Agnico Eagle Mines Limited

Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Minds Limited second quarter 2025 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. If you would like to withdraw your question, please press star, then the number two. Thank you. Mr. Amar Al-Jundi, you may begin your conference.

Thank you. And good morning and thank you all for joining our Agnico Eagle second quarter conference call. It's always a pleasure to speak to all of you and particularly a pleasure when things are going well and we have good news to share, like this morning. Before we come to our call, however, I'd like to remind everyone that we'll be making a number of forward-looking statements, so please keep that in mind and refer to the disclaimers at the beginning of this presentation. The message we'll be sharing with you this morning is frankly the same positive message we've been sharing for the last several quarters. One, we continue to report record financial results driven by strong and consistent operational performance. We continue to strengthen the company, to strengthen the balance sheet, and to return record amounts of cash flow to our owners. And three, we continue to invest heavily in building the foundations of our future growth, and we're excited to talk about that. By any measure, we've had another strong quarter. Gold prices are up, gold production is strong, and our costs are under control. With that, we're making a lot of money for our owners and reporting once again that record financial results. Record free cash flow at $1.3 billion. Record adjusted EBITDA at $1.9 billion. Record adjusted net income at $1.94 a share. And remember, it's always the per share metrics that matter most. We've returned record cash flow to our owners in the form of $200 million in dividends and $100 million in share buybacks. add to that a further $550 million of debt repayments. And while delivering those record financial results, these record financial results, we continue to make great progress and in some cases accelerating progress towards building the best project pipeline we've ever had. And we continue to have great success with the most aggressive exploration program we've ever had. With 866,000 ounces of safe responsible gold production at peer leading costs. I want to take a moment to thank all of our Agnico Eagle family for delivering these results. We know it's not easy. We know you work under difficult conditions, whether it's three kilometers underground at La Ronde or at minus 50 degrees in Nunavut. We know you always work hard. There are always challenges and you push yourselves. You all do a great job quarter after quarter, reliably, safely, responsibly, and I just want to acknowledge and appreciate that. We all do. I'm proud to say that as gold is up $400 this quarter, our cash costs are up a relatively modest $30 per ounce compared to Q1. This means that we're delivering 93% of this remarkable gold price increase to our owners. Jamie will go through that in a bit more detail, but again, to our teams on the ground, great work on cost control. Of course, one should expect record financial results when we have record gold prices. That's why people invest in a gold company. And while we are naturally proud to be able to deliver these financial results, we want to emphasize that we remain, regardless of gold price, absolutely laser-focused on operational improvements, on controlling our costs, on capital discipline, and on continuing to build value per share for our owners. Consider the following examples in this quarter alone. At Odyssey, record gold production and record underground development. At Goldex, record tons processed. At Macasa, record gold production. At Detour, the best mill throughput for a second quarter ever. And at our exploration sites, Guy and his team have delivered a, I think, quite remarkable 9% reduction in costs per meter drilled. These are all just a few examples. Individually, they may not seem material, but collectively, quarter over quarter, this focus on improvement adds up and makes a big difference. And it also illustrates part of the culture at Agnico Eagle where everyone at every level is encouraged and authorized to look at all options to do things better. At the same time, we continue to invest in the future as we make steady progress on our five key value drivers. Ongoing work to get Detour to over a million ounces a year. Our vision to get Malartic to over a million ounces a year. Excellent construction progress at Upper Beaver, a brand new mine in a great region that could add over 200,000 ounces a year. continued great drill results and accelerating on-site activity at Hope Bay with a target of over 400,000 ounces a year and continued progress at San Nicolas, a high-grade, high-return copper project in the best mining jurisdiction in Mexico. These projects cumulatively represent approximately 1.3 to 1.5 million ounces of potential production all from assets we already own in regions we've been operating for decades, and in most cases, leveraging off existing infrastructure already in place. Dominic and Natasha will provide a brief update on some of these projects, and Jamie will describe how at these gold prices, we can not only fund acceleration of these projects, but continue to strengthen our balance sheet and continue to increase returns to our shareholders. And finally, once again, Guy Gosselin will be the star of the show as he spends a few minutes highlighting some of the exciting exploration results our team is delivering at some of the most promising ore bodies in the world. And with that, I now turn it over to our CFO, Jamie Porter, to review the second quarter financial results.

