Agnico Eagle Mines Limited (AEM) 28 Oct 212021 Q3 Earnings call transcript

Good morning. My name is Grant, and I will be operator for today's conference. At this time, I would like to welcome everyone to the Agnico Eagle Third Quarter Results 2021 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator Mr. begin may conference. your you Boyd,

and Thank you call. everyone, thank morning, joining you, us conference operator, for XXXX for and quarter good our third

to a off cost cash with presentation summary that perspective, and statements. the a of note perspective, quarter a just include generation an from bit overview, production I’d start certain a forward-looking strong perspective Just this to like a take very as third production mine. the quarterly performance of over as from will big record quarter, fact had and the from Bay producing driven performance ounces, in Hope part We mines Abitibi There our production excluding by well. our was really -- XXX,XXX mine. expected Meliadine a of of the a this was

at an Canadian gold, If three quarter the LaRonde, those in Goldex, $XXX collectively of XXX,XXX ounces Abitibi below and ounce. platform, mines costs Malartic, produced the cash you total look

look however at we'll you gold that quarter $XXX. ounces into cash standpoint, about at get production record total of cost a XX,XXX a If producing of a minute, Meliadine, in from

strong performance the company almost two-thirds the that ounces for So really the base, production in quarter. from producing of

maintained and did release result strong a the quarter, guidance. inflation. performance cost provide on XXXX production of the in we've commentary As in press our We cost the

roughly next That's in and we of said year. As in of about going the seeing structure. cost the order supplies into to press on consumables our we're inflation release, X% cost X% half

and largely that seeing increase be that, would half reagents. we're would expected be consumables our less The And labor. labor our other in than our

company the best-in-class important did give Agnico we combine Kirkland note, pressure to last on And update you of you we create seeing thought of any synergies. the that know, month unlocking jurisdictions our seeing announced would it wage equals you in a the not and in we and pro-mining we're abnormal a side. operating what Lake we're Also, significant ago, give quarter. current wanted you sense, XXth, gold September And as on to the both merger was environment. So

look unlock of consolidation So this is advantage really Val-d'or of This $X reserve ounces really before, ounces. geographical million that to the Detour what footprint, a take produce about when Kirkland combined will across you of a with is transaction as over which company at to and years. relatively done million gold those is basically XX Lake a small drives from almost to a the we've combined regional billion XX And opportunity, annually value, almost synergies. resource down said lot X of amounting to

as If Canadian production said you this company, with ounces. look X.X potential to million the combined million get over to we from ounces X about at before, the

forward, through company of value forward. this going building the this synergies So platform major block creating only is value the but creating highest going additional quality unlocking not for

businesses. Well, continue We've We partners at belt three think said, two on the of we're about and have said quality these Lake good past, and in are nine on rough Quebec, as mines been the the our as development Kirkland’s, that we high businesses, this three a business fact the and Ontario. mines. combination their one one we integration two asked the discuss the do our the of two making businesses, magic taking in of to mines, XXth, of for Kirkland with plan Gold, two continue I projects to progress. successful with combination work September in same is geological And with

the our talk part long highly history, about extremely two at we'll of cash the quality well. confident standpoint, of A including many gold And mines. that more been generators, as have over cultural businesses. we're but these exploration standpoint, standpoint, high So our our of exploration well. a And from these an and largest has three integration a manageability success up integration significant we'll we're producers, big from a that largest our successful flow our from results story year or so over largest last seeing at recently, of line

As this Kirkland us important $XXX more in Lake than think before, spends of actually And say Gold I the million. note Agnico, we exploration largest is do. you've that history heard the it's budget around to

the after included. a be so In will actually continues will the and LaRonde you value the press upside be that adding And Xnd, release, has but exploration information Agnico that West best bit. so on require to story been this do that's LaRonde to And be of being the undrilled the going of We'll core still part companies access drill. for major to the part exploration strategy November for and years, years. last individually a we we're when of some have of the of that the lot couple ground production on compiling Barrick were even a around terms a of old highlights a over given a XX of of to the a focus update it in because combination that property have Bousquet core detailed that about the success think of potential through both again, part in the of more of company strategy it's drill big over

