Agnico Eagle Mines Limited (AEM) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Nov 4, 2026.

Consensus is $2.45 EPS for Sep 2026 across 6 estimates, ranging $2.10 to $2.61.

AEM Jun 2026

Reported Jul 29, 2026

: 5.54%
: +4.38%

: $2.89
: $3.05
: —
: —

Highlights

Earnings beat: Adjusted diluted EPS was $3.05 versus consensus of $2.89, a 5.54% surprise; reported diluted EPS was $3.17.
Gold-price leverage: Q2 revenue rose 35.0% to $3.803 billion as realized gold prices increased 36.3% to $4,483 per ounce, more than offsetting a 1.3% decline in sales volume.
Cash generation: Operating cash flow increased to $2.144 billion from $1.846 billion, while free cash flow reached $1.335 billion versus $1.305 billion a year ago.
Production slightly lower: Gold production was 855,816 ounces, down from 866,029 ounces, while consolidated by-product cash costs increased to $1,054 per ounce from $925.
Detour offset weaker mines: Detour Lake production rose 23.2% to 207,279 ounces and cash costs fell to $825 per ounce; Canadian Malartic production fell 21.6% to 135,243 ounces and cash costs rose to $1,185.
Canadian Malartic disruption: A July 1 Barnat pit wall movement is expected to reduce Canadian Malartic production by 60,000-80,000 ounces in H2 2026 and up to 150,000 ounces in each of 2027 and 2028.
Guidance and spending: Full-year production remains at the low end of 3.3-3.5 million ounces and AISC guidance remains $1,400-$1,550 per ounce; 2026 capital expenditure guidance increased to $2.6-$2.8 billion from $2.2-$2.4 billion.
Growth portfolio: Hope Bay received a positive investment decision, with planned annual production of 400,000-435,000 ounces over an initial 11-year mine life; Central Lapland acquisitions added a 2,492-square-kilometre land package including Ikkari.
Shareholder returns and liquidity: Agnico repurchased 2.236 million shares for $399.9 million in Q2, paid $206.9 million of dividends, and ended June with $3.267 billion of net cash.

Analysis

Agnico Eagle delivered a strong Q2 2026 earnings print, with adjusted diluted EPS of $3.05 beating the $2.89 consensus by 5.54%. Reported diluted EPS was $3.17 and net income was $1.601 billion, up from $1.069 billion in Q2 2025, while adjusted net income increased 57.9% to $1.541 billion. The quarter was primarily a gold-price story: the realized price rose 36.3% to $4,483 per ounce, lifting revenue 35.0% to $3.803 billion and operating margin 40.6% to $2.849 billion despite 1.3% lower sales volume and 1.2% lower production. Q2 adjusted EPS was below the implied Q1 level of approximately $3.41, based on the six-month adjusted diluted EPS of $6.46, while net income was also below the implied Q1 $1.70 billion.

The operating backdrop was mixed. Detour Lake provided material support with 207,279 ounces at $825 per ounce of cash costs, but Canadian Malartic, LaRonde, Macassa and other operations faced lower grades or higher costs. Consolidated by-product cash costs rose to $1,054 per ounce from $925, and AISC increased to $1,459 from $1,281. The key forward-looking development is the Barnat pit disruption, which leaves production guidance at the low end of the range and raises Canadian Malartic's 2026 cash-cost expectation to approximately $1,260 per ounce. At the same time, Agnico expanded its growth pipeline through Hope Bay and Central Lapland while retaining substantial financial flexibility.

Gold price and earnings

Higher gold prices drove the quarter's financial outperformance. Revenue from mining operations increased to $3.803 billion from $2.816 billion, while operating margin expanded 40.6% to $2.849 billion. Production costs rose 20.9% to $953.8 million, partly because royalties increase with gold prices, but the margin benefit flowed through to earnings and cash flow. Adjusted EBITDA rose to $2.738 billion from $1.914 billion.

