Agnico Eagle Mines Restricted (NYSE:), a number one gold mining firm, introduced its third consecutive quarter of document monetary and operational outcomes.
The corporate reported document adjusted EBITDA of roughly $1.2 billion and free money stream of over $0.5 billion in Q2, marking an distinctive quarter with robust operational efficiency and glorious value management. Agnico Eagle additionally highlighted its dedication to shareholder returns, with $50 million in share buybacks and virtually $200 million in quarterly dividends.
With a deal with security and sustainability, the corporate is advancing tasks which can be anticipated to contribute to vital 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 the perfect funding selection within the gold house, with a deal with low-risk jurisdictions, high quality manufacturing, and monetary returns.
Key Takeaways
- Agnico Eagle achieved document free money stream for the third consecutive quarter.
- The corporate repaid $250 million of debt and distributed vital shareholder returns.
- Agnico Eagle plans to put money into key tasks to doubtlessly produce over 1 million ounces of gold yearly.
- Sturdy operational ends in Q2 with manufacturing near 1.9 million ounces of gold at a money value of $870 per ounce.
- The Odyssey mission is on monitor to turn out to be Canada’s largest underground mine.
- Elevated liquidity to $2.9 billion and diminished internet debt to below $1 billion.
- Dividend payout ratio stands at 36%, with direct returns to shareholders at about 50% of free money stream.
Firm Outlook
- Agnico Eagle is targeted on increasing its operations, particularly on the Detour, Malartic, and Hope Bay tasks.
- The corporate is growing 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 keep up tonnage.
- Upcoming shutdowns and upkeep at LaRonde, Canadian Malartic, and Detour might influence operations.
Bullish Highlights
- Document 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 robust efficiency.
- The Odyssey mission is growing on monitor, and different tasks like Detour Underground and Higher Beaver present potential for development.
Misses
- No particular misses had 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 tendencies 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 powerful focus, with the corporate profitable security awards and emphasizing threat administration.
- The Canadian greenback has positively impacted prices, with the corporate budgeting for a fee of $1.34 for the complete yr.
Agnico Eagle’s robust monetary place and operational excellence underscore its standing as a gold mining chief. With a disciplined method to capital allocation and value management, the corporate is well-positioned to ship on its technique of offering high quality manufacturing and monetary returns. The deal with security, sustainability, and strategic mission investments demonstrates Agnico Eagle’s dedication to long-term worth creation for its shareholders.
InvestingPro Insights
Agnico Eagle Mines Restricted’s (AEM) current efficiency out there is a testomony to its strategic focus and operational effectivity. In keeping with InvestingPro information, the corporate boasts a market capitalization of roughly $37.5 billion, underscoring its vital 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 robust income development, with the final twelve months as of Q2 2024 exhibiting a 20.51% enhance.
InvestingPro Suggestions spotlight AEM’s means to generate excessive returns, with a notable value whole return of 59.39% over the previous yr, indicating strong investor good points. Moreover, the corporate has maintained dividend funds for a formidable 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 in search of extra complete evaluation, there are further InvestingPro Suggestions 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 identify is Lara, and I will probably be your convention operator immediately. Right now, I wish to welcome everybody to the Agnico Eagle Q2 2024 Convention Name. All traces have been positioned on mute to stop any background noise. After the audio system’ remarks, there will probably be a question-and-answer session. [Operator Instructions] Thanks. Mr. Ammar Al-Joundi, you might start your convention.
