Agnico Eagle Mines Ltd (AEM) 2013 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Agnico Eagle Mines first-quarter 2013 conference call. At this time, all lines are in a listen-only mode. Following the presentation there will be a question-and-answer session and instructions will be provided.

(Operator Instructions)

As a reminder, this conference is being recorded today, Friday, April 26, 2013, and I would now like to turn the conference over to Mr. Sean Boyde, President and Chief Executive Officer. Please go ahead, sir.

Thank you, operator, and good morning, everyone, and thank you for joining our Q1 2013 conference call. I would like to remind those that are interested that our annual general meeting is also this morning at 11 o'clock at the Sheraton Centre Hotel. You are all welcome to join us for that meeting. And I would also like to you take note that this conference call does contain forward-looking statements. So please be forewarned that there's estimates here and you can see the full forward-looking statement on our web site and it's included in this presentation. In summary, as we indicated, 2013 was going to be a building year for Agnico Eagle. We've made good progress in the first quarter. Our operations, and our production, our costs were on track and also our two development projects, Goldex and La India, are on budget and ahead of schedule. So we got off to a very good start in 2013. Our Q1 production, around 237,000 ounces, is where we thought it would be, also tracking on a unit cash cost basis where we thought our unit costs would be. Our cash flow is about $150 million, $0.80 a share.

As we indicated, our Goldex project has been advanced to the fourth quarter of 2013 and we are anticipating the Goldex mine to produce about 15,000 ounces of gold in the fourth quarter. But you should take note those ounces will be at higher unit costs because of it being a start-up situation. La India, we should start to commission that late this year and we expect to be in commercial production in the first quarter of 2014, which is a quarter ahead of the originally planned schedule. At Kittila, we've had an extended maintenance period required, an additional -- approximately a month due to the need to fully reline the autoclave. We are still on track for our 2013 production guidance so that remains unchanged at 990,000 ounces. If we look at our individual operations, all of them are tracking where we expected them to be. Our operating margin at the sites was almost $200 million from the mines. We saw a good, solid, steady performance coming out of our operations in Mexico. We saw a good, solid, steady performance in what is generally our most difficult quarter at Meadowbank. And we also had good performance from the remaining part of our business. Our production is well spread out among a number of our mines. So a good balanced portfolio. And as we indicated with Goldex and La India starting ahead of schedule, we will have seven producing mines in a matter of a few quarters.

As far as financial results go, we, as we said, generated operating cash flow of almost $150 million. Our unit costs were higher than they were last year and a big part of that was a decline in the by-product revenue coming out of LaRonde where we saw, just on the metal content, about $10 million less in by-product revenue coming out of the LaRonde mine in the first quarter of 2013 than the year-over-year quarter, beginning of 2012. And on a corporate basis, that is about $50 an ounce. So that is where we saw a bit of difference on the cost side. We should see improving costs at LaRonde as we ramp up our gold production and our development, as we will indicate in a minute on the LaRonde slide, has gone quite well in terms of construction and getting in a position to provide additional cooling and ventilation. Our financial position remains strong. We have net debt a little over $500 million. We have a fully undrawn credit facility of $1.2 billion. On our financial position slide, we've put in our debt maturities, just to give you a sense of what our principal repayments are. Our first principal repayment is not due until 2017 and the initial payment is $115 million. The next payment is not due until 2020. So we have got extremely good financial flexibility and a lot of liquidity available to us to continue to move the Business forward.

In terms of net free cash flow, this year we are going to reinvest back in our Business and sustaining capital and capitalized exploration, a little over $600 million. We have accelerated some of the Goldex and La India CapEx due to the earlier start on those projects into 2013. We do have a fair amount of flexibility going forward in terms of how we allocate capital. The vast majority of capital going forward has still not been approved. We have in the past estimated our rough ballpark capital to continue to grow the Business and invest in projects like Meliadine to be around $600 million. Of that, about [$350] million is subject to approval, based on the quality of the investment opportunity and the prevailing market conditions at the time. So we do have flexibility in terms of how we choose to allocate our capital going forward in the event that we have a continuation of the volatile gold prices that we have seen. Really not having to make a major capital decision until late next year and that will be when we have the final feasibility completed for the Meliadine project.

