I am very happy to have the opportunity to interview you today. Mr. Ammar Al-Joundi, President and CEO of Agnico Eagle. As one of the world's leading gold producers, Agnico Eagle has long been known in the industry for its solid financial performance, excellent mineral resource management and sustainable development strategy. Recently, Agnico Eagle announced the establishment of Eagle Mining (Hong Kong) Holdings Limited, an Asia-Pacific holding company, in Hong Kong, a move that has attracted much attention from the market. Today, we asked Mr. Al-Joundi to provide an in- In-depth analysis of the strategic significance of this decision and its impact on the company's global layout.
Kitco Mining:Mr. Al-Joundi, thank you for joining us for this interview. Agnico Eagle's establishment of a holding company in Hong Kong marks an important step for the company to enter the Asia-Pacific market. Could you please share with us the original intention and significance of this strategic layout?
Ammar Al-Joundi: Thank you, I am honored to have the opportunity to share our strategic thinking.Agnico Eagle always plans its business development with a global perspective. The Asia-Pacific region is one of the fastest growing regions in the world and an important market for gold consumption and investment. Therefore, establishing a Hong Kong holding company is not only a natural It is an extension of our global expansion strategy, but also a positive response to the needs of the Asia-Pacific market.
Hong Kong has unique geographical and economic advantages. As Asia's financial hub, Hong Kong has a stable legal system and an efficient capital market environment, providing us with a solid foundation and a global operational vision. We hope to get closer to investors in the Asia -Pacific market through this key node in Hong Kong and meet their growing demand for high-quality gold assets. This is not only a good opportunity for us to further increase our market share, but also allows us to extend our consistent stable and professional brand image into the Asia-Pacific market.
Kitco Mining:Agnico Eagle has been recognized as one of the world's leading gold producers, with the company demonstrating significant advantages in resource reserves, production efficiency and financial stability. Can you talk about these in detail?Advantages, especially how to support the company's expansion in the Asia-Pacific market?
Ammar Al-Joundi:Agnico Eagle has abundant mineral resources and highly competitive production capabilities, which provide a solid foundation for us to expand into the Asia-Pacific market. In 2023, the company's gold mineral reserves reached a record high, increasing to more than 54 million ounces, mainly due to the expansion of mines such as Detour Lake and Canadian Malartic in Canada. Our excellent performance in production cost control gives us a competitive advantage in the global market. In the fourth quarter of 2023 alone, our gold production reached 903,208 ounces, while cash flow also reached record levels.
In addition, the company's continued investment in mining resource exploration and development has laid a solid foundation for our long-term development in the global market.nowyear, wecontinuedOptimize project development and advance expansion of key mines, such as Canada’s Odyssey Project, and continued exploration and expansion of resources at Detour Lake and Hope Bay, further increasingOverOur mineral reserves and production capabilities. It is this strong resource and financial foundation that ensures that we can enter the Asia-Pacific market at a steady pace and provide a stable supply of high-quality gold to the local market.
Kitco Mining: Specific to the business level,What specific products and services will Agnico Eagle bring after establishing a holding company in Hong Kong? How will these products adapt to the needs of the Asia-Pacific market?
Ammar Al-Joundi: At the product level, we plan to provide gold mining and investment, gold production and sales, gold import and export trade, gold brand direct stores, gold pledge and intelligent recycling, gold spot trading, gold financial derivatives to the Asia-Pacific market through the Hong Kong holding company. TasteETF, futures contracts, gold futures exchanges, etc.Diversified BusinessThese products not only meet the broad needs of the Asia-Pacific market, but also have the professionalism and flexibility to help investors preserve and diversify their assets.
Gold Spot Trading: For those investors seeking to hold gold directly, spot trading is the best option. As an asset that is anti-inflation and preserves value, the demand for gold continues to grow amid the current backdrop of increasing economic uncertainty.