Ammar Al-Joundi: Good morning and thanks for becoming a member of us immediately. We’re very excited to be reporting one other distinctive quarter and to share with you a number of the vital work that groups are targeted on to create further worth. A few of the highlights this quarter embrace continued robust operational efficiency with glorious value management. This deal with value management has allowed us to ship for our homeowners’ great leverage to elevated gold costs as demonstrated by our third consecutive quarter of document free money stream. 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 virtually $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 price range targeted totally on Detour, Malartic and Hope Bay and primarily based on distinctive ongoing exploration outcomes and saying the subsequent steps to growing the Higher Beaver mine and increasing Detour to doubtlessly over 1 million ounces a yr of annual manufacturing, each investments primarily based on distinctive projected risk-adjusted financial returns. We proceed to ship steady, dependable, constant operational outcomes safely and responsibly in probably the most potential and probably the most politically steady jurisdictions on the earth. With our robust first half outcomes, we’re very effectively positioned to reiterate our manufacturing and value steering for 2024. Nevertheless, earlier than we get into the operational and monetary particulars, I would wish to take a second to speak about security and sustainability. The protection of our individuals, our companions, our communities, and our surroundings is paramount. Nothing is extra vital. I am proud to say we had one other robust quarter on the protection and sustainability entrance. This efficiency has been acknowledged by our friends with our groups just lately profitable a number of trade 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 Japanese 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 gained 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, offered by the Mining Affiliation of Canada, and we additionally just 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 is not simply what you do, however the way you do it. So effectively accomplished to the groups. In our first quarter name earlier this yr, with gold costs and our income up considerably, we selected in that decision to not deal with the document money flows we generated, however as an alternative to deal with value management. We needed to emphasise value management as a result of whereas we do not management the gold value, we are able to work exhausting to manage prices and it’s our strongly held and elementary view that the advantage of increased gold costs should go to our homeowners, to not increased prices and definitely to not unhealthy tasks. Our efficiency on this second quarter demonstrates that this deal with value management is actual, and this focus is delivering outcomes for our homeowners with Q2 money prices at $870 an oz. I can inform you 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 value management however on steady enchancment to make our operations extra environment friendly, extra productive and to offset value inflation the place we are able to. And as we proceed to ship document money flows and as we proceed to accrue money on our stability sheet, our focus will not be solely on continued value management but additionally on continued self-discipline in terms 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 had been at $1,800 gold. Actually, the tasks we are going to speak about immediately, Canadian Malartic, Detour Underground, Higher Beaver, are precisely the identical tasks we talked a few yr in the past when gold costs had been $1,800. We’re transferring forward in precisely the identical method, at precisely the identical measured tempo as we guided initially of the yr. As a reminder, at Detour Underground, we’re investing in an exploration ramp and bulk pattern to de-risk the mission. At Higher Beaver, we’re investing in an exploration shaft, a shallow ramp, and bulk samples to derisk the mission. 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 predicted to be about $100 million a yr over the subsequent three years. It is a measured and accountable method. These are nice tasks with nice economics, with great upside to increase and prolong mine lives. They’re straight down the green of what we do and what we have accomplished. These aren’t new tasks in international locations we have by no means been to earlier than, they’re in our yard and we have accomplished our homework. Now we have the individuals, the abilities, the assets to take these tasks prudently to the subsequent stage. Once more, we’re speaking about $100 million a yr over the subsequent three years. Our objective is to ship tasks that not solely have a fantastic return on capital, but additionally a fantastic 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’ve got had a really robust first half of the yr, delivering constant operational outcomes and glorious value 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 robust monetary outcomes, and we have actually demonstrated that this quarter. We generated document monetary outcomes for a 3rd consecutive quarter, with adjusted EBITDA of roughly $1.2 billion and free money stream of over $0.5 billion within the second quarter. One of many key drivers to our robust monetary outcomes has been our deal with value management. Money prices had been beneath the low finish of our steering within the quarter, pushed by the robust 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 lots of of {dollars} per ounce beneath our friends, and our all-in sustaining value margin elevated to 50% within the quarter, which is amongst the perfect in our trade. Taking a more in-depth have 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 stream elevated by over 80% when in comparison with the prior yr interval. On an adjusted foundation, internet earnings per share was $1.07 within the second quarter, a 65% enhance relative to the prior yr. General, we had robust monetary outcomes for the quarter and first half of the yr. 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 below $1 billion, all supported by record-free money stream. We additionally elevated returns to shareholders via 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 whole debt reimbursement subsequent to quarter-end to $250 million. We proceed to prioritize returns to shareholders with our dividend and share buybacks representing practically 50% of the free money stream we generated within the first half of the yr. 