As far as the individual assets, at LaRonde we indicated a steady quarter. Our cash costs per ounce were impacted by lower by-product revenue. Just to give you a sense of the impact that the lower by-product revenue had on LaRonde's cash cost, it really amounted to about $300 an ounce was the impact for lower by-product content. So there is a bit of a gap there between the decline in the by-products and the increasing gold production, which we will see continuing over the next several quarters. Our overall operating flexibility continues to improve and does improve on a quarterly basis. Our underground development is progressing as planned, as is the construction of the ventilation and cooling systems. Our cost per tonne at around CAD98 was on budget for the quarter.

At Lapa, we continue to see steady performance. That's a difficult underground mine. It's narrow. The team continues to do a good job there. We've had steady cost performance there in terms of cost per tonne, slightly below budget, and we have seen that for roughly the last three years. So even though we have seen a slight increase in unit costs corporately on a cost per tonne basis, our mines are actually doing extremely well. In Kittila, we had record recoveries in the quarter approaching 92%. As we mentioned, we will have a longer than planned scheduled maintenance that will take us towards the end of June instead of the end of May or early June. That is going to impact us by about 10,000 to 15,000 ounces of production at the Kittila asset. But we will make that up with the early start of Goldex. One of the nice things about Kittila, they have transitioned to entirely an underground mining situation and the cost per tonne in euros at EUR77 was below budget. So we are getting good cost performance in Kittila.

In Mexico, we continue to see excellent performance there. Our cash costs around the $300 mark. We had an earlier start of the Creston Mascota about a month. So things have gone well in terms of the Phase 2 start up. Our mill at Pinos Altos has seen an increase in the throughput by about 6% in the quarter. So again, we continue to optimize that mine and continue to make it more efficient and it continues to be one of our largest cash flow generators. At Meadowbank, as we said, another solid performance. Our costs per tonne slightly below budget, we're slightly below CAD90 a tonne. Recovery has been good, the grade has good. Our ability to handle tonnes has been slightly above our estimate. So that is this just not a function of being able to process those tonnes. We have been able to move waste and get a mining rate of above 11,000 tonnes a day. So continued steady performance there.

On our development projects, as we said, La India, on budget, ahead of schedule. Not a surprise that it has gone well. It's the type of project that our team down there has become accustomed to building and as a result we have seen good performance there. Both Goldex and La India, having moved them forward in the timeline, are going to positively impact our estimates for production in 2014 because of the early start. At Goldex, ahead of schedule, on budget as well, but as we said high unit costs during the initial start up phase when we are producing 15,000 ounces in the fourth quarter of 2013. We also continue to drill that project, drilling the satellite zones. So both Goldex and certainly La India with the sulfide mineralization and we're also looking at a -- the possibility of a starter pit at Tarachi. Both of the new projects also have the potential to have add-ons and additional investments and returns from those projects.

So, just in summary, before we turn it over for questions, a good, steady, solid start to the year in terms of production and costs and in terms of our development projects. There is no real change in our strategy to move the Company forward. We certainly understand the volatility in the gold market. The way we look at our Business is that we do have a choice in terms of capital expenditures, amounts, and timing going forward. We certainly have choice in terms of exploration, expenditures, on grassroots with respect to timing and amount. We have a lot of liquidity available to us. Our job is to keep moving the Company forward steadily -- a measured, executable growth -- and to protect the dividend. And so, we have a Business that is relatively straightforward and simple with these mines now more mature, more predictable, and we are going to just continue to move the Company forward steadily in a very managed way.