Thank you, Omar, and good morning, everyone. We've had an excellent first half of the year with another strong quarter of operating results and good cost performance. By delivering on our production targets and controlling costs, we continue to ensure that the benefit of margin expansion in a higher gold price environment accrues directly and indirectly to our shareholders through both direct shareholder returns and the strengthening of our balance sheet. Our strong operational performance and cost control paired with higher gold prices drove record financial results, including record revenue of $2.8 billion. record adjusted earnings of $976 million, or $1.94 per share, and record adjusted EBITDA of $1.9 billion, and record free cash flow of $1.3 billion. Free cash flow more than doubled quarter over quarter, benefiting from favorable working capital adjustments, primarily due to an increase in accrued taxes payable. Gold production in the second quarter was approximately 866,000 ounces, a total cash cost of $933 per ounce, and all in sustaining costs of $1,289 per ounce. Gold production was better than anticipated this quarter, primarily due to better grades at La Ronde, Canadian Mallardic, and Macassar, with this outperformance partially offset by lower production at our Nunavut operations due to an extended caribou migration and lower gold production at Detour. I'm pleased to report that costs were within our guidance range. While our total cash costs of $9.33 per ounce were $30 per ounce higher than in the first quarter, the quarter-over-quarter increase was primarily due to higher royalties as a result of higher gold prices and a weakening Canadian dollar, which on a combined basis represents an increase of about $46 per ounce. If we exclude the impact of royalties in foreign exchange, our cash costs were actually lower than in the first quarter, which is again a testament to the ongoing optimization efforts that Dom and Natasha will talk about later in the presentation. For the full year, we are maintaining our cost guidance and expect cash costs to be within the guided range of $9.15 to $9.65 per ounce. All-in sustaining cost per ounce were higher than the previous quarter, primarily due to the increased cash costs and the timing of sustaining capital spend. We continue to expect to be within our guidance for the full year at between $1,250 and $1,300 per ounce. Our all-in sustaining costs continue to be hundreds of dollars per ounce below those of our peers. This is the result of our focus on controlling costs, continuous improvement initiatives, and the benefits of our regional strategy. As an example of the benefits of that regional strategy, our Abitibi platform in Quebec and Ontario had outperformed in the first half of 2025. with over 1 million ounces of gold production, a total cash cost of only approximately $850 per ounce, and a realized operating margin of 73%. This platform holds five of our 10 operating mines, including the two largest gold mines in Canada, with multiple decades of mine life and strong potential across the region to continue to grow and expand. If we move on to the next slide, The record free cash flow we generated this quarter allowed us to continue to strengthen our balance sheet, ending the quarter with net cash of almost $1 billion, improving from a net debt position of $5 million at last quarter end. In addition, given our strong cash position, we decided to prepay $510 million of long-term debt in addition to the $40 million of debt that matured in the quarter. Over the past 15 months, we have significantly deleveraged the balance sheet. reducing our gross debt in that period by $1.3 billion. We will look for further opportunities to reduce debt in the third quarter and intend to continue to strengthen the balance sheet, increase our financial flexibility, while at the same time increasing returns to shareholders. We move on to the next slide. As Amar mentioned, we delivered record shareholder returns this quarter, totaling approximately $300 million and $550 million for the first half of the year. bringing the cumulative shareholder returns in Agnico's history to approximately $4.7 billion, the majority of which has been returned in the last several years. From a capital allocation perspective, we remain well positioned in this gold price environment to continue to take a balanced approach. We expect to continue to increase shareholder returns through increased share buyback activity and dividends. We also expect to continue to strengthen our financial position and flexibility by increasing our net cash position and potentially repaying additional debt. Lastly, and importantly, we will continue to reinvest in our business in order to bring our high-return organic growth projects online. We have five key value driver projects between Detour Underground, Filling the Mill at Canadian Malartic, Upper Beaver, Hope Bay and San Nicolas, all of which generate solid returns at gold prices $1,000 or more below current spot levels. We have a strong balance sheet we'll look for opportunities to accelerate reinvestment in the business to drive growth and value creation at current gold prices we are generating a lot of cash and will remain disciplined with a measured capital allocation approach which is focused on increasing returns to shareholders over the long term with that i'll turn the call over to dominique who will provide an overview of our quebec nunavut and finland operations thank you jimmy good morning everyone