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 firstly of the yr utilizing the $1,800 gold value, we now forecast producing an extra $1 billion of incremental after-tax money stream. We count on that roughly 80% of that incremental after-tax money stream will probably be allotted to continued strengthening of our monetary place and share buybacks. We additionally proceed to reinvest in our enterprise. We deal with 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 price range of $50 million for this yr primarily based on the optimistic 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 deal with 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 accomplished for many years. The theme of our first quarter convention name was value self-discipline. This quarter we wish 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. Right now, I’ll cowl all of the operations I preferred on behalf of Natasha and myself. I will even present an replace on the DC and Natasha will present an replace, present updates on Detour and Higher Beaver pipeline mission. In Q2, glorious operational efficiency all throughout the board with the quarterly manufacturing near 900 million, 1,900 ounces, at a money value of $870 per ounces, and document working margin of $1.3 billion. A few of the highlights embrace at Canadian Malartic, delivering one other robust 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 general, a superb quarter, a superb first half of the yr 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 document in Q2. And at Detour, they achieved a brand new historic quarterly document about mill availability at 93%, price range was at 91.6. The typical mill throughput improved via the quarter with an introduction of latest 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 growing mill and mining fee, and so they set additionally new information, so quarterly information on the tonne mine and the month-to-month document 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 whole money value for the quarter at $870, which is beneath the low finish of our annual steering. However as Ammar talked about, our value efficiency can be pushed by steady deal with value management and optimizing our operations. This is some examples. Our Nunavut websites deserve a gold medal. They’ve carried out a powerful steady enchancment tradition, setting stretch targets and beating them. And on prime of that, each of them attain well being and security information in Q2. The principle good points are on the productiveness enchancment, which have an effect on superb money value efficiency, but additionally they’re benefiting from value 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 just lately, they took motion to scale back their footprint by closing some buildings that had been not required saving on upkeep, but additionally extra importantly, on power prices. What we have realized from it, and what’s the magnificence in regards to the Nunavut success is the way in which this has been accomplished, 100% accomplished by web site administration. It’s so nice to see the groups pleased with their achievement. We consider that is the way in which to develop our expertise and to realize our enterprise targets. So general, with our robust efficiency within the first half, we’re extremely assured that we are able to obtain our manufacturing value steering – manufacturing and value steering for the full-year. Subsequent slide. With Odyssey mission, very effectively, it’s growing on monitor. So document quarterly mining fee and gold manufacturing on the – from the Odyssey South deposit. The ramp growth 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 be advancing effectively, reaching 680 meters depth on the quarter-end. General, Odyssey is growing as deliberate and is predicted to be the most important underground mine in Canada. However keep tuned. We’re ramping up the drills from 16 within the first half of the yr as much as 23 within the second half of the yr. It’s our greatest drilling program ever at Canadian Malartic. On that, I’ll now go on this to Natasha, who will talk about 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 chance. It is a chance to develop low-risk, worthwhile manufacturing in a province that, for my part anyway, is likely one of the greatest mining jurisdictions on the earth. So the primary mission is Detour Underground. We offered an replace on this mission 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 had been to make use of the present gold costs, throughout that point interval, we’d generate over $1 billion in free money stream per yr from Detour alone. The Detour Underground mission isn’t just an excellent 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 needed to focus on this once more, and that is our deal with value and capital self-discipline in all points of our enterprise. Now as Ammar and Jamie mentioned, from a mission perspective, we’re taking a fairly disciplined and phased method to additional derisk the mission 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 doubtlessly develop the present mineral useful resource. And talking of drilling, we proceed to see optimistic exploration outcomes from alongside the western plunge of the deposit, and Man will talk about this in a while in his presentation. Now transferring over to the Higher Beaver mission. That is one other low-risk alternative to develop the manufacturing profile in a camp that we all know fairly effectively. Actually, we count on this mission to leverage and profit from our technical experience and our workforce at Macassa. With the interior evaluation that we have accomplished, we have outlined a standalone mill idea, however we proceed to guage ore transportation choices, particularly at LaRonde. So primarily based on this inside evaluation, we see the potential for Higher Beaver to be a low-cost, long-life mission, 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 mission, 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 will probably be utilizing the shaft to check the deeper porphyry mineralization that hosts a big portion of our assets. As effectively, throughout this timeframe, we’ll be growing underground drilling platforms to transform after which increase 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 go it over to Man to clarify the potential somewhat bit extra.
