10,000 ft deep, and also you talked about that there was a 4.1 richter seismic occasion June twenty fourth the place nobody was damage. And [Kim Ross] bought Macassa for $5 million to Kirkland Lake after a seismic occasion severed the shaft at 5,700 ft and so they could not go all the way in which to 7,250, they walked away and shut the mine. Please clarify how everybody goes dwelling safely and also you win all these awards whenever you’re working two of the more durable mines in Canada.
Dominique Girard: Sure, John, Dominique. Effectively, the rewards are from – acknowledged from the mining business and giving to the – based mostly on the final 12 months performances and we’re very, very proud that we received two regional and one nationwide awards. On the LaRonde state of affairs, we had a giant seismic occasion at 4.1, however on the general, we didn’t have main injury. Our floor help did the work that they have been speculated to do, and we needed to shutdown the mine, underground mine for 2 days to do the inspection. And after that, we went again there and we did some rework. Our mannequin we’re anticipating that someday we will recover from 4 and we get one over 4. So it was as anticipated and we – the workforce continued to develop their experience, working with exterior experience too, by understanding these mechanisms and defending the workforce. One a part of that can also be attending to extra automation, so having the employees not near the face, so utilizing extra mechanized and extra distant operation, which we’re glorious at Z5 and in addition at LaRonde.
Ammar Al-Joundi: Possibly simply, and thanks, John, for that query as a result of we admire the query as a result of security is paramount. Possibly Carol, I will put Carol Plummer on the spot. She is our Govt Vice President and broadly security falls beneath her and she or he and her workforce have carried out an terrible lot of labor day by day on this and perhaps simply extra broadly on our philosophy on security administration. Carol?
Carol Plummer: Sure, definitely. So I feel we are able to sum up our security administration philosophy by saying that we very a lot imagine in secure work, that each job will be carried out safely each time. And there is numerous focus in any respect of our websites on making certain that our individuals have the assets, they’ve the supplies, they’ve the abilities and so they have the information so as to have the ability to work safely. They usually’re so as to follow-up and guarantee there are people who find themselves in a position to do that. We’ve got a giant emphasis that is been positioned over the past couple of years in what we name boots within the subject or seen felt management relying on which web site you are at, nevertheless it’s basically the identical factor the place basically not solely the supervisors are out within the subject with the employees, however administration can also be out within the subject with the employees so are the engineers fairly nicely. Anyone strolling by way of has their eyes open, they’re searching for dangers, they’re making certain that the dangers are managed and that our individuals are capable of proceed to work safely. All of this does not stop 100% of every little thing occurring. So we additionally put numerous emphasis on making certain that we actually understood – perceive what important controls should be in place to forestall accidents. And when an incident occurs, whether or not it’s a close to miss or any person does truly get injured, actually digging deep into that to grasp the basis causes to make sure that it not solely can not occur once more at that web site, nevertheless it additionally can not occur once more at any of our different websites by placing within the appropriate preventative measures for these issues. I feel all these awards that our groups received over the past quarter, as Dom mentioned, they’re all based mostly on the protection efficiency from final 12 months. It was a report security 12 months for us throughout the corporate. And that is actually a celebration of the wonderful work that our administration groups, that our supervisors and that our staff did over the course of the final 12 months and we simply proceed to encourage them to do this day by day with each job that they are doing.
John Tumazos: May you elaborate on the metal or different floor help methods at LaRonde and the way they’re greater than only a rebar mine roof bolt or cement and the way they have been sturdy sufficient to outlive and help at a four-richter occasion?
Daniel Paré: Daniel talking. So our floor help has developed over the previous many years at LaRonde. In order we’re mining deeper, we tailored our design and our floor help to withstand these form of occasions. In order Dominique talked about, in that case, we have been anticipating to have a four-richter magnitude in some unspecified time in the future, which we did. The great factor is that we perceive the place it’s. So it was in a sub-parallel geological construction down at 2.9 kilometers. And at these depth, our stage design is tailored, our floor help is tailored, and it reveals a very good end result because it resisted the occasion that we had on the finish of June.
