• Regional strategy reviewed. AEM maintains a differentiated strategy to focus on specific regions that offer (1) the geological potential to deliver multiple mines over multiple decades, and (2) the political stability to be able to operate and deliver upon this. This regional focus, in particular in the Abitibi, has enabled the company to deliver more consistency in its business and better financial returns. By being the partner of choice in its regions, AEM boasts half the turnover of its peers, which has yielded a competitive edge via lower costs, greater operating stability, and a deeper understanding of the local landscape.
• Focused on providing leverage to gold. AEM reflected on past challenges for the sector in a rising price environment, and its motivation to offer investors leverage to higher gold prices. Rather than growth, AEM emphasized its focus on per share metrics to be able to deliver this upside at current high prices. AEM has been capable of maintaining cost stability, thereby offering high margins and high free cash flow of ~$1.5b annually today.
• Creating value through portfolio exploration and optimization. AEM reviewed key upside opportunities at cornerstone assets, where the company has heavily invested in exploration consistently over time to create value. At Malartic, a transition to underground mining would reduce plant throughput to 19ktpd from 60ktpd, and free up 40kptd of spare capacity. The company outlined the potential for the complex to produce >1moz via 600koz of underground production, a 7-8ktpd second shaft that could add 250-300koz, and 3ktpd from the Wasamac project for an additional 150-200koz. Similarly, at Detour, advancing underground mining would increase output from 700koz to >1moz.