Man Gosselin: Thanks, Natasha, and good morning, all people. To begin with, I am very completely satisfied to offer further data on the Higher Beaver mission. Occurring to Slide 11, because the earlier PFS research in 2017, there’s been lots of work accomplished by the exploration workforce on web site, by our technical providers group, and by our mission research workforce, integrating greater than 225,000 meters of drilling and 440 drill holes accomplished over the yr because the final research. This extra drilling helped the risking the geological mannequin by infilling, but additionally by increasing the assets base. The interpretation of the ore physique was fully refreshed, and the up to date mineral assets system for the brand new inside PE research now whole 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 research in 2017. We now count on that a big portion of the brand new indicated assets will probably be dropped at mineral reserve at [Rand]. This new PE research and the three-year superior exploration part that we’re about to undertake will permit to additional [indiscernible] the mission via 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 akin to Higher Beaver, akin 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 mission following the merger with the power of leveraging operational synergies, increasing our international 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, particularly in Canadian Malartic, Detour and Hope Bay, that we’re growing the exploration price range by $50 million for the second half. We consider that this can result in one other profitable yr of development in mineral reserve and mineral assets at our Key Worth Driver mission. At Malartic on Slide 12. Within the East Gouldie deposit at Odyssey mine, current exploration drilling continues to reveal the potential to develop the deposit laterally with good outcomes each on the jap and western extension exterior of the present footprint of the mineral reserve define. The outcomes from the continued exploration program are anticipated to have a optimistic 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 ends in 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 current outcomes, akin 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 just lately introduced in June. These outcomes proceed to help our view that the underground mission first offered in a few 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 1,000,000 ounces of gold per yr producer for years to return. And eventually, 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 via 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 big enhance in grade and whole 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 powerful pipeline of inside exploration tasks with world-class exploration potential, and extra importantly, round present infrastructure in protected 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 the perfect place to put money into the gold house. Meaning, one, giving them the perfect leverage to extend in gold costs; and two, giving them this leverage with an affordable threat profile. And the technique we use to ship on this mandate is similar technique we have used for over 60 years. One, we wish to deal with 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 wish to deal with the areas we all know effectively and we wish to have a easy manageable enterprise in these areas. Two, we wish to be the highest-quality senior gold producer that we may be. Meaning excessive ESG requirements primarily based on a multi-decade funding horizon. Meaning disciplined capital investments primarily based on information and expertise within the areas we function. And meaning creating worth via the drill bit and thru technical experience. We really feel we’re uniquely positioned with strong land packages in core mining jurisdictions, with the distinctive potential to leverage present capital and present property. We consider we’ve got a aggressive – we all know we’ve got a aggressive benefit from over 50 years of working within the areas the place we’re, and we consider we’ve got distinctive mining expertise and experience in Nunavut and the Canadian North. And eventually, at all times targeted on monetary returns, with an emphasis on per share metrics, sustaining a powerful monetary place to fund mission 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 particularly to all of our staff who delivered such a fantastic quarter safely. And with that, we finish our presentation and open for questions.
Operator: Thanks, sir. Girls and gents, we are going to 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 interested in understanding the financial resolution to progress this on a standalone foundation. I assume I am questioning if there are every other alternatives to perhaps leverage the infrastructure the corporate has talked about traditionally throughout the Abitibi to scale back a few of that CapEx or is that this the perfect plan going ahead?
