Earnings Call Insights: Agnico Eagle Mines Limited (AEM) Q3 2025
Management View
-
CEO Ammar Al-Joundi opened the call highlighting, “we’re reporting record financial results, driven by, of course, record gold prices, but coupled with strong and consistent operational performance.” Al-Joundi emphasized the delivery of 867,000 ounces in gold production for the quarter, achieving 77% of the full-year guidance and selling gold at an average price of $3,476 per ounce, which was noted as a company record. The CEO also drew attention to the company’s ability to maintain cost controls, stating, “our Q3 cash costs would have been $933 an ounce, well below the midpoint of our cost guidance range” excluding higher royalties tied to gold prices. Al-Joundi emphasized that Agnico Eagle is “in the strongest financial position in the company’s history,” and pointed out the ongoing investments into five key pipeline projects and an “exceptional exploration program.” The company repaid $400 million in debt, returned $350 million to shareholders, and increased its net cash position to $2.2 billion, also receiving a credit rating upgrade.
-
James Porter, Executive VP of Finance & CFO, stated, “The strong operational performance and cost control paired with higher gold prices to drive record financial results, including record revenue of $3.1 billion, record adjusted earnings of $1.1 billion or $2.16 per share and record adjusted EBITDA of $2.1 billion.” Porter added, “We generated $1.2 billion of free cash flow this quarter and added another $400 million through the sale of equity investments.”
-
Dominique Girard, Executive VP and COO of Nunavut, Quebec & Europe, highlighted ongoing productivity and technology improvements, noting a 13% year-over-year increase in tonnes mined per day at Kittila and a 4% decrease in euro per tonne cost. He also referenced remote operations technology and the upcoming implementation of an underground fleet management system.
Outlook
-
Management affirmed confidence in achieving the midpoint of the full-year production guidance range of 3.4 million ounces. Porter indicated, “we still expect to be at or near the top end of our cash cost guidance range of $965 per ounce for the full year,” and “we also expect to be close to the top end of our all-in sustaining cost guidance range of $1,300 per ounce on a full year basis.”
-
The company continues to prioritize shareholder returns, capital discipline, and reinvestment in high-return organic growth projects, reiterating the strategic focus on the five key pipeline projects, which collectively represent about 1.3 million to 1.5 million ounces of potential production.
Financial Results
-
Agnico Eagle reported record revenue of $3.1 billion, record adjusted earnings of $1.1 billion or $2.16 per share, and record adjusted EBITDA of $2.1 billion. Free cash flow for the quarter was $1.2 billion, with a net cash balance rising to $2.2 billion.
-
Gold production for Q3 was approximately 867,000 ounces at total cash costs of $994 per ounce and all-in sustaining costs of $1,373 per ounce. Management noted that higher gold prices resulted in increased royalty expense, with Q3 cash costs about $60 per ounce higher than budgeted.
-
The company returned $350 million to shareholders through dividends and share repurchases and repaid $400 million of debt during the quarter.
Q&A
-
Fahad Tariq, Jefferies: Asked about noncore investments in critical minerals and the strategy for the new subsidiary. CEO Al-Joundi responded that, “we want to remain a gold company,” and explained that the new subsidiary provides independence to a small team to explore critical metals opportunities, but the company is not obliged to invest further.
-
Anita Soni, CIBC: Inquired about resource updates at Hope Bay and inflation expectations. Dominique Girard indicated a PEA study is expected in the first half of next year with engineering over 40%. CFO Porter stated, “Going into 2026, I think we’re seeing a similar level of inflation in around 6% to 7%, across all of our various cost components.”
-
John Tumazos, Very Independent Research: Asked for a breakdown of drilling rigs. Guy Gosselin explained the number of rigs is consistent quarter-over-quarter, with increased productivity allowing for more drilling at lower unit cost.
-
Tanya Jakusconek, Scotiabank: Questioned reserve and resource replacement and the approach to reserve pricing. Gosselin stated, “we are in a good position to fully replace what we mine at Kittila, Macassa and several of our sites will see some partial replacement.” Gosselin added that inflation adjustments to reserve pricing are considered on a mine-by-mine basis, but the company intends to keep cut-off grades stable while offsetting inflation.
Sentiment Analysis
-
Analysts’ tone was constructive but probing, focusing on the sustainability of cost controls, inflation impacts, and the company’s approach to reserve/resource management. Questions on strategic investments and portfolio management indicated close scrutiny of capital allocation.
-
Management maintained a confident and upbeat tone in prepared remarks, frequently using phrases such as “record results,” “exceptional job,” and “strongest financial position.” In Q&A, the tone remained disciplined and occasionally defensive when clarifying capital allocation or noncore investments, as seen in Al-Joundi’s response, “we want to remain a gold company.”
-
Compared to the previous quarter, both management and analysts sustained a positive outlook, though the current quarter featured more focus on productivity initiatives and inflationary pressures.
Quarter-over-Quarter Comparison
-
The company again reported record financial performance, with new records in revenue, adjusted earnings, and EBITDA. Net cash position increased from almost $1 billion in Q2 to $2.2 billion in Q3.
-
Management’s language around productivity improvement was more pronounced, with specific examples of technological advancements and efficiency gains.
-
Analysts continued to focus on capital allocation and reserve/resource strategies but pressed more on inflation expectations and the sustainability of cost performance.
-
The confidence in achieving guidance, maintaining capital discipline, and delivering on pipeline projects was reiterated, with management’s tone remaining highly positive and focused on operational excellence and shareholder returns.
Risks and Concerns
-
Management highlighted inflationary pressures, particularly labor inflation at 6% to 7% across cost components and higher royalty expenses due to elevated gold prices.
-
Analysts raised concerns about cost inflation, reserve/resource pricing adjustments, and the impact of higher gold prices on royalty costs.
-
Management emphasized ongoing cost control initiatives, productivity improvements, and the use of technology to mitigate cost pressures, as well as a disciplined approach to capital allocation and noncore investments.
Final Takeaway
Agnico Eagle Mines Limited delivered record financial results in Q3 2025, backed by strong gold production, robust cost control, and record gold prices. Management reinforced its commitment to operational excellence, productivity improvements, and disciplined capital allocation. The company is well-positioned to achieve its full-year production and cost guidance, advance its key pipeline projects, and continue returning cash to shareholders, while actively managing inflationary risks and maintaining a strong financial position for future growth.