And I will just close, we are certainly getting a lot of questions and interest in our investment strategy. We actually see this as a time where we should be active. We have an active project evaluation group. Some of our recent investments we have been following for a couple of years now. And it just so happens that the timing lines up in terms of interest from the junior companies and our evaluation that things have matched up, that we have had these opportunities present themselves to us. This is something that this Company has done for decades and done successfully for decades. It's a big part of our strategy and how we got here. And as we've said many times before, if you look at our current reserve base, 75% of it is a function of acquisitions we have made since 2005. So, we will continue to be active with a strategic investment portfolio. We'll continue to work with those companies we have investments in to advance their projects. That gives us a better understanding of the risks and opportunities surrounding that investment. And, as we've said, that is something that we have used quite successfully in the past and it's something that we feel is important for us as we look to move our Business forward. So on that, operator, I would be happy to turn it over for questions.

(Operator Instructions)

Jeff Wright, Global Hunter Securities.

A couple quick questions on LaRonde. Clearly, the by-product metal grades were down. Do you anticipate any partial recovery of those through your end as the gold grades get better or should we just get used to the new grades on the silver, lead, and zinc?

Yes. It should be steady. There is additional base metal ore essentially in the upper part of the mine, that's there as a cushion if we need to go after it. So we do have a bit of flexibility in that mine. But we have said all along that we saw a quicker drop off in the by-product metal content, certainly quicker than how quickly we can get the gold ramped up. So that is just a phase we are going through. The key for us at that mine is to advance the development, make sure the construction is on schedule so that quarter-after-quarter, we improve our operating flexibility in the lower mine. As you know, we are mining at grades that are around 50% of our reserve grade. And we had been mining at those levels for the last few years. We will continue to mine below reserve grade over the next couple of years as we ramp up. So as we go into 2016 and beyond, we will be at or above reserve grade, which is going to drive our gold production up over 300,000 ounces. So that is how it plays out over the next few years.

Okay. That's definitely understandable. Other question I had was on Kittila. Given the additional downtime, is there any added capital we should consider with the mill or any other capital improvements outside the autoclave that are being made during that period or is it really just revolving around the autoclave?

No, in terms of the additional time required for a full reline, you are probably about $2 million to $3 million in additional expenditures to do that work. So, that is really the end result of that.

Okay. And then once we get past that in Q3, Q4, do you see a much more efficient operation? Should we look at any improved efficiencies on the production side or just go back to the -- where we were in, say, 2012?

We are -- in the quarter we saw some really strong recoveries. So our expectation going forward on restart, we should continue to see strong recoveries but with a fully relined autoclave, that is the type of maintenance you do every five to seven years. So that will help us over the next four to five years in terms of having done the full reline right now.

All right. I will jump back in the queue, thanks a lot.

Greg Barnes, TD Securities.

Sean, you talked a little bit about your corporate development or M&A strategy here but for the first time you may have started to talk about looking at producing assets rather than just the juniors. Do you want to talk about that a little bit?

What we have done as we have ramped up our resources in the project evaluation group, is we've said to them broaden your horizons, broaden your scope and what I said I would like from them, as CEO, is significant files on a number of opportunities that may or may not come available so that we have the information and the analysis in hand. And we have seen a lot of valuations very depressed at the moment. So we would prefer to be prepared and understand what opportunities are available there for us. But we should put it in the right context. Over our long history, we have never really put ourselves in a position where we are going to bet the Company on a single transaction. That remains the case. We would be interested in all our assets that have upside where we could add value. But at this point there is nothing that we see right now that we need to own along those lines.

And how do you measure that against Meliadine? And I know there is a lot of discussion out there at the moment on this gold price, whether Meliadine works or doesn't work. But how does that fit for you?

Well that's a good point. Part of that point comes around or involves timing. And as we explained early in the conference call, our timing on Meliadine is -- so the second half of next year when we will have the next round of drilling done, having that incorporated in an updated reserve and resource, having the feasibility updated to be in a position to make a production decision later next year. And if we decide to go, that would give us three seasons to build, which would put it into production in 2018. But your -- what we have said to the team at Meliadine, continue to work but present us with options, as you look at it. And so, it's not just the Meliadine technical team that we are looking for options from, it's the entire Company, whether it's internal opportunities in Mexico, internal opportunities in the Abitibi, external opportunities that we see that may be a fit, we want a host of choices to make on how we should allocate the capital available to the Company because we all know Meliadine is $1 billion plus.

