Agnico Eagle Mines Q1 Earnings Call Highlights

Key Points

• Record earnings and strong balance sheet: Agnico reported adjusted net income of about $1.7 billion and adjusted EBITDA just over $3 billion, generated roughly $730 million of free cash flow in Q1, ended the quarter with approximately $2.9 billion net cash, and received a Fitch upgrade to A-.
• Production and cost guidance intact: Q1 production was ~825,000 ounces (slightly above plan) with total cash costs of $1,093/oz and AISC of $1,483/oz, and the company reiterated 2026 guidance of $1,020–$1,120 (TCC) and $1,400–$1,550 (AISC) while noting production is weighted to the second half of the year.
• Shareholder returns and growth pipeline: Management returned about $375 million in the quarter and plans a renewed buyback of up to $2 billion, while advancing five key projects including Hope Bay (capex slightly over $2 billion) that, together, could lift production by 20–30% over the next decade and materially expand Nunavut output.

Agnico Eagle Mines NYSE: AEM opened 2026 with first-quarter production slightly above budget and costs tracking within guidance, as executives pointed to strong operational performance and continued leverage to high gold prices. Chief Executive Officer Ammar Al-Joundi said the quarter produced “record net income driven by record operating margins,” while the company reiterated full-year production and cost guidance.

Quarterly results and guidance

Chief Financial Officer Jamie Porter reported first-quarter gold production of approximately 825,000 ounces, “slightly better than planned,” while noting that year-over-year production was lower due to mine sequencing at LaRonde, Macassa and Fosterville. Porter said the first quarter represented about 24% of the midpoint of annual guidance, with production weighted to the second half of the year; Al-Joundi characterized the expected split as roughly 48% in the first half and 52% in the second half.

Cost performance remained within the company’s 2026 outlook. Porter said total cash costs were $1,093 per ounce and all-in sustaining costs were $1,483 per ounce. He attributed higher costs to increased royalties tied to higher realized gold prices, lower production volumes as expected, and a stronger Canadian dollar compared with the first quarter of 2025. The company reiterated 2026 guidance of $1,020 to $1,120 per ounce for total cash costs and $1,400 to $1,550 per ounce for all-in sustaining costs.

Porter also discussed energy exposure, saying 2026 guidance assumes an average diesel price of $0.78 per liter. He estimated direct diesel consumption at roughly 108 liters per ounce of gold produced, representing about 7% of the operating cost base. Based on the company’s hedge position, Porter said a 10% move in diesel prices would impact annual total cash costs by roughly $6 per ounce. Al-Joundi highlighted structural advantages in Ontario and Quebec, where the company’s electricity is sourced from hydro or nuclear generation, and said the company has hedged a portion of its Nunavut diesel exposure.

Record earnings, free cash flow, and balance sheet strength

Porter said Agnico Eagle posted adjusted net income of approximately $1.7 billion, or $3.41 per share, and adjusted EBITDA of just over $3 billion. The company generated about $730 million in free cash flow during the quarter despite paying roughly 50% of expected 2026 cash taxes totaling $1.8 billion, including a previously disclosed $1.3 billion catch-up amount related to 2025 tax liability.

On liquidity, Porter said Agnico Eagle ended the quarter with approximately $2.9 billion in net cash, which he described as “one of the strongest balance sheets in the sector.” Fitch upgraded the company’s long-term issuer rating to A- with a stable outlook, Porter added.

Capital returns and buybacks

Management emphasized shareholder returns alongside reinvestment. Porter said the company returned approximately $375 million to shareholders through dividends and share repurchases in the quarter, or roughly half of free cash flow. He also said Agnico Eagle plans to renew its normal course issuer bid in May “on substantially the same terms with an increased limit of up to $2 billion.”

Porter explained that share repurchases slowed quarter-over-quarter largely due to the timing of cash tax payments. The company repurchased $150 million of shares in the first quarter—about half of fourth-quarter activity—and Porter said repurchases are expected to “ramp up certainly in Q2 and then through the rest of the year” as free cash flow increases.

At current gold prices, Porter said the company is still targeting returning approximately 40% of annual free cash flow through dividends and buybacks, while also noting potential to offset dilution from the proposed Rupert Resources acquisition. He said Agnico Eagle may consider returning proceeds from portfolio investment sales through additional repurchases. In response to an analyst question about cash levels, Porter said he was comfortable with the current position and suggested a range “between $3 billion and $5 billion” provides financial flexibility.

Operations: records at Detour, Macassa, and regional improvements

Al-Joundi and operating leaders cited several operational records. Al-Joundi highlighted record mill throughput at Macassa, record development rates at Meliadine, and record pit tonnage at Detour.

Chief Operating Officer Natasha Vaz said Detour achieved a quarterly record in tons mined and a record first-quarter mill throughput, and she noted the operation posted its lowest quarterly turnover since open-pit operations began. Vaz also said Macassa delivered record quarterly mill throughput as optimization efforts continue, targeting more than 2,000 tons per day by year-end. However, she said total mill tonnage was below plan due to challenges with the old paste plant while commissioning the new plant, which is expected to be fully operational in the second quarter.

Vaz said Fosterville recorded a “significant step change in productivity” tied to mine optimization, with improvements in development and stope cycling. She added that the Pinos Altos team continues to work on initiatives “to safely extract the most value” from the assets.