South which XXNorth valued values. several what mine, so are high rock of the the of zones Zone history the of the three we mine. seen former we're And three the hole of the these we a to this seen a Zinc hundreds recent promise So over of exploration exploration polymetallic intersections where two the continue in NSRs dollars, we've extending the highly part run on is and part Bousquet also LZX big with of the was inconsistent encountered into lower not to that good in XX-year we've drill over that property, And NSR put that years. East next story the be drifts the see will mine, to property,

is So of we Meliadine, we're of go as encounter as important, which bulk at to the found the we the that continue in sample we concept were -- very that continue we as also meaningful reinforcing to also gold bulk after model. grade well more drill early sample, on At we a was that LaRonde again East opportunity first on the widths than bought looking LaRonde. understood doing deeper, the focus on, deposit and West this block and higher to as focus going part indicated over we it that, part returned

continues deposit of And quality drill retaining the a to gets continue get lot gold holes, not in it's also high and in bigger, terms will we see only visible of minute we a nature its So, in that suggesting this to and higher of we and very out Meliadine. drill, into to the generation translates At that deposit, that, us. see largely of good In Amaruq, as Amaruq West. you the can for coming focus production cash continue a region know, you the that's to grade.

We and Tail good XXX note, was about are quarter decent area, drilling But, the Whale within meters in grades of encountering of Tail that's thicknesses, Mammoth IVR. between also surface. pit. XXX the in the West We're of Whale meters

next and continues to to our that'll year mineralization, move that's in we're because be Odyssey for, a tremendous infrastructure. Project it's we looking what early, significant, focus existing The that drilling but So, close into have our follow to area, up, near potential. potentially continue to as surface

out zone. potential zones we to about few we Canadian as the as to but within copper it's gold Malartic. we over or drill East over add consistent. core the almost Gosselin that in And In pattern. gold, that as continue very deeper, in when envelope very Beaver, a hitting step at you're really, we seen within for LaRonde, potential get, do news that we've the Gouldie, early, very seeing what East drilled Again months said to favorable thicknesses grades, consistent, the Upper additional outline, that in between high hole what geological last it's you good mineralization exploration see we the has are to excitement to additional tabular, We move of a wide And gap. the drill we've very good in focus the maybe many is the talked see grades Guy we drill as very as times, real like continue is, a potential we add

focused right in Kirkland's drift extracting we Macassa additional as of important we we the out on the So have a to to value proximity accessible on Macassa be will that move is the Zone, the a of tunnel resource easily part sizable in which are boundary an operation. forward Agnico from Beaver of combination and because AK of And Mine. the that of Upper with Kirkland, and got addition that,

next be the focus So, we more ratings. focus clarity high we'll On It's rank to be couple we months. ESG as a the through provide continue ESG, on very us. for move of that company. It will combined in a to in able

As we energy put businesses in those company. on of the we opportunities, two renewable particularly in lots particularly see communities, together, combined

committed Nunavut, have So, climate zero building Meadowbank, highlights really Committee in happy that and to change, about in to also been We're Meliadine Board reintegration We that's was and step them announced related financial an disclosure. the the them we've of the away, focus. talked that and at recently missed and quarter Safety building that force the Nunavut. workforce yesterday our on by back. at Nunavummiut and do they climate in will important On we successfully. both be net The platform the the recently able commitment at the to in Health and while task level. were implement business to important XXXX, our We

primary our awards and terms social So, safety responsibility. in and continue that's focus. mines the win to of corporate Mexican And

little assets, I'll the and of use go bit reference. next a guide So, of the down highlights. talk of the a spend some just just this quarter. and page to highlight time a And I'll big was as a our a that on page, about mostly in some

mines of almost generation also and $XX in that strong want sort operating at big cash our but million. LaRonde, Meliadine margin to production. looking into production, cash to into flow particularly three from the quarter; at generator, getting Canadian of be just $XXX record with quarter individual margin And record mines, looking the highlight that $XX really of Before of in group million; off biggest big mines, the the strong flow at coming million the the Malartic entering operating at continues three

significant So margin million. of that cash flow our of over quarter a in $XXX cash overall part is the