And we have to make a decision as a Company at some time before the end of next year, what is the best use of $1 billion plus. But I would say this about Meliadine. It's our largest single deposit. We have 100% ownership of a major greenstone belt. It continues to grow. It has the potential to be a 400,000-plus ounce a year producer. So we have to keep working. We have to keep moving it forward. We have to keep understanding the opportunity. But it's something that is not 100% based on timing. As you know, this is the mining industry. We were patient with Goldex. It took us 37 years to figure it out. We will have to look at it in the context of what makes the most sense for us at the time and take into consideration the prevailing market conditions as well as the quality of the investment opportunities to us.

Good. Thanks, Sean.

Stephen Walker, RBC Capital Markets.

Sean, just a follow-up question on the autoclaves at Kittila here. The original maintenance was 40 days. And now looks like it is going to be closer to 70, 75 days. Is that how we should read the delay in the -- as worded in the text?

Yes.

I'm curious, what effectively nearly doubled the downtime on that and as part of that same question, is the integrity of the stainless steel lining and the units themselves, is there anything that has come up that -- in the re-bricking of the entire unit that suggests that there might have been some issues there?

I will give Jean Robitaille the mic and he can answer that, Steve.

Okay. Thank you.

In fact, instead to replace the one layer, we are replacing the three layer and we will, in the same time, replace the membrane. What will be a usual, overall a [pewter] plate. We have the minor corrosion that will touch -- it's not a stainless steel shell. It's a carbon steel. So nothing unusual in that maintenance. So that's explains the 40 days raising up at 70, 75 days. It will take the benefit also to adjust the other plate for the expansion -- a part of the adjustment will be already done. So it will take the advantage of that shut down to start modification inside of the other plate.

Okay. Thanks for your time, Jean. And then, Sean, just the line of credit, could you confirm that you still have full access to $1.2 billion in the line of credit and what are the covenants associated -- are there any unusual covenants or what are the principal covenants with respect to the line of credit?

I will turn that over to Dave.

No, there is certainly no unusual covenants in that and the entire $1.2 billion is available.

Okay. Terse as always. Thank you for that, Dave. And just one last question on Meadowbank, if you would. Could you give us a sense of the -- two points -- first of all, grade reconciliation in the first quarter to the mine plant, could you comment on that? And then, you mentioned obviously the higher grades into the second half of the year. What could we expect in the way of grades, call it first half versus the second half and then how is that reconciliation of the mine grades here in the first quarter?

Yvon will answer that one, Steve.

On the reconciliation side, some of the pits have reconciled a little stronger on grade. On one pit, on one section of the pit is also reconciled and also more tonnage. We've said all along in our initial year-end guidance that grade would also improve as we move on to stripping in the South Fork ash pit and the Goose pit. So we will move to stronger grades for the year, as per -- we have identified in our guidance.

Okay. Can you give us a sense what those grades are? Or -- have they changed from the guidance given at year-end?

They haven't changed from the guidance. In Q1, it was 2.7 grams. So we should see an increase in the second half. And in the first quarter, we didn't really have any of those higher-grade pockets that we saw last year in June and August. We will see some of those later on in the year.

Great, thank you very much for that, Sean.

Patrick Chidley, HSBC.

Just wanted to ask about some of the projects that you have got and what they look like at current gold prices. For example, the Goldex project, how does that look in terms of returns at the current gold price?

Well we were running the returns when we decided to go ahead with that at $1,500. And we were getting rates of return in the high teens so it's a little bit less than that on today's prices. The restart at Goldex is really one of building the base case model that was presented to us to see whether the follow-up three or four cases, which is to develop the additional satellite zones, makes sense and, so there is some upside there. We will be in a position by early next year to decide whether we continue on with the subsequent satellite zones. The bigger prize is really D zone. And we continue to drill that D zone. There are some cases on the table which would see a potential 50% increase in the gold production there and a lowering of the unit cost. So that's why we started that one. At La India, the cash costs are $500. So that is very robust. That one also has the upside around the sulfide that we are currently doing work on. Tarachi is a potential larger prize there, which we also continue to do work on. So that is why it makes sense to continue to move those projects forward and they have gone pretty well, on time or ahead of schedule and on budget.

