Agnico Eagle Posts Adjusted EPS of $2.62 as Gold Rises and Production Falls
Key Facts
Agnico Eagle Mines reported net income of $1.353 billion, or $2.67 per share, in the third quarter of 2026, and adjusted net income of $1.324 billion, or $2.62 per share. Adjusted earnings per share beat analysts’ estimate of $2.56, according to Kitco News. Revenue from mining operations rose to $3.58 billion from $3.06 billion a year earlier, according to Reuters as reported by Investing.com. The results combine higher revenue and earnings and an improved realized gold price with lower production and a higher cost to extract each ounce. This reflects a strong quarter in terms of earnings, but puts the production and cost trajectory among the company’s main challenges for the rest of the year.
Year over year, adjusted net income per share rose from $2.16 in the third quarter of 2025 to $2.62, while unadjusted net income per share was $2.10 in the comparable period. The comparison differs by earnings measure: the adjusted figure excludes items that are not included in that measure, while net income reflects the reported result. In the latest quarter, the average realized gold price rose to $4,264 per ounce from $3,476 a year earlier. But the company produced 814,012 ounces, compared with 866,936 ounces in the third quarter of 2025. The higher realized price helped support revenue and earnings, while lower production volumes limited its effect on output.
The production decline was accompanied by higher operating costs. All-in sustaining costs rose to $1,648 per ounce from $1,331, and total cash costs increased to $1,133 from $952 in the same period last year, according to Kitco News. The company attributed its lower production forecast to a rock movement at the Barnat open pit, part of the Canadian Malartic complex, in July. The report said the incident required adjustments to mining operations. These pressures come as management expects full-year costs to remain within guidance despite inflationary pressures. Ammar Al-Joundi said production is expected near the low end of the annual range and costs will remain within the range despite inflationary pressures.
Cash flow from operating activities was $1.76 billion in the quarter, compared with $1.82 billion a year earlier, while free cash flow declined to $852 million from $1.19 billion. The company attributed some of the pressure on cash flows to unfavorable working capital movements and increased spending to develop the Hope Bay, Odyssey and Detour Lake projects, according to Reuters as reported by Investing.com. Despite the year-over-year declines in both measures, the company recorded positive free cash flow during the quarter. It also returned $478 million to shareholders through dividends and share repurchases. These figures place shareholder returns alongside project spending needs at a time when cash flows declined compared with the year-earlier period.
Agnico kept its 2026 payable gold production guidance at a range of 3.3 million to 3.5 million ounces, but expects the result to come in near the low end. It also forecast total cash costs near the upper end of its range of $1,020 to $1,120 per ounce, and all-in sustaining costs near the upper end of the $1,400 to $1,550 range. The forecast links the production plan adjustment at Canadian Malartic with the cost pressures seen in the quarterly results. The company had scheduled its third-quarter results conference call for Oct. 29, 2026, at 11:00 a.m. Eastern time. The stock closed at $183.11 on Oct. 28, according to EL7’s daily closing data.