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AEM Q3 Earnings Beat Estimates on Higher Gold Prices
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Key Takeaways
AEM's Q3 earnings beat estimates by 5.7%, while revenues rose 17.1% year over year to $3.58 billion.
Realized gold prices surged 22.7% to $4,264 per ounce, offsetting a 6.1% decline in gold production.
AEM reaffirmed its 2026 production outlook, with output expected within 3.3M-3.5M ounce range.
Agnico Eagle Mines Limited (AEM - Free Report) reported adjusted earnings of $2.61 per share for the third quarter of 2026, surpassing the Zacks Consensus Estimate of $2.47 by 5.7%. Higher realized gold prices supported earnings despite increased production costs.
Revenues rose 17.1% year over year to $3.58 billion, beating the Zacks Consensus Estimate of $3.55 billion by 0.9%. Payable gold production declined 6.1% year over year to 814,012 ounces, primarily reflecting lower output from Canadian Malartic and Meadowbank.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Gold production declined from 866,936 ounces in the prior-year quarter. The figure fell behind our estimate of 925,815 ounces. Lower throughput and grades at Canadian Malartic and reduced grades at Meadowbank weighed on output. These declines were partly offset by higher production at Detour Lake and Fosterville, driven by improved grades and operating performance.
Total cash costs per ounce increased 19% year over year to $1,133 from $952. It exceeded our estimate of $1,078.
Realized gold prices averaged $4,264 per ounce in the reported quarter, up 22.7% from $3,476 a year ago. The figure was below our estimate of $4,314. Higher pricing more than offset the impact of lower gold sales on mining revenues, supporting profitability amid inflationary pressures.
All-in sustaining costs increased 23.8% to $1,648 per ounce from $1,331, also reflecting higher sustaining capital spending and reclamation-related costs. It surpassed our estimate of $1,467.
AEM's Financial Position and Shareholder Returns
Agnico Eagle ended the quarter with cash and cash equivalents of $3.61 billion, up $149 million sequentially. Long-term debt remained at $197 million, resulting in a net cash position of $3.42 billion.
Cash provided by operating activities totaled $1.76 billion, down 3.4% from $1.82 billion a year ago. Free cash flow declined 28.4% to $852 million, reflecting unfavorable working capital movements and higher development spending. The company returned $478 million to shareholders through dividends and share repurchases during the quarter.
Agnico Eagle Reaffirms 2026 Guidance
For full-year 2026, Agnico Eagle continues to expect gold production near the lower end of its guidance range of 3.3 million to 3.5 million ounces. The outlook reflects adjustments to the Barnat open-pit mining plan at Canadian Malartic.
Total cash costs per ounce are expected near the upper end of the $1,020-$1,120 guidance range, while AISC is projected near the upper end of $1,400-$1,550 per ounce. The company cited higher diesel prices and other input cost pressures.
Capital expenditures, excluding capitalized exploration, are expected between $2.6 billion and $2.8 billion. Capitalized exploration spending is projected at $290-$330 million.
Exploration and corporate development expenses are forecast between $275 million and $305 million. Depreciation and amortization expenses are expected toward the upper end of the $1.55-$1.75 billion range.
General and administrative expenses are anticipated between $230 million and $260 million, while other costs are projected between $75 million and $95 million. The effective tax rate is expected between 34% and 36%, with cash taxes estimated at $3.4-$3.6 billion.
AEM’s Price Performance
Shares of AEM have gained 1.8% over the past year compared with a 6.1% rise in its industry.
Image Source: Zacks Investment Research
AEM’s Zacks Rank & Key Picks
AEM currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Element Solutions Inc. (ESI - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 55.3% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6%.
View the Zacks #1 Rank List
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AEM Q3 Earnings Beat Estimates on Higher Gold Prices
Key Takeaways
Agnico Eagle Mines Limited (AEM - Free Report) reported adjusted earnings of $2.61 per share for the third quarter of 2026, surpassing the Zacks Consensus Estimate of $2.47 by 5.7%. Higher realized gold prices supported earnings despite increased production costs.
Revenues rose 17.1% year over year to $3.58 billion, beating the Zacks Consensus Estimate of $3.55 billion by 0.9%. Payable gold production declined 6.1% year over year to 814,012 ounces, primarily reflecting lower output from Canadian Malartic and Meadowbank.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Agnico Eagle Mines Limited price-consensus-eps-surprise-chart | Agnico Eagle Mines Limited Quote
AEM's Gold Production and Costs
Gold production declined from 866,936 ounces in the prior-year quarter. The figure fell behind our estimate of 925,815 ounces. Lower throughput and grades at Canadian Malartic and reduced grades at Meadowbank weighed on output. These declines were partly offset by higher production at Detour Lake and Fosterville, driven by improved grades and operating performance.
Total cash costs per ounce increased 19% year over year to $1,133 from $952. It exceeded our estimate of $1,078.
Realized gold prices averaged $4,264 per ounce in the reported quarter, up 22.7% from $3,476 a year ago. The figure was below our estimate of $4,314. Higher pricing more than offset the impact of lower gold sales on mining revenues, supporting profitability amid inflationary pressures.
All-in sustaining costs increased 23.8% to $1,648 per ounce from $1,331, also reflecting higher sustaining capital spending and reclamation-related costs. It surpassed our estimate of $1,467.
AEM's Financial Position and Shareholder Returns
Agnico Eagle ended the quarter with cash and cash equivalents of $3.61 billion, up $149 million sequentially. Long-term debt remained at $197 million, resulting in a net cash position of $3.42 billion.
Cash provided by operating activities totaled $1.76 billion, down 3.4% from $1.82 billion a year ago. Free cash flow declined 28.4% to $852 million, reflecting unfavorable working capital movements and higher development spending. The company returned $478 million to shareholders through dividends and share repurchases during the quarter.
Agnico Eagle Reaffirms 2026 Guidance
For full-year 2026, Agnico Eagle continues to expect gold production near the lower end of its guidance range of 3.3 million to 3.5 million ounces. The outlook reflects adjustments to the Barnat open-pit mining plan at Canadian Malartic.
Total cash costs per ounce are expected near the upper end of the $1,020-$1,120 guidance range, while AISC is projected near the upper end of $1,400-$1,550 per ounce. The company cited higher diesel prices and other input cost pressures.
Capital expenditures, excluding capitalized exploration, are expected between $2.6 billion and $2.8 billion. Capitalized exploration spending is projected at $290-$330 million.
Exploration and corporate development expenses are forecast between $275 million and $305 million. Depreciation and amortization expenses are expected toward the upper end of the $1.55-$1.75 billion range.
General and administrative expenses are anticipated between $230 million and $260 million, while other costs are projected between $75 million and $95 million. The effective tax rate is expected between 34% and 36%, with cash taxes estimated at $3.4-$3.6 billion.
AEM’s Price Performance
Shares of AEM have gained 1.8% over the past year compared with a 6.1% rise in its industry.
Image Source: Zacks Investment Research
AEM’s Zacks Rank & Key Picks
AEM currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Element Solutions Inc. (ESI - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), while ESI and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 55.3% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6%.