Good morning. My name is Caryll and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Second Quarter Results 2017 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, we'll have a question-and-answer session. [Operator instructions] Thank you. Mr. Sean Boyd, you may begin your conference.

Thank you, operator and good morning everyone and thank you for joining our second quarter 2017 conference call. We know it's a busy morning. So we appreciate your attention. We're going to run through our Slide deck and before doing that, I'd just like to let everybody know that they should read the legal description of the forward-looking statements in the document. There is two pages now. We have two in our accounts now so we get two pages of warnings about forward-looking information. Jumping right into quarter, we had strong operating financial performance. We had an excellent safety performance. Our growth projects continue to advance extremely well. We'll get into the details on that. They're on schedule and they're on budget. We had some really good exploration results that have extended the non-mineralization at our key development projects and our producing mine. So very good quarter across the Board. From an operating perspective, the mines continue to perform well in terms of production and cost performance as a result of that and we have increased our full-year production guidance to 1.62 million ounces and we've lowered our total cost guidance to $595 an ounce. We got very good performance at all of our mines, but of particular note, was the Meadowbank production where we are encountering higher grades than expected and also at Canadian Malartic, which had record mill throughput at good grades, which drove record production at mine. As we mentioned, our development projects are moving forward very well at Meliadine. We've got off to a good start in terms of the barge season and the barge delivery, which is a good sign because the objective there this year is to get the key buildings enclosed before the winter sets in so that we can continue working at…

[Operator Instructions] And our first question today comes from Stephen Walker from RBC Capital Markets. Please go ahead.

Sean just a question on the balance sheet if I might. You've raised 220 million in equity in the first quarter. You’ve added 300 million in debt here at $1,250 gold better you are at $1,200 gold do you feel that you now have adequate capital and balance street long enough including cash flow from operations to finish the year development program at Amaruq and at Meliadine and I guess begin of development that's anticipated at Kittila. But a give a sense on your strength to the balance sheet?

Yes, the answer is yes and part of that recent debt deal was to refinance the payment that we made in April of $115 million for the market. From an interest rate perspective and a term perspective, we’re so strong and the demand was so strong. We put a little bit more flexibility into the balance sheet and we're in good shape even if as we look out at potential to expand at Kittila and cover the capital as required of that - for that project.

And just in a similar line of questioning, Sean either you or Ammar, just the hedging that was done in the currency, three principal currencies. You obviously filled in some of the - about a third of the required CAD, peso and euro this year. Can you talk a little bit about what the longer-term strategy will be as far as hedging currencies into the remainder of this year and 2018?

Dave, Smith is on the line, he can help you with that. I don’t think the strategy changes here. We’re opportunistic as we move forward when we certainly look for opportunities to add to that position. But Dave, I know you are on the line here.

We're actually hedged about 20% on our CAD exposure already for 2018. We've got some euro, some peso and some diesel done into 2018 as well. So, we feel very confident that we’re in a good position to deliver on what we said we’re going to do especially in terms of the cost profile and the CapEx. So, it’s not something that we’re particularly worried about, but we’re absolutely monitoring the situation and hopefully we’ll get the opportunity to enhance those positions as time goes by.

[Operator Instructions] Our next question comes from David Haughton from CIBC. Please go ahead.

Got questions on three assets if you don't mind. Firstly at Meadowbank, nice to see the grades coming through, and I am just wondering are those grades beyond what you modeled in the reserve or is it just a matter of sequencing of what you already have?

I think, there is some uncertainty when we did the budget with some of the grade in the port V Zone. It’s turning out as planned and what’s been surprise here is that the - we’re getting more tonnage in that area. So it’s facility that better mine and grade sequence in the third quarter.

And I guess the consequence of that is as Sean had mentioned. It looks like you will be mining into 2019 and that gap is closing?

Well, positive reconciliation, and the times is opening a window for us, the process for the tonnage into the brand and minimize the gap.

Over to Kittila, if you don’t mind. Sustained throughput continues to be above the 4,500 tons a day which at one stage seemed so far away to achieve. You are now doing that easily. What should we be thinking about for the balance of the year?

I think you will be running at the same rate, roughly for the rest of the year. Again, as we continue to work on the studies in the line project towards 2 million tons per year. We are sort of continually engineering, but we also did some derisking work in the quarter and processed bit more tonnage with the plant that, what would be future capacity. So you’re seeing some of that impact during the third quarter. But as far as the mine is concerned and the mill is concerned for the rest of the year, we pretty see what the production was in the first half of the year.

Okay. I will touch that through for the balance of the year then. Finally, over to your satellite project at Goldex. I am struggling with the pronunciation of it, Akasaba. Wonder if you could give us some idea about the parameters that you got there because there is a combination of gold and copper. So wondering what your thinking is as to how that might get developed?

We are running it with the some delays with the permitting with both the provincial and federal authorities. Probably that are going to extend towards the year. We’re also looking how we’re going to be adapting the ramp up of that project. But presently we're thinking about mining over a four or five year period and introducing about 2,000 tons a day in the current plant. We are essentially adding about 20,000, 25,000 ounces per year, and basically bringing in copper credits that will reduce the overall cash cost.

So, just trying to answer that, conventional floatation then taking that corner over to LaRonde for processing?

Correct, and as the permitting delays evolve we will probably look at the sequencing rate of the Deep 1 versus [indiscernible] later as we got that flexibility now if you to do that and maintain guidance going forward.

[Operator Instructions] Our next question comes from Steven Butler from GMP Securities. Please go ahead.

Well guys, your latest and greatest invention might be in Rail-Veyor, not your invention, excuse me. But is that now operationally, set us operational expecting the third quarter. I guess we may see that in early September, when we’re at say towards at operating yet?

That's correct. You’ll see the system and operation. We commissioned the six trains with ore back in June. So things are progressing very well. Presently we mind the first half which was essentially attract, while we were commissioning the exercise. But as we continue the development in the model portion of the mine and the future strokes are mined out, we’re going to be bringing the new order through the new system.

We have no further questions in queue at this time. I’ll turn the call back to Mr. Boyd, for closing remarks.

Thank you, Operator, and thank you everyone for tuning in and participating in our Q2 2017 conference call. Hope to see a number of you on our marketing and possibly on our site visit to Quebec and Nunavut in September. Thanks again.

This concludes today's conference call. You may now disconnect.