Agnico Eagle Posts $852 Million in Free Cash Flow in Third Quarter
Key Facts
Agnico Eagle reported third-quarter results on October 28, posting free cash flow of $852 million and adjusted net income of $1.324 billion, or $2.62 per share. Cash provided by operating activities was $1.755 billion. The company said all amounts are in U.S. dollars unless otherwise stated. The results highlight the company's ability to generate liquidity in a quarter when the average realized gold price was $4,264 per ounce. They also came alongside annual costs that the company expects to settle near the high end of its ranges for 2026.
Reported net income was $1.353 billion, or $2.67 per share, compared with adjusted net income of $1.324 billion, or $2.62 per share. The company recorded payable production of 814,012 ounces of gold, which it said was in line with the revised plan. Production costs were $1,193 per ounce, while total cash costs were $1,133 and all-in sustaining costs were $1,648 per ounce. These metrics offer a view of cash returns alongside production volume and extraction costs. The average realized gold price was $4,264 per ounce, compared with $3,476 in the third quarter of 2025.
Agnico Eagle kept its 2026 annual production guidance near the low end of a range of 3.3 million to 3.5 million ounces, in line with its previous guidance. It also maintained its total cash cost range at $1,020 to $1,120 per ounce and its all-in sustaining cost range at $1,400 to $1,550. In its results statement, the company said annual costs are expected to approach the high end of both ranges, attributing inflationary pressures mainly to diesel. The outlook puts the cost trajectory in focus for investors for the rest of the year. In the second quarter, the company had cited the impact of a rock displacement in the Barnat pit on Canadian Malartic production, with output expected to fall by 60,000 to 80,000 ounces in the second half of 2026 and by as much as 150,000 ounces in each of 2027 and 2028.
The third-quarter results follow Agnico Eagle's second-quarter payable production of 855,816 ounces, with total cash costs of $1,054 and all-in sustaining costs of $1,459 per ounce. In that quarter, the company said free cash flow reached a record and that it returned $625 million to shareholders through dividends and share repurchases. At Kinross, the company announced on October 28 a cash dividend of $0.04 per share for the third quarter. In September, it had lowered its attributable gold-equivalent production outlook for 2026 and 2027 to about 1.84 million to 1.86 million ounces annually, 2% to 3% below the low end of its previous guidance, citing severe weather and operating challenges at La Coipa and Round Mountain.
Kinross had estimated its attributable production in the third quarter at about 425,000 gold-equivalent ounces in its operating update published in September. In the second quarter, its attributable production was 492,326 ounces, compared with 512,574 ounces in the corresponding period of 2025, a decline of 4%. Its average realized gold price in the second quarter rose 37% year over year to $4,483 per ounce from $3,284. Revenue increased 29% to $2,238.1 million, compared with $1,728.5 million a year earlier, and the company said the increase reflected a higher average realized gold price. Attributable cost of sales per gold-equivalent ounce sold also rose to $1,336 from $1,074, driven by higher fuel, royalty and labor costs.
In the second quarter, Kinross also posted reported net earnings of $844.2 million, or $0.71 per share, compared with $530.7 million and $0.43 per share a year earlier. The company raised its 2026 capital return target to shareholders to 50% of free cash flow. Kinross said it would release its third-quarter results after the market close on October 28 and scheduled a conference to discuss them on October 29. Its shares closed at $22.565 on October 28, according to EL7 data. Agnico Eagle is scheduled to hold its conference to discuss third-quarter results on October 29, 2026, at 11:00 a.m. Eastern Time.