AGNICO EAGLE REPORTS SECOND QUARTER 2026 RESULTS - RECORD QUARTERLY FREE CASH FLOW REFLECTS SOLID OPERATIONAL PERFORMANCE; RECORD QUARTERLY SHAREHOLDER RETURNS

Agnico Eagle Mines Limited reported second-quarter 2026 results after market close on July 29, 2026. The company produced 855,816 ounces of payable gold at total cash costs of $1,054 per ounce and all-in sustaining costs (AISC) of $1,459 per ounce, against a realized gold price of $4,483 per ounce. The quarter generated record free cash flow of $1,335 million, or $2.66 per share, and net income of $1,600 million, or $3.19 per share. Shareholder returns reached a record $625 million, comprising a $0.45 dividend and $400 million in buybacks.

The company updated its full-year 2026 guidance, moving gold production to the lower end of the 3.3–3.5 million ounce range, previously covering the full range. Total cash costs are now projected at $1,020–$1,120 per ounce, with AISC at $1,400–$1,550 per ounce. Capital expenditures, excluding capitalized exploration, were increased to $2.6–$2.8 billion from $2.2–$2.4 billion due to the Hope Bay construction decision. Additionally, a rock mass movement at the Barnat open pit at Canadian Malartic, announced on July 2, is expected to reduce second-half 2026 production by 60,000–80,000 ounces.

Operational updates include the completion of phase 1 of the Odyssey shaft sinking, with first shaft production expected in the second quarter of 2027. Agnico Eagle also renewed its normal course issuer bid (NCIB) with an internal purchase limit of $2 billion. The company noted a Fitch rating upgrade to A-.

Agnico Eagle Mines Limited (AEM) reported Q2 2026 results that presented a mix of financial strength and operational headwinds. The company delivered record free cash flow, net income, and shareholder returns. However, it formally downgraded its full-year production guidance to the low end of its range and increased its 2026 capital expenditure guidance by $400 million, raising the new range to $2.6–$2.8 billion.

The production guidance adjustment was not entirely unexpected, as the Barnat event was pre-announced on July 2. Following that announcement, the stock fell approximately 14%, dropping from $218 to $191. In contrast, the increase in capital expenditure guidance is a new development that signals higher capital intensity. With production growth expectations being trimmed while spending is rising, the market may react cautiously to these combined factors.

Agnico Eagle Mines Limited is a senior gold producer operating a diversified portfolio of mines across Canada, Finland, Australia, and Mexico. Its key producing assets include Detour Lake in Ontario, Canadian Malartic and LaRonde/Goldex in Quebec, Macassa in Ontario, Meadowbank/Amaruq and Meliadine in Nunavut, Fosterville in Australia, and Kittila in Finland.

The company’s growth projects include the Odyssey underground development at Canadian Malartic, the Detour Lake underground expansion, Upper Beaver, Hope Bay, which recently received approval for construction, and a 50% joint venture at San Nicolás in Mexico. Agnico Eagle maintains a strong balance sheet with a net cash position and a long history of returning capital to shareholders.