Mining & Metals
Agnico Eagle Mines Profit More Than Doubles, Beats Estimates As Production Falls
Agnico Eagle Mines (AEM.TO, AEM) rose 0.5% in after-hours New York trading on Thursday after the company reported its first-quarter adjusted profit more than doubled year over year and beat analysts' estimates, despite a decline in gold production.The company said adjusted income, excluding most one-time items, rose to US$1.71 billion, or US$3.41 per share, from US$770 million, or US$1.53, a year ago. FactSet expected US$3.24 per share.Quarterly gold production fell to 825,109 ounces from 873,794 ounces in the prior-year period. Agnico said solid production, combined with higher realized gold prices of $4,861 per ounce in the first quarter, resulted in record operating margins and adjusted net income.The company also declared a quarterly cash dividend of $0.45 per share, payable on June 15, to shareholders of record as of June 1. .In the first quarter, the company repurchased 721,211 shares under the NCIB at an average price of $207.68 per share for aggregate purchases of $150 million."We delivered a solid start to 2026, achieving record operating margins while production and costs tracked well to plan. With gold production expected to be weighted to a stronger second half of the year, we are managing cost volatility through disciplined execution and asset optimization, supported by our regional operating model. This positions us well to deliver on our full year guidance," said chief executive Ammar Al-Joundi.In its outlook, Agnico said full year expected payable gold production in 2026 remains unchanged at 3.3 to 3.5 million ounces, with production now weighted approximately 48% to the first half of the year and 52% to the second half. Full year total cash costs per ounce and AISC per ounce in 2026 remain unchanged at $1,020 to $1,120 and $1,400 to $1,550, respectively.The company's shares were last seen up US$1.00 to US$189.13 i after hours. They closed up C$4.22 to C$255.43 on the Toronto Stock Exchange.
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