Agnico Eagle Mines Limited (AEM) Q4 2022 Earnings Call Transcript

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Agnico Eagle Mines Limited (NYSE:AEM) Q4 2022 Results Conference Call February 16, 2023 9:00 AM ET

Company Participants

Ammar Al-Joundi - President and CEO

Natasha Vaz - EVP and COO, Ontario, Australia & Mexico

Dominique Girard - EVP and COO, Nunavut, Quebec & Europe

Guy Gosselin - EVP, Exploration

David Smith - CFO

Conference Call Participants

Fahad Tariq - Credit Suisse

Emily Chieng - Goldman Sachs

Greg Barnes - TD

Anita Soni - CIBC World Markets

John Tumazos - John Tumazos Very Independent Research

Carey MacRury - Canaccord Genuity, Inc.

Mike Parkin - National Bank

Ralph Profiti - Eight Capital


Good morning. My sanction is Julie, and I will beryllium your convention usability today. At this time, I would for illustration to invited everyone to nan Agnico Eagle Fourth Quarter Results 2022 Conference Call. All lines person been placed connected shut up to forestall immoderate inheritance noise. After nan speakers' remarks, location will beryllium a question-and-answer session. [Operator Instructions] Thank you.

Mr. Ammar Al-Joundi, you whitethorn statesman your conference.

Ammar Al-Joundi

Thank you very much, and bully morning, everyone. It's a pleasance to beryllium present and person nan opportunity to talk astir 2022, but much importantly, astir 2023 and beyond, wherever we are rather excited, and we spot immoderate exceptional opportunities that by nan extremity of nan call, I think, hopefully, each of you will spot them pinch us.

Just earlier we jump in, immoderate forward-looking statements you should return into account, nan normal sorts of things. But why don't we past conscionable jump correct successful connected page 5.

So, we're going to talk about, again, 2022 and 2023. I would opportunity that 2022 afloat twelvemonth tin beryllium characterized by 2 things: number one, coagulated and beardown operational performance; but number two, and this is important, immoderate very strategical consolidations that person led and will lead to immoderate awesome opportunities that we're going to talk about.

On nan operations side, for nan afloat year, we had a beardown twelvemonth pinch regards to production, gathering our guidance, but I would opportunity much impressively, costs gathering nan precocious end, somewhat supra nan precocious extremity of our guidance wherever we had told nan marketplace we would travel out. We each cognize that 2022 was a reliable twelvemonth for inflation. It was a reliable twelvemonth connected nan workforce side, but nan Company delivered rather good overall. We had continued advancement of immoderate cardinal improvement projects, Odyssey, Detour Lake, immoderate different cardinal projects that we're going to talk about. And we delivered each of that pinch nan Company's champion information grounds successful 66-year history of nan Company. That's impressive.

At nan aforesaid time, we repaid $225 cardinal of indebtedness pinch rate arsenic it came due. And we paid a dividend of $0.40 per stock quarterly dividend continuing, which is astatine a bully level. At nan aforesaid time, we accrued mineral reserves by 9% to almost 50 cardinal ounces. So a very beardown twelvemonth operationally, I think, crossed nan board. And we'll talk astir nan 4th fourth wherever location were a fewer much challenges, but I'm very proud of nan squad for what they delivered this year.

On nan strategical consolidation, very successful merger and integration betwixt Agnico Eagle and Kirkland Lake that went very well. I utilized nan past tense because it's done. We delivered synergies faster and successful greater quantum than we thought we would, which is great. And frankly, nan teams are moving exceptionally good together, and you will spot that erstwhile I talk astir 2023 and beyond.

Secondly, we're looking guardant to nan pending acquisition of Yamana's Canadian assets, including, astir importantly, nan 2nd -- nan different 50% of nan world-class Malartic excavation and each nan imaginable that it has. Those 2 strategical deals, nan consolidation of Kirkland and Agnico and nan acquisition of Yamana's Canadian assets are halfway and basal to our strategy, which is to consolidate nan champion operating regions successful nan world for golden mining.

Next page, please. And I want to return a infinitesimal because we talk astir this a lot, but sometimes a image is worthy a 1000 words. And what we effort to show present is what this Abitibi golden loop intends for us. It's a region astir 160 by 200 kilometers, and let's return a look astatine immoderate of these numbers. Mineral reserves complete 30 cardinal ounces, resources complete 30 cardinal ounces, inferred resources astir 20 cardinal ounces. These numbers are astir nan aforesaid arsenic nan full Nevada Gold Mine JV. But successful this case, we ain 100% of it, and we've been operating present for complete 50 years.

So we deliberation this region has a batch of potential, and that's what we're going to beryllium talking about. We will beryllium producing successful excess of 2 cardinal ounces from this region astatine astir $800 rate cost, and this region besides is simply a basal portion of our expertise to operate, we think, pinch a beardown competitory advantage successful Nunavut arsenic this is simply a ground for a batch of those operations and Nunavut, again, going to beryllium betwixt 800,000 and 900,000 ounces of production. So you tin spot nan quantum of this strategy of combining and consolidating what we've done complete nan past mates of years.

Now, erstwhile we did nan merger pinch Kirkland, and this clip past year, erstwhile we had this call, location was a batch of accent connected synergies. So, we said very clearly, we didn't do nan merger because of synergies. We did nan merger because of what we saw was a immense imaginable to consolidate this region and leverage disconnected our competitory advantage successful what we deliberation is 1 of nan champion places successful nan world arsenic measured by geologic imaginable and governmental stability.

So, arsenic we look forward, and -- adjacent page, please, that's what we're going to beryllium talking astir successful 2023 and going forward. It's really -- wherever past twelvemonth was astir integrating nan companies, delivering connected nan accumulation guidance and consolidating this region, 2023 is each astir optimizing what we've got. There's a batch we're moving on. But I'm going to deed 3 things, and I deliberation this is nan astir important page successful nan full presentation.

And these are only nan 3 biggest, location are a batch of others. But Detour Lake, we proceed to person exceptional exploration results astatine extent and moving west. We are continuing to measure and Natasha and nan squad person done a awesome occupation already pinch nan mill description . We deliberation we tin expand, and we're looking astatine opportunities to spell from 28 cardinal tons to 30 cardinal tons pinch minimal CapEx investment. And remember, nan permitting is up to 32 cardinal tons. And importantly, we are continuing to work. We promised that we would do this by nan extremity of this year. We're making bully advancement towards nan imaginable for this excavation to beryllium producing complete 1 cardinal ounces a twelvemonth for decades. And we're looking guardant to continuing to activity connected that and seeing wherever we are astatine nan extremity of nan twelvemonth and talking much astir it then.

The Canadian Malartic Complex. We're now calling it a analyzable because that's what it is going to be. We paid a adjacent value for nan 2nd half of Malartic based connected its existent life of mine, but nan logic we did nan woody is because we deliberation there's a batch much potential, and we're going to talk astir that a small bit. We deliberation that nan areas we person already approved an summation successful exploration arsenic soon arsenic nan woody is completed because location is simply a batch of exploration imaginable and we'll talk astir that a small later.

