Agnico Eagle Mines (AEM) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 28, 2022 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Second Quarter Results 2022 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. [Operator Instructions]

Mr. Ammar Al-Joundi, you may begin your conference.

Ammar Al-Joundi

Thank you, and good morning, everyone. And welcome to the Agnico Eagle Mines second quarter conference call.

I'd like to start this call by thanking all of our employees for a strong quarter. When we have a strong quarter, and this is a strong quarter, persons like myself and my colleagues, the executives here, we have the pleasure to get to speak about it, but we are well aware that there's a lot of hard work that goes into this by the thousands of employees at the mines, at the communities, at the support positions, at the rock face, who are really working hard day in, day out as a team to deliver these results. So, we wanted to acknowledge that and thank everyone.

On page 5, first, I'll say there are some forward-looking statements that we should acknowledge, and everyone should acknowledge. With that said, as I move to page 5, we talk about the key takeaways this quarter, and the obvious headline key takeaway is the very strong operating results. Record quarterly production, excellent cost control, especially important in this inflationary environment, which naturally will lead to strong earnings and in this case, record cash flows. And we'll talk about the operating results and what the team has been able to do, and importantly, do it -- perhaps most importantly, in a safe manner and in environmentally friendly and responsible manner.

But, I think the real message of today, the real story of the past quarter, and I think the real story for Agnico Eagle over the next several years is the exciting and significant progress on our development projects and our exploration results. And I say that because while we are performing on all cylinders on the operations, our development projects and exploration results really reflect the future of the Company, the next 5 years, the next 10 years. And I might say in the case of Detour, outpassed the next 30 years, which is quite impressive. Detour Lake, we've provided a technical update, we’ll get into that. That'll be a key part of today's discussion, but a 38% in mineral reserves and extending the mine life by 10 years.