grades starting is is set very had quarter, to with which in tonnage from quarterly to productivity of we which most will with, that asset. LaRonde's the a of with good Sandvik. mine. We in continuing LZX, And at terms utilizing important comes strong further West using there integrating that of mines terms record that lot than the be optimize and automated well ahead Just new equipment. advanced A very equipment continue LaRonde, of in that where one they mines Sandvik we automated acknowledge deal a

week mined resulting be as exploration, quarter out Board as said, at on headframe. automation bolstered going quarterly at life we ability continues new to Odyssey just and forward at part at strong tonnage of we is West. were And strong the record at to Our sides we're focus trend, in Goldex, We performance LaRonde. milled to deposit at progress. here, on extend good and exercise a think Project. so Canadian potential Malartic, the good site LaRonde's tonnage LaRonde, there very see looking Continue in got the concrete was The move gold both and of the an Eastern what this in optimizing some to be to production At that that drill focus generation. we in really of we able we to cash see and full Canadian that the record mine as and Malartic, as the quarterly again, Western production will

think it's XX form. of It's terms in up the meters. completed about I

to also Canada the in and it mine into optimize is project, going as So the is extremely we how we focus which which the we that is can we're of is but look plan continue of believe that gold that and development, as of big focus we is the there. largest build big on country development And production. do record to the how But it to as and feed, do opportunity exists integrate to Kittila, terms mine And big said, up. the headframe in underground you big structure headframe this exploration. match in in target improving quarterly project. there, economics and the on underground in -- we terms record mill become on gold of the budget that terms that we quarterly need

the of mines, those, testament on certainly to results is we've expansion Kittila which I And the a the think Continue of now some one optimizing in next now a quarter, phase working is expanded the we're mine. So once focus get ability to there. records assets. already lot at of on to of drill although that good these

we large and get and in that deposit mine we depth, mine in forward, wide As there. very of again, open. on another expansion reduction, down. cost really focus Amaruq September cost ounces, September opportunity to ounces, the to at XX,XXX continues a drill The deposits, really optimization now of continues the Meadowbank, production over good already ounces. need XX,XXX is life, as on was XX,XXX we optimization go It's deeper, out at opportunity in terms At coming be

as in performance, us we've get been good key allowed resulted process the long move to forward. the good production get We have plan tonnage, definite that of But forward. truck going us haul optimizing is tonnage getting. in the a to asset we has terms which for That's which

So do work there's still there. to

one tie-in as And that do work to to as mine we the quality it October. as circuit did in we Our a that higher a in Nunavut. is But can really shows early be make in have done was as Meliadine, in some big mill that to at into we you the goal plant. recoveries new improve is, move quarter, fourth it we the shutdown have there add week

at we’ll just and for We to that shutdown I'll production said, one page, have this record with reviewed completed at application, the that has all project production weak And of waterline as with quarter Meadowbank. Meliadine waiting year. the successful end grow, in Meliadine finish at just the NIRB fourth lower Federal pit for -- on XX,XXX of the we're permit quarterly the So our we Tiriganiaq ounces, a this saline the We're to asset report, hitting water from important was X review to this optimize this that continue progressing to expect approval we which know expansion, they the had receive will as positive, before this the August. continue on and the point, exploration We commercial sealift. at almost asset. sea, the discharged open to the recommendation the in from government production NIRB is Phase NIRB

capital, driven just So cash just open on highlights. positive before $X.XX. cash But all $X.XX. merger Lake, that's up wrapping we it earnings at the up strong Again, post financial record put rating very of by for watch. Agnico should on -- our Normalized of ratings agencies questions, position. note, here Work announcement a result operating flow with before working strong Eagle a we Kirkland production, the

positive a the from sign agencies. the that's So on merger rating

have week lots more spend on of And all a that vote, next with good team getting strong able his production, time just cash generation, through be we're the fulsome go results that those we'll release now XXth. So to a in are and and interested. conclusion, to good good Guy quarter, more very on record another them with focused call November to exploration

to we those continue the platform. lower and to companies So to both excited type at a the look our risk, Kirkland both it. value partners out working were individually, to quality forward of Kirkland delivered and do Lake it We vote and platform get the to together merger. that shareholders asked with higher We're deliver Agnico in combined of about have for

operator. be that happy on attention and take your questions, for to thanks we'll So

[Operator Instructions].