Ammar Al-Joundi: Hello, Josh, it is Ammar and thanks for that query. There may be completely a chance to proceed to contemplate leveraging present infrastructure. As Natasha talked about, we’re nonetheless trying 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 primarily based on a on-site mill, as a result of even with an on-site mill, the returns on this are fairly robust. At present ranges, it is in extra of 20%. So, given, as you’d know, that the longest driving issue is the shaft and provided that the shaft is impartial of the place you might have the plant. What we have determined to do is mainly, we have mentioned “Look, worst-case scenario, we build a mill, it still makes a lot of money for our shareholders, so let’s get started on that shaft because it’s a great investment.” However to your level, completely, we’re nonetheless transportation to LaRonde, and if we had been to do this, clearly, it might be as a result of it improves the economics.
Josh Wolfson: Thanks. Subsequent query is on East Gouldie. When it comes to a number of the infill drilling that is been recognized on what seems like a fairly large space after which the remark, I assume, rather more clearly this quarter in regards to the potential for a second shaft. I assume I am questioning, provided that the primary underground mission 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’ve got the knowledge that will have the ability to advance that or not advance that?
Man Gosselin: Hello, Josh, Man talking. We’re nonetheless getting some robust outcomes on each side, each to the east to the west and each of them west and east extension aren’t, I might say, tightly drilled sufficient but to make these form of. So that is a number of the inside consideration we’re at the moment having. So by growing the drill program by year-end, we wish 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 highway at making up our mine about what must be accomplished and the place?
Dominique Girard: Sure, I imply to make certain we’re very excited in regards to the outcomes, Josh, and it is truly progressing in all probability sooner and higher than we had anticipated. However, as Man mentioned, and the place you set 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 precise place to place a shaft, however actually we love what we’re seeing.
Josh Wolfson: Bought it. And if I can kind of tuck in yet one more, there is a bunch of tasks the corporate is kind of evaluating at this level, I assume extra just 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 metallic house. I simply form of wish 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 maintain emphasizing the phrase risk-adjusted return on capital, and, after all, that’s the return on capital on the danger adjusted. So by definition, we’ve got extra information on inside tasks, by definition and we’re capable of make an evaluation on threat significantly better. So if I had an exterior mission at 20% and an inside mission at 20%, we’d go together with the interior mission, once more, as a result of we’d, in our view, have a greater view on the quantity of threat related to it. However broadly, we have a look at lots of issues, which is what our buyers need us to do. Our buyers need us to make them cash on this house. 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 at all times a variety of issues and it is truly an excellent factor. I inform you, and I have been on this enterprise for 25 years. It is improbable to have the pipeline of alternatives that we’ve got. However I will probably 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 yr. 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 the moment 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 number of the issues we have a look at are extra advanced than others, however we’re very comfy that we’ve got the assets, each monetary and other people, to maneuver on the measured tempo that we’re transferring ahead. And actually, 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’ve got lots of 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 powerful free money stream 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 it is advisable see extra there to make a go-ahead resolution?
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 this is the reason 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 expect are the needle mover on the mission as rapidly as doable to a drill spacing that can permit us to combine them into the plan. So I do know in a yr from now we ought 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 yr that we must always pay attention to at any of the most important 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 accomplished efficiently. And there is one other one coming on the Canadian Malartic, 10 days shutdown on the mill. It’s to vary the drive system on the tailing stick there.
Natasha Vaz: Hello, Anita, it is Natasha. And with respect to Detour, we’ve got two extra shutdowns developing, one in August and one in November, but it surely’s typical shutdowns. We usually have 4 shutdowns a yr.
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 yr? I feel it is outpacing the steering by a big quantity within the first half.
Ammar Al-Joundi: Sure, we must always count on the tonnage to maintain, we will maintain an excellent tonnage to the top of the yr, however the grade we count on that it is going to be decrease than the primary half. As within the second quarter, we had been mining two interior pits near outdated 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 an excellent tonnage, however decrease grade than we had within the first half.
