Agnico Eagle Mines Limited (AEM Quick QuoteAEM - Free Report) is slated to report third-quarter 2025 results after the closing bell on Oct. 29. The company’s results are expected to reflect the benefits of higher gold prices and strong production.

The Zacks Consensus Estimate for third-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $1.76 per share, suggesting a 54.4% rise from the prior-year reported number. The Zacks Consensus Estimate for revenues currently stands at $2.73 billion, indicating a 26.5% rise on a year-over-year basis.

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AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being roughly 10%.

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Q3 Earnings Whispers for AEM

Our proven model predicts an earnings beat for AEM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. That is just the case here.

AEM has an Earnings ESP of +11.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping AEM’s Q3 Results

The company’s third-quarter performance is likely to have benefited from higher gold prices. Gold prices have racked up strong gains this year as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid an intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. 

The Federal Reserve’s interest rate reduction by a quarter of a percentage point, prospects of more rate cuts this year amid concerns over the labor market, along with concerns over a protracted U.S. government shutdown and escalating U.S.-China trade tensions, have triggered the rally, driving prices north of $4,000 per ton for the first time. Prices of the yellow metal closed nearly 17% higher in the third quarter and have surged roughly 57% this year. Our estimate for AEM’s realized gold prices is $3,290 per ounce for the quarter, suggesting a 32% year-over-year increase.

Continued strong gold production is likely to have supported the company’s performance. Solid production at LaRonde, Macassa and Canadian Malartic on higher gold grades is expected to have aided production, partly offset by weaker production at Detour Lake and Nunavut operations. Our estimate for payable gold production is pegged at 839,898 ounces for the third quarter.

AEM’s second-quarter 2025 results showed concerning increases in unit costs. Its all-in sustaining cost (AISC) — the most important cost metric of miners — was $1,289 per ounce, marking a 9% increase from the prior quarter and a 10% year-over-year rise. AISC increased due to higher total cash costs and an uptick in sustaining capital expenditures and general and administrative expenses. Total cash costs per ounce for gold were $933, up 7% from $870 a year ago and increased from $903 in the prior quarter. 

AEM forecasts AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint. AISC is likely to rise in the latter part of 2025 as deferred expenditures are realized. While AEM is taking actions to control costs, higher costs are expected to have weighed on its third-quarter performance. Our estimate for AISC for gold is pegged at $1,309 per ounce, indicating a 1.6% sequential and 1.8% year-over-year increase.

AEM Stock’s Price Performance and Valuation

Thanks to the rally in gold prices and solid earnings performance, AEM’s shares have performed impressively on the bourses over the past year. Its shares have surged 88.3% in a year, topping the Zacks Mining – Gold industry’s 76.1% rise and the S&P 500’s increase of 18.9%. With respect to its major gold mining peers, Barrick Mining Corporation (B Quick QuoteB - Free Report) , Newmont Corporation (NEM Quick QuoteNEM - Free Report) and Kinross Gold Corporation (KGC Quick QuoteKGC - Free Report) have rallied 62.5%, 72.4% and 129.3%, respectively, over the same period.

AEM’s One-year Price Performance

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From a valuation standpoint, Agnico Eagle is currently trading at a forward 12-month earnings multiple of 20.05, a roughly 45.6% premium to the peer group average of 13.77X. AEM is also trading at a premium to Barrick Mining, Newmont and Kinross Gold. Agnico Eagle has a Value Score of C. Newmont, Barrick Mining and Kinross Gold have a Value Score of B, each. AEM’s stretched valuation should not scare investors away, considering the company’s healthy earnings trajectory.

AEM’s P/E F12M Vs. Industry, B, NEM & KGC

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Investment Thesis for AEM Stock

Agnico Eagle is well-placed for growth on the advancement of its key value drivers and pipeline projects, including Odyssey, Detour Lake and Hope Bay, which are expected to provide additional growth in production and cash flows. The merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer with an extensive pipeline of development and exploration projects to drive sustainable growth.

AEM has a strong liquidity position and generates substantial cash flows, which allows it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Rallying gold prices should also boost AEM’s profitability and cash flow generation.

Final Thoughts: Buy AEM Shares

With a strong pipeline of growth projects, solid financial health, a healthy growth trajectory and rising earnings estimates, AEM stock presents a compelling investment case ahead of its earnings announcement for those seeking exposure to the gold mining space. Backed by a positive earnings outlook, AEM is a prudent investment choice for those looking to capitalize on favorable gold market conditions.