In Quebec, Dominique Girard said Malartic and Meadowbank led first-quarter performance. At Canadian Malartic, Girard said the company reached the first stope at East Gouldie via the ramp about one kilometer underground. Based on a 2023 study, he said mining was expected through 2042, but “based on what we know now, we’re gonna be mining there up to 2060.” Girard said the shaft work and production ore performance were progressing, with a plan to bring ore to surface via the shaft in mid-2027.

Girard also described a continuous improvement milestone at LaRonde: autonomous hauling that moves ore from 3.2 kilometers underground to 2.9 kilometers “without drivers,” reducing staffing needs while extending operating time.

Growth pipeline: Hope Bay, Detour underground, Upper Beaver, San Nicolas, and Finland

Management repeatedly framed reinvestment as a core theme. Al-Joundi said the company is advancing projects that could increase Agnico Eagle production by up to 20% to 30% over the next decade, highlighting Detour, Malartic, Hope Bay, Upper Beaver and San Nicolas. Porter referred to “five key pipeline projects” expected to underpin long-term growth.

• Hope Bay: Girard said the company is positioned to potentially seek board approval for construction in May, noting the camp and fabrication shops are ready, the mill is empty and ready, and engineering is more than 50% complete. He said the increased engineering detail supports cost and schedule confidence. Responding to questions about inflation and capital, Girard said Hope Bay capex would be “slightly over $2 billion,” adding that changes relate more to decisions such as fast-tracking Patch 7, starting the mill with a design capacity of 6,000 tons per day, and adding infrastructure to support ongoing drilling than to inflation alone. Girard also said Hope Bay could bring Nunavut production to more than 400,000 ounces per year and potentially create a 1 million-ounce-per-year Nunavut platform when combined with existing operations.
• Detour Underground: Vaz said early work is advancing on schedule, including more than 820 meters of development on the exploration ramp and excavation work for a conveyor portal near the mill, along with a camp extension. She said a high-intensity drill program started to support areas that could be mined as early as 2028. On exploration results, EVP of Exploration Guy Gosselin cited high-grade intercepts west of the pit and said the company is “firming up the model” for the zone, with plans to drill more aggressively from underground as the ramp advances. Vaz added that the study team is evaluating optionality that could include higher milling capacity, a larger underground mine, or another pit pushback, though she stressed it is “very early days.”
• Upper Beaver: Vaz said both ramp and shaft work are ahead of schedule. The ramp advanced more than 500 meters during the quarter to a depth of 108 meters, while the shaft reached 382 meters after sinking began in the fourth quarter of 2025. A high-intensity drill program continued to complement a planned bulk sample.
• San Nicolas: Vaz said the company is awaiting regulatory decisions for key permits, while continuing engineering on critical infrastructure and drilling focused on condemnation and geological evaluation. In Q&A, Al-Joundi said the company would consider consolidation opportunities if its partners approached it, but added he did not want to speculate on partner intentions.
• Canadian Malartic updates: Girard said the pilot hole for a second shaft reached 1.8 kilometers without issues and said studies continue on Shaft 2 and Marban, alongside work on the Wasamac study. VP of Investor Relations Jean-Marie Clouet said Agnico Eagle plans to provide an update in September, including updated reserves and resources and a clearer view of how the second shaft, Marban and Wasamac “fit together,” along with cost and operating ranges to help outline a path toward 1 million ounces per year.
• Finland consolidation: Gosselin discussed Agnico Eagle’s offer to acquire Rupert and Orion Resource Partners, as well as a 70% interest of B2Gold in the FinGold JV, which would expand the company’s Finnish land position to about 2,500 square kilometers. Gosselin said the company intends to drill once the acquisition closes and expects to have “an updated view” by the end of 2027 on optionality, pit design, and infrastructure placement after removing property boundaries. In Q&A, Al-Joundi said the company preferred to use cash for the Rupert transaction, but “they wanted 100% shares.” Gosselin clarified that the company’s stated “platform of 500,000 ounces” refers to combining Kittila and Ikkari.

Exploration remained active across the portfolio. Gosselin said the company completed nearly 360 kilometers of diamond drilling in the first quarter—about 25% of its 1.4 million-meter budget for the year—with 127 rigs operating. In Malartic, he cited intercepts at East Gouldie including 6.7 grams per tonne over 36 meters and 9 grams per tonne over 53 meters core length in a new structure between Odyssey North and South. At Detour, he cited intercepts of 8.9 grams per tonne over 14 meters at 190 meters depth and 10.7 grams per tonne over 10 meters at 500 meters depth. At Hope Bay, he said the company completed more than 33,000 meters of drilling as of the end of March, with a fuller update expected in a May 19 press release.

Al-Joundi also addressed safety, noting the company experienced two fatalities in the past five months. “This is not acceptable,” he said, adding that management has mobilized teams to reinforce safe and responsible production. EVP Sustainability, People and Culture Carol Plummer said investigations are ongoing with regulatory authorities involved, and that the company is focusing on major hazards and “critical controls” while sharing learnings internally and, where possible, with industry peers.

About Agnico Eagle Mines NYSE: AEM

Agnico Eagle Mines Limited NYSE: AEM is a Canadian-based senior gold producer headquartered in Toronto, Ontario. The company is principally engaged in the exploration, development, production and reclamation of gold-bearing properties. Agnico Eagle pursues both greenfield and brownfield exploration to expand its resource base and operates a portfolio of producing mines and development projects to generate long-life gold production.

Its core business activities span the full mining lifecycle: grassroots and advanced-stage exploration, prefeasibility and feasibility studies, mine construction, underground and open-pit mining, ore processing and metal recovery, and post-mining reclamation and closure.

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