Anita Soni: Okay. I am going to depart 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 immediately. All the time very useful and great to listen to from you. I needed to follow-up on the capital return theme and simply observing the very, very robust money stream in Q2 and looking to the second half and subsequent yr at spot and even decrease than costs, that free money stream technology will proceed to be very strong, to place it calmly. And with that as context, if you have a look at the capital return program and the elevated deal with the buyback just lately, is there any thought internally to perhaps shifting that again to the dividend with a doubtlessly increased dividend? And when you concentrate on paying a dividend, what’s form of a cushty free money stream 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 yr, we’re operating at a fee of about 50% direct returns to shareholders as a portion of our free money stream. So I feel that the dividends on the proper spot the place it’s at the moment representing a few third of the free money stream that we’re producing.
Lawson Winder: Okay, very useful. I needed to additionally ask, simply given the theme, Ammar, of your early feedback on value administration and value discount, congratulations on the success there. Within the current previous, so previously kind of two to 3 years, there’s clearly been lots of labor and value inflation within the trade, however in significantly on labor. And it might be useful simply to get your feedback on what you are seeing within the varied areas immediately. Is that persevering with to enhance each with respect to labor value, but additionally 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. When it comes to wage enhance, we simply count on regular yr, regular 3% to 4% form of. So there is no – we do not see large problem on that. And perhaps whereas we’re speaking about inflation, there’s attention-grabbing 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 apart from that, it’s stabilizing, perhaps getting decrease a bit.
Natasha Vaz: Hello, Lawson. Simply on Ontario, sure, we nonetheless have a good market, however as Dominique talked about, it’s stabilizing. Now we have a low turnover and at Macassa particularly, 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 general, 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 value is quarterly manufacturing. When the groups do a fantastic job like they did this quarter and so they ship good manufacturing, they virtually at all times ship nice prices. So it is simply vital to maintain that in thoughts as effectively.
Lawson Winder: Okay, sure. Thanks all for these feedback. After which simply, Man, you made some feedback on Hope Bay and a number of the different property and the outlook for useful resource and reserve development for year-end. Perhaps might we get simply an early look in your pondering when it comes to general reserve alternative for – on a consolidated foundation for Agnico heading into year-end. After which simply any ideas on whether or not there may be an replace to the gold value assumption thought of.
Man Gosselin: It’s kind of early within the yr, 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 fall to make up our mine early within the yr. So it’s early for that, identical as effectively throughout, it is troublesome. We have been mainly operating a few inside run on some mission with simply the Q1 outcome. I feel we’re in fairly fine condition and I am anticipating, as I discussed in my – so I feel we’re in an excellent place to switch what we mine this yr. I might say there is no main research to return, like once we added the Detour and East Gouldie final yr. So we’re not anticipating a giant bump related to the most important mission updates. We’re anticipating extra of form of a flat alternative as I see, but it surely’s nonetheless early within the yr.
Lawson Winder: Good, improbable. Thanks all very a lot and congratulations on a fantastic 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, once we have a look at this supplemental exploration price range, how a lot of that is strategic and geology-driven and the way a lot if any comes from growing value pressures, proper? So mentioned one other means, is there any efficiency carryover on what we’re seeing on the working value self-discipline aspect into the exploration and discovery value aspect of the enterprise, particularly once we have a look at this second half price range?
Dominique Girard: I might say on the contrary, we have seen some easing into our general drill value. 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 could be very directed to, as you heard, to Detour as a result of together with the exploration ramp and ultimately our want to deliver the higher a part of the western extension of the deposit to order. So it ties together with the ramp growth, identical in Malartic, with a purpose to ultimately commit on further infrastructure, growing the tempo over there to get extra readability prior to later and Hope Bay with the nice outcome we have been getting so as, once more, to return again with some extra readability in 2025 or 2026. So higher value efficiency, higher unit prices, superb. The market is favorable. Presently, it is troublesome for lots of the smaller junior to get capital. Due to this fact, there’s been so many easing, and we have been fairly happy with our means 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 enthusiastic about the method of trying into both paying that off, partitioning or rolling it ahead?
