Agnico Eagle Mines (AEM) Q1 2026 earnings summary

Executive summary

• Achieved record net income and operating margins in Q1 2026, driven by higher realized gold prices, disciplined cost management, and strong production performance, particularly at Detour Lake, Canadian Malartic, and Fosterville.

• Payable gold production was 825,109 ounces, about 24% of the mid-point of full-year guidance, with production and costs tracking to plan.

• Returned $375 million to shareholders via dividends and buybacks, targeting 40% of annual free cash flow for returns.

• Advanced construction and exploration at five key projects, including early production at East Gouldie and progress at Detour Lake, Upper Beaver, Hope Bay, and San Nicolás.

• Emphasized commitment to safety following two fatalities in the past five months, with company-wide reinforcement of safety protocols.

Financial highlights

• Q1 2026 net income reached $1.70 billion ($3.39/share), with adjusted net income of $1.706 billion ($3.41/share), and adjusted EBITDA exceeded $3 billion.

• Gold production was 825,109 oz, down from 874,000 oz in Q1 2025.

• Realized gold price surged to $4,861/oz from $2,891/oz year-over-year.

• Total cash costs were $1,093/oz (up from $895/oz), and AISC rose to $1,483/oz (from $1,175/oz).

• Free cash flow was $732 million, despite a $1.3 billion 2025 tax catch-up payment; net cash position increased to $2.915 billion.

Outlook and guidance

• Full-year 2026 gold production guidance reiterated at 3.3–3.5 million ounces, with production weighted 48% in H1 and 52% in H2.

• Cost guidance maintained: total cash costs $1,020–$1,120/oz, AISC $1,400–$1,550/oz.

• Capital expenditures for 2026 expected at $2.18–$2.725 billion, including exploration.

• Effective tax rate for 2026 expected at 34–36%, with remaining cash taxes to be paid in installments.

• Share repurchase program increased to $2 billion, targeting 40% of annual free cash flow returned to shareholders.