Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, April 24, 2025 /PRNewswire/ – Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) (“Agnico Eagle” or the “Company”) today reported financial and operating results for the first quarter of 2025.
“We’ve had an excellent start to the year with another quarter of strong operating and financial results. This performance has allowed us to further strengthen our balance sheet and has positioned us well for the remainder of the year,” said Ammar Al-Joundi, Agnico Eagle’s President and Chief Executive Officer. “We remain focused on execution and cost control to continue delivering expanding operating margins in a rising gold price environment. This enables us to reinvest in the business through exploration and the advancement of our five key pipeline projects, while continuing to strengthen our financial position and increase returns to shareholders,” added Mr. Al-Joundi.
First quarter 2025 highlights:
- Strong quarterly gold production and cost performance – Payable gold production1 was 873,794 ounces at production costs per ounce of $879, total cash costs per ounce2 of $903 and all-in sustaining costs (“AISC”) per ounce2 of $1,183. The strong operational performance in the first quarter of 2025, led by Canadian Malartic, LaRonde, Macassa and the Nunavut operations, positions the Company well for 2025. Full year production and cost guidance remains unchanged
- Record quarterly adjusted net income and strong free cash flow generation – The Company reported quarterly net income of $815 million or $1.62 per share and record adjusted net income3 of $770 million or $1.53 per share. The Company generated cash provided by operating activities of $1,044 million or $2.08 per share ($1,209 million or $2.41 per share of cash provided by operating activities before changes in non-cash components of working capital4) and free cash flow4 of $594 million or $1.18 per share ($759 million or $1.51 per share of free cash flow before changes in non-cash components of working capital4)
- Strengthening investment grade balance sheet – The Company increased its cash position by $212 million to $1,138 million and approached a zero net debt position. At the end of the first quarter of 2025, total debt outstanding was $1,143 million and net debt5 was reduced to $5 million. In addition, in February 2025, Moody’s revised its rating outlook for the Company to positive from stable and re-affirmed the Company’s long-term issuer rating of Baa1
- Continued focus on shareholder returns – A quarterly dividend of $0.40 per share has been declared. In addition, the Company repurchased 488,047 common shares during the quarter at an average share price of $102.44 for aggregate consideration of $50 million under its normal course issuer bid (“NCIB”). The Company intends to seek approval from the TSX to renew the NCIB for another year on substantially the same terms, and intends to increase the limit of purchases under the NCIB to $1 billion of common shares. Additional details will be provided at the time of the renewal
- 2024 Sustainability Report published – The Company continues to demonstrate its commitment to sustainability and released its 2024 Sustainability Report on April 24, 2025
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Update on key value drivers and pipeline projects
- Canadian Malartic – In the first quarter of 2025, ramp development reached the bottom of the first mining horizon at East Gouldie. Excavation of the mid-shaft loading station between levels 102 and 114 commenced and the temporary service hoist was commissioned. Exploration drilling continued to extend the East Gouldie deposit to the east and extend the newly discovered, sub-parallel Eclipse zone. The Company also completed the acquisition of O3 Mining Inc. (“O3 Mining”) in the first quarter of 2025 – additional funding of $5.5 million has been allocated for a first phase of exploration in 2025 that will include 24,000 metres of drilling at the Marban deposit, which is located immediately northeast of the Canadian Malartic property
- Detour Lake – In the first quarter of 2025, construction of the temporary infrastructure for the underground project advanced and the excavation of overburden for the exploration ramp portal was completed. The permit to take water was received in April 2025 and excavation of the ramp is expected to commence in the coming weeks. Exploration drilling into the high-grade corridor in the West Pit zone further defined the high-grade domains that could potentially be mined early in the underground project. Drilling into the West Extension zone at underground depths near the planned ramp returned highlight intersections of 3.0 grams per tonne (“g/t”) gold over 44.5 metres at 585 metres depth and 3.9 g/t gold over 17.6 metres at 624 metres depth
- Upper Beaver – In the first quarter of 2025, the box cut for the exploration ramp was completed and installation of the steel structure for the head frame and construction of the hoist room advanced. Work is progressing on schedule, with excavation of the exploration ramp and the sinking of the exploration shaft expected to commence in the fourth quarter of 2025