We are going to beryllium initiating first accumulation successful March. We are sinking nan shaft, and we are assessing nan imaginable for further ore root astatine Malartic. We deliberation that nan Malartic analyzable betwixt nan ore disposable astatine nan excavation tract and opportunities to bring successful aliases nearby, this could beryllium different positive 1 million-ounce a twelvemonth shaper for decades to come. So, this is what we're trying to do successful nan champion spot arguably successful nan world to mine. You tin spot that betwixt Detour and nan Malartic analyzable imaginable each to beryllium successful excess of 1 cardinal ounces a twelvemonth for decades.

And then, nan 3rd point to deed concisely is utilizing excess capacity of existing infrastructure passim nan region and leveraging that infrastructure. This is what we mean by getting nan afloat imaginable and leveraging disconnected our competitory advantage. We're going to talk astir this later, but to deed nan highlight. From nan assets we will already ain and that are adjacent wherever existing mill capacity is, we deliberation there's nan imaginable for up to 500,000 ounces of further accumulation by 2030, starting slow successful 2024, but really picking up benignant of '28, '29, '30 erstwhile this mill capacity comes successful place.

Now, successful and of itself, I deliberation that's impressive. And group talk astir nan champion maturation is integrated growth. This is nan champion of nan integrated maturation because it's not conscionable maturation successful areas wherever we exist, it is perchance maturation pinch minimal further superior expenditure. If you tin bring a excavation into accumulation and not person to build a mill and not person to build tailings facilities, you've astir apt trim nan superior costs of that excavation successful half. And you've done it successful a region wherever you cognize it's safe to operate, wherever you person nan champion estimation successful town, wherever location is minimal biology impact, minimal permitting impact. This really is nan champion integrated growth. It creates -- it generates nan astir money for our shareholders. It does it pinch nan slightest risk, and it does it pinch nan smallest biology footprint. That, we believe, is nan early of mining, not conscionable golden mining but immoderate mining.

Just quickly hitting connected 2024, and nan 4th quarter. The first 3 quarters I would opportunity were exceptional quarters from an operational perspective. We delivered supra fund connected accumulation and very bully costs control. The 4th quarter, I would categorize arsenic a coagulated quarter. We did person immoderate challenges, but nan squad still delivered beautiful well. If you deliberation we're going to travel successful supra nan mediate of our accumulation guidance of 3.2% to 3.4%. So nan bottommost extremity to immoderate 4th would person been 800,000 ounces, and that's wherever we came successful this 4th fourth astatine costs of $863 million.

What I will opportunity is, yes, nan costs were a small spot -- were higher -- much than a small bit. The costs were higher successful nan 4th quarter. And that is simply a usability of 2 things. One, it is simply a usability of nan afloat inflationary pressures affecting us. Our squad did a awesome occupation successful 2022 of getting up of immoderate of what we thought were going to beryllium inflationary pressures, we did immoderate -- we had bought much inventory. We put connected immoderate hedges early. We did a batch of very bully things that controlled costs, but we're not immune from ostentation forever.

And what you're seeing successful nan 4th fourth is immoderate of that affecting us, including, successful particular, arsenic we had nan sealift astatine Nunavut. So, nan 4th fourth included those afloat inflationary pressures, but nan costs were besides impacted somewhat by immoderate operating challenges. I'll deed Kittila and Fosterville first.

Kittila, we person a regularisation correct now, a permitting regularisation connected nan mill throughput. We applied for nan licence to spell from 1.6 cardinal to 2 cardinal tons a year. That licence was approved, it was appealed. And correct now, we are dealing pinch that appeal. So we're constricted to 1.6 cardinal tons a year. We person put successful our guidance an presumption of 1.6 cardinal tons a year. We are optimistic it really gets resolved successful nan adjacent mates of months, but we don't cognize that it will.

So our fund is, I don't want to opportunity conservative, but it does presume nan $1.6 million. And if things spell nan measurement that we hope, they spell -- and that we're optimistic they go, we will person an expertise to nutrient much astatine Kittila and astir apt different 30,000 to 40,000 ounces location -- and going forward, by nan way, because we person that regularisation successful spot successful our guardant twelvemonth guidance arsenic well.

And past astatine Fosterville, we person a sound restriction. We were successful Australia -- I was successful Australia pinch nan squad a mates of weeks ago. We are optimistic that restriction, nan sound restriction, which is limiting -- astir 25% of nan accumulation astatine Fosterville. We are optimistic that will beryllium lifted. We can't guarantee it. So, we person not included nan afloat accumulation astatine Fosterville. But if that regularisation is lifted, it would beryllium astir different 50,000 ounces a year.

So, I conscionable wanted to constituent that out. Maybe immoderate group opportunity we're being a small spot excessively blimpish connected that, but this is -- I'm speaking to nan owners of nan company, and our occupation is to place each of these issues, and that's what we're doing. LaRonde, we talked astir LaRonde past quarter. I'll talk astir it again. LaRonde has been successful accumulation for 35 years. It's a awesome mine. It's a awesome orebody. We're hitting immoderate of nan champion reserve -- immoderate of nan champion grades we've ever deed there. But nan existent connection astir LaRonde is sustainability. This is simply a excavation that's been expanded 5 times. It has a immense magnitude of potential, but nan logic we've operated safely, and I'm going to stress that connection safely, for 35 years and hopefully run safely for decades much is because we've operated sustainably.

And sustainably includes, successful this case, having a squad of world-class stone mechanics and soul and outer advisors who guideline america connected nan champion measurement to sustainably excavation this multi-decade asset. And they person advised that we spell to a slower mining rate. The golden is still there. We are conscionable mining astatine a slower complaint astatine depth. And truthful nan opportunity astatine LaRonde is -- and frankly, this is simply a bully thing. We are going to commencement exploring much laterally.

You ever travel nan highest people gold, which is going down, and we cognize nan golden continues to spell down. But arsenic we trim nan complaint astatine depth, we are going to research laterally and it mightiness return a mates of years, but we are assured that we will beryllium capable to find further operating phases and summation nan accumulation complaint again.

And past conscionable earlier I flip, it was a bully year. I want to telephone retired to Detour, which had a grounds year, Amaruq that had a grounds twelvemonth and Goldex that had a grounds twelvemonth since nan restart.

Next page, please. Just very quickly arsenic immoderate of nan operating and financial highlights. Operating separator of astir $720 cardinal successful nan quarter, astir $3.1 cardinal done nan year. You've sewage each this data. We don't request to spell into it successful detail.

Next slide, please. This is awesome arsenic well. Not only did we summation reserves by 9% but arsenic important, we accrued mineral resources by 12%. The mineral resources of coming group nan ground for nan mineral reserves of tomorrow. And so, we're very proud that we not only accrued reserves, but accrued resources. And frankly, we deliberation we're going to beryllium capable to proceed to do this complete nan adjacent respective years going forward.