And expansion at Kittila, is that still -- that would make pretty good returns, would it, at current gold prices?

Yes. That one makes really good sense. And that one is a relatively straightforward one from 3,000 to 3,750. The next and subsequent phases are things that are totally discretionary. We are currently studying a shaft. We know at one point we will need a shaft to access material as we move to the north, that's better grade and better thicknesses under Rimpi. We're also continuing to study the potential for a second autoclave. Again, those are fully discretionary. No pressure to move on them. We are going to continue with those studies. We will have the results of those studies early next year. But with a 40-year mine life, we can continue to produce 150,000 ounces for many, many years without having to invest additional capital to shorten the mine life.

Okay. Great. Thanks much, Sean.

Richard Gray, Cormark.

Just to further on Greg's question on your strategic investments, the ones in Mexico and Yukon are consistent with where you are already. What kind of work did you do to be comfortable putting that money into Sulliden down in Peru?

We did a lot of work and we did a lot of work on the countryside. We did a lot of work on several assets in that country to review potential opportunities down there. At the end of the day, the comfort level had to be with Tim Haldane and his crew in Mexico. They will be responsible for running any business or keeping track of any investments that we have in the southern part of the business. So they were comfortable with that. Specific to Sulliden, our people simply like the deposit, they like the opportunity, thought it made good sense to make an investment. And that type of investment in a new country is similar to what we did when we went into Finland. We took an investment in Ritter Hitton resources. Similar type of structure when we went into Mexico -- we had an option agreement on Pinos Altos. So we were able to get ourselves more familiar with the country and the region and our ability to do business there. So that was the reason for taking an investment in Sulliden and doing our homework on the country of Peru.

Great. Thanks, guys.

Alex Kodatsky, CIBC.

Just a general question. Maybe you could give a bit of color in terms of how you have been able to advance both Goldex and La India, and what are the aspects of the project you've been able to condense to bring those timeline's forward?

Well just in general, and maybe Tim wants to add something on La India. But if you think of Goldex, the plant is in place, the shaft is in place. So it was a situation where it was really lateral development, developing the two satellite zones. The only real surface construction or addition would be a [pace fill] plant given the change in the mining methods. So something we have done for years and do well in an area where we have some of our biggest operations and we have our Technical Service group. So it doesn't really surprise us that the team was able to beat the schedule. At La India it's almost a similar situation and that's probably the reason why we invested in it, because it's very similar to Creston Mascota, which was built in less than 18 months. So this was a case where we took possession in November of 2011. The team was able in a period of 10 months to complete the economic study, do the engineering, secure the surface rights that they needed, get the permits that they needed, and it's just been a relatively uneventful construction phase right now. And we find ourselves three months ahead as a result of that. And don't forget that both of these projects were laid out last year when we were putting out our 2012 guidance. So we were making sure that we were under-promising and over-delivering, not only on our production and cost guidance, but also the projects that were in the pipeline.

Okay, pretty good, thank you very much.

Joseph Reger, Global Hunter Securities.

Just had two things. First one is you mentioned a starter pit at Tarachi. What should we be thinking of as far as size and scope of that and timing? Or is it too far off at this point to really talk about it?

Hello, it's Tim. Tarachi, we've got a lot of work to do yet. There is a big mineral resource there. And the approach we would take is really similar to the approach we took at Pinos Altos with Creston Mascota as a satellite project. We would look at La India and Tarachi as a satellite project and the resource at Tarachi is big enough that -- better to (inaudible) with a starter pit, just like we did at Creston Mascota, maybe a few 100,000 ounces as a satellite project and then in the meantime, opportunities to grow it further.

Okay. That's fine. And then on Creston Mascota, how long is the time frame to get back to normal operating rates there? I know you restarted in March but how long are we looking to get back to full ramp up?