- Patch 7 at Hope Bay – In the first quarter of 2025, exploration drilling at Hope Bay totalled 29,450 metres with a focus on the Patch 7 and Suluk zones at the Madrid deposit. Recent results continue to demonstrate continuity within the known zones and support the potential for mineral resource expansion at depth and along strike, with a highlight intersection of 24.1 g/t gold over 9.5 metres at 636 metres depth in the gap area between Patch 7 and Suluk
- San Nicolás project – In the first quarter of 2025, Minas de San Nicolás continued working on a feasibility study, with completion expected in the second half of 2025
- Canadian Malartic – In the first quarter of 2025, ramp development reached the bottom of the first mining horizon at East Gouldie. Excavation of the mid-shaft loading station between levels 102 and 114 commenced and the temporary service hoist was commissioned. Exploration drilling continued to extend the East Gouldie deposit to the east and extend the newly discovered, sub-parallel Eclipse zone. The Company also completed the acquisition of O3 Mining Inc. (“O3 Mining”) in the first quarter of 2025 – additional funding of $5.5 million has been allocated for a first phase of exploration in 2025 that will include 24,000 metres of drilling at the Marban deposit, which is located immediately northeast of the Canadian Malartic property
- Detour Lake – In the first quarter of 2025, construction of the temporary infrastructure for the underground project advanced and the excavation of overburden for the exploration ramp portal was completed. The permit to take water was received in April 2025 and excavation of the ramp is expected to commence in the coming weeks. Exploration drilling into the high-grade corridor in the West Pit zone further defined the high-grade domains that could potentially be mined early in the underground project. Drilling into the West Extension zone at underground depths near the planned ramp returned highlight intersections of 3.0 grams per tonne (“g/t”) gold over 44.5 metres at 585 metres depth and 3.9 g/t gold over 17.6 metres at 624 metres depth
- Upper Beaver – In the first quarter of 2025, the box cut for the exploration ramp was completed and installation of the steel structure for the head frame and construction of the hoist room advanced. Work is progressing on schedule, with excavation of the exploration ramp and the sinking of the exploration shaft expected to commence in the fourth quarter of 2025
- Patch 7 at Hope Bay – In the first quarter of 2025, exploration drilling at Hope Bay totalled 29,450 metres with a focus on the Patch 7 and Suluk zones at the Madrid deposit. Recent results continue to demonstrate continuity within the known zones and support the potential for mineral resource expansion at depth and along strike, with a highlight intersection of 24.1 g/t gold over 9.5 metres at 636 metres depth in the gap area between Patch 7 and Suluk
- San Nicolás project – In the first quarter of 2025, Minas de San Nicolás continued working on a feasibility study, with completion expected in the second half of 2025
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1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. Payable gold production for the three months ended March 31, 2025 excludes payable gold production at La India and Creston Mascota of 1,811 and 25 ounces, respectively, which were produced from residual leaching.
2 Total cash costs per ounce and all-in sustaining costs per ounce or AISC per ounce are non-GAAP ratios that are not standardized financial measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP ratios and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see “Note Regarding Certain Measures of Performance” below.
3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see “Note Regarding Certain Measures of Performance” below.
4 Cash provided by operating activities before changes in non-cash components of working capital, free cash flow and free cash flow before changes in non-cash components of working capital and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see “Note Regarding Certain Measures of Performance” below.
5 Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to long-term debt, see “Note Regarding Certain Measures of Performance” below.
First Quarter 2025 Results Conference Call and Webcast Tomorrow
The Company’s senior management will host a conference call on Friday, April 25, 2025, at 8:30 AM (E.D.T.) to discuss the Company’s financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may register on the Company’s website at www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.945.7677 or toll-free 1.888.699.1199 to be entered into the call by an operator. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
To join the conference call by phone without operator assistance, you may register your phone number here 30 minutes prior to the scheduled start of the call to receive an automated call back.