JPMorgan. first ahead. from from go Please comes question Your Tyler Langton

of efforts, kind everything of talk that range you little I be a sort just labor? lump sort where actions kind then and about mean sort those of, I the guess overall I And on low some Maybe the taking offset just when the it inflation in inflationary of details with you might single-digit on the of sort just start, to sort the of bit of can pressures. of is sort you're appreciate of to up pressures something together? the consumables

at to the secure procurement, be in mainly about the year do in the the that. of other timing pressure much what have the and and stuff something we're better a the year, sourcing. with price. on every workforce, based our of crystal lot This procurement was at a with automation is day, it, do And buying will material. lot might Yes. is That about looking, see the to We negotiation going inflation with on -- don't less strategic we It's maintenance, under How to, with that higher, and may one productivity. could two, same the say call on too expect the we not employees. the a to it ball this the of inflation all operation, coming with that is be reason the the externally thing. that, very part. quantity was but Maybe the it's this end a what good use I year-after-year exceptional let's we communication top than have internally, team the this at and on -- we of bit but using we

overall, improve do. just we to So what continue

management, cost as in on and We the workforce the the side on place strategy. as have plan well procurement

efforts lower mean, of that West. I the then efforts And guess, X% you something net labor making those are where is so, the of those I lead those to sort increase the kind to up sort of costs, costs? in -- or Are X% and consumables, of could

Those are individuals.

talking all then, as those much work as ballpark less going are it's efforts that. to that obviously that hard to can. possibly consumables of So, X%, to offset X% is we Dominique going And than about up, to labor predict,

helpful. That's Okay.

cost kind of Just bit the you in to year. guess, quarter? hit final like for what the end costs little may on those guidance are I details driving it costs of the for us on of just the give down your be QX. in year, Could coming lower a question higher sort looks some

Look.

sequencing with make hard said, Dominique difference year. As driver. that's going -- big do the it's year, the mine and It's the key within within that to a really to really it's mostly grades get you're a to

year, in So, where of you within it's a just are Tyler sequence. a usually the mine function

Got it.

Okay, perfect.

doubt But this there year. been it. pressure has about No

Please Fahad Suisse. from comes go from Credit question next Your Tariq ahead.

Good Hi. question. taking for morning. Thanks my

on mitigate. Can a things of complete, follow-up about, bigger perspective, talk et is the to some you the the larger maybe purchases, mitigation you're bigger a the -- help procurement, on in the doing will with an some of of cetera? inflation Just and from once scale merger Canada platform

will. Absolutely. Absolutely it

One of will equals the on operational big And let's honest, bigger merger and advantages be opportunity the with the of in particular footprint be is platform. of most of a synergies this synergies. the associated a

better you But share give and of course, power. of logistics, of purchasing things to does, infrastructure. and course, it's that. course, that, does, it's power. more beyond then, it's It warehousing, number give a it you So above opportunities negotiating than better also of It's

in absolutely a where position a So region, bigger influence competitive a you advantage. have more is

my And question. only other

about seeing infections the talk to on And measures One at large Canadian a has are excluded? you taking that because of site? of that Can COVID. bit Bay are like, you maybe you of about mine, talked absenteeism Hope competitors, a at some of mines, any also your combat little your platform,

No, Yes. absenteeism significant we issue. have don't

flight. employees is, for business with to occupation took camp, -- action the sensitive which and in and Some is Nunavut, say, for vaccination more have the we mandatory the let's to our that

plane take XXth, shot November going have since to two be XXth to everybody short. one So needs is October to the and

there good on have collaboration that. So issue the with response, we employees no and far, a is good

Yes.

reflected workforce and there's give certainty, doubt One to as contract last have costs, workers at, that's the that harder. legal we not of more direct into things quality gets do no ensure and level, and the what been been, give And has we just little that maintain that we've us higher ultimately noted, attracting skilled able productivity our that we've while to focus employment. in is our into is them of to getting to cetera. other transitioning looked skill et certainty, some What

So manage that specifically done that's try one situation. to of that we've to the things

