Agnico Eagle Mines Limited Q3 FY2025 earnings call

• Record financial results driven by record gold prices and strong operational performance, with record revenue, adjusted earnings, and EBITDA.
• Strengthened balance sheet by repaying $400 million of debt, returning $350 million to shareholders, and increasing net cash position to $2.2 billion with a credit rating upgrade.
• Invested heavily in pipeline projects: Malartic ahead of schedule on underground development and shaft; Detour with ramp portal built and ramp construction underway; Upper Beaver on budget and ahead of schedule; Hope Bay with great drill results and site activity accelerated; San Nicolas progressing engineering. Cumulatively, these projects represent ~1.3-1.5 million ounces of potential production.
• Focus on productivity: Examples like Kittila's underground productivity improvement program saw tonnes mined per day increase 13% year-over-year and minesite cost per euro decrease 4%; implementation of remote operations technology at various sites, increasing productivity by 20% at Odyssey, and plans for fleet management system underground.
• Strong exploration results: Over 370,000 meters of drilling completed in Q3, exceeding 1 million meters year-to-date, with unit costs ~8% below budget; exciting results at Canadian Malartic, Detour, Hope Bay, and others supporting growth studies.

In Q3 2025, Agnico Eagle reported gold production of approximately 867,000 ounces. Revenue reached a record $3.1 billion. Q3 cash costs were $994 per ounce, with year-to-date average cash costs at $943 per ounce. All-in sustaining costs were $1,373 per ounce in Q3, with year-to-date all-in sustaining costs expected to be close to the top end of the guidance range. Year-to-date, the company has achieved 77% of its full-year production guidance of 3.4 million ounces. Cash costs remained within guidance range year-to-date, and all-in sustaining costs were hundreds of dollars per ounce below peers due to cost control efforts.

• Confident in achieving midpoint of full-year production guidance of 3.4 million ounces.
• Cash costs expected to be at or near the top end of the $965 per ounce guidance range for the full year.
• All-in sustaining costs expected to be close to the top end of the $1,300 per ounce guidance range for the full year.
• Plan to continue increasing shareholder returns through dividends and share buybacks, and strengthen financial flexibility by increasing net cash position.
• Expect a significantly higher cash tax payment relating to the 2025 fiscal year in Q1 2026, allocating cash to fund this obligation.
• Continue reinvesting in high-return organic growth projects, with projects like Detour having potential to generate over $2 billion of annual after-tax free cash flow at current gold prices.

• Higher gold prices result in increased royalty expense, which impacted Q3 cash costs, though year-to-date cash costs remained within guidance.
• Inflationary pressures on costs, with labor inflation expected to be around 6%-7% going into 2026, though the company is working on optimizations to defray some of these costs.
• Skilled labor shortage industry-wide, which is a large portion of overall costs and requires proactive workforce planning to manage operational needs and growth.

Q: Can you talk about noncore investments in critical minerals?

A: Canada Nickel and other non-gold, non-copper investments are in a subsidiary. A small team has been looking at critical metals opportunities, with seed capital provided, and they will look for opportunities independently with the company having first shot at reviewing them.

Q: How are government relations with the new federal government in Canada?

A: Very pleased with the new government; the minister reached out via text shortly after the election, and there has been more discussion on the importance of mining and its contribution to Canada than with the previous government.

Q: What are you expecting to deliver by year-end in terms of a resource update for Hope Bay?

A: Reserve will remain as last year, updating indicated and inferred resources integrating new results, with a desire to update with a new PFS supported reserve and resources filing by the end of 2026.

Q: What are inflation expectations going into next year?

A: Labor inflation expected to be around 6%-7%, with costs expected to be higher next year due to higher gold prices, but the company is looking at opportunities to do better than inflation.

Q: Could you review the rigs operating across the company?

A: Spread of rigs includes 29 in Malartic, 9 at Detour, 12 in Macassa, 6 at Hope Bay, etc., with productivity improvements like unattended drilling allowing more meters to be drilled with the same fleet.

Q: What about reserve and resource replacement year-end 2025?

A: Expect net growth year-over-year, fully replacing mined ounces with light growth, with reserves at East Gouldie expected to increase and resources growing at Detour and Hope Bay.

Q: How are you approaching the strategy on the overall portfolio, including equity investments?

A: Strategic investments in things with potential to create value for shareholders, with money treated as owner's money to be allocated based on business case, and assets reviewed to get most value for shareholders, including small assets.