Replay Archive:
Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 36377#. The conference call replay will expire on May 25, 2025.
The webcast, along with presentation slides, will be archived for 180 days on the Company’s website.
Annual Meeting
The Company will host its Annual and Special Meeting of Shareholders (the “AGM”) on Friday, April 25, 2025 at 11:00 AM (E.D.T). During the AGM, management will provide an overview of the Company’s activities.
The AGM will be held in person at the Arcadian Court, 401 Bay Street, Simpson Tower, 8th Floor, Toronto, Ontario, M5H 2Y4 and online at: https://meetnow.global/M59UWL4.
For details explaining how to attend, communicate and vote virtually at the AGM see the Company’s Management Information Circular dated March 24, 2025, filed under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Shareholders who have questions about voting their shares or attending the AGM may contact Investor Relations by phone at 416.947.1212, by toll-free phone at 1.888.822.6714 or by email at investor.relations@agnicoeagle.com or may contact the Company’s strategic shareholder advisor and proxy solicitation agent, Laurel Hill Advisory Group, by phone at 1.877.452.7184 (toll free in North America), at 1.416.304.0211 (for collect calls outside of North America) or by e-mail at assistance@laurelhill.com.
First Quarter 2025 Production and Costs
Production and Cost Results Summary
Three Months Ended
March 31,
2025
2024
Gold production* (ounces)
873,794
878,652
Gold sales (ounces)
842,965
879,063
Production costs per ounce**
$ 879
$ 892
Total cash costs per ounce**
$ 903
$ 901
AISC per ounce**
$ 1,183
$ 1,190
*Gold production for the three months ended March 31, 2025 excludes payable gold production at La India and Creston Mascota of 1,811 and 25 ounces, respectively, which were produced from residual leaching.
** Production costs per ounce, total cash costs per ounce and AISC per ounce are reported on a per ounce of gold produced basis.
Gold Production
Gold production decreased slightly in the first quarter of 2025 when compared to the prior-year period primarily due to lower production at Canadian Malartic, partially offset by higher production at LaRonde and Macassa. Canadian Malartic performed better-than-planned in the first quarter of 2025 – the decrease in gold production when compared to the prior-year period was primarily due to lower gold grades at the Barnat pit.
Production Costs per Ounce
Production costs per ounce decreased in the first quarter of 2025 when compared to the prior-year period primarily due to higher gold production at LaRonde and Macassa, the timing of inventory sales at LaRonde and Meliadine and the weakening Canadian dollar relative to the U.S. dollar between periods, partially offset by higher royalties arising from higher gold prices and lower gold production at Canadian Malartic.
Total Cash Costs per Ounce
Total cash costs per ounce increased slightly in the first quarter of 2025 when compared to the prior-year period due to higher royalties arising from higher gold prices and lower gold production at Canadian Malartic, partially offset by higher gold production at LaRonde and Macassa and the impact of a weakening Canadian dollar relative to the U.S. dollar between periods. The Company still expects total cash costs per ounce for the full year 2025 to be in the range of $915 to $965.
AISC per Ounce
AISC per ounce decreased in the first quarter of 2025 when compared to the prior-year period due to lower sustaining capital expenditures primarily related to lower deferred development costs at Detour Lake, partially offset by higher general and administrative expenses.
AISC per ounce in the first quarter of 2025 was lower than planned primarily due to the deferral of certain sustaining capital expenditures at Detour Lake and Canadian Malartic until later in 2025. AISC per ounce is expected to be higher in the remainder of 2025 and the Company still expects consolidated AISC per ounce for the full year 2025 to be in the range of $1,250 to $1,300.
First Quarter 2025 Financial Results
Financial Results Summary
Three Months Ended
March 31,
2025
2024
Realized gold price (per ounce)6
$ 2,891
$ 2,062
Net income (millions)
$ 815
$ 347
Adjusted net income (millions)
$ 770
$ 377
EBITDA (millions)7
$ 1,634
$ 883
Adjusted EBITDA (millions)7
$ 1,590
$ 929
Cash provided by operating activities (millions)
$ 1,044
$ 783
Cash provided by operating activities before changes in non-cash components of
working capital (millions)
$ 1,209
$ 777
Capital expenditures (millions) 8
$ 419
$ 372
Free cash flow (millions)
$ 594
$ 396
Free cash flow before changes in non-cash components of working capital (millions)
$ 759
$ 389
Net income per share (basic)
$ 1.62
$ 0.70
Adjusted net income per share (basic)
$ 1.53
$ 0.76
Cash provided by operating activities per share (basic)
$ 2.08
$ 1.57
Cash provided by operating activities before changes in non-cash components of
working capital per share (basic)
$ 2.41
$ 1.56
Free cash flow per share (basic)
$ 1.18
$ 0.79
Free cash flow before changes in non-cash components of working capital per share
(basic)
$ 1.51
$ 0.78
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6 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold.
7 “EBITDA” means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see “Note Regarding Certain Measures of Performance” below.
8 Includes capitalized exploration. Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see “Note Regarding Certain Measures of Performance” below.
Net Income
Net income increased in the first quarter of 2025 when compared to the prior-year period primarily due to record operating margins from higher realized gold prices and lower production costs, partially offset by lower gold sales and higher income and mining taxes expense in the current period.
Net income in the first quarter of 2025 of $815 million ($1.62 per share) includes the following items (net of tax): net gains on derivative financial instruments and other investments of $46 million ($0.09 per share), foreign currency translation gains on deferred tax liabilities and other tax adjustments of $11 million ($0.02 per share), net asset disposal losses of $5 million ($0.01 per share), and reclamation and other adjustments totaling $7 million ($0.01 per share). Excluding these items results in adjusted net income of $770 million or $1.53 per share for the first quarter of 2025.
Adjusted EBITDA
Adjusted EBITDA increased in the first quarter of 2025 when compared to the prior-year period primarily due to higher operating margins, partially offset by lower gold sales and higher general and administrative expenses.
Cash Provided by Operating Activities
Cash provided by operating activities and cash provided by operating activities before changes in non-cash components of working capital both increased in the first quarter of 2025 when compared to the prior-year period primarily due to higher operating margins, partially offset by lower gold sales and higher income and mining taxes expense in the current period.
Free Cash Flow Before Changes in Non-Cash Components of Working Capital
Free cash flow before changes in non-cash components of working capital was a record in the first quarter of 2025 and increased when compared to the prior-year period primarily due to the reasons described above with respect to cash provided by operating activities, partially offset by higher capital expenditures.
Capital Expenditures
The following table sets out a summary of capital expenditures, in each case broken down as between sustaining capital expenditures and development capital expenditures, and capitalized exploration by mine in the first quarter of 2025.
Summary of Capital Expenditures*
(thousands)
Capital Expenditures**
Capitalized Exploration
Three Months Ended
Three Months Ended
Mar 31, 2025
Mar 31, 2025
Sustaining Capital Expenditures
LaRonde
$ 17,503
$ 894
Canadian Malartic
24,802
359
Goldex
13,702
531
Quebec
56,007
1,784
Detour Lake
35,858
—
Macassa
8,531
416
Ontario
44,389
416
Meliadine
14,394
855
Meadowbank
23,368
—
Nunavut
37,762
855
Fosterville
12,630
—
Australia
12,630
—
Kittila
9,431
725
Finland
9,431
725
Pinos Altos
6,375
275
Mexico
6,375
275
Other
1,482
393
Total Sustaining Capital Expenditures
$ 168,076
$ 4,448
Development Capital Expenditures
LaRonde
$ 16,943
$ —
Canadian Malartic
50,871
5,833
Goldex
1,981
497
Quebec
69,795
6,330
Detour Lake
53,932
8,768
Macassa
21,817
10,474
Ontario
75,749
19,242
Meliadine
11,490
4,601
Meadowbank
1,325
—
Nunavut
12,815
4,601
Fosterville
7,470
2,375
Australia
7,470
2,375
Kittila
905
1,227
Finland
905
1,227
Pinos Altos
2,911
12
San Nicolás (50%)
2,085
—
Mexico
4,996
12
Other
14,494
26,717
Total Development Capital Expenditures
$ 186,224
$ 60,504
Total Capital Expenditures
$ 354,300
$ 64,952
*Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see “Note Regarding Certain Measures of Performance” below.