Profiti next comes Ralph Your from Capital. from question Eight

maintenance And because that back of Sean, put down terms the the you just range? goal automation, are the I reduction of this ounce is as Meadowbank, Meliadine to it structure of cost benchmark? wondering, context Or cash wanted come to to about generic here that Meliadine into more you an the productivity, of in at as sort sort get target. talking $XXX sort and your

that, few is as costs last been over we've sequencing. think unit quarters, this far I Amaruq as the saying, at as

higher lower of that, over couple costs what And that the years be couple the moving next so grade, years. unit to the couple after of sequencing the pit they'll next and a of dramatically will from years where

is the of structure cost that and the fitting part part just and but is to So opportunity. that sequencing, of the mine the asset to

also One different that Amaruq to Rankin infrastructure. the closer major being more to advantage of Meliadine things is versus is Inlet. of relative has clearly, lower the Amaruq Meliadine, remote grade. is Amaruq at is

certainly So built advantage. in has an Meliadine

other terms mine to assets that So I for is the continue as referring the is asset. I potential explore was we're concept in more that cash while from ensure generating of to Amaruq of that we generation a cash think to maximum

is deposit. and about the the to capital, but thing it's one in leveraging our at cash The on existing is higher It get our off is remember capital. primary cost a best Amaruq objective to return Meadowbank shareholders’ Meliadine satellite on infrastructure

capital it's So It than mill. because that an it is higher but -- existing Meliadine, lot very will it will using had a because be a it a good mind. is structurally something mine be to cost less keep a in

it. got Yes,

do the some currency inventories. presumably, and hedging, the that Sean, And the supply to but rising between cycle, But a Canadian mitigation, strategy rate, each to not come Okay. wondering strategy, as in have which fuel those prices, I follow-up also back inflation right? I'm Are management, is hedging chain means, the this rising interrelationship same we actually want the My of because, at right? net about coming other hedging dollar in have benefit. of is do we independent

hedging materials about thinking currency? versus raw Agnico how's hedging So,

Well, we have materials fuel. hedges don't raw beyond any on

course, budget opportunistic deliver over quite sentiment don't on. governs and But to strategy changing fairly That's as They're no I overall. Of performance currency do hedge on we we is it's of think does independent any you the But try annually. the smaller that we're going hedge. we how trying we could not diesel, market, things very the when And going February at At worked and sure given moment, to honestly at in well change going and strategy as things. basically, we The future what's that in sand particularly in know, us we moment. we past do is, said we the cause think do our success. of or to where can make make do what we any better how years, well. to out. those to larger than given line guidance look quantities really are guarantee But hedging to our do do levels and sure the that the we're what is

be think to because go volatility think don't opportunities, I going seems our and existing still, still I it's get to we'll away.

of kind volatility. feed we So the off

Very Tumazos Independent John comes question from Tumazos from John next Research. Your

going and smart that you're get hiring team know do the with Maybe same -- they not drilling juniors team that. from Santa are when companies Usually sense that. be for Barrick or that Santa of like half And very your to the to consolidation. was or to Newmont going eliminate that fellow Bill the My Fe. a something I geologists Newmont Kirkland people merge like smart more at the large with fire administrative and money people duplication let I Fe, are is that. go that something Newmont hired exploration, was

I'm this the that's thought company? that meticulously, because through part an far, sure of As you important

been of as, through potential, big Yes, companies Mexico -- point, and Agnico both into up Nunavut. drilling value. a Kirkland, and is created time they and different aggressive around based long the that's view were drilling lot part historical on that's of of that John, that you assessments found with big value others Abitibi Belt and know followed our a and making, a and focused has in generally budgets, geological for value knows of has and Finland and a making a creation the also way came we've created everybody part good geological through just as lot and fairly a determined

suggest won't this Actually, a would but Barrick exploration, through that the differentiator focus So, not change. between add to know exploration actually from perspective as ability big most we see the Agnico's tended has have certainly the I the would be, when value into is success. think I to we brownfield we and an Agnico New fair that on and just Newmont cash that, same Kirkland. flow the is than creates making it's are at that's we assumption, asset think which news because to NAVs, exploration. biggest And sooner. at with if our And market that biggest production, also pay coming some development look opportunities, the generation, with us value exploration lot the that gives you of us the is the biggest biggest the probably turn the combined earlier that I bases, assets, an opportunity a of which

be part and focus big geologies will be of So will this important. a a

we be, look feeling and drills. right get as combining constraint quality think quality now two constraint the big drillers that at will everybody's the I is to budgets,

there. the drills to really know the to add that best the be are exercise. don't the if make we best that, at drive I get to will So Guy drillers have in value, going we anything context, sure projects right that'll and has that the most