And so, astatine this stage, we talked astir 2022. We really are excited astir 2023 going forward. We identified Detour, and Natasha is now going to talk astir that. We identified Malartic. Dominique is going to talk astir that. And past I'll talk a small spot astir nan imaginable for that further 500,000 ounces towards nan extremity of nan decade. Natasha?

Natasha Vaz

Thank you, Ammar, and bully morning, everyone.

I'll supply a speedy update connected Detour and our imagination to get to 1 cardinal ounces per year, and I'll commencement pinch nan mill description project. We proceed to beforehand aggregate initiatives to summation our mill throughput from 23 cardinal to 28 cardinal tons a twelvemonth by 2025. And nan past awesome inaugural successful our scheme to execute 28 cardinal tons was successfully completed successful 2022 pinch nan installation of our secondary crusher screens. The installation was completed successful nan 2nd half of nan twelvemonth pinch nan first statement completed successful Q3 and nan 2nd statement completed successful Q4.

The first results were very encouraging. We saw a regular mean throughput balanced to 28 cardinal tons per year, but these rates are not sustained consistently complete clip yet. So now nan attraction astatine nan mill has shifted to optimizing nan mill processes, analyzing nan deterioration and tear from nan higher throughput to optimize our attraction practices, and fundamentally conscionable improving nan mill tally clip truthful that nan higher throughput becomes much and much accordant complete time. And based connected nan activity that needs to beryllium done, we spot imaginable for a faster clip statement than primitively that was expected to beryllium achieved successful 2025.

And successful summation to a faster clip statement of getting to 28 cardinal tons a year, arsenic Ammar mentioned, we're besides evaluating a pathway to summation nan mill throughput beyond that pinch further optimization and fine-tuning of our mill processes and our attraction strategy arsenic we accommodate them to higher milling rates.

The mill optimization includes improved process controls. We're besides including nan implementation of an master strategy for illustration we person astatine immoderate of our different mills. So, these initiatives person nan imaginable to execute a scope of location betwixt 29 cardinal to 30 cardinal tons a twelvemonth pinch constricted capital. And different ongoing initiatives see nan screening and sorting of low-grade ore pinch nan imaginable to bring nan throughput moreover higher.

And past conscionable connected nan update for nan underground study, an first underground mineral assets associated pinch nan mineralization extracurricular of nan planned last pit limits astatine extent and to nan westbound is expected to beryllium completed successful nan first half of 2023. And past this will beryllium utilized arsenic nan ground for nan imaginable underground mining scenarios that will beryllium worked connected successful nan 2nd half of nan year. But we expect to complete an first method information by nan -- by year-end 2023.

Moving to nan adjacent slide. I'll concisely touch connected nan exploration highlights astatine Detour successful nan past quarter, and I'll commencement pinch nan infill drilling program. This was a programme completed successful nan Saddle area and conscionable beneath nan westbound information of nan pit, nan area that you spot that's highlighted successful blue. The results shown connected nan correct broadside of nan slide, successful nan first bullet, continues to bespeak a wide letter cover of golden mineralization.

And past conscionable westbound of nan infill drilling, conscionable extracurricular of that mineral assets shale arsenic portion of nan description drilling program, you'll spot that we proceed to show a akin inclination wherever we had a spread that intersected a wide area pinch beautiful high-grade inclusions. This 1 included 10.2 grams per ton of golden complete 28.9 meters.

And finally, nan location drilling programme besides showed promise. This was a programme that was conducted astir 2.4 kilometers westbound of nan West Pit mineral resource. And it showed signs that these pockets of golden mineralization on nan Sunday Lake Deformation Zone still continues.

So each successful all, very encouraging results successful nan 4th for Detour. One different point I wanted to mention is that nan bully exploration results discussed successful anterior quarters has led to nan important summation successful nan mineral resource, mineral reserve update astatine year-end. But nan exploration highlights that I'm talking astir coming and successful nan news merchandise only became disposable aft nan MRMR year-end update. So, it's conscionable -- it conscionable shows nan imaginable to proceed nan maturation astatine Detour from nan -- from some nan unfastened pit resources and advancing nan knowing of nan underground upside.

And pinch that, I'll walk nan position connected to Dominique Girard, our COO for Quebec, Nunavut successful Europe.

Dominique Girard

Good morning. Thank you, Natasha.

In nan adjacent mates of slides, I will springiness you an update connected nan Odyssey task arsenic good arsenic connected exploration aliases infill drilling, what we spot and really we're going to spot processing that analyzable to provender nan mill that we have.

On nan accumulation aliases let's say, nan improvement ramp, we are connected target pinch nan development, and we foresee to do nan first blast successful March, truthful connected time. And we're going to person astir 50,000 ounces this twelvemonth coming from nan Odyssey South.

On nan building project, everything is going well, contempt not nan easiest clip to build pinch nan logistics and nan workforce challenges. But we person very -- a squad astatine site, and we're proud pinch nan advancement, a spot of challenges pinch nan upwind and nan crane that you could spot connected nan apical correct of nan image successful nan past quarter, but this quarter, we are backmost connected way pinch installing nan alloy into nan shaft. And we're going to beryllium fresh to do shaft sinking starting astatine nan extremity of this quarter.

Maybe to springiness you a position astir wherever we're going to beryllium astatine midyear pinch nan building of nan project, which is going to beryllium to provender besides nan updated study that we're going to do this year, we're going to update our PEA study. But we're going to beryllium astatine nan mediate of nan twelvemonth wherever 80% of nan aboveground building is going to beryllium completed. So, nan electrical line, nan shaft or, let's say, nan caput frame, nan garage, nan warehouse, nan paste works Phase 1 is going to beryllium each completed. So, each those costs are going to beryllium secured arsenic good arsenic nan schedule. And we're going to person besides an thought aliases a amended idea, our mining complaint into nan Odyssey South arsenic good arsenic nan sinking complaint that we're going to do into nan shaft.

So each of that is going to beryllium updated done nan twelvemonth to see, let's say, a very bully imagination connected wherever we're going to grip pinch nan project. But everything is positive. And connected apical of that, we spot -- I'm going to talk a spot astir that successful nan adjacent section, but we spot very affirmative results from nan infill drilling. We did nan first conversion pinch nan Odyssey South astatine 100%, nan balanced of adjacent to 200,000 ounces astatine nan Odyssey South, but we besides spot very affirmative infill drilling successful nan East Gouldie correct now.

If we spell to nan adjacent slide, location is immoderate holes that we could spot here. The mediate of nan East Gouldie Zone, which is nan acheronian blue, that -- let's say, a twelvemonth ago, that was much patchy. But now pinch nan amended infill this is taking place. And we're expecting to do immoderate conversion of that area astatine nan year-end. And conscionable to item immoderate absorbing ore -- astatine nan 1 kilometer beneath surfaces astir aliases it is 7.6 gram connected 43 meters. And if you spell down 300 meters, we're 4.2 grams per ton 61 meters. And if you spell a spot little of that zone, we're 93 meters of 2.6 grams per ton.