Dominique Girard: 30 years in the past, I went underground at a spot referred to as [indiscernible] in South Africa that had 50 deaths a 12 months, one every week. I did not return. I am going underground with Agnico Eagle. Thanks.
Operator: Thanks. Our subsequent query comes from the road of Mike Parkin from Nationwide Financial institution. Go forward, please.
Mike Parkin: All my questions have been answered. Thanks very a lot.
Operator: Thanks. Our subsequent query comes from the road of Tanya Jakusconek from Scotiabank. Go forward, please.
Tanya Jakusconek: Good morning, everybody. Thanks a lot for taking my questions and congratulations on a very good quarter. Jamie, over to you first. Can I ask concerning the Canadian greenback influence in your mines this quarter? Clearly, I feel that helped a bit on the costing entrance. And simply remind me your sensitivity. I feel you budgeted at $1.34, however I simply need to be reminded of the sensitivity for the remaining portion of the 12 months on what we have now.
Jamie Porter: Thanks, Tanya. Sure, that is completely proper. We budgeted $1.34 for the full-year. Our realized FX within the second quarter was 137. So we’re benefiting a novel interval the place we have now each the advantage of increased gold costs and a weaker Canadian greenback. The influence on our money prices in Q2 was about $18 an hour. So it’s definitely serving to. I’ll level out and I feel Ammar talked about it in his remarks, we do – on this increased gold value atmosphere, we do face increased royalties expense. So should you take a look at the profit from the weaker Canadian greenback, it is kind of fully offset by the upper royalties price. For the second half of the 12 months, based mostly on the place the Canadian greenback is now, I might count on an analogous $15 to $20 profit arising from the weaker Fed.
Tanya Jakusconek: Sure, it is simply that – there are some views on the market that this Canadian greenback goes to proceed to go down versus the U.S. and subsequently Agnico goes to profit. I appear to recollect, and Jamie, appropriate me if I am unsuitable, for a ten% transfer within the Canadian greenback, it is about $50 to $55 per kilos in your price construction. Am I within the ballpark?
Ammar Al-Joundi: Sure, that sounds appropriate.
Tanya Jakusconek: Okay. Thanks for that. My second query is for you, Ammar. I wished to come back again to 2 issues. One is simply the technique and the capital self-discipline. And I simply wished to have a look at the tasks that you’ve. After which the second has to do with this funding technique in juniors. So simply on the primary one, which is simply the capital self-discipline, as we take into consideration these tasks, so you have acquired Detour on the go, probably Canadian Malartic with one other shaft. We now speak about Higher Beaver probably coming in 2030 or there about. After which we have now Hope Bay that’s telling us in a 12 months from now we’ll have some type of outlook to the place that may slot in. The place will we see your complete capital finances going to? Proper now, it is 1.6 million to 1.7 million. Making an attempt to simply get a deal with to the place do you see this going longer-term? Can we max up $2 billion as we part these in? And that is my subsequent portion is how will we take a look at phasing these in as a result of you may’t simply deliver all of them in directly.
Ammar Al-Joundi: Sure, superb query, Tanya. I’ve spent most, I am an engineer, however I’ve additionally spent most of my profession on the finance facet. So we begin with only a very sensible method which is, are these good investments? And I do know that appears like an apparent query, however what generally will get huge firms like ours in hassle are individuals are extra targeted on rising the enterprise or doing a deal fairly than do they really earn money. So every little thing we do begins with does it earn money and is it a very good return for the quantity of danger we’re taking up. So once more, one thing like a Detour Underground, once more, it is a ramp, it is a tempo plant, it is an additional 300-plus thousand ounces a 12 months for many years. Actually, that is a fairly straightforward choice. A second shaft at Malartic, we have got the mill there, we’ll have simply constructed a shaft. When Man and his workforce inform me, I am snug with the exploration, that is what’s underground, that is what’s there, truthfully, that is a fairly straightforward choice. So it relies upon as you’ll count on, like all funding, what’s the funding alternative? I am not skirting the difficulty, I am simply being sincere. It relies on the funding alternative. Now you ask an excellent query. It is not simply monetary capability, it is human capability. So we take that very a lot under consideration. We assess the individuals we have now. We like to make use of our personal individuals. I get much more confidence when it is, Daniel Paré and his workforce constructing a undertaking fairly than an out of doors guide who we have by no means used earlier than. So, lengthy reply is it relies on the undertaking, however to your particular query, is there a complete CapEx quantity in thoughts? We have mentioned at present ranges 1.7-ish. May it get to 2 if it is smart? It might, however we’re going to unfold out each our monetary necessities and our human necessities based mostly on the capacities that we have now.
