Oct 29, 2026 earnings call — Major update on growth projects and production plan
Management plans to grow production by 20%-30% over the next decade and to above 4 million ounces per year starting in the early to mid-2030s.
Revenue $3.5B (est $3.5B) · EPS $2.61 (est $2.47)
Key quotes
"Together, our four largest projects, Detour Underground, filling the mill at Malartic, building Hope Bay, and building Upper Beaver, are forecast to contribute an additional 1.3 million to 1.5 million ounces per year of long life, high margin ounces by the mid-2030s."
"Total cash costs in the third quarter were $1,133 per ounce, and all-in sustaining costs were $1,648 per ounce."
"We had another very strong quarter in terms of drilling, safely completing more than 330 kilometers of diamond drilling with more than 120 rig for year-to-date total of 1.1 million meters."
Analyst Q&A 8
labor costs and Malartic production
Q (Fahad Tariq · Jefferies): Analyst asked about labor cost inflation for 2027 and whether Malartic's first shaft could make up lost Barnat ounces next year.
A: Management said they are not seeing material increases in labor costs now but are focused on availability and are investing to keep their workforce competitive. On Malartic, they do not see any concrete production makeup for the lost Barnat ounces at this stage.
"We're not seeing, at this point, material increases in labor costs." — Ammar Al-Joundi
Meadowbank lower grades and cost drivers
Q (Richard Garchitorena · Barclays): Analyst asked what caused lower grades and mill throughput at Meadowbank and whether that is reflected in 2027 guidance. He also asked about consumable cost pressures and the $5 per ounce U.S. tariff impact.
A: Management said the lower grades are localized to a specific area in the IVR pit where the model does not match observations, and it does not affect the underground or Whale Tail pit. They said the disclosed $5 an ounce is the impact of the tariffs on Q4 costs and that it could increase if there is no trade deal; diesel is the biggest cost pressure and has driven significant per-ounce impacts.
"The impact that we disclosed $5 an ounce is the impact of the tariffs on our Q4 costs." — Jamie Porter (CFO)
reserve additions and cash returns
Q (Bennett Moore · JPMorgan): Analyst asked which assets are driving reserve/resource replenishment and whether the target to return over 50% of free cash flow will extend into 2027.
A: Management said they expect reserve and resource additions at Malartic and Detour, an update at Hope Bay at year-end, and positive replacements at Meliadine, Kittilä and Macassa. On returns, they have returned 51% year-to-date and think 50% is a reasonable threshold for 2027, but final decisions will follow budgeting and board discussions and will depend on the gold price.
"I think 50% is a reasonable threshold, looking ahead to 2027." — Jamie Porter (CFO)
Detour studies and maintenance impact
Q (Lawson Winder · BofA): Analyst asked if Detour upside could make 2028 guidance stale and whether early mid-2027 study results would be included in the three-year guidance. He also asked if Q4 maintenance helps 2027 production.
A: Management said they are working on budgets and studies; a team is assessing whether incremental underground production could be brought in as early as 2028 and a larger evaluation will follow, with updates likely in 2027. They said early study results will not be factored into the February three-year guidance, and the Q4 shutdown is preventive maintenance brought forward and should still allow them to meet production guidance.
"No. It's still very early stages on that, Lawson." — Natasha Vaz
Investor Day goals and liquidity
Q (Matthew Murphy · BMO): Analyst asked what studies or concrete plans will be shown (e.g., Malartic shaft, Detour mine plan) and why management increased the credit facility and shelf prospectus.
A: Management said Investor Day will show project progress and highlight additional ideas; they want owners to know projects are going well. On liquidity, they upsized the facility to right-size liquidity on attractive terms as capital spending is increasing (they said capital spending is north of $3 billion this year) and they have a defensive balance sheet to fund growth from operating cash flow.
"Yeah, I'd say it's really just right-sizing our overall liquidity." — Jamie Porter (CFO)
justifying large project spending
Q (John Tumazos · John Tumazos Very Independent): Analyst compared large CapEx at Hope Bay and Lapland to other companies and asked if that spending is justified by higher production or returns.
A: Management said it's not constructive to focus on others and instead they evaluate projects on returns. They will proceed with projects that deliver between 25% and 60% return on capital and are happy to pursue those opportunities.
"If we can build projects making somewhere between 25% and 60% return on capital, we will do them till the cows come home." — Ammar Al-Joundi
cost outlook and hiring plans
Q (Tanya Jakusconek · Scotiabank): Analyst asked whether the exit 2026 cost rate plus 5% inflation is a good base for 2027, and asked for the labor requirements and hiring plans for new and expanding mines.
A: Management said they will not commit to a percentage until budgets are final, that diesel is the biggest unknown and that 5%-6% is a reasonable assumption but not a formal guidance. They said recruitment is centralized, they have hired over 800 employees in some years, housing is a challenge they are addressing, Hope Bay hiring is progressing well with camps of about 800 or 900 beds, Upper Beaver has about 700 people, and they are using targeted immigration, training programs and other initiatives to build the workforce.
"We're utilizing that strategy for the short term at Macassa." — Natasha Vaz
reserve/resource pricing and cut-off grade
Q (Anita Soni · CIBC World Markets): Analyst asked what reserve/resource pricing assumptions might be for next year.
A: Management said they are finalizing their view while taking inflation into account, and their objective is to keep the cut-off grade stable. They said any changes will not drive the cut-off grade lower and will affect what they plan to mine in the next few years.
"Our objective remains the same, to keep the cut-off grade stable." — Yves