Agnico Eagle Update | Jamie Porter and Jimmy Connor

Summary

Jamie from Agnico Eagle provides an in-depth update on the company's successful 2025 performance, highlighting operational consistency, cost control, and shareholder returns through dividends and share buybacks. He discusses key growth projects, including the potential of Detour Lake, Canadian Malartic's transition to underground mining, and the Hope Bay development. Agnico's strategy focuses on organic growth, M&A, and investing in junior companies. Looking ahead, Jamie outlines plans for further exploration, the HopeBayproject,andincreasedproduction,whilemaintainingastrongbalancesheetandenhancingshareholdervalue.

Takeaways

• 😀 2025 was a record-setting year for Agnico Eagle with significant growth in operational, financial, and share performance, driven by a strong gold price and operational consistency.
• 😀 Agnico Eagle successfully maintained cost control despite rising gold prices, allowing for margin expansion and strong free cash flow growth.
• 😀 A major focus for 2026 will be maintaining momentum by delivering on production targets and advancing key organic growth projects like the Hope Bay and Canadian Malardic projects.
• 😀 Detour, one of Agnico’s largest gold mines, is set to increase production from 700,000 ounces to 1 million ounces per year by 2030, with plans for underground mining and increased mill capacity.
• 😀 Agnico's long-term asset strategy includes mines with exceptionally long lifespans, such as Detour, which could last into the 2080s, a rarity in the gold mining industry.
• 😀 Canadian Malardic's transition from open pit to underground mining is progressing smoothly, aiming to maintain stable production of 550,000-600,000 ounces annually after 2028, with excess mill capacity for additional feed.
• 😀 The 'Fill the Mill' strategy at Canadian Malardic includes evaluating secondary sources of mill feed like the Marban and Wasamac deposits, contributing to an expected production of 1 million ounces per year by 2030.
• 😀 Upper Beaver, a new project near Agnico’s Macassen mine, has the potential to produce 210,000 ounces per year starting in 2031, contributing significant free cash flow despite its smaller size.
• 😀 The Hope Bay project in Nunavut, previously underperformed, is now a key growth catalyst with recent discoveries (e.g., Patch 7), and is expected to produce 400,000 ounces annually once fully scaled.
• 😀 Agnico’s strong financial position, with over $2.6 billion in net cash and ongoing debt reduction, will allow the company to focus on accelerating growth initiatives, including organic growth and strategic investments in juniors.
• 😀 Agnico Eagle continues to make selective investments in junior mining companies like Foran and Maple GoldMines,aimingtocreatelong-termvaluethroughstrategicpartnershipsandpotentialfutureacquisitions.

Q & A

What were some of the key factors behind Agniko's success in 2025?

Agniko's success in 2025 was driven by consistent operational performance, hitting production targets, and effectively managing costs despite pressures from higher gold prices. The company also successfully expanded margins, generated strong free cash flow, and returned significant value to shareholders through dividends and share buybacks.

What will be Agniko’s priorities as it enters 2026?

Agniko’s priorities for 2026 include continuing operational consistency, advancing organic growth projects, and focusing on key catalysts such as the construction decision for the Hope Bay project. The company also plans to provide more details on its growth strategies at Canadian Malardic and Detour.

Can you elaborate on Detour’s growth plans and its significance for Agniko?

Detour, Canada's largest gold mine, is aiming to ramp up production from 700,000 ounces to 1 million ounces annually by 2030. The mine’s potential lies in its vast reserves (40 million ounces) and its long-term mine life. The planned expansion includes increasing mill capacity and underground mining of higher-grade deposits, which will help achieve these production targets.

How rare is it for a gold mine to have such a long mine life, as seen at Detour?

A gold mine with a mine life extending into the 2080s, like Detour, is quite rare. Most gold mines typically have a 10-year initial life, with only a few extending to 20 years. Detour’s longevity is exceptional, with Agniko’s focus on exploration driving significant value creation over the last five years.

What is the status of the Canadian Malardic mine’s transition from open-pit to underground operations?

The transition at Canadian Malardic is progressing well. The company is moving from open-pit mining to underground mining, which will be complete by 2028. The transition will allow Agniko to continue producing 600,000 ounces annually while maximizing mill capacity. The company is also exploring additional resources to fill this mill capacity.

What is the 'Fill the Mill' strategy at Canadian Malardic?

The 'Fill the Mill' strategy involves optimizing mill capacity. With a mill that can process 60,000 tons per day, the company plans to fill this capacity using a mix of underground production and additional resources, such as the Marban and Wasamac deposits, to ensure steady gold production and maximize returns.

What is Agniko’s approach to investing in junior mining companies?

Agniko’s strategy for investing in juniors is centered around exploration potential and the opportunity to optimize operations. The company invests in juniors to understand their projects better and, through partnerships, help advance their developments. They look for long-term value and often aim to improve the efficiency and production capacity of these mines.

How does Agniko measure success in its operations and investments?

Agniko measures success primarily on a per-share basis, focusing on metrics like gold production per 10,000 shares. This approach ensures that shareholders benefit from both increased gold prices and greater exposure to gold production. Over the years, the company has significantly increased production per share, distinguishing itself from many of its peers.

What are Agniko's future growth projections, and how does the company plan to achieve them?

Agniko expects to grow its production by up to 30% over the next 5-10 years. The company’s growth strategy is heavily focused on organic projects, such as expanding Detour, transitioning Canadian Malardic to underground, and developing the Upper Beaver and Hope Bay projects. These projects collectively could add about 1.3 to 1.4 million ounces of production.

What are some of the key catalysts for Agniko in the coming year?

Key catalysts for Agniko in the next year include updates on its Hope Bay project, including a construction decision expected in May, and further details on its 'Fill the Mill' strategy at Canadian Malardic. Additionally, updates on exploration work and potential expansions at other projects like Marban and Wasamac arealsoanticipated.