Agnico Eagle Mines Ltd. Q3 FY2024 earnings call

• Strong financial results: Record adjusted EBITDA, free cash flow, and adjusted net income. Revenues increased significantly. - Cost control: Year-to-date costs at $897 an ounce, $3 below cost guidance midpoint, with cost per ton in local currency stable over a year. - Operational performance: Regions delivered solid operating and cost performance, with mines like Nunavut, Macassa, Fosterville, etc., showing strong results. Nunavut mines had record throughput and lower costs, Meadowbank reached a millionth ounce milestone. Macassa had productivity improvements and Fosterville set records in ore tons mined and mill throughput. - Exploration: Exciting exploration results at various sites like Detour, Odyssey, Hope Bay, etc., with potential to grow mineral resources and reserves. - Safety: Congratulated Nunavut mine rescue team for winning the 2024 International Mine Rescue Competition.

In the third quarter, gold production was 863,000 ounces. Total cash costs were $921 per ounce. Year-to-date, cash costs are $897 an ounce, which is $3 below the midpoint of cost guidance. 75% through the year, the company is at 76% of the midpoint of full-year production guidance. For example, Nunavut mines performed well with record throughput and lower-than-expected costs, Meadowbank reached the milestone of producing its fifth millionth ounce of gold. Macassa had 71,000 ounces of gold production with productivity improvements, and Fosterville set records for quarterly ore tons mined and mill throughput. Revenue increased by 31% over Q3 2023 to approximately $2.2 billion, record adjusted EBITDA was ~$1.26 billion, and record free cash flow of $620 million for the fourth consecutive quarter.

• Confident in meeting production and cost guidance for 2024. Year-to-date within 1% of full-year production guidance midpoint. - Full-year cost guidance: $8.75 to $9.25 per ounce for cash costs and $1,200 to $1,250 per ounce for all-in sustaining costs. - Balance sheet: Significantly reduced net debt to $490 million from $1.5 billion at the start of the year. Plan to continue returning value to shareholders through dividends and share buybacks while strengthening the balance sheet and reinvesting in the business.

• Potential cost inflation, especially in labor and consumables. - Geopolitical risks that could impact operations and costs. - Uncertainties related to exploration outcomes and project development timelines.

Q: Ralph Profiti asked about Detour exploration and Macassa mill optimization.

A: Guy Gosselin said they are working on shallow portion exploration and infilling drill spacing for Detour, and Natasha Vaz explained Macassa is looking at optimizing the mill with grinding efficiencies, conveyor upgrades, etc.

Q: Lawson Winder inquired about labor inflation, Hope Bay project.

A: Jamie Porter said forecasting 3% labor inflation for 2025, Dominique Girard mentioned contractor contracts are ongoing with no major inflation issues, and Dominique Girard said Hope Bay project study may be updated end of 2025 or early 2026.

Q: Tanya Jakusconek asked about labor contracts, cutoff grade.

A: Dominique Girard said labor contracts are renewed monthly with no specific major inflation issues, Guy Gosselin said plan is to maintain cutoff grade stable.

Q: Joshua Wolfson asked about Fosterville mine plan and equity investments.

A: Natasha Vaz said Fosterville study results expected in early 2025, Ammar Al-Joundi explained capital investment criteria and ATEX investment is an early-stage one.

Q: Michael Parkin asked about Fosterville grades, immigration program.

A: Natasha Vaz and Ammar Al-Joundi talked about Fosterville ongoing study, and Natasha Vaz explained the immigration pilot program with Mexico and government collaboration.

Q: Daniel Major asked about Fosterville profile, CapEx, cash flow.

A: Natasha Vaz said Fosterville plan details early next year, Ammar Al-Joundi said no unusual CapEx inflation, Jamie Porter said hard to predict Q4 working capital.

Q: John Tumazos asked about mill throughput.

A: Dominique Girard and Natasha Vaz discussed mill throughput at various sites like Meliadine, Meadowbank, Fosterville, etc.

Q: Martin Pradier asked about capital allocation, dividend.

A: Jamie Porter said will continue to strengthen balance sheet, may repay term facility, and will continue returning value to shareholders through dividends and share buybacks.