Tanya Jakusconek: And simply because, Ammar, all of us keep in mind a time after we tried to construct a number of 5 mines or thereabouts multi functional go and simply these issues are simply arduous on human capability, as you recognize.
Ammar Al-Joundi: They’re arduous. You are completely proper.
Tanya Jakusconek: Okay. In order that’s – so if we have been to think about these 4 further tasks as we area them out on human capability, we might get to the two billion, however we attempt to hold that margin, 2 billion complete capital after which every little thing else can be out there from an upside for our shareholders? Would that be a great way to have a look at it?
Ammar Al-Joundi: That is a great way to have a look at it. Now the one factor I might say is every little thing we put money into is upside for our shareholders. That is the one motive we put money into this stuff is to make the cash.
Tanya Jakusconek: Okay. Thanks for that. And simply coming again to your technique on funding, so you have acquired the exploration which Man gave us a rundown on. Possibly we might speak about the way you’re wanting on the technique of funding in these juniors. Two issues I am attempting to grasp on that’s one, you often run a portfolio, I feel, it is about $150 million to $200 million or thereabouts, if I can keep in mind. However what I am noticing is that your investments are extra in non-gold juniors. So I’ve two questions. Is it as a result of they’re these non-gold alternatives or in camps that you simply’re positioned in and subsequently you may see your mining experience serving to or is it that you will be transferring extra into non-gold over the longer-term?
Ammar Al-Joundi: We’re going to proceed to be the premier, no less than in our thoughts, gold firm on the planet and positively in Canada. So we’re going to proceed to be a gold firm, we’re going to proceed to be a targeted gold firm. That mentioned, for instance, our funding in [Forend], that may be a superb undertaking. It’s , nevertheless it’s a big VMS. That is one thing we all know the way to do. We expect it has potential. It is early. However actually, Tanya, it is extra of what we have carried out traditionally, which is take an early place on issues which can be promising within the areas we function. And once more, I need to emphasize what I mentioned earlier, a part of our capital self-discipline relies on information. And we have now a fairly good information of that a part of Canada. We’ve got a very good information of that undertaking. We’ve got a very good information not simply of that undertaking, however of that area. And we have now a very good information on VMS deposits. So it is pushed by a knowledge-based evaluation of funding potential.
Tanya Jakusconek: Okay. So we must always take into consideration this as areas that you simply function in, alternatives, gold, non-gold, the place you may add worth and you’ve got experience. And do we have now this portfolio that you simply’re working as we have now an expiration finances, do you will have a finances on investments as nicely?
Ammar Al-Joundi: So to begin with, I feel you summarized it fairly nicely. In order that was good. We agree with that. We’re fairly versatile. We’re a little bit bit larger. You are proper. Sometimes, it has been type of between 100 million and 150 million. I am [Jean Robitaille] right here. It is significantly, it is above that proper now. A part of that frankly is we made some investments which have carried out very nicely and so they’re form of sizable. However as we develop that, that has grown, nevertheless it’s actually it is simply the identical technique we have all the time had.
Tanya Jakusconek: Okay. Effectively, thanks. I admire you taking my query.
Ammar Al-Joundi: Effectively, it is our pleasure, and thanks, Tanya, all the time a pleasure. And with that, we at the moment are previous midday. So once more, thanks, everybody, for taking trip of your day, and for everyone at Agnico who’s listening. Thanks for all of your arduous work. Have a pleasant day.
Operator: Thanks, sir. Women and gents, this concludes your convention name for at the moment. We thanks for taking part and ask that you simply please disconnect your strains.
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