So nan infill drilling is confirming what we person into our study. And we besides spot nan reddish area expanding pinch nan inferred resources, which is going to beryllium each included into our updated PEA.

So this is, let's say, nan first spot wherever it's going to beryllium easy aliases easier to bring much ounces to that mill, is wrong that 5.6 kilometer long, 1.5 wide and 2 kilometer heavy area. So, we're going to proceed to activity and to attraction connected to drilling and amended knowing that zone.

If we zoom retired astatine nan adjacent slide, page 15, connected nan interior area, location is besides different imaginable outer deposits for illustration Camflo, LTA spot wherever we're going to attraction connected much drilling and doing much study that yet to bring that into nan Canadian Malartic mill.

Just nan LTA spot which means, Les Terrains Aurifères, French word, goldfield successful English. 2 cardinal tons person been processed location -- no. 2 cardinal ounces person been processed there, which was 10 cardinal tons astatine 6 grams per ton, and that was done aliases only nan first 800 meters person been drilled. So we're looking for yet to attraction there.

This year, we focused much connected nan Camflo deposit. There's already a drill running, and we're going to request to amended understand could we do -- could we excavation an unfastened pit crown pillar there? But this is nan imagination that we person astir nan Odyssey project.

Maybe to close, I would conscionable for illustration to congratulate nan building team, which did past year, afloat twelvemonth pinch nan zero mixed frequency. This is thing not easy to achieve, but pinch nan value -- show nan value of nan squad that we person into that region and nan bully activity that they did.

On that, I'm going to walk nan mic backmost to Ammar.

Ammar Al-Joundi

Thank you, Dominique, and convey you, Natasha.

So if we spell to nan adjacent slide, please, and let's zoom in. So Dominique talked astir further ore that's efficaciously proximate to nan mill. But what this descent shows, we measurement backmost a small spot and we said, what is nan potential? And again, there's a batch of potential. Right now, I'm conscionable talking astir consolidating and optimizing nan mill. There's procurement, there's cardinal power centers. There's a full bunch of things we're moving on. But for 2023, we're focused connected nan point that's going to move nan needle very quickly, comparatively speaking.

And if you look astatine nan position here, what you spot successful nan reddish statement and nan achromatic line, that's nan roadworthy successful nan railway. And complete nan past 100 years wherever they've been mining, nan towns, nan road, nan railway has followed nan Cadillac fault. It makes sense. That's wherever nan economical maturation of this portion of Quebec and Ontario has been. And what you tin spot successful nan purple are our onshore positions. So, you tin spot that not only do we person a batch of onshore positions, we person a batch of onshore positions correct connected nan Cadillac bolt, but besides importantly, wherever location is existing beardown proscription infrastructure.

Now, conscionable looking astatine 3 elemental examples, things we already own. Macassa adjacent aboveground further accumulation from nan AK Zone, Upper Beaver and Kirkland Lake outer deposits and Wasamac. There's astir 11,000 tons of ore that tin beryllium mined that conceptually could beryllium milled astatine nan Malartic aliases Lapa mill. That's only 11,000 tons. That's one-quarter of what we expect nan excess capacity to be. And those 11,000 tons are astir perchance 500,000 ounces a year.

Now personification asked us, well, is this a capable nan mill to capable nan mill? Or are you going to -- are you focused connected IRR? What I would opportunity is, again, I'll repeat, and I was a CFO for a agelong time. I deliberation this way. Obviously, if you're building accumulation and you don't person to build a mill and you don't person to build a tailings installation and you've trim nan CapEx successful half, your IRR -- your return connected superior astir doubles. The mathematics is much complicated, but it astir doubles. So, this is not conscionable integrated growth. This is nan champion integrated maturation you tin person pinch nan champion return connected capital, nan slightest consequence and nan slightest biology footprint.

Now, earlier we move on, and we want to time off clip because I'm judge there's going to beryllium a batch of questions. It's not conscionable these 3 things. As awesome arsenic Detour is, arsenic Malartic is, arsenic optimizing nan loop is, we had fantabulous exploration results astatine Hope Bay, fantabulous exploration results astatine Malartic, fantabulous exploration results astatine Kittila, astatine Goldex, astatine Fosterville and astatine LaRonde. So, we are firing, I think, connected each cylinders, but we are focused connected things that are successful beforehand of america that we're ever part, and I spell backmost to wherever I started. This was ever portion of why 2 awesome companies for illustration Kirkland and Agnico merged. This is why we really wanted nan 2nd half of Malartic. And by nan way, cipher other could person had nan 2nd half of Malartic and delivered each this worth into it because cipher other had nan onshore positions and advantages we had.

Just going connected to move guardant '23 to '25 accumulation mean growth, frankly, astir 7% by 2025, from nan 2022 production. The numbers are there. Roughly astir 3.35 -- I'm sorry, astir 3.3 midpoint successful 2023, 3.45 midpoint 2024 and 3.5 midpoint 2025. I want to repetition that these numbers presume constraints astatine Kittila and astatine Fosterville. If we are successful successful lifting those, that's different 30,000 to 80,000 ounces, possibly a small spot much that we tin adhd to that. And nary of these numbers see immoderate of nan incremental accumulation from filling nan mill. Now granted, that will commencement beautiful slow successful 2024 and won't really build up until '28, '29. But I conscionable want group to cognize that we deliberation we tin adhd perchance much to these.

Maybe conscionable flipping guardant to nan adjacent page conscionable for time. We are going to proceed to do what we do successful nan astir responsible measurement that we can. It's not conscionable nan correct point to do. But again, if your strategy is alternatively than going anyplace successful nan world to build mines 1 astatine a clip wherever we, instead, Agnico want to attraction connected regions for decades, you person to beryllium nan champion astatine ESG. You person to beryllium welcomed successful nan community, not conscionable accepted, but invited and portion of nan organization and you person to show biology work because we don't want to build conscionable 1 mine, we want to build respective mines.

And I deliberation our numbers, arsenic reflected by third-party, show that we are leaders successful nan manufacture for greenhouse state emissions. We're leaders successful nan manufacture for freshwater usage. As I mentioned, we had nan safest twelvemonth successful our 66-year history. We person awesome relationships pinch section businesses, awesome relationships pinch section indigenous groups. We really judge and we tin spot that we, moving pinch nan communities that we're in, amended nan value of life of nan group that activity pinch us, their families and nan organization that surrounds it. We are dedicated to zero c by 2050 and a simplification of 30% by 2030. We're putting a batch of effort into really to get there, and we will get there. Next slide, please.

Strong financial position, astir $660 cardinal successful cash, $1.2 cardinal of undrawn in installments facility. We paid down $225 cardinal of indebtedness successful 2022 arsenic it came due. You tin spot connected nan bottommost left, our indebtedness profile, we expect to proceed to salary that down arsenic it comes owed pinch cash.

