Agnico Eagle Mines Ltd. 2026 Q3 Earnings Call

Thank you, operator. Good morning, and thank all of you for joining our Agnico Eagle third quarter 2026 conference call. Before we begin, I'd like to remind everyone that we will 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. Next slide, please. My team and I are pleased to report another solid operating quarter. Gold production of 814,000 ounces came in at the midpoint of our adjusted production guidance for the quarter, and cash costs of $1,133 came in 1% above the top end of our cost guidance. This is no small accomplishment in a quarter where oil is $100 a barrel, where the price of diesel is almost double, than where trade, tariffs, and war are challenging established supply chains and logistics.

Importantly, even in this difficult environment, we remain on track to deliver our full year 2026 production and cost guidance, albeit at the lower end and the upper end of production and costs, respectively. I'm proud of and thankful to our teams for continuing to deliver what Agnico Eagle is best known for. That's reliable, consistent results, even in challenging times. This quarter, we delivered solid gold production and solid cost control. When combined with gold prices averaging about $4,300 an ounce, these solid operational results have, as you would expect, allowed us to deliver another quarter of strong cash flows and strong shareholder returns.

That said, with results largely in line with expectations and with no big surprises, this morning, we wanted to spend less time talking about this past quarter, and we want to spend more time talking about the substantial and important value drivers of our business going forward. One of the key differentiators of Agnico Eagle over the past 20-plus years has been our growth, and in particular, our growth per share. This morning, we want to talk about how we plan to continue this growth with our actions and our investments. These are actions and investments which are happening now, aimed at growing production by 20%-30% over the next decade and to above 4 million ounces per year, starting in the early to mid-2030s. This morning, we want to focus on that growth.

I've asked Dom and Natasha to briefly recap the quarterly operating performance, but to spend more time detailing some of the concrete progress we continue to make, moving forward some of these key growth projects. Together, our four largest projects, Detour Underground, filling the mill at Malartic, building Hope Bay, and building Upper Beaver, are forecast to contribute an additional 1.3 million to 1.5 million ounces per year of long life, high margin ounces by the mid-2030s. All in jurisdictions where we've been operating for decades with teams in place and in most cases, leveraging off existing infrastructure. Again, this is not about growth for the sake of growth. This is about highly profitable growth per share with not only the best returns in the business, but with the best risk-adjusted returns in the business.

Some of you on the line have suggested that 1.3 million to 1.5 million ounces of additional growth production by the mid-2030s is an ambitious growth plan. It is. Yes, building mines and expanding production is not easy, but these are very good projects with exceptional returns, and we are well past the planning stage. We are actively investing in making this happen right now. While there is a way to go, progress so far is good, very good, and you'll get a feel for that when Dom and Natasha present their sections this morning. As we see exceptional opportunities for profitable growth beyond these projects, Guy and his team, who continue to deliver quarter after quarter some of the best exploration results in the business, continue to do so. Again, best return on capital, best risk-adjusted return on capital.

Guy will talk a little bit more about some of these exciting drill results a little later. Before we get into all of that, Jamie will briefly review another quarter of strong financial results, another quarter of strengthening the balance sheet and increasing returns to our shareholders, and another quarter of investing capital into the best growth pipeline we've ever had and to what we believe, as Jamie likes to say, at these gold prices, we can do it all.

Jamie? Thank you, Ammar, and good morning, everyone.

The third quarter again demonstrated the quality, consistency, and resilience of our business. We delivered solid operational results and cost control, generating free cash flow of $852 million. Gold production totaled 814,000 ounces for the quarter and was in line with our forecast.

With year-to-date production of approximately 2.5 million ounces, we are well-positioned to achieve the lower end of our full-year production guidance. Our operational performance resulted in strong quarterly financial results, including adjusted net income of approximately $1.3 billion or $2.62 per share and adjusted EBITDA of approximately $2.5 billion. Total cash costs in the third quarter were $1,133 per ounce, and all-in sustaining costs were $1,648 per ounce. Year-to-date costs remain within our full-year guidance range, and we continue to expect full-year costs to finish within the upper end of our guidance range, despite industry-wide inflationary pressures, which reflects our strong cost discipline across our operations. During the quarter, elevated diesel prices increased total cash costs by more than $30 per ounce relative to budget.

While we are not immune to higher fuel costs, our exposure is significantly lower than the industry average, given our access to grid power in Ontario and Quebec and our predominantly underground mining portfolio, which is less diesel-intensive than open pit operations. Diesel currently represents approximately 11% of our operating costs. As we look ahead, our teams remain focused on productivity, operational optimization, and disciplined cost management to help offset external cost pressures. Together with the quality of our asset portfolio and strong operational execution, this focus continues to support strong margins and cash flow generation. We turn to slide 5. Our capital allocation strategy remains disciplined and balanced, with a clear focus on investing in high-return growth projects, maintaining financial strength, and providing strong returns to shareholders. Ultimately, our job is to make money for our shareholders, and that principle remains at the center of how we allocate capital.

We continue to make tangible progress across our key value drivers at Detour Lake, Odyssey, Hope Bay, and Upper Beaver, with approximately $1.6 billion invested in development capital year to date to advance these high-return growth projects. As the CFO of Agnico Eagle, I recognize that we are investing a record amount of our owners' capital into our growth pipeline. But I am confident that this is the right thing to do given the quality of our growth pipeline and the potential for these projects to generate strong long-term returns for shareholders. At current spot prices, these projects are expected to generate returns of approximately 25%-50% while supporting our anticipated production growth of 20%-30% beginning in the early 2030s. Importantly, we have the financial strength to fund this growth, and we believe this growth will translate into meaningful long-term value on a per-share basis.

With a net cash position of approximately $3.4 billion at September 30, our balance sheet provides us with the flexibility to advance our high-return project pipeline while continuing to return capital to shareholders. This quarter, strong free cash flow generation supported total shareholder returns of approximately $478 million in dividends and share repurchases, representing about 56% of free cash flow. This brings year-to-date shareholder returns to 51% of free cash flow above our initial target of 40%. Our priority remains on delivering a stable dividend and reinvesting in the business while using share buybacks opportunistically when market conditions are attractive. At current spot gold prices and subject to the needs of the business, we now expect to return more than 50% of free cash flow to shareholders for the full year 2026. We take particular pride in our dividend track record, having paid a dividend for 43 consecutive years.

Since 1983, Agnico Eagle has returned over $7 billion to shareholders through dividends and share repurchases. We are proud of this track record. We remain committed to disciplined, balanced capital allocation, with investments focused on generating sustainable long-term value on a per-share basis. With that, I will turn the call over to Dom.