Agnico Eagle Mines Limited

good day my name is michelle and i will be your conference operator today at this time i would like to welcome everyone to the agnico eagle third quarter results 2022 conference call all lines have been placed on mute to prevent any background noise after the speaker's remarks there will be a question and answer session if you would like to ask a question during this time simply press star then the number one on your telephone keypad We would like to withdraw your question. Please press the star followed by the two. Thank you. Mr. Ammar Aljandi, you may begin your conference.

Well thank you very much and good morning everyone. Thank you for taking the time out of your busy day to join us on our call this morning. Last quarter we started the call by thanking our operating teams for delivering some exceptional operating results. And this quarter, we'd also like to thank our operating teams, not just for delivering solid operating results, but notably and importantly, we'd like to thank our operating team for delivering the best quarterly safety performance in the company's 65-year history. Nothing is more important than the safety of our people and our communities A safe mine is a well-run mine and a well-run mine is a safe mine. So thank you very much to all of our employees and our operating teams for delivering that. With the strong results in this third quarter, we've now got nine months under our belt and we are pleased to be able to say that we are reiterating guidance for 2022. production guidance, capital expenditure guidance, and importantly cost guidance. And that hasn't been easy in the highest inflation environment in probably 40 or 50 years. The team has done a very good job, and again, congratulations on that. We are maintaining our guidance on all of those, albeit at the higher end of the cost guidance. This strong quarterly production allows us to have strong earnings per share cash flow per share and create value per share and maintain our strong financial position on both liquidity and cash flow generation. The real story that I think you'll see during this call is the continued progress on our expansion projects and some excellent and exciting drill results. These are the items that are going to drive value creation going forward. and i think that what really separates us and differentiates us versus our peers finally as an introduction we are proud to say that we are announcing an interim target of a 30 reduction in greenhouse gas emissions by 2030 on our way to a target of zero greenhouse gas emissions by 2050. this is not a challenge we take lightly it's not a challenge we think is going to be easy but it's a challenge we are prepared to undertake and are confident we'll achieve. Next slide, please. Thank you. Some of the third quarter highlights. Solid quarterly production and costs, 817,000 ounces of production at cash costs of $779 and all in sustaining costs of about $1,100. Quarterly net income of 17 cents, but adjusted to 52 cents, and Dave will talk about that later. operating cash flow at a solid $1.26 per share. Some of the highlights of the operating results include record gold production at Amarok. That's 123,000 ounces this quarter. I think that is a world-class mine by any standards. And some material improvements at Macasa, a great ore body that is coming into its stride. And I'm going to be asking Dominic Girard and Natasha Vass in a moment to talk a little bit about progress on those two projects. Pressures related to cost inflation, workforce availability, and COVID-19 remained. We were able to manage them during the third quarter. We see continued pressure on inflation. We are starting to see some potential relief. I think it's too early to say that we are completely past this situation we are in fact expecting and planning for continued cost pressures going forward but the team is focused on that and focused not just on mitigating cost pressures where we can but optimizing mine efficiency mine throughput gold production which also helps to offset some of the cost pressures and the team has done a good job with that. Financial position remains very strong. We have paid down another $100 million of debt as it came due. We told all of you we are planning to pay our debt as it comes due through cash flow, and that's what we're doing. Some additional share buybacks of about $43 million, about a million shares this past quarter, and a quarterly dividend of 40 cents, continually paying a dividend since 1983. And maybe, Dominic, if I can ask you to talk a little bit about Amarok and then Natasha a little bit about Makassar.

Thank you, Amar. Amarok did a strong quarter and a record quarter also for the division. This has been obtained with very good results with operation, maintenance, mill throughput, and also a good grade coming from the pits. As we mentioned in the past, more we go deep in whale tail, more the grade is going higher. And also, we have an interesting grade at the IVR pit, plus the underground ore, which is coming in right now. And underground did also an important milestone. We mentioned in February 2021 that's going to be $180 million to build it, and we did it at the cost and on schedule, too, which is a good achievement despite COVID situation and inflationary situation where we are. And I would like to thank all the employees, the contractors, suppliers, and also the local community support which will develop that project. We've also celebrated in Q3 4 million answers for at Middle Bank. So quite a good success this quarter. Thank you. Natasha.