Next slide, please. We are going to -- we've been paying a dividend for 39 years. I don't cognize that there's immoderate different golden mining institution -- frankly, I don't cognize if there's immoderate different mining institution that's done that. We are going to proceed to salary a dividend, and our dividend output is competitory pinch our peers.

Next slide, please. So successful conclusion, and again, we want to person clip for questions because there's a batch here, and there's a batch successful our almost 150-page property release.

In conclusion, 2022 was a reliable twelvemonth for nan industry. It was a reliable twelvemonth for us, but I deliberation nan squad did a really bully job. Three exceptional quarters and a coagulated 4th fourth overall. Importantly, 2022 was besides a twelvemonth wherever we successfully integrated 2 awesome companies and are going to beryllium acquiring nan 2nd half of a world-class plus successful our backyard and delivering worth that cipher other could.

Just stepping back, it's not ever easy to merge 2 companies. But I person to say, I've said it before, I'll opportunity it again, it went really well, and that's only because of nan value of nan group progressive and nan cultures that some companies had.

So, while 2022 was a reliable year, it was a bully year. And 2023, we are very excited astir it. Where 2022 is astir consolidating, 2023 is astir optimizing. And we are conscionable starting to scratch nan aboveground of nan potential. Again, this clip past year, we said we didn't do nan merger because of nan synergies, moreover though we've delivered very good connected that. We did this merger because we spot immense potential. I dream done this presentation, we are starting to show that. And again, we're conscionable scratching nan surface.

So, I will decorativeness pinch really we ever decorativeness because it's our accordant strategy, which is to beryllium a simple, consistent, disciplined institution pinch a proven attack to worth creation based connected consolidating assets successful premier jurisdictions, businesses that make, a batch of money, a batch of rate travel and importantly, are ever per stock focused, proven activity pinch a way record, maintaining a beardown financial position to supply strategical flexibility.

ESG is important to us. And we will proceed to endeavor to beryllium a trusted and weighted personnel of nan communities successful which we run and which we dream to run for decades. The consolidation of nan Abitibi golden loop is providing maturation potential, high-quality maturation potential, precocious margin, precocious return connected capital, debased risk, and we want to proceed to build connected our agelong history, 39 years of return of superior to our owners.

And pinch that, and convey you for your time. I cognize we took a small spot longer than we usually do, but location was a batch here. Operator, we'll unfastened it up for questions.

Question-and-Answer Session


Thank you. [Operator Instructions] Our first mobility comes from Fahad Tariq from Credit Suisse. Please spell ahead.

Fahad Tariq

Hi. Good morning. Thanks for taking my 2 questions. Ammar, possibly conscionable first connected 2023 costs, which I deliberation possibly amazed immoderate people. It looks for illustration it's astir 14% higher than nan erstwhile 2023 guidance, astir 5% higher year-over-year, astir 9% higher than, I think, what statement expectations were. What is nan marketplace missing present erstwhile it comes to nan underlying inflation? What portion of nan communicative are we not seeing that's impacting nan costs?

Ammar Al-Joundi

Yes. That's an fantabulous question, Fahad. And portion of what you're not seeing is -- and I said this successful erstwhile calls, costs are a usability of 2 things. They are a usability of inflation, but they're besides a usability really of throughput.

So 2023, I'll springiness you an illustration astatine Meadowbank. The stripping astatine Meadowbank successful 2023, nan ratio is 16:1, nan portion ratio. In 2024, it's going to beryllium 4 aliases 5:1. That elemental alteration successful stripping ratio has an effect connected nan full institution of astir $37 an ounce successful costs conscionable astir 1 thing. And it's difficult for you guys to spot that, and I admit that, but that's benignant of your question. The different point is, clearly, pinch nan restrictions, elemental things for illustration 80,000 ounces of restrictions, erstwhile those are lifted, costs of those operations spell down. So you're right. There is inflation, but there's things that's difficult for group to see. And those are really nan operating things.

And we dream to beryllium capable to outperform what we've given, but we had to springiness costs guidance wherever it is because we don't cognize if those restrictions are going to beryllium lifted. We deliberation they will be, but it would beryllium not bully of america to presume they will and past astonishment you guys each astatine nan extremity of nan year.

Fahad Tariq

Okay. Fair enough. And then, conscionable a speedy follow-up. The synergy number that's being baked into nan guidance, it looks for illustration it's $12 an ounce. I deliberation nan number that was antecedently communicated nan scope was rather a spot higher, for illustration $30, $40 an ounce. Did thing alteration location erstwhile it comes to synergies, and what's being included successful nan 2023 costs guidance? Thanks.

Ammar Al-Joundi

Yes. So, nan synergies get a small much analyzable because of inflation. And -- but what I would opportunity is we are still up of schedule connected nan synergies. The administrative synergies are easy to track, I think, and I had these numbers, I apologize, but nan procurement synergies are connected track. So, I'd person to spell done Fahad and spell done nan number you conscionable gave maine and comparison that to our numbers.


Your adjacent mobility comes from Emily Chieng from Goldman Sachs. Please spell ahead.

Emily Chieng

My first is simply a follow-up connected nan costs gait and possibly looking up beyond '23 into '24 and '25, wherever you're expecting immoderate costs declines there. Perhaps could you span immoderate of nan items that you deliberation astir that would let you to execute this? I cognize you mentioned nan Meadowbank stripping, but possibly tin you talk to possibly your diesel procurement strategy, labor, substance and consumables location arsenic well? Thanks.

Ammar Al-Joundi

Yes. I deliberation that -- bully question, Emily, bully to perceive your voice. Really, it's conscionable nan operations. The operations, arsenic we're going to person much production, arsenic we get into different areas successful nan excavation sequence, nan costs are anticipated to spell down. So, we person not really assumed immoderate alleviation connected consumables aliases labour aliases that benignant of thing. We will activity difficult to get there. But mostly, it is accrued throughput and excavation sequencing.

David Smith

And I'd conscionable adhd to that, Emily, that arsenic we said successful nan property release, nary presumption of hedging occurrence connected immoderate of these inputs for illustration rate aliases substance is included successful our guidance because there's nary guarantee those things will activity out. But we'll proceed to effort to adhd to those hedging programs during nan year, if it's beneficial.

Ammar Al-Joundi

And also, there's nary presumption connected either accumulation aliases costs of immoderate of nan optimization that we're moving on, which would further trim costs. So, we tin springiness a adjacent level of assurance absent different marketplace moves that nan costs should spell down because we spot what nan life of excavation is, and we cognize what nan costs per ton is and we cognize what nan throughput is and each of that, and that's going to each improve. But we haven't included immoderate of nan optimization that we're moving on. And clearly, arsenic you nutrient much ounces pinch nan aforesaid infrastructure, your costs per ounce goes down.

Emily Chieng

Understood. That's very clear. And possibly my 2nd question, conscionable astir nan advancement and your Abitibi Gold Belt strategy location and really you're optimizing mill throughput. How do you deliberation astir prioritizing nan cadence of erstwhile each of those adjacent resources commencement to capable successful and erstwhile they should commencement to lend nan first ounces that you're talking about?

