'We have probably the best track record in the industry for meeting our guidance': Agnico Eagle CEO

Agnico Eagle: Business and Operating Highlights

Cost control and guidance

CEO Ammar Al-Joundi said quarterly costs were 1% above forecast, but the company reaffirmed its full-year production and cost forecasts. The interview noted that annual expenses were expected to be at the high end of guidance.

Diesel was identified as the main source of cost pressure. Al-Joundi cited oil at about $100 and diesel prices that had doubled, alongside the effects of war, tariffs, and trade tensions.

Agnico says it is less reliant on diesel than many competitors because many of its operations in northern Ontario and Quebec use hydropower or nuclear power. Its mine mix also has a somewhat higher share of underground mines than open-pit mines.

Al-Joundi emphasized the company’s record of following its plans and meeting forecasts, supported by operations in jurisdictions he described as safe.

Growth projects and milestones

The company is building mines it expects to contribute 20–30% growth over the next decade. Al-Joundi also described its project growth profile as reaching up to 1.5 million ounces per year for decades.

• Barnat: Production is expected to decline by about 150,000 ounces over two years, or roughly 300,000 ounces cumulatively. Al-Joundi said this reflects the depletion of a deposit that was expected to be exhausted in about two years.
• Odyssey / Canadian Malartic: The project was reported to be about four months ahead of schedule and is expected to be operational in early 2027. Planned capacity is about 19,000 tonnes per day. Al-Joundi said this would make it Canada’s largest underground gold mine and one of the world’s largest.
• Hope Bay: Construction began during the year and was described as slightly ahead of schedule. The project was about 75% through detailed design and 13% through construction, with planned annual production of 400,000–450,000 ounces for decades. A successful barge season was an important early milestone; moving supplies by barge was said to cost about one-hundredth as much as air freight. Agnico also signed a long-term agreement with the Kitikmeot Inuit Association, valid through 2056 and covering the belt.

Operational playbooks and management practices

Al-Joundi said Hope Bay had reached 75% detailed design before construction, compared with about 25% at many mine projects. He presented this as evidence of the company’s emphasis on completing substantial work before investing shareholder capital.

Other practices highlighted included planning logistics around cost, such as using barges instead of air transport at remote sites wherever possible; balancing planned project growth against known resource depletion at Barnat; and building long-term local partnerships, including the agreement with the Kitikmeot Inuit Association.

Additional metrics cited

• Quarterly costs: 1% above forecast; full-year production and cost forecasts reaffirmed.
• Barnat: Expected decline of 150,000 ounces over two years, or about 300,000 ounces cumulatively.
• Odyssey: 19,000 tonnes per day; about four months ahead of schedule; expected to be operational in early 2027.
• Hope Bay: 75% detailed design; 13% construction; planned annual production of 400,000–450,000 ounces.
• Cash expenses: $1,133 for the previous quarter. Al-Joundi said gold sold in the quarter for about $4,300 and that costs were $13 above projections. The subtitles do not specify the units for these figures.

Presenters and source

Ammar Al-Joundi, CEO of Agnico Eagle; interviewer Lindsay (surname not stated); BNN Bloomberg.