**Excludes capitalized exploration
2025 Guidance Reiterated
The Company is well positioned to achieve its 2025 gold production guidance of approximately 3.3 to 3.5 million ounces, its 2025 total cash costs per ounce guidance of $915 to $965 and its 2025 AISC per ounce guidance of $1,250 to $1,300.
Total expected capital expenditures (excluding capitalized exploration) for 2025 are still estimated to be between $1.75 billion to $1.95 billion.
Tariffs
On February 1, 2025, the United States introduced tariffs on imports from countries including Canada. In response, the Canadian and other governments have announced retaliatory tariffs on imports from the United States. In certain cases, the implementation or application of these tariffs have been postponed and exceptions to such tariffs have been made in respect of certain goods. However, the international trade disputes set in motion by these tariffs, retaliatory tariffs and other actions remains fluid.
At this time, the Company believes its revenue structure will be largely unaffected by the tariffs as its gold production is mostly refined in Canada, Australia or Europe. The Company continues to review its exposure to the tariffs and trade disputes and its alternatives to inputs sourced from suppliers that may be subject to the tariffs, if implemented, or other trade disputes. However, approximately 60% of the Company’s cost structure relates to labour, contractors, energy and royalties, which are not expected to be directly affected by any of the tariffs or trade disputes. While there is uncertainty as to whether the tariffs or retaliatory tariffs will be implemented, the quantum of such tariffs, the goods on which they may be applied and the ultimate effect of tariffs or other trade disputes on the Company’s supply chains, the Company will continue to monitor developments and may take steps to limit the effect of any tariffs or trade disputes on it as may be appropriate in the circumstances. The costs guidance provided in the Company’s news release dated February 13, 2025 does not include any potential impact from such tariffs or trade disputes.
Net Debt Reduced Through Continued Strong Free Cash Flow Generation
Cash and cash equivalents increased by $212 million when compared to the prior quarter primarily due to higher cash provided by operating activities before changes in non-cash components of working capital as a result of higher operating margins from higher realized gold prices and lower production costs as well as less cash used in financing activities as $325 million of debt was repaid in the prior quarter, partially offset by unfavourable changes in non-cash components of working capital in the current period which includes a cash tax payment related to the 2024 taxation year of approximately $400 million.
As at March 31, 2025, the Company’s total long-term debt was $1,143 million, consistent with the prior quarter. No amounts were outstanding under the Company’s unsecured revolving bank credit facility as at March 31, 2025 and available liquidity under the facility remained at approximately $2 billion, not including the uncommitted $1 billion accordion feature. In February 2025, Moody’s revised its rating outlook for the Company to positive from stable and re-affirmed the Company’s long-term issuer rating of Baa1, reflecting the Company’s strengthening credit profile and financial position.
Net debt decreased in the first quarter of 2025 when compared to the prior quarter due to the increase in cash and cash equivalents of $212 million. The following table sets out the calculation of net debt, which was reduced to $5 million in the first quarter of 2025.
Net Debt Summary
(millions)
As at
As at
Mar 31, 2025
Dec 31, 2024
Current portion of long-term debt
$ 90
$ 90
Non-current portion of long-term debt
1,053
1,053
Long-term debt
$ 1,143
$ 1,143
Less: cash and cash equivalents
(1,138)
(926)
Net debt
$ 5
$ 217
Hedges
Based on the Company’s currency assumptions used for 2025 cost estimates: approximately 57% of the Company’s remaining estimated Canadian dollar exposure f