No.

you think I nailed down it Sean.

priorities wrap operation. Obviously, we'll plan realign lot do heads there of change Kirkland. is grow I in our a how big package, their of obvious a a after. the around near-term But think in lot synergies, of we certainly, no land of both need potential around. potential existing driven to that by to Detour, top value around game complementary to to lot create

on up Hope it almost follow I you've Bay, ask now year? a had a Can that

Yes.

costs I little now described at consolidated not operations, not the are it's probably it's but you know -- did the the than beginning. high, with and the know more continuing with a you

start determine of drill. Dominique driven will thinking And be play. can that that sort and processing now exploration a Dominique we into the to then look Guy Maybe in land what Yes. where from because and from upside is large standpoint thinking This on is processing at a how Guy able of what his finds and large will then the the capacity and some package. of what off roll will flow potential terms team be Guy into should of need

start. Gay, So could you maybe

think from certainly what to mined at thought, an exploration and area, start of central meaning West is we zone open, remains BTD all being that Valley. that the Doris confirm both I with, the standpoint currently we

those We aggressively expand confirming identify on North. the that we in the confirming Madrid, of or zone the extension zones. We've that are deposit we additional to known can can resumed parallel also drilling zone more the

positive standpoint. So, results lots that from of

of look on bigger, into five was So, done step years, huge to at about whole new done previously, more scale. but production. think we resources. the what's all a property set look at and really -- are package at collected time what No back. of the the the we take at position property scale, over nothing a about the data land grow land at mine the last and reinitiate And exploration significantly now go back at And and large scale, amount a time, confirming can entire be that of bigger into were as I in the were months, able that mostly focused been putting importantly, the we'll we taking wrong back

And maybe on the…

do is this team of before year effort, whether know as, long-term me long or the four Excuse it'll take think for effort, or it's you How you not part a a Sean. year or…? interjecting one

is but Yes. -- at can bigger center Madrid, Starting again, extend the the prize know gravity. currently that's which with Madrid we -- the at we core the where of Doris,

the around want right better we that our mentioned, we up at as continue our certainly it mean, years. two? do sooner certainly make the we'll of And more I So need Boston. want mine to Madrid is gravity we ramp one, can it about to put head and couple to know, and the can the center -- can’t is we drilling, it roll grow. we And of you certainly deposit a know,

defining So best gravity the center it's of the thing. is about all

may be that. Dominique on over hand So

to visit there while mill visit first started, to to At improving minimizing bring Ammar Yes, gradually. Should the first it positive. improvement. my and currently more there, more with did a -- your since the to John, expand we it Martin, some go we to maybe back a good did we're saw. trade-off. what question, look we're to now a just team throughput than that the capital? the excited mill, extend what mill? when and work bigger that I do the When not we But the was doing the higher we mill team -- and new are Or geologists should what's to they with are And very other

it's on trade-off, geological potential going ongoing. is is depend at that to So that's compared mill, redo Madrid? should a That's This still There's new What ongoing. be of study to question huge just timing? we to, the maybe a that's results. time. going exactly the is And

of next question Jalonen Mike comes from from America. Your Bank

is Lake, question, plan just those at been there's discussion kilometers I And a for about said have Upper start, Beaver, to there the a not copper that's tailings being the any that really keep copper synergy speed know we a production. that's integration. put successful impoundment, huge me, To thought into Macassa a Not nothing, have Upper to the you'll and have at much. talked XX a projects mill, about that you mill. I from Canada, thing thinking But Beaver. build you’ve circuit in at we Upper with And there Macassa. Kirkland

the of what it get continue good things it, with started build unit as Upper mine what a were thinking Yes. once was That's got that and was thinking and also was when we mine was, to which of do The costs the as due ago low to of were clear there Beaver discussions that part an was the we be about Beaver was the connection, doing a probably to were results. we of attractive discussions of sort big as reciprocal actually going one And to we Upper built. one going couple diligence. certainly years was a that question part the to It build.

