Core Viewpoint - Agnico Eagle Mines Limited (AEM) reported better-than-expected earnings in Q4, driven by higher gold prices, but is facing challenges from rising unit costs [1][8]. Group 1: Financial Performance - AEM's all-in sustaining cost (AISC) was $1,517 per ounce in Q4, reflecting a 10% increase from the previous quarter and a 15% year-over-year rise [1]. - Total cash costs per ounce for gold were $1,089, which is 18% higher than $923 a year ago and up from $994 in the prior quarter [2]. - AEM forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, indicating a year-over-year increase at the midpoint of the respective ranges [4]. Group 2: Cost Management and Industry Comparison - AEM is taking measures to control costs, but inflationary pressures are expected to persist, impacting overall financial performance [3]. - Among peers, Barrick Mining Corporation saw a 9% year-over-year increase in AISC in Q4, reaching $1,581 per ounce, while Newmont Corporation lowered its AISC to $1,566 per ounce, marking a 3% decrease from the prior year [5][6]. Group 3: Stock Performance and Earnings Estimates - AEM shares have increased by 59.2% over the past six months, compared to a 74% rise in the Zacks Mining – Gold industry, largely due to the rally in gold prices [7]. - The Zacks Consensus Estimate for AEM's earnings implies a year-over-year rise of 52.9% for 2026 and a decline of 1.5% for 2027, with EPS estimates trending higher over the past 60 days [10]. Group 4: Valuation Metrics - AEM is currently trading at a forward 12-month earnings multiple of 16.86, which is approximately a 20% premium to the industry average of 14.05X [11].

Core Viewpoint - Agnico Eagle Mines Limited (NYSE:AEM) is recognized as one of the best-performing foreign stocks, with Wall Street showing bullish sentiment following the company's strong fiscal Q4 2025 earnings report [1]. Financial Performance - In fiscal Q4 2025, Agnico Eagle Mines reported a revenue increase of 60.27% year-over-year, reaching $3.56 billion, exceeding estimates by $114.37 million [2]. - The company achieved an earnings per share (EPS) of $2.70, surpassing estimates by $0.05 [2]. - Gold production for the quarter was 840,608 ounces, with production costs per ounce at $1,113 and a realized gold price of $4,163 per ounce [2]. - The strong production and higher realized gold prices resulted in a quarterly net income of $1,523 million, equating to $3.04 per share [2]. Growth Strategy - Management has outlined an ambitious growth strategy aimed at increasing annual gold production by 20% to 30% by the early 2030s [4]. - Following the earnings release on February 12, the share price of Agnico Eagle Mines has increased by more than 5.5% [4]. Company Overview - Agnico Eagle Mines Limited is a leading Canadian gold mining company engaged in the production of precious metals, primarily gold, from operations in Canada, Australia, Finland, and Mexico [4].

Core Viewpoint - Agnico Eagle Mines (AEM) is positioned strongly in the market, benefiting from rising gold prices and demonstrating top-tier quality in its operations [1]. Group 1: Company Overview - AEM has a strong focus on metals and mining stocks, with a history of in-depth research in various sectors including commodities and technology [1]. - The company has transitioned from a personal blog to a value investing-focused YouTube channel, indicating a shift in strategy to reach a broader audience [1]. Group 2: Investment Position - The analyst holds a beneficial long position in AEM shares, indicating confidence in the company's future performance [2].

Group 1 - The CEO of Agnico Eagle Mines, Ammar Al-Joundi, stated that the company is "in a very favorable position" to pursue merger and acquisition opportunities when the right circumstances arise [1] - This indicates a shift in the company's strategy after years of focusing on increasing production at existing mines, showing a renewed openness to transactions [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Agnico Eagle Mines reported record financial results for 2025, with significant production and cash flow, while also outlining plans for future growth and shareholder returns. Financial Performance - The company produced 3.45 million ounces of gold in 2025, exceeding guidance [1] - Fourth-quarter production was approximately 841,000 ounces, with total cash costs of $1,089 per ounce and AISC of $1,517 per ounce [2] - Record fourth-quarter adjusted earnings were about $1.4 billