AEM changes
Pick any two versions below to diff them.
- Price
- CA$283.31
- Discount category
- Far above intrinsic value
- Next earnings
- 2027-02-11
- Next earnings is estimate
- Yes
- Company name
- Agnico Eagle Mines
- Sector
- Gold mining
- About
- Agnico Eagle Mines is a Canadian gold producer. It has mines in Canada, Australia, Finland and Mexico, including Detour Lake, Canadian Malartic, LaRonde, Meadowbank, Meliadine, Fosterville and Kittila. It expects to produce near the low end of 3.3 to 3.5 million ounces of gold in 2026. It does not sell gold forward, so its revenue moves with the gold price. Its projects include the Odyssey mine at Canadian Malartic, Detour Lake underground, Upper Beaver and Hope Bay. It has declared a cash dividend every year since 1983. The company reports in U.S. dollars, and amounts are in U.S. dollars unless the text says otherwise. Its shares trade on the Toronto Stock Exchange in Canadian dollars and on the New York Stock Exchange.
- Thesis
- Agnico Eagle trades at a premium because investors pay for low-risk mines, net cash and a long project pipeline at a gold price near record levels. Its mines are in stable countries, and it does not sell gold forward, so a high gold price goes straight to earnings. The realized gold price was $4,264 per ounce in Q3 2026, adjusted net income was $1.32 billion and net cash was $3.42 billion at September 30, 2026. The price assumes that gold stays high for many years and that production grows at stable costs. For the premium to be earned, three things must be true. The gold price must stay near its 2026 level, because the company has no hedges on its gold. Costs must stay within guidance, after AISC of $1,648 per ounce in Q3 2026 and inflation in diesel and consumables. Projects must deliver on time: first production through Shaft #1 at Odyssey in Q2 2027, Hope Bay construction and recovery at Canadian Malartic, where the Barnat pit event cuts output by up to 150,000 ounces in each of 2027 and 2028. The Q4 2026 report with 2027 guidance, expected in February 2027, gives the next test. If gold falls back toward its 2025 level, the premium can shrink fast.
- Risks
- Almost all revenue comes from gold, and the company does not sell gold forward. A fall in the gold price lowers earnings and free cash flow almost one for one with the margin per ounce. Costs are rising. AISC was $1,648 per ounce in Q3 2026, and the company expects full-year costs near the upper end of guidance. Diesel is about 11% of operating costs, and consumables, about 30% of operating costs, face inflation of about 6%. Growth depends on large projects, such as Odyssey, Detour Lake underground, Upper Beaver and Hope Bay. Capital spending is $2.6 billion to $2.8 billion in 2026. Delays or cost overruns can lower returns. Many costs are in Canadian, Australian and other local currencies, while revenue is in U.S. dollars, so stronger local currencies raise costs. Canadian retaliatory tariffs on U.S. imports add about $5 per ounce to operating costs.
- Balance sheet
- Cash: $3.6B Debt: $197M Net cash: $3.4B Undrawn credit line: $2.0B Ratings: Fitch A- (stable outlook) Agnico Eagle has net cash. At September 30, 2026, cash was $3.61 billion and long-term debt was $197 million, so net cash was $3.42 billion, up from $2.67 billion at December 31, 2025. The company did not draw on its credit facility, and $1.98 billion was available at September 30, 2026. In October 2026, it increased the facility to $3.0 billion and extended it to October 28, 2031. Fitch upgraded its rating to A- with a stable outlook in April 2026. Free cash flow was $2.92 billion in the first nine months of 2026. The company expects to return more than 50% of 2026 free cash flow to shareholders through dividends and buybacks. As of 2026-09-30.
- Checkpoints
- Oct 28, 2026: Q3 2026 results. Passed. Watch: Production in line with the adjusted plan, costs within guidance and higher net cash pass; a production cut or costs above guidance fail. Outcome: Production of 814,012 ounces was in line with the adjusted plan and net cash rose to $3.42 billion, while costs moved to the upper end of guidance. Feb 11, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2027 production guidance that includes the Barnat impact, AISC guidance near 2026 levels and continued buybacks pass; lower production or a large rise in costs fail. Q2 2027 (estimate): First production through Shaft #1 at Odyssey. Pending. Watch: A start of production through Shaft #1 in Q2 2027 as planned passes; a delay or a higher cost fails.
- Recent events
- 2026-10-28: Agnico Eagle reported Q3 2026 results. Gold production was 814,012 ounces, and AISC was $1,648 per ounce. At a realized gold price of $4,264 per ounce, net income was $1.35 billion, or $2.67 per share, and adjusted net income was $1.32 billion, or $2.62 per share. Free cash flow was $852 million. The company bought back 1,297,940 shares for about $250 million and kept the quarterly dividend at $0.45 per share. It expects 2026 production near the low end of its range and costs near the upper end. It also increased its unsecured credit facility to $3.0 billion, with a maturity of October 28, 2031. 2026-07-29: Agnico Eagle reported Q2 2026 results. Gold production was 855,816 ounces at AISC of $1,459 per ounce. At a realized gold price of $4,483 per ounce, adjusted net income was $1.54 billion, or $3.07 per share. Free cash flow was a record $1.34 billion, and the company returned a record $625 million to shareholders. 2026-07-02: Agnico Eagle reported a rock mass movement on the north wall of the Barnat open pit at Canadian Malartic on July 1, 2026. Nobody was hurt. The company expects it to reduce production by 60,000 to 80,000 ounces in the second half of 2026 and by up to 150,000 ounces in each of 2027 and 2028. Mining in the pit started again on September 27, 2026. 2026-06-16: Agnico Eagle completed the purchase of Rupert Resources, after the purchase of Aurion Resources on June 15 and of B2Gold's 70% interest in the FinGold joint venture for $325.0 million on April 22. These deals give it about 2,492 square kilometres in the Central Lapland Greenstone Belt in Finland, including the Ikkari gold project. 2026-05-06: Agnico Eagle started its renewed normal course issuer bid. It can buy back up to $2.0 billion of shares, up to 5% of its shares, until May 5, 2027. 2026-04-20: Agnico Eagle agreed to buy Rupert Resources and Aurion Resources and the 70% interest of B2Gold in the FinGold joint venture in Finland, near its Kittila mine.