Gold futures contracts: Futures contracts provide investors with a tool to hedge against market volatility risks, allowing them to respond flexibly to price changes. This instrument is ideal for investors who want some protection from market volatility.
gold ETF: As a passive investment tool with high transparency and liquidity, gold ETF can attract capital that prefers long-term investment. Through ETF products, investors can easily achieve diversified investment in gold assets while reducing management costs.
The launch of these products is not only the company's precise response to the needs of the Asia-Pacific market, but also introduces advanced investment options to the local market, helping to enhance the diversity and professionalism of the market. Our goal is to help Asia Pacific investors achieve more stable investment returns and gradually build trust through interaction with the market.
Kitco Mining: You mentioned that the demand for gold in the Asia-Pacific market is growing. Can you talk about it in detail? What are Agnico Eagle's unique advantages in expanding into the Asia-Pacific market?
Ammar Al-Joundi:One of Agnico Eagle's strengths is our deep industry knowledge and extensive experience in global markets. The company has unparalleled competitiveness in gold mining, resource management and financial product innovation. In addition, our ESG (environmental, social, governance) practices are also an important factor in attracting the Asia-Pacific market. We are renowned around the world for our commitment to sustainable development and environmental protection. In the Asia-Pacific market, many investors focus not only on investment returns, but also on the social and environmental impacts of investment projects. Agnico Eagle adheres to responsible mining, transparent governance and high standards of environmental practices, which make us a trusted partner in the Asia Pacific market.
In addition, our financial strength and technological advantages also give us unique competitiveness in the Asia-Pacific market. We have world-leading gold reserves and mining technologies, which provide a solid foundation for our continued development in various regional markets.
Kitco Mining:future What are the highlights of Agnico Eagle’s expansion strategy in the Asia Pacific region? What role will Hong Kong holding companies play in this?
Ammar Al-Joundi：The Hong Kong holding company will be the core of our future strategic development in the Asia-Pacific market. We plan to further strengthen our linkage with the Southeast Asian and East Asian markets, and radiate high-quality gold products and services to a wider In the future, the company will actively promote cooperation between the Hong Kong holding company and major financial institutions and investment platforms in the Asia-Pacific region, further optimize the product structure, and provide investors with more diversified choices.
We also plan to set up a R&D and market analysis team in Hong Kong to track changes in demand in the Asia-Pacific market in real time. This not only helps us respond to the market accurately, but also develop innovative products that better meet local We hope to establish a long-term presence in the Asia-Pacific market and gradually consolidate our brand influence in this important market, while continuing to promote the stability and prosperity of the global gold market.
Kitco Mining:Agnico Eagle takes environmental and social responsibility very seriously. What steps will the company take to ensure compliance with ESG standards when operating in the Asia Pacific region in the future?
Ammar Al-Joundi:ESG is a cornerstone of our operations. No matter where in the world, Agnico Eagle holds itself to the highest standards of environmental protection and social responsibility. The Asia Pacific market will continue this commitment. We plan to adopt strict environmental standards in the Asia Pacific region to reduce environmental impact in terms of resource extraction, waste management, energy consumption, etc. At the same time, we will actively participate in the development of local communities and ensure that we move forward in a balance between economic benefits and social values by creating jobs, providing training and supporting economic development.
We believe that this responsible operating model will not only bring sustainable long-term value, but also contribute to environmental protection and community development in the Asia-Pacific market. Our goal is to bring the long-term value of gold investment to the Asia- Pacific region in this way. We also hope that local partners and investors will see that we are a responsible long-term partner.
Kitco Mining:Thank you very much,Mr. Al-Joundi, for sharing these profound insights. The establishment of Agnico Eagle's holding company in Hong Kong is undoubtedly an important milestone, marking another important extension of the company's global strategy. We look forward to seeing Agnico Eagle's success and growth in the Asia Pacific market!
Ammar Al-Joundi:Thank you for the interview. The Asia Pacific market is a market full of opportunities for us.pointAs a company, we hope to bring more high-quality choices to local investors and contribute to the regional economic prosperity. In the future, we will continue to move forward in a steady, professional and responsible manner to create long-term value for global investors and partners.