Agnico Eagle (AE9) Q3 2026 Earnings Report

The call was strongly positive, with solid production, strong cash flow and earnings, disciplined cost control relative to a difficult operating environment, a strengthened balance sheet, increased shareholder returns, and substantial progress across the growth and exploration pipeline. The main negatives were higher diesel, tariff, and consumable costs, Meadowbank grade and throughput issues, labor availability and housing challenges, and the lack of concrete near-term production replacement for Barnat ounces. Management nevertheless reaffirmed its full-year production and cost guidance and emphasized continued execution across its projects.

Agnico Eagle said it remains on track to deliver its full year 2026 production and cost guidance, albeit at the lower end and the upper end of production and costs, respectively, with year-to-date production of approximately 2.5 million ounces; it expects production growth of 20%-30% over the next decade and to above 4 million ounces per year, starting in the early to mid-2030s, while four projects are forecast to contribute an additional 1.3 million to 1.5 million ounces per year by the mid-2030s. The company expects project returns of approximately 25%-50% at current spot prices, now expects to return more than 50% of free cash flow to shareholders for the full year 2026, and said 50% is a reasonable threshold looking ahead to 2027, subject to the gold price and the needs of the business. Malartic remains on target for first production via the shaft in Q2 2027; the Detour bulk sample is expected to be completed by the first half of 2027, potentially enabling underground production as early as 2028, with a project outlook expected in 2027; and cost inflation guidance was not finalized, although $50-$60 an ounce of diesel impact was expected in Q4, as much as $80 an ounce for full year 2026, about a 7% increase, potentially year-over-year, and 5% or 6% was described as a reasonable assumption.