Agnico Eagle production falls to 814,012 ounces as costs rise in third quarter
Key Facts
Agnico Eagle shares fell 2.70% to $180.93 when Benzinga published its report on November 12, 2026, amid a drop in gold prices, after the company had reported third-quarter results on October 28. The report attributed the stock’s move that session to the decline in the precious metal, not to the earnings announcement made two weeks earlier. The company’s results showed gold production falling to 814,012 ounces in the third quarter, compared with 866,936 ounces in the same period of 2025. Net income was $1,353 million, or $2.67 per share, while adjusted net income was $1,324 million, or $2.62 per share. Free cash flow was $852 million, with a realized gold price of $4,264 per ounce.
The production decline came alongside year-over-year increases in per-ounce costs. Production costs rose to $1,193 per ounce from $963 in the third quarter of 2025, and total cash costs increased to $1,133 from $952. All-in sustaining costs also rose to $1,648 per ounce, compared with $1,331 a year earlier. The company said lower production was primarily due to lower throughput and grades at the Canadian Malartic mine, and lower grades at Meadowbank. It attributed higher production costs mainly to increased labor, diesel-related energy and royalty costs, as well as lower production and higher gold prices.
Despite pressure from production and costs, the company said net income rose from the same period a year earlier, supported by higher mining revenues resulting from increased realized gold prices and lower care and maintenance expenses at Hope Bay. It said higher production costs and taxes limited that effect. Free cash flow fell from its level in the same period a year earlier, which the company attributed to unfavorable changes in non-cash working capital items and higher development capital spending. Projects associated with the spending included Hope Bay, Odyssey and Detour Lake underground. In the second quarter of 2026, net income was $1,600 million, or $3.19 per share, and free cash flow was $1,335 million, putting the third-quarter figures in the context of a quarterly decline.
In the market, gold fell about 3% during the November 12 session, extending losses for a third consecutive session and reaching its lowest level in more than a year, according to Reuters. The report linked the decline to rising oil prices, fading hopes for peace in the Middle East, inflation concerns and the possibility that interest rates would remain high. At 1:53 p.m. Eastern time, spot gold was down 2.7% at $3,880.93 per ounce, while December futures were steady at a loss of 2.9%, at $3,885.30. On the same day, a Benzinga report said gold stocks, including Agnico Eagle, fell as the metal declined and hopes for peace in the Middle East faded. The move coincided with U.S. inflation data, hawkish comments from Federal Reserve officials and a stronger dollar, factors that weighed on the gold market.
Agnico Eagle kept its 2026 gold production forecast at a range of 3.3 to 3.5 million ounces, with production expected near the lower end of the range. Chief Executive Ammar Al-Joundi said the company “remains on track to achieve its guidance for the year, with production expected near the lower end of the range and costs within the range despite inflationary pressures.” The company expects total cash costs to approach the upper end of its annual range of $1,020 to $1,120 per ounce, and all-in sustaining costs to be near the upper end of the $1,400 to $1,550 range. It also said it expects to return more than 50% of free cash flow to shareholders during 2026 through dividends and share buybacks, subject to spot gold prices and operating requirements. It set a quarterly dividend of $0.45 per share, payable on December 15 to shareholders of record on December 1, 2026.