Good morning, my name is Kim, and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Second Quarter Results 2018 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] 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 2018 conference call. We'll be going through a series of slide and I just like to make you aware that there will be forward-looking statements in the presentation. So there is some disclosure on that in the slide deck. Just to get a set sort of on our thinking, our mindset where we are mid-year 2018 in this transition year as we transition from mining the deposits in the vicinity of metal back and moving to a much larger and broader platform in Nunavut. We remained focused on adding value through the growth in our production base largely in Nunavut, while keeping the risks in our business low. Specifically, we remained focused on the execution of the Nunavut growth plan moving those projects forward. And we also remained focused on exploring our existing assets near and around our main deposits to grow our reserves in our resource base and also focus on the project pipeline that we expect to come in post building out the Nunavut platform. But if we look at the operations, we continue to see operations that in a transition year are performing well from a production point of view. As a result, we've increased our full year guidance. Our gold reserves and our resources we expect them to continue to grow this year based on the exploration results that we're getting in and around our existing mines which are showing extension outside of currently known mineralization. Those expanding reserves and resources will support the production growth that we will see over the next several years. We're on track to hit our target of 2 million ounces in 2020 and we'll talk about that. And that's important because that will drive our…

[Operator Instructions] Your first question comes from David Houghton from CIBC. Your line is open.

Hi, Sean. Thank you very much for the update. It’s very good to see the rates exceeding the 55,000 tons a day, what should we be thinking about as a sustainable throughput at that operation?

To take the 56,000 is pretty good number to focus on at this stage going forward.

Okay. And to set alter in any way when it comes on?

Perhaps, yeah, this is been defined as to be potentially softer and by not only developing them but the opportunity that have perhaps in that area to maintain that throughput rate.

Okay. Excellent. Over to LaRonde, the gold rate and particularly the zinc rate was ahead of expectation, what should we be looking at for the remainder of the year do you think?

Pretty similar to what you saw in the second quarter. We continue to mine some zinc ore from the upper portion of the mine which will continue throughout the rest of the year. As we continue western pyramid grades profile that seen will pursue.

Okay. And the throughput right there, should we be thinking similar to what we had in Q2 which is a little bit dip compared to recent quarters?

Yeah, well we have a one week shutdown. We had a maintenance shutdown and unplanned long haul shutdown in the quarter, so they shift model on Q1 rates.

Okay. All right. And last question for me over to Kittila. Still mining and processing below a reserve grade of 4.2 grams. What should we be thinking about for the grade there and when would we expect for the grade to move into the 4 plus kind of category?

Well we’ve had some development delays mostly in the rural area. We admire grades stokes that two or three higher grade stokes in the sequence that we supposed to be mine in Q2 and Q3 that have been basically delayed to Q4 and Q1 in next year. I think you should be modeling the guidance grade for the year as started in Q4.

Thank you. That’s fantastic.

[Operator Instructions] Your next question comes from Stephen Walker from RBC Capital Markets. Your line is open.

Just a follow-up to David’s question excuse me, Zone 5, I know historically when lack in Barrick were mining, there was significant positive reconciliation are at times there was good positive reconciliation. Are you seeing evidence of that I know it’s relatively modest production in 2019 but are the grades holding up as expected?

Yeah, so far the great same on target. We’ve seen some periods were grades have little bit exceeded our expectation, recovery is strictly exceeded our expectation at this stage. So far pretty well everything is on production models.

Thanks for that. And Sean, just to step back, talking about free cash flow and I think we’ve all got that modeled into our forecasts 2019, 2020. With respect to returning capital to shareholders in 2013, there was dividends of $0.88 of share and clearly that declined has gold price declined you kind of back up to $0.44 a share, I realize it’s a board decision as to what the return of capital may be in future periods. But do you have any view that you’d like to target the dividend and at what point we could kind of get back up to $0.88 or possibly above that level on an annual basis?

That’s clearly gold price dependent, but I think if we look at the history here 35 years of paying a dividend consistently even after 2013 not eliminating it, reducing it but then – since it was reduced we’ve moved it up each of the last two years all be at small but we still did move it up sort of signaling confidence in the plan to grow production and grow cash flow. So it’s certainly a focus of the board, certainly a focus of the team when we’re looking at capital allocation. If you ask us, we never really sort of have the specific miracle goals that if we don’t sort of get there we feel that, it’s been a bust. But I would say that one number that we certainly all like to get back up to a beat is that $0.88 a share. So that we keep that in mind as we look at our budgeting, as we look at capital allocation to the pipeline. I think that’s one of the things about how the pipeline which ties in a bit to this question is that we’re spending a lot of time prioritizing the pipeline. We do have the permit Akasaba that doesn’t mean we’re going to rush and start to building, because we’re doing our budget and we have an envelope in mind on capital that we want to spend for next year and the year after. So that’s got to fit in and the dividend would sort of play into that concept of return to shareholders would play into that discussion. So we’re hoping that it can trend up, we feel confident it can based on where the business is headed but the gold price will be a determinant of that.

Thank you very much. Sean, that’s very helpful.

[Operator Instructions] Your next question comes from Carey MacRury from Canaccord Genuity. Your line is open.

Hi, good morning. Sean, you mentioned some of the exploration that’s happening underground, I’m just wondering if you could touch on exploration from an open pit perspective, is there any confidence that you’re build increase reserves or resources from an open bid for this year.

Yes, as speaking and already have a rigs on this side and we have a good results on western part of D Zone, and depending on the design what is economic could be new answers coming from that deposit could increase in the future, but we have a good number right now.

Okay. Great. And I’m just wondering on the workforces Meadowbank kind of wind down and [indiscernible] gramps up, is it more or less the same workforce, further changes going to be happening there?

The workforce that is at Meadowbank will essentially be the same although there has been some transfer from Meadowbank commodity. So that’s proceeding as planned. On the margin recruitment side that we are following the finest and we are staffing both the mill and the pit and the underground mine operations stuff and service and so far we’re tracking very well and getting all crew on board.

And you also mention the stockpile, how big is stockpile do you think you’d have before you start up down there in terms of months of production or weeks?

Well, at this stage by the end of January, you could be in a position to have the about 200,000 tons of hybrid stockpiles.

What sort of grade?

Around 7 or 8 grams.

Okay. Great. Thank you very much.

There are no further questions at this time. I turn the call back over to Mr. Boyd.

Thank you, operator, and thank you everyone for joining us on the conference call. We would like to remind you that we do have a site visit planned to Meliadine 2018 September 6, that’s a one full day, leave early in the morning from Toronto and return that evening. So that’s an opportune time to come up and see the progress that we’re making and we’ll make through the summer as we offload the barges and get some of the key components installed in the processing facility and the power plant. So thanks again. If there is an interest contact, Brian or Ria or Melissa and we’d be happy to have you join us. Thanks again.

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