Jamie Porter: Sure, thanks for the query. I would say we do have the remaining $450 million on the time period facility due in April of 2025. So we’ll look to actually repay that between every now and then. On the personal notes, the phrases are literally fairly favorable. I feel the common 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 would be completely satisfied 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 virtually 10,000 toes deep, and also you talked about that there was a 4.1 richter seismic occasion June twenty fourth the place nobody was harm. And [Kim Ross] offered Macassa for $5 million to Kirkland Lake after a seismic occasion severed the shaft at 5,700 toes 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 house safely and also you win all these awards if 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 trade and giving to the – primarily based on the final yr performances and we’re very, very proud that we gained 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 harm. Our floor help did the work that they had been imagined 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 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: Perhaps simply, and thanks, John, for that query as a result of we respect the query as a result of security is paramount. Perhaps Carol, I’ll put Carol Plummer on the spot. She is our Government Vice President and broadly security falls below her and she or he and her workforce have accomplished an terrible lot of labor each day on this and perhaps simply extra broadly on our philosophy on security administration. Carol?
Carol Plummer: Sure, actually. So I feel we are able to sum up our security administration philosophy by saying that we very a lot consider in protected work, that each job may be accomplished safely each time. And there is lots of 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 with a purpose to follow-up and guarantee there are people who find themselves in a position to do that. Now we have a giant emphasis that is been positioned during the last couple of years in what we name boots within the area or seen felt management relying on which web site you are at, but it surely’s primarily the identical factor the place primarily not solely the supervisors are out within the area with the employees, however administration can be out within the area with the employees so are the engineers fairly effectively. Anyone strolling via has their eyes open, they’re in search of dangers, they’re making certain that the dangers are managed and that our persons are capable of proceed to work safely. All of this does not stop 100% of every little thing occurring. So we additionally put lots of emphasis on making certain that we actually understood – perceive what essential controls must be in place to stop accidents. And when an incident occurs, whether or not it’s a close to miss or someone does truly get injured, actually digging deep into that to grasp the basis causes to make sure that it not solely can’t occur once more at that web site, but it surely additionally can’t occur once more at any of our different websites by placing within the right preventative measures for these issues. I feel all these awards that our groups gained during the last quarter, as Dom mentioned, they’re all primarily based on the protection efficiency from final yr. It was a document security yr for us throughout the corporate. And that is actually a celebration of the superb work that our administration groups, that our supervisors and that our staff did over the course of the final yr and we simply proceed to encourage them to do this each day with each job that they are doing.
John Tumazos: May you elaborate on the metal or different floor help programs at LaRonde and the way they’re greater than only a rebar mine roof bolt or cement and the way they had been robust 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 had been anticipating to have a four-richter magnitude sooner or later, 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 exhibits an excellent outcome 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 yr, 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 an excellent quarter. Jamie, over to you first. Can I ask in regards to 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 wish to be reminded of the sensitivity for the remaining portion of the yr on what we’ve got.
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 singular interval the place we’ve got 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 actually 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 have a look at the profit from the weaker Canadian greenback, it is kind of fully offset by the upper royalties value. For the second half of the yr, primarily based on the place the Canadian greenback is now, I would 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 due to this fact Agnico goes to profit. I appear to recollect, and Jamie, right me if I am fallacious, for a ten% transfer within the Canadian greenback, it is about $50 to $55 per kilos in your value construction. Am I within the ballpark?
Ammar Al-Joundi: Sure, that sounds right.