Ammar Al-Joundi

I mean, that's an fantabulous question, and we've really been focused a batch connected that complete nan past fewer months. The champion measurement to reply that, Emily, is we are doing this astatine 2 levels. We're doing this astatine nan astir elder level and Jean Robitaille is moving connected this pinch Guy and Natasha and Dominique. But besides importantly, and this is nan cardinal thing. Each of these projects has a task leader and a squad and a clip framework pinch milestones. And so, it's 1 point to talk astir a imagination but what you really really person to person arsenic a plan. And we person nan teams successful place. We person nan resources successful place. And nan cadence, to your point, will beryllium driven by those circumstantial opportunities, some erstwhile these projects tin travel connected watercourse and also, frankly, erstwhile nan mill capacity comes connected stream.


Your adjacent mobility comes from Greg Barnes from TD. Please spell ahead.

Greg Barnes

Ammar, you're forecasting CapEx of astir $1.4 cardinal to $1.6 cardinal successful '24 and '25. With each of nan optimization programs and plans you person for nan Abitibi, does that number travel down beyond 2025, aliases is it going to enactment successful that scope arsenic we spell guardant to nan extremity of nan decade?

Ammar Al-Joundi

I would opportunity -- hullo Greg, I would opportunity -- and sorry, conscionable before, Greg, I reply your question, Emily, we will supply much guidance pinch circumstantial cadence towards nan extremity of nan twelvemonth connected immoderate of these projects. I conscionable didn't want to time off you hanging there.

So, Greg, -- truthful we've really completed a batch of large summons items connected nan CapEx broadside connected -- successful 2022, things for illustration nan filter-press astatine LaRonde, which is going to let america to do barren stack tailings, which is for biology purposes, et cetera. The CapEx forecast beyond '24, '25 is forecast to diminution based connected nan existent life of mine. Our occupation continues to be, arsenic you know, to look for opportunities to make profitable investments for our owners.

So, I'm optimistic that we're going to proceed to find bully opportunities to create worth connected a per stock basis. But to reply your circumstantial question, yes, based connected nan life of excavation models we person correct now, nan CapEx is expected to diminution beyond '24, '25.

Greg Barnes

Just astatine Macassa, it seems for illustration you've taken a spot of a reset location successful position of accumulation floor plan going forward. I deliberation location was talk astatine 1 point, it would beryllium 350,000 to 400,000 ounces a year, but -- we're not seeing that successful nan three-year guardant look anyway. What's nan position connected Macassa now?

Ammar Al-Joundi

Well, I'll start, and past possibly Natasha tin remark a small bit. This clip past year, and I retrieve nan telephone very good because it was my first call. We deed Macassa caput on. We said, look, nan erstwhile guidance was 350,000, 400,000 a year. We deliberation it's a awesome ore body. There's a batch of potential, but it's not going to get to 350,000 to 400,000 successful nan clip framework that was outlined. And we said this based connected nan owed diligence we did, and it's a awesome orebody. But arsenic I said then, this is simply a excavation that Kirkland was taking from nan 1930s to nan 2020s, and they were making bully progress. We've made very bully advancement this twelvemonth astatine Macassa. The squad is energized, and Natasha tin talk astir a batch of nan accomplishments. I deliberation what I would say, Greg, is Macassa is astir apt a 300,000 to 350,000, not 350,000 to 400,000 ounce mine, but possibly Natasha?

Natasha Vaz

That's correct. Thank you, Ammar. So, Greg, successful position of nan existent guidance, it reflects 2 main things: nan slower ramp-up of mining activities and a little golden people erstwhile compared to nan erstwhile guidance. So pinch respect to nan little forecasted grade, it's mostly a consequence of adjustments to our assets exemplary based connected further meaning drilling.

And past nan slower ramp-up successful 2024 is partially owed to nan reevaluation of nan improvement complaint and nan mining series pursuing nan completion of Shaft 4 and nan caller ventilation system. Now we're ever looking astatine opportunities to amended connected our productivities. But for now, we consciousness that these are rates that are achievable. The tract has done a batch of activity successful position of nan optimization efforts, whether it's compliance to nan plan, nan attraction programme initiatives. But there's ever opportunity. And I consciousness for illustration that location is opportunity pinch number 4 Shaft and nan ventilation upgrade coming connected to amended connected that.

With respect to looking astatine it successful nan agelong run, for illustration Ammar said, I envision nan aforesaid point astatine 300,000 to 350,000, nan deeper mine, nan South Mine Complex and nan Main Break, we envisioned it to still beryllium astir about 300,000 to 310,000. And past we foresee an additional, say, 20,000 to 40,000 ounces coming from nan adjacent aboveground deposits, nan AK deposits that could perchance beryllium trucked to different mill.

Ammar Al-Joundi

Yes. Again, we're very proud of what Macassa has done this year. It was -- I'll beryllium perfectly frank, it was a spot of a reliable excavation this clip past year. It is operating vastly amended now and nan assurance we person successful it is high.


Your adjacent mobility comes from Anita Soni from CIBC World Markets. Please spell ahead.

Anita Soni

Sorry, I said I had -- I was connected shut up there. I had nan aforesaid mobility arsenic Greg, truthful I'm conscionable going to walk it to nan adjacent caller. Thanks.

Ammar Al-Joundi

Thank you, Anita.


Your adjacent mobility comes from John Tumazos from John Tumazos Very Independent Research. Please spell ahead.

John Tumazos

Thank you. Sort of moving distant from nan specifications of today's property merchandise benignant of for nan semipermanent strategy, Ammar, is location a level of depletion that mightiness beryllium excessively large for yearly reserve replacement aliases period you don't want to spell to, 4 million, 5 million, 6 million, 7 cardinal ounces a year? And is location a level of superior spending $2 billion, $3 billion, $4 cardinal a year, that's excessively much?

Clearly, you had a mates of issues this quarter, and it's difficult to tally a institution nan much moving pieces, moreover if they're each successful nan aforesaid vicinity successful Eastern Canada. And there's 5 aliases 10 companies lined up wishing they're going to waste retired to you. And possibly that's excessively galore projects for you to build astatine once.

Ammar Al-Joundi

John, you're perfectly right, I think, connected each accounts. So 1 I deliberation location is simply a limit that it does go unwieldy, moreover if they're each successful areas wherever we are. And you're right. There's a batch of companies that are hoping that personification other will bargain them out. So one, I would say, yes, you're right. There is simply a size that is astir apt excessively large astatine immoderate constituent and becomes unwieldy. But you cognize america beautiful well. We've ne'er cared astir size. I opportunity that sincerely. We don't attraction connected absolute size. We only attraction connected per stock metrics. And I deliberation -- I dream what we've shown coming -- and this is really what I'm trying to do is this merger that we did pinch Kirkland and this acquisition of Malartic was not astir getting bigger because paying afloat worth for thing and conscionable -- truthful that doesn't create immoderate worth per share.