Yes, really it is going to take the balance of the year to get it back to where it was before we shut it down. So it will be climbing slowly back to a good solid production level. But we just have to build up the inventory and the area available for leaching and some of the first ore that we stacked on the pad is coarser and lower grade by design so that it would be good draining material.

Okay. Thanks a lot, guys.

Mike Jalonen, Bank of America.

Just had a question about the -- your Slide 9. Quite instructive there. Look -- what projects are not yet approved? I assume Meliadine is in there, but I just want to know what the breakdown is?

It's largely Meliadine and also Kittila shaft would be -- so those are the two main ones that make up the bulk of that.

I assume it's $700 million combined for the two years? Is that--?

Both of them.

Is that the way -- no, I'm looking at the number, $350 million, is that $350 million for each year?

We had -- the initial slide was $600 million over a five-year period roughly. So, it all depended how we stretch Meliadine out. But Meliadine is $1 billion plus. So that's the bulk of it. A Kittila shaft is probably in the $125 million range, maybe a little bit more depending on the size and the depth. The Kittila autoclave $75 million, $80 million. So those are some of the moving pieces of the bigger components that we will have in front of us to decide next year.

Okay. Thank you.

Steven Butler, Canaccord.

Question for you on Kittila. I noticed that while it's fully underground, it's nice to see that your EUR77 per tonne mine site costs were experienced and remind us again what your budget was. I believe it may have been EUR80. If you can confirm that? And why perhaps were you better than you thought on the budget at Kittila underground?

It was EUR80 and I'll let Yvon provide the color on why we did a bit better.

Just overall productivity gains and also the mine has been ramping up from a 1,000 to 3,000 tonnes a day and adjusting manpower and then training. So most of it is coming through productivity and prudence.

Okay. Thanks, Yvon. And Sean, just coming back to Mike's question about capital expenditures and maybe capital on development projects, you noticed in your -- mentioned in your Q4 disclosure about $357 million or the $350 million of development project spending, indeed is that numbers that were firmly approved by the Board for 2013 specifically?

Yes, that is 2013 and the bulk of that is La India and Goldex.

Sure. So those are not subject to any debate or under development projects, monies that you might defer if gold prices were to get sloppier again?

That's correct. Those we're going to continue on and when you look at next year, Goldex essentially built, La India essentially built, and those land now almost entirely in 2013 instead of partly or significantly carried over into 2014.

Right. Okay. Thanks, Sean. Thank you.

Anita Soni, Credit Suisse.

My question is with respect to the Meadowbank throughput rates. Is that something that you think you could repeat over the next few quarters or was there something extraordinary about this quarter that allowed those higher throughput rates?

Well, the throughput rate that were achieved during the quarter will be -- are sustainable during the rest of the year.

Okay. Thank you very much.

Paretosh Misra, Morgan Stanley

Would it be fair to say that if market conditions warrant, you would cut the entire non-approved CapEx first before cutting dividend?

Yes. As we said, we have had a 31-year history of consecutive annual dividend payments. So the dividend is clearly important to us. So we would like to manage our business so that we can continue to move the Company forward and maintain the dividend. And so the dividend is a focus -- the way we handle the dividend in the budget process, is that it is a line item that comes out first and then we have our capital allocation pie that we then allocate to investment opportunities. So we are less concerned about the timing of when expansions, et cetera, start and we are just trying to run a business that we can grow steadily, generate net cash, free cash flow, and protect the dividends.

Okay, great. And then second, was hoping to hear your thinking on use of debt versus equity for the right M&A opportunity in the current market?

Well we do have capacity to add debt and we do have capacity to add debt and still retain our investment grade credit rating. We have done a lot of work on that to see what our financial capacity is. So the preference would be to use cash if we can and if we have to take on some debt, we are prepared to take on some debt for the right opportunity.

Great. Any specific credit metric that you guys look at, debt-to-EBITDA, or something?

We look at debt-to-EBITDA. There is certainly a debt-to-EBITDA convention around the investment grade rating so that is something we pay attention to.