Tanya Jakusconek: Okay. Thanks for that. My second query is for you, Ammar. I needed to return again to 2 issues. One is simply the technique and the capital self-discipline. And I simply needed to have a look at the tasks that you’ve got. 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’ve got acquired Detour on the go, doubtlessly Canadian Malartic with one other shaft. We now speak about Higher Beaver doubtlessly coming in 2030 or there about. After which we’ve got Hope Bay that’s telling us in a yr from now we’ll have some kind of outlook to the place that may slot in. The place can we see your whole capital price range going to? Proper now, it is 1.6 million to 1.7 million. Attempting 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 can we have a look at phasing these in as a result of you possibly can’t simply deliver all of them in without delay.
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 aspect. 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 typically will get large firms like ours in bother are persons are extra targeted on rising the enterprise or doing a deal reasonably than do they really earn cash. So every little thing we do begins with does it earn cash and is it an excellent return for the quantity of threat we’re taking over. 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 yr for many years. Truthfully, that is a fairly simple resolution. A second shaft at Malartic, we have the mill there, we’ll have simply constructed a shaft. When Man and his workforce inform me, I am comfy with the exploration, that is what’s underground, that is what’s there, actually, that is a fairly simple resolution. So it relies upon as you’d count on, like several funding, what’s the funding alternative? I am not skirting the difficulty, I am simply being trustworthy. It is determined by the funding alternative. Now you ask an excellent query. It isn’t simply monetary capability, it is human capability. So we take that very a lot under consideration. We assess the individuals we’ve got. We like to make use of our personal individuals. I get much more confidence when it is, Daniel Paré and his workforce constructing a mission reasonably than an out of doors guide who we have by no means used earlier than. So, lengthy reply is it is determined by the mission, 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 sensible? It might, however we’re going to unfold out each our monetary necessities and our human necessities primarily based on the capacities that we’ve got.
Tanya Jakusconek: And simply because, Ammar, all of us keep in mind a time once we tried to construct a number of 5 mines or thereabouts multi function go and simply these issues are simply exhausting on human capability, as you recognize.
Ammar Al-Joundi: They’re exhausting. You are completely proper.
Tanya Jakusconek: Okay. In order that’s – so if we had been to think about these 4 further tasks as we house them out on human capability, we might get to the two billion, however we try to maintain that margin, 2 billion whole 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 purpose 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’ve got acquired the exploration which Man gave us a rundown on. Perhaps we might speak about the way you’re trying 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 situated in and due to this fact you possibly can see your mining experience serving to or is it that you’re going to be transferring extra into non-gold over the longer-term?
Ammar Al-Joundi: We’re going to proceed to be the premier, at the least in our thoughts, gold firm on the earth and definitely 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 mission. It’s , but it surely’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 accomplished traditionally, which is take an early place on issues which can be promising within the areas we function. And once more, I wish to emphasize what I mentioned earlier, a part of our capital self-discipline relies on information. And we’ve got a fairly good information of that a part of Canada. Now we have an excellent information of that mission. Now we have an excellent information not simply of that mission, however of that area. And we’ve got an excellent 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 possibly can add worth and you’ve got experience. And do we’ve got this portfolio that you simply’re working as we’ve got an expiration price range, do you might have a price range on investments as effectively?
Ammar Al-Joundi: So initially, I feel you summarized it fairly effectively. In order that was good. We agree with that. We’re fairly versatile. We’re somewhat bit greater. You are proper. Usually, it has been kind 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 accomplished very effectively and so they’re form of sizable. However as we develop that, that has grown, but it surely’s actually it is simply the identical technique we have at all times had.
Tanya Jakusconek: Okay. Effectively, thanks. I respect you taking my query.
Ammar Al-Joundi: Effectively, it is our pleasure, and thanks, Tanya, at all times a pleasure. And with that, we at the moment are previous midday. So once more, thanks, everybody, for taking outing of your day, and for everyone at Agnico who’s listening. Thanks for all of your exhausting work. Have a pleasant day.
Operator: Thanks, sir. Girls and gents, this concludes your convention name for immediately. We thanks for taking part and ask that you simply please disconnect your traces.
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