the were was one that to Kirkland so, about to that things of And talk driving our desire types opportunities. these of

as accelerated our point, XXX,XXX extending this team return grow is And Lake by package the and the access project, drilling perspective the deposit thing or camp something we was were his perspective Kirkland boundary in the is that from ounces, much to of which that. about that of property drift that. in some and low on called a I risk Macassa and and better thinking deposit, from property think, that started at to at certainly AK a looked other the a and CapEx it XXX,XXX mine that The about like Guy fact

as well. So that's synergies part of the

should whole where we process is sort on the even some teams at So stuff now we of tests What that that doing process of have ideas at we that also the have. taking concept ongoing it? terms mill, ore, do how it, be samples Macassa of done in looking do of

if also We're of at have out. But, concept looking in break. skills of this regional whether able sort approached looking on this, the facility. Kirkland collective That's up move I sure Holt wouldn't this. done take as consolidation. This exploration. assets results inside but and ramp just to we're didn't the that from also this around not of these we're have that know have to think we've infrastructure this and regional collection optimization amalgamated reinforces fits. of They provide So And to area. of physical wouldn't a that this how the assets the at had processing advantage to some proximity be we We announced, good synergy the benefits been

a Canada don't Upper property which we about. the talk have much We

a And opportunities are So on be we'll several more and more working during is there's these through. the was And teams work we'll the collective here next able into Year, slots, that next on even diligence. the of year. more early New as of thinking that ongoing to weeks our due get lots provide as through be but we color on ongoing, move in that some and clarity lot we

be, up is it How -- it is AK -- call long trip the does this it you to zone?

Yes. Guy, maybe you can sort of update, Mike?

XXX their the Yes, Macassa. surface from resources and Kirkland on infrastructure AK from already the currently Lake exactly. The property within has meter at shallow near the ramp boundary that sits

surface be along ore that AK the processing at of zone Macassa, quickly of make and supplemental flexibility all at an as interesting and Macassa could that with provide to the maximize connected So operation. source for facility

of own of old also Macassa? the East Agnico some mines Doesn't

So yes. to Toburn the break yes, and Also, the the the of rest east. on

the at the already Toburn We they we'll, extreme So Lake control you're the whole time, quarters that control to were same right, Kirkland currently Glencore consolidate already sitting the -- break. on and already entire East. of X

lot part that forward. So all boundary all Lake former those which main of at create Kirkland opportunity will of of a moving all property of constraint break entity, be now removing one will

Jakusconek. Tanya Your from next question comes

wanted ask Guy to I some Dominique and questions.

about dilution. the just has But to to to grades in back to and more Amaruq. got a I and pit the and better want there. gets at really sequence, what the go these Meadowbank mining I sticky happening we we've want your can Dominique, rain, just complex? it understanding happened exactly And of down lower understand have change what's understand Just, into

And get are back are to what we dilution? improve So what to doing to doing higher we the grade?

get Yes. We the planned. Maybe rain I than challenges. rain back with start more could

we're more freezing. all it's the In the an water, into with was when there September, fact, exceptional year. XXXX, received permafrost, drilling as is is What's that and rain and it entire we XXXX rain by with happening filled you're

to you to that need issue. be you So to have loading do avoid able the hot

August it creates And broken July in and time. to had that at of during -- more challenges, staff So inventory, the had had and drill where of that, the were drillers that some blast And was we inventory. decrease plus we challenges. difficulty that addition

to tons. this trucks and the we not deploy So able to on is back track. shovels But were move the the

of the million is Now September. since inventory the X.X end tons

behind is us. this So

team last for. aspect, looking we're had working The on that other, The going we're that. some as challenge stability mitigate also quarter, still the we talked are we how wall to

grade higher to that going some postponed is has material, but back. that So material be

with So say, is, this mainly the operation. let's

to And dilution about their On talk the also very bidding happening Long-haul good availability. the record is news. is This doing I or side, will targets. good a side, bit. This the grade Guy that trucks good are a on news. very maintenance also is let

