Revenue: Record revenue of $2.8 billion.

Adjusted Earnings: Record adjusted earnings of $976 million or $1.94 per share.

Adjusted EBITDA: Record adjusted EBITDA of $1.9 billion.

Free Cash Flow: Record free cash flow of $1.3 billion.

Gold Production: Approximately 866,000 ounces at total cash costs of $933 per ounce.

All-In Sustaining Costs: $1,289 per ounce.

Dividends and Share Buybacks: $200 million in dividends and $100 million in share buybacks.

Debt Repayments: $550 million of debt repayments.

Net Cash Position: Ended the quarter with net cash of almost $1 billion.

Gold Price Impact: Gold prices increased by $400, with cash costs rising by $30 per ounce compared to Q1.

Release Date: July 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Agnico Eagle Mines Ltd (NYSE:AEM) reported record financial results with free cash flow at $1.3 billion, adjusted EBITDA at $1.9 billion, and adjusted net income at $1.94 per share.

The company returned $200 million in dividends and $100 million in share buybacks to shareholders, alongside $550 million in debt repayments.

Gold production was strong at 866,000 ounces with total cash costs of $933 per ounce, maintaining costs within guidance.

Significant progress was made on key projects, including record gold production at Odyssey and Macassa, and best mill throughput at Detour for a second quarter.

Agnico Eagle Mines Ltd (NYSE:AEM) continues to invest in future growth with projects like Detour, Malartic, Upper Beaver, Hope Bay, and San Nicolas, which could add substantial production capacity.

Negative Points

Gold production at Nunavut operations was lower due to an extended caribou migration, impacting overall production.

Detour’s gold production was affected by lower grades, and the company expects to be at the lower end of the full-year production guidance range.

Total cash costs increased by $30 per ounce compared to the first quarter, primarily due to higher royalties and a weakening Canadian dollar.

The company anticipates a significant cash tax outflow in Q1 2026 due to higher gold prices, which could impact cash flow.

Operational challenges at some sites, such as the need for fleet management system improvements, indicate areas where efficiency could be enhanced.

Q & A Highlights

Q: Can you walk us through your thought process on buybacks versus dividends, and does the current share valuation play a role in determining which option you choose to return capital to shareholders? A: Jamie Porter, CFO, explained that Agnico Eagle is taking advantage of higher gold prices to strengthen the balance sheet, reinvest in the business, and increase returns to shareholders. The company pays a half dividend of $800 million annually and has increased share buyback activity, doubling it in the second quarter relative to the first. They target about one-third of free cash flow being returned to shareholders, which could reach $1.3 billion if gold prices remain stable, implying more share buybacks in the second half of the year. The dividend will be evaluated later this year or early next.