Great, thanks, guys.

(Operator Instructions)

Salim Ben Mansour, BMO Capital Markets.

Good morning. My questions have been answered, thank you.

John Bridges, JPMorgan.

Congratulations on the results.

Thank you.

Just wondered with respect to the lining problem at Kittila, does this mean that the conditions in there are tougher than you expected and you might have to reline on a more regular basis than five to seven years?

Hello, John. Jean speaking. No, in fact, John, I don't know if you recall when we started, we have some hot spots. We mentioned that in the condition, current condition is, in fact, since the beginning that we were with on and off situation, and all of the situation, we are a bit tough on the autoclave. So it's no -- it's just a normal [completement net] we are doing and we anticipate to be able to return in a normal mode, let's say, five to seven years and more, close of seven years complete overall.

Okay. Great. And then, if I may, a follow-up metallurgical question -- LaRonde, presumably, once you get into all the deep material, then there will no longer be a zinc concentrate and that elevated silver credit?

Well over the next three or four years, we will continue to see some base metal into the life of mine [plan]. That will diminish with time as we get into the deep portions. At one time we -- it may become uneconomic to operate the zinc circuit, but at this stage, I don't have the exact timing of that.

Okay. So we can keep zinc in on a decreasing level for about three years.

Right.

Okay. That's helpful. Appreciate it. Thanks and good luck, guys.

John Tumazos, John Tumazos Very Independent Research.

My question is when you ride your bike, go to a Leafs game or kiss the wife -- but in all seriousness it looks like with La India and Meliadine you have a seventh and eighth mine. The three juniors that you put capital into in the last month all look good, which is great, and you got a lot of balls in the air. One of the industry situations that some companies have multiple projects but it's hard to do one project right, let alone three. And which projects are you going to kill in order to safeguard the quality of everything else you are doing?

Well, if you look at, John, the development over the last year, when we look at our growth going out through 2015, it's really on the back of La India, which is a relatively straightforward project; the restart at Goldex, which is a couple of satellite zones with the potential to add additional satellite zones. So that is relatively straightforward given its location and our experience there. Other growth is really from LaRonde, which we have been running for 25 years. So we have got really good experience there with the right team and the right understanding. So a lot of that growth is really from things that we have got experience with and we've proven our ability to deliver on. Meliadine, the decision will be made late next year. Again, given our experience at Meadowbank, we are in a much better position to execute and deliver on something like that.

As for the investment portfolio, we strictly do look at it as a portfolio. And it doesn't necessarily mean that because we have an investment in something that it's something that ends up being owned 100% by us. There is a lot of recent examples where parts of our portfolio we ended up selling just based on a different view of value. So the nice thing about a portfolio of strategic investments is it keeps guys like you guessing as to which one that we are going to focus on and we do look at it as a way that we can get close to situations, understand the risks associated with those situations but, more importantly, and this is where we found to be a big part of our success, get a better feel for the upside and the opportunity associated with those strategic investments. And we used that technique very well at Finland in Ritter Hitton. We used it very well at Pinos Altos. And those are things that have seen three to four plus times increase in size based on our own assessment and -- from the initial investment stage. So, we will continue to monitor it. There is no rush to act and to do things. And it's worked well for us. So that's what we will continue to do.

Sean, I don't want you to wear out.

I'm okay. We are just pumped about the Leafs, as you mentioned. You mentioned it, so I will mention it. Well not all of us -- there's a lot of Hab fans in this room. Sorry about that. But--

Go Pens.

Yes, Pens are there. Anyway, that's where we are.

Thank you.

And Mr. Boyd, there are no further questions at this time. Please continue.

Thank you, operator. And again, you are all welcome to join us at 11 o'clock this morning at the Sheraton Centre for our annual meeting if you choose to do so. We have a number of site visits coming up. One in Kittila in May. We have one at La India in September. We also have a couple to LaRonde, as well. So if there is an interest in attending any one of those, give Dmitry or Brian a call here and we can arrange that. So thanks again. Thanks again.

And thank you. Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and you may now disconnect your lines.