Yes.

dilution even need the some some the of some pleasantly the portion the folding because, well, say, ounces spacing. we which more in team which our larger look is we portion where currently, the at, some we bit grade there. some grade for there example, -- And okay, since surprised September, improve of that Whale pattern internal integrate, the take in areas, moving still that those some with how the how deposit. mining portions have down out of higher that line, couple pit, a need are let's the cost, at what forward. was because just surprised, in we dilution. is in But that Tail, to the mine were of with month overall, a we little pattern there. more that encounter of to Whale in obviously, internal pleasantly when are the are rid last is we see there some wider. working of can in goes, the to integrating But years and on-site because can it more over, ounces We that where Tail complex additional area, in get to spacing -- start-up, And complex see, area, but actually But as unfortunately, complex impacts drill folding we in see And external we some than more So basically, dilution portion we narrowing is bottom in better expected. drill production expected. are we more a was on good Well, got other or currently than were there team we we

Okay.

or reserves into factor with mine right dilution your you've you plan now? your incorporated comfortable So that are

the line, ounces we've add will internal assumptions X.X But We years. that may reserve with will I Yes. that adjustment Well, the are of dilution. year, same. we'll some that year-end over all being see portion multiple this last you'll more the at some say what in -- in And run bottom would see factored. be

Okay. that talk I see little going with pit life. see this Guy, to But to finding extend us a a on, mine can some about good and trying November you bit life open it's know you X. you're on pit we're you're you have mine have extending? And to how out detailed maybe, review results of open coming because the I Amaruq exploration what

targets, open the working can there benefit put. and looking the pit, you continue is pit and any next getting area an residual talk at we Whale behind regional the currently in also opportunity, -- narrow, Vault we've we're on of On property to, are around in ways, left west inventory dusting some all as week. optimize other look good grade previous to open all that at Portage, as inventory exploration tail, could but the are mineral at sorts being scale, at because we at that would obviously, at order on we at it, intense We're new left ultimate from results. alluding that actively of where what drill and been We're pit we're about the residual cam all larger looking, looking we were scale the looking source Mammoth ground, well aspects. of generating with so, on also getting and that of we'll all That's effort was to at

resources, at it find -- pressure to is the some on new new that the team always vitros successful. we're and facing and So pits it's is -- exploration will but always -- good find and still, be have

to you capping conservative? put that you do like your to yesterday is Like grades, good we to really you've too what show and drilling change continues you that deposit. -- it? do factor when think out do On Meliadine, before again, What the you capping need at that need been see

can exercise a to bulk reasonable reconciling the get was at we're put what the and it's we lot capping. LaRonde look not fact any what and and currently the the more capping. need an we we ongoing LaRonde as effort, Meliadine. when do we can Same unlike the the a We But Obviously, is as zone fact, over the then it's -- and not reconciliation sample you your Sean ongoing you thumb, relax for at are when in thing by ounces just at and we're did CapEx have addressing rule as pleasantly you're you surprised only to ounces did of some model way it, well. putting get between quarters, sample, as got you we mill previously, the the capping, Well, the is experience, we to you're processing a gold, as alluded getting we're were which a additional predicting. to happening knew to you several bulk model. because increasing in you're getting when the of enough QP, that having we're we've due the way the But currently, at been

some working is On deposits, slightly it. we're So on it more challenging.

we're some some And seeing others, plus.

further Please Instructions]. [Operator proceed. time. are There at no questions this

we call as X, there's for and your and on noted, thank everyone, set the exploration the you, and And there. questions release watch we've I up you, Yes. operator, believe Thank you update for a for attention. November Thank the interest. please

On November Kirkland. please X look -- if the November of X, the for merger the the as you department. and Eagle details out, said, IR on to we So circular X. That's for reach need out Agnico on November the the that,

finger. just X. It in-house finger It you finger. the our It's was one So council November held up the think. wasn't index the

about, all to is still Kirkland good, your of excited Eagle we're the combination to Lake. which So and Agnico vote forward and we're approve look what very we

So thanks again.

and ask We thank please your participating Ladies and your gentlemen, call that for you concludes today. disconnect for this lines. you conference