Reported earnings: Net income increased to $1.601 billion, or $3.19 basic EPS, from $1.069 billion, or $2.13 basic EPS.
Adjusted earnings: Adjusted net income rose to $1.541 billion from $976 million, with adjusted diluted EPS increasing to $3.05 from $1.94.
Non-operating items: A $155.3 million gain on the sale of investments, mainly the Gunnarn Mining AB stake, supported reported earnings, while derivative losses were $81.4 million versus a $125.3 million gain a year earlier.

Production and unit costs

Production was broadly stable year over year but the mix was unfavorable in several operations. Gold output declined 1.2% to 855,816 ounces, and higher royalties, stockpile consumption and mine-specific operating issues pushed unit costs higher. Detour Lake's stronger grades and throughput were the main operational offset.

Detour Lake: Production increased 23.2% to 207,279 ounces, while cash costs declined to $825 per ounce from $914.
Canadian Malartic: Production fell 21.6% to 135,243 ounces after an April shutdown and lower grades; cash costs increased to $1,185 per ounce from $876.
Other pressure points: LaRonde production declined 10.9% to 81,261 ounces with cash costs of $953 per ounce; Macassa production fell 8.3% to 80,143 ounces with cash costs of $1,041; Meadowbank cash costs increased to $1,206 per ounce from $955.
Consolidated costs: By-product cash costs increased to $1,054 per ounce from $925, and AISC rose to $1,459 per ounce from $1,281.

Canadian Malartic disruption

The July 1 rock mass movement at the Barnat open pit did not affect Q2 results, but it changes the near-term production profile. Mining in Barnat was suspended while remediation and geotechnical work proceed, with a return to mining expected in Q4 2026. The processing plant is being fed with lower-grade stockpiled ore, which should limit but not eliminate the impact.

Production impact: Canadian Malartic production is expected to decline by 60,000-80,000 ounces in H2 2026 and by up to 150,000 ounces in each of 2027 and 2028.
Cost impact: Full-year 2026 Canadian Malartic cash-cost guidance increased to approximately $1,260 per ounce from $1,187.
Corporate guidance: Payable production remains at the low end of the 3.3-3.5 million-ounce range, while consolidated 2026 cash-cost guidance of $1,020-$1,120 and AISC guidance of $1,400-$1,550 remain unchanged.

Growth and capital allocation

Agnico used the high gold-price environment to advance both internal growth and exploration. The Hope Bay investment decision adds a substantial future production option, while the Central Lapland transactions broaden the company's Finnish land position around Kittila. The resulting increase in development spending is the main change to the 2026 capital framework.

Hope Bay: The preliminary economic assessment envisions 400,000-435,000 ounces of annual production over an initial 11-year mine life from a 6,000-tonnes-per-day underground operation.
Central Lapland: Acquisitions of Rupert, Aurion and the remaining FinGold JV interest created an approximately 2,492-square-kilometre land package including the Ikkari project.
Capital guidance: Total 2026 capital expenditure guidance rose to $2.6-$2.8 billion from $2.2-$2.4 billion because of Hope Bay construction; capitalized exploration guidance remains $290-$330 million.
Returns: Q2 share repurchases totaled $399.9 million for 2.236 million shares, and the company paid $206.9 million in dividends, including its quarterly $0.45-per-share dividend.

Cash and balance sheet

The company continued to generate substantial cash despite higher investment and shareholder distributions. Q2 operating cash flow increased 16.2% to $2.144 billion, and free cash flow before changes in non-cash working capital rose to $1.303 billion from $792 million. Cash accumulation and limited debt left the balance sheet in a strong position.

Liquidity: Cash and equivalents were $3.464 billion at June 30, up from $2.866 billion at December 31, 2025.
Net cash: Net cash increased to $3.267 billion from $2.670 billion at year-end, against only $196.8 million of long-term debt.
Investment spending: Q2 additions to property, plant and mine development were $809.3 million, up from $540.5 million, and investing cash outflow increased to $1.190 billion from $611 million, principally because of the Central Lapland acquisitions and higher capital expenditure.

Agnico Eagle Mines Limited

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