Agnico Eagle Mines Limited
AEM · NYSE
Next quarter
Expected to report Feb 11, 2027 — estimated from last year’s reporting date.
Consensus is $2.29 EPS for Dec 2026 across 6 estimates, ranging $2.00 to $2.60.
AEM Sep 2026
- 5.67%
- -3.93%
- $2.47
- $2.61
- —
- —
Highlights
- EPS beat Adjusted diluted EPS was $2.61, 5.7% above the $2.47 consensus; adjusted net income was $1.324 billion versus $1.085 billion a year earlier.
- Gold-price tailwind Realized gold price rose 22.7% year over year to $4,264 per ounce, lifting revenue 17.1% to $3.584 billion despite lower production.
- Production softness Gold output fell 6.1% to 814,012 ounces, with Canadian Malartic and Meadowbank among the principal drags; Detour Lake production rose 3.7% to 183,118 ounces.
- Canadian Malartic disruption Barnat mining resumed September 27 after a July 1 rock movement; the company expects 60,000–80,000 fewer ounces in the second half of 2026 and up to 150,000 fewer ounces in each of 2027 and 2028.
- Higher unit costs By-product cash costs rose to $1,133 per ounce from $952, while AISC increased to $1,648 from $1,331, reflecting lower output, higher site costs and sustaining spend.
- Cash generation Operating cash flow was $1.755 billion and free cash flow $852 million, both below year-ago levels; free cash flow before working-capital changes increased to $1.057 billion from $1.035 billion.
- Full-year outlook 2026 production remains expected at the low end of 3.3–3.5 million ounces, with cash costs of $1,020–$1,120 and AISC of $1,400–$1,550 per ounce expected near the upper end.
Analysis
Agnico Eagle delivered a strong earnings quarter against consensus, with adjusted diluted EPS of $2.61 exceeding the $2.47 estimate by 5.7%. The comparison with the year-ago quarter shows the main driver: realized gold prices climbed 22.7% to $4,264 per ounce, lifting revenue 17.1% to $3.584 billion and net income 28.2% to $1.353 billion. Adjusted net income rose to $1.324 billion from $1.085 billion. Production moved the other way, down 6.1% to 814,012 ounces, as Canadian Malartic’s Barnat pit suspension and lower Meadowbank output outweighed gains at Detour Lake and Fosterville. The supplied release does not include a Q2 2026 comparison, so sequential performance cannot be assessed here.
The print was defined by the contrast between higher gold realizations and operational constraints, alongside rising costs. By-product cash costs increased 19% to $1,133 per ounce and AISC rose 24% to $1,648. Quarterly free cash flow fell to $852 million from $1.190 billion a year earlier, primarily reflecting working-capital movements and higher capital expenditures; before working-capital changes, it was slightly higher at $1.057 billion. Management maintained 2026 production guidance at the low end of its range and expects costs near the upper end, citing the Barnat mine plan and input-cost pressures.
Gold-price-led earnings
- Revenue and price Revenue from mining operations increased 17.1% to $3.584 billion from $3.060 billion a year earlier. The average realized gold price rose 22.7% to $4,264 per ounce from $3,476, more than offsetting lower gold sales volumes.
- Profitability Net income increased to $1.353 billion from $1.055 billion, or to $2.67 per basic share from $2.10. Adjusted net income was $1.324 billion versus $1.085 billion, and adjusted diluted EPS of $2.61 beat the $2.47 consensus by 5.7%.
- Underlying cash earnings EBITDA was $2.445 billion, up from $2.030 billion, while adjusted EBITDA reached $2.466 billion versus $2.098 billion. The increase primarily reflected higher revenue; production costs also rose by $133.7 million year over year, mainly from royalties linked to gold prices and higher diesel prices.
Production and Barnat
- Consolidated output Gold production declined 6.1% to 814,012 ounces. Canadian Malartic production fell 29.1% to 111,202 ounces and Meadowbank fell 15.2% to 115,501 ounces; Detour Lake rose 3.7% to 183,118 ounces and Fosterville rose 14.7% to 40,090 ounces.
- Barnat event A rock mass movement on July 1 led to a temporary suspension of mining at the Barnat open pit. The company completed remediation and resumed mining on September 27; the mill had used lower-grade stockpiles during the interruption.
- Expected mine-plan effects The company estimates the event will reduce Canadian Malartic production by 60,000–80,000 ounces in the second half of 2026 and by up to 150,000 ounces in each of 2027 and 2028. Full-year Canadian Malartic cash-cost guidance increased to approximately $1,260 per ounce from $1,187.
Costs and guidance
- Unit costs Consolidated by-product cash costs rose to $1,133 per ounce from $952; co-product cash costs were $1,225 versus $1,009. AISC increased to $1,648 per ounce from $1,331, including sustaining capital and related expenses.
- Cost drivers Lower production and higher site costs contributed to the per-ounce increases. The company also cited higher royalties, diesel and consumables; diesel is about 11% of operating costs and consumables about 30%, with consumables inflation estimated at approximately 6%.
- 2026 outlook Payable production remains guided to 3.3–3.5 million ounces, expected at the low end. Cash costs of $1,020–$1,120 and AISC of $1,400–$1,550 per ounce are expected near the upper end. Capital expenditures excluding capitalized exploration remain guided at $2.6–$2.8 billion, with capitalized exploration of $290–$330 million.
Cash flow and capital
- Quarterly cash flow Operating cash flow declined to $1.755 billion from $1.816 billion and free cash flow to $852 million from $1.190 billion, largely because of unfavourable working-capital movements and higher capital expenditures. Free cash flow before working-capital changes increased to $1.057 billion from $1.035 billion.
- Investment spend Capital expenditures were $921 million in the quarter, compared with $644 million a year earlier. For the first nine months, they totaled $2.296 billion versus $1.601 billion.
- Balance-sheet capacity Cash and cash equivalents were $3.613 billion at September 30, and net cash was $3.416 billion, up from $2.670 billion at year-end 2025. In October, the company expanded and extended its revolving credit facility to $3.0 billion, with a maturity date of October 28, 2031.
Growth and shareholder returns
- Central Lapland Acquisitions of Rupert, Aurion and FinGold consolidated an approximately 2,492-square-kilometre land package in northern Finland, including the Ikkari gold project and properties near Kittila. The transactions included $325 million in cash for B2Gold’s 70% FinGold interest, cash consideration for Aurion shares and Agnico shares plus contingent value rights for Rupert shares.
- Hope Bay The company has made a positive investment decision and is advancing redevelopment work. Its preliminary economic assessment envisages a 6,000-tonne-per-day operation producing 400,000–435,000 ounces annually over an initial 11-year mine life.
- Capital returns Agnico repurchased 1,297,940 shares for $250 million in the quarter at an average $192.60 per share and paid $204.9 million in dividends. The renewed buyback authorization permits up to $2.0 billion of purchases and up to 5% of issued shares; the quarterly dividend was $0.45 per share.
