Agnico Eagle CEO on the gold mining industry

Ammar Al-Joundi, Agnico Eagle CEO, joins ‘The Exchange’ to discuss current demand for metals, how Agnico Eagle operates its business, and more.

OUR NEXT GUEST KNOWS A THING ABOUT BOTH OF THOSE MINERALS. YOU REPORTED A BEAT ON THE TOP AND BOTTOM LINE AFTER THE BEAT YESTERDAY. CONGRATULATIONS ON THAT. BUSINESS IS GOOD THEN? >> BUSINESS IS VERY GOOD. IT’S NICE TO BE ON THE SHOW, TYLER. >> GREAT TO BE HERE.

>> WHERE ARE YOU SEEING THE GREATEST DEMAND, IS IT IN GOLD OR OTHER MINERALS OR BOTH OR ALL? >> ALL. YOU KNOW, SO GOLD IS BOTH A COMMODITY AND A CURRENCY. ON THE COMMODITY SIDE, WE ARE SEEING VERY STRONG MARKETS, AND WE EXPECT TO SEE STRONG MARKETS.

THE ONE THING I WOULD SAY, TYLER, ABOUT COMMODITIES, ESPECIALLY IMPORTANT CRITICAL METALS, IS IT’S NOT JUST WHAT YOU’RE MINING THESE DAYS, IT’S WHERE YOU’RE MINING. THIS WHOLE ISSUE OF SECURITY AND SUPPLY. THE LESS WE’VE BEEN ACCUSTOMED TO SECURITY OF SUPPLY OF ENERGY,

I THINK THE NEXT 15 OR 20 YEARS IT IS GOING TO BE EQUALLY IMPORTANT TO SECURE METAL SUPPLY. WITH REGARDS TO GOLD, WHICH TRADES AS A COMMODITY AND A KURNTY, IT’S BENEFITING FROM THE COMMODITY CYCLE BUT ALSO BENEFITING FRANKLY FROM THE CURRENCY CYCLE.

AND BY THAT, I MEAN IT IS THE ONLY HARD CURRENCY IN THE WORLD THAT’S NOT SUBJECT TO THE PRINTING PRESS. >> YEAH, IT HAS THAT ROLE AS A STORE OF VALUE. YOUR OPERATIONS ARE ACROSS THE GLOBE, CANADA, AUSTRALIA, FINLAND, MEXICO, I ASSUME SOME

IN THE UNITED STATES OR DEVELOPING THERE IN THE U.S. AND COLOMBIA. SO THAT SPEAKS TO THAT QUESTION OF SECURITY OF SUPPLY. I MEAN, IF YOU’RE RELYING ON CANADA, AUSTRALIA, MEXICO, AMONG OTHERS, FINLAND, YOU’RE LOOKING AT SECURE SUPPLY CHAINS THAT ARE NOT SUBJECT TO THREAT OR

POLITICAL INSTABILITY, ET CETERA? >> 100%, TYLER. AND LOOK, THERE’S — YOU KNOW, WE NEED TO MINE — THE WORLD NEEDS TO MINE CRITICAL RESOURCES ALL OVER, IN ALL COUNTRIES. BUT OUR VIEW IS WE ARE REGIONAL PLAYERS BASED ON THE BEST REGIONS IN THE WORLD, AND WE

DEFINE THE BEST REGIONS AS, OF COURSE YOU HAVE TO HAVE THE GEE LOGIC POTENTIAL OF MULTIPLE MINES OVER DECADES, AND YOU HAVE TO HAVE THE POLITICAL STABILITY TO BE ABLE TO MINE MULTIPLE MINES FOR MULTIPLE DECADES. IN OUR BUSINESS, YOU’RE INVESTING BILLIONS OVER DECADES,

AND YOU KNOW WHAT? ONCE YOU BUILD A MINE, YOU CAN’T MOVE IT. >> FORGIVE ME FOR NOT KNOWING THIS, I ASKED THIS QUESTION OUT OF GENUINE CURIOSITY. BECAUSE I DON’T KNOW HOW THE GOLD MINING BUSINESS WORKS. BUT WHEN YOU EXTRACT AN OUNCE OR 16 OUNCES OR 100 OUNCES OF GOLD,

DO YOU THEN REMINE IT AND THEN WHO BUYS IT FROM YOU, AND AT WHAT PRICE? WHO ARE YOU SELLING TO? >> THAT’S AN EXCELLENT QUESTION, AND I’M NOT SURE THAT THE AVERAGE PERSON KNOWS THAT. IT GETS TO THIS POINT OF IT BEING A CURRENCY.

SO WE AND OTHER MINERS, WE MINE GOLD AND WE PRODUCE SOMETHING CALLED DORI, WHICH IS A BAR, IT LOOKS LIKE GOLD BUT IT’S NOT PURE GOLD. IT MIGHT BE 50%, 70% GOLD, AND THEN YOU’LL HAVE SILVER, COPPER, WHAT ELSE, OTHER THINGS IN IT.

THE IMPORTANT THING IS, WE THEN SEND THAT TO REFINERIES ACCREDITED REFINERIES IN DIFFERENT PARTS OF THE WORLD. AND INTERESTINGLY, TYLER, ONCE IT’S REFINED INTO LBMA, IN OTHER WORDS, 99.9% GOLD, IT EFFECTIVELY BECOMES A CURRENCY, BECAUSE WE SELL IT BASICALLY TO BANKS.

BUT WE DON’T REALLY SELL IT TO RETAIL. WE DON’T SELL IT TO JEWELLERS. THE BANKS BUY IT, AND IT BECOMES PART OF — IT’S MORE OF A CURRENCY. IT’S FUNGIBLE. ONE BARREL OF OIL IN TEXAS ISN’T THE SAME PRICE AS A BARREL IN ALBERTA. BUT AN OUNCE OF GOLD I