What we are trying to do and I deliberation what we are going to do amended than group think, amended than group expect, I deliberation we're really going to complete nan adjacent fewer years show that this operation is going to create a batch of worth done leveraging our competitory advantage successful this portion of nan world.

I mean, you're 100% right. You don't want to get excessively big. And to beryllium perfectly frank, each of our teams are very busy. We talked astir -- to Emily's mobility connected cadence, we're allocating resources to each of these to make them happen, and we're moving level out. So it's a bully question, and I dream I answered it to your satisfaction.

John Tumazos

So, if we could beryllium numerical, Ammar, for our planning, should we presume that we enactment astatine 4 cardinal aliases little ounces and nan CapEx doesn't get bigger than $2 cardinal successful a year. And moreover though you ain 10% aliases 20% of 4 companies and different 14 wish they're going to waste to you, possibly you request to hold 10 years to interest astir building each those mines.

Ammar Al-Joundi

Yes. Yes.

John Tumazos

Thank you. And I'm gladsome to beryllium a shareholder.

Ammar Al-Joundi

Thank you. We're gladsome you are a shareholder.


Your adjacent mobility comes from Carey MacRury from Canaccord Genuity, Inc. Please spell ahead.

Carey MacRury

I thought I saw successful nan property merchandise that you're evaluating expanding capacity astatine Malartic to 60,000 tons a year. Obviously, pinch nan unfastened pit ending and excess capacity there, conscionable wondering benignant of what's driving that?

Dominique Girard

Good morning. Dominique speaking. The mill capacity is 60,000 tons per twelvemonth -- per day, sorry. And we're going to commencement to person immoderate capacity disposable starting successful 2028. So, this is wherever we each look to bring much ore to that mill. The mill is there.

Carey MacRury

Okay. And past connected Macassa, mentioned immoderate higher dilution. Has that been factored into nan updated reserve exemplary there?

Natasha Vaz

Yes, it has.

Carey MacRury

Okay. Great. And past possibly 1 past 1 for Ammar. I mean you really emphasized nan location strategy that you guys have. And conscionable wondering really Kittila and Fosterville fresh into that to benignant of spot a spot benignant of -- comparative to nan different regions that you have?

Ammar Al-Joundi

Yes. Thanks, Carey. So I'll commencement pinch Fosterville. Fosterville, a awesome asset, awesome people, it doesn't make consciousness to beryllium successful a spot for illustration Australia for conscionable 1 mine. And so, we are looking astatine that, and we're looking astatine Australia. Broadly speaking, Australia already has a batch of bully miners successful it, but there's a batch of opportunity. So what I would opportunity pinch Fosterville is simply a awesome asset, but we request to make a determination agelong word connected tin we create worth for our shareholders successful Australia amended than different group can. And we're moving connected that appraisal arsenic we speak.

And I would opportunity it's nan aforesaid arsenic Kittila, frankly. We are producing adjacent to 3 cardinal ounces now retired of Canada, right? So, we're going to beryllium going to 2.1 cardinal successful nan Abitibi. We're going to beryllium going to 900,000 successful Nunavut. So that's a adjacent question. And it's a adjacent mobility successful Mexico arsenic well. Although I person to opportunity we are very affirmative connected nan activity we're doing pinch Teck astatine San Nicolás.


Your adjacent mobility comes from Mike Parkin from National Bank. Please spell ahead.

Mike Parkin

I noticed you flagged nan large jump successful powerfulness costs astatine Kittle successful 2022. I deliberation I callback location was a powerfulness -- atomic powerfulness works getting commissioned astatine nan extremity of nan year. Is that connected line? And are you starting to spot power costs use from that coming connected statement yet?

Ammar Al-Joundi

You want to go, Dom?

Dominique Girard

Yes, I could return it. Yes, we saw nan value getting accrued successful December up to 5, $600 per megawatt because of nan situation. And successful that -- I don't cognize if what you refer, but successful that case, we've tally our generators conscionable to prevention costs, and we've besides reduced immoderate activities astatine site. But we spot nan early affirmative because there's a atomic scheme taking place, and they are finalizing nan commissioning. So we expect to person a amended way for adjacent year.

Ammar Al-Joundi

Yes. Mike, I deliberation that's what you're referring, right, is nan works connected statement and commissioned. I don't know, Jani, are you connected nan phone? Sorry to put yon -- no, Jani is not connected nan phone. So, my past update connected that, Mike, was they were commissioning it. They had a mates of problems pinch h2o pumps of each things. You deliberation h2o pump is not that complicated. But my knowing is it is backmost connected statement now aliases will beryllium shortly. And we person -- we are seeing worldly simplification successful powerfulness costs astatine Kittila. So again, we are -- I will conscionable say, successful nan budget, we've assumed higher powerfulness costs than we're seeing correct now. So, location is upside location for us.

Mike Parkin

Okay. That was benignant of what I was getting astatine was wherever nan guidance is benignant of based on. And then, successful position of nan Canadian Malartic mill, successful nan past, you benignant of talked astir perchance needing to tweak nan beforehand extremity of it, nan grinding conception of it to amended equilibrium nan little tonnage yet coming done pinch Odyssey. But now pinch this imaginable to capable nan mill aliases get person to a build mill pinch location upside, is that thing you could perchance debar having to do?

Dominique Girard

Yes, absolutely. Mike, it is an opportunity that we person correct now into our PA study, we person money to decommission a portion of nan mill. Now, we spot that arsenic an opportunity to support it running. And possibly if I spell back, I deliberation to Carey’s mobility earlier astir nan mill capacity and -- truthful currently, we're mining pinch unfastened pit astatine 55,000 tons per day. We are depleting those pits, Canadian Malartic is going to extremity this quarter, and we're going to move everything to Barnat pit, but nan tonnage is going to alteration from nan pit and nan underground tonnage is going to increase.

Coming into 2029, we're going to beryllium 3rd clip little throughput. We're astatine 19,000 tons per day, but nan people is going to beryllium 2.5 times, 3 times higher than wherever we are correct now, which is going to bring balanced ounces, those two.

Mike Parkin

Okay. And conscionable jumping complete to Kittila, pinch this last ruling connected nan greater tonnage permit, you noted that if it doesn't beryllium favorable, this ruling coming this year, you would taxable benignant of a caller licence application. If that were -- obviously, hopefully, that's nan worst lawsuit and you tin debar it. But if you person to do it, do you person a consciousness of what nan clip statement of getting a caller licence done would take?

Ammar Al-Joundi

Yes. I deliberation it's -- we're rather hopeful that we will -- truthful remember, we sewage nan permit. And we sewage nan support from each nan regulatory bodies. There was an entreaty and during nan appeal, nan tribunal has asked america to spell backmost to 1.6. So, we are hopeful. If it doesn't -- and again, conscionable to stress nan guidance we showed conscionable to beryllium connected nan blimpish broadside is astatine nan 1.6. If successful nan unexpected business wherever we get denied aliases there's a reversal of what was already permitted, we will person to resubmit, and that could return a fewer years.


Your adjacent mobility comes from Ralph Profiti from Eight Capital. Please spell ahead.

Ralph Profiti

Thanks for taking my 2 questions, Ammar. Firstly, connected LaRonde, you talked astir moving to a slower mining rate. Would nan aforesaid kindness beryllium extended to improvement rates, meaning that if you do slow down nan mining rates, do you person an opportunity to benignant of heighten productivity with, say, possibly reduced dilution? So, does nan slower mining complaint impact improvement rates arsenic well? And possibly tin you touch a small spot upon benignant of nan lateral exploration prospectivity arsenic opposed to astatine depth?

Dominique Girard

Yes, Dominique speaking. Yes, effectively, we're going to -- nan mining -- nan improvement complaint is going to beryllium adjusted. But this is offset besides because we request each to do much paid backfill and much rehandling of not -- yes, we cannot bring nan discarded into to usage backfill. So overall, nan cuts are benignant of offset correct now, but we're going to activity pinch nan squad to really fine-tune nan cut. And we're going to spot besides this twelvemonth what's going to beryllium nan existent gait of mining we could do astatine LaRonde.

So overall, nan LaRonde deposit is going to beryllium 200,000 ounces per year. There are 75,000 coming from LZ5, but we're going to person coming into nan 2nd half of this twelvemonth 30,000 ounces coming from Zone 113, which is nan point we're looking for to proceed to bring much ore from caller zones. And connected that, I will walk nan mic to Guy, which could -- springiness you immoderate consciousness of wherever are we to discovering much answers successful nan -- laterally speaking.

Guy Gosselin

Ralph, connected nan lateral prospectivity, well, we already materialized immoderate of that. LZ5 is an illustration of what we are moving guardant and trying to replicate. There's -- connected nan adjacent property, nan erstwhile Bousquet spot that holds nan LZ5, historically mining stopped astatine astir 1.6 kilometer beneath surface. And those zones were still unfastened astatine depth. So, successful betwixt nan existent Penna shaft and nan LZ5, location are known area mineralization, namely Zone 3 1, Zone 3 4, that remains unfastened astatine dip. We spot besides bully imaginable beneath nan LZ5. So this is precisely why we're putting a batch of accent astatine processing that exploration drift connected Level 215 and that exploration drift will beforehand for different kilometer towards nan westbound to beryllium successful a amended position. So, we are afloat steam up astatine getting that platform, exploration level successful spot to target those known zones that were identified successful nan past and proceed to analyse their description astatine depth.

Ammar Al-Joundi

And Ralph, it's a bully question. I'm a solid half afloat guy. And I really spot this successful nan agelong tally arsenic a bully thing. I mean it's earthy for immoderate mining institution to travel nan highest people successful nan ore development. But astatine immoderate point, we really did request to spell laterally because there's a batch of opportunity astir location laterally. And this is thing that we should do. And again, that's benignant of why I said it mightiness return a mates of years, but we're assured that we're going to beryllium capable to find further ore look for nan LaRonde analyzable and hopefully, retrieve backmost to wherever we were past year.

Ralph Profiti

Got you. Okay. Thanks. And possibly arsenic a follow-up, I conscionable want to move to Fosterville. Does nan existent exertion let you to get into that 16 to 20-hertz period to beryllium benignant of wrong specs connected that low-level noise, is nan existent exertion available? And is this really conscionable benignant of an engineering solution that needs to beryllium figured out?

Ammar Al-Joundi

Yes. So, we person put a batch of effort and nan champion exertion successful nan world to resoluteness this. To put this into perspective, I was retired there, and I couldn't perceive anything, for illustration nothing. And so, we are going to beryllium capable to -- I mean, we've spent a batch of money. We brought experts successful from each complete nan world. Sound, arsenic you tin imagine, is simply a spot of a analyzable thing. We are going to beryllium capable to trim it but it's ne'er going to spell to zero. It conscionable isn't. And this is nan chat we're having pinch nan regulators. This is efficaciously thing that nan immense mostly of group can't moreover hear. And so, nan regulators, I think, person asked america to do each we can. We have. It's gotten better. It is physically intolerable to spell to zero. And truthful I deliberation we -- location is immoderate sympathy location that we've -- that this is -- we've done each we tin and that it's not an intolerable situation. But it's regulators, and we do nan champion we can. But we are genuinely hopeful this gets resolved beautiful soon.


Your adjacent mobility comes from John Tumazos from John Tumazos Very Independent Research. Please spell ahead.

John Tumazos

Thank you. Just continuing nan Fosterville discussion. Maybe six years ago, I went retired by myself aft a Fortescue robust ore trip, left-hand broadside driving and whatnot. And I sewage mislaid and went done Bendigo and circled astir a small bit. And location aren't excessively galore houses adjacent to nan mine. And there's different mining districts successful Australia for illustration Kalgoorlie, wherever nan municipality is correct there, and it's huge. Is location -- I don't understand why sound abatement would beryllium a important rumor astatine Fosterville. Is location immoderate biology effect connected nan thousands of greenish parakeets adjacent nan halfway sprout aliases something?

Ammar Al-Joundi

Well, John, it's -- we're gladsome we still person you aft nan left-hand driving. But this worldly is not uncommon successful our business. And sometimes -- and successful this case, it's -- it mightiness beryllium a circumstantial individual who is utilizing this arsenic a measurement to execute thing else. So, I don't really want to get into it, but what's important is we will ever do what we are asked to do by nan applicable ineligible authority. We respect people's perspectives. And we are hopeful this gets resolved reasonably soon.


Presenters, location are nary further questions astatine this time. Please proceed pinch your closing remarks.

Ammar Al-Joundi

Well, convey you, operator, and convey you, everyone. This is -- I cognize there's been immoderate first questions astir nan accumulation and nan adjustments. I conscionable want to punctual everybody, 3 years ago, we had immoderate rehabilitation and a ramp astatine LaRonde. We had apron feeder that failed. We had immoderate h2o we had to pump retired of nan bottommost of a pit astatine Meadowbank. It was each resolved successful nan aforesaid quarter. So these types of -- nan 4th quarter, nan squad did a bully job, 800,000 ounces. Yes, location were a fewer operational challenges. That's nan quality of our business. But large picture, we are a overmuch stronger institution than we were a twelvemonth ago. We are conscionable scratching nan aboveground of delivering, I think, exceptional value. A batch of this worldly is pinch minimal capital. Remember, we're successful nan business not conscionable to nutrient ounces but to nutrient profitable ounces and bully return connected capital, and we deliberation we're connected nan correct track.

So pinch that, everyone, convey you again for your time, but much importantly, convey you for supporting us, and we'll beryllium trading complete nan adjacent fewer days and happy to return much questions then. Thank you.


Ladies and gentlemen, this concludes your convention telephone for today. We convey you for joining and inquire that you please disconnect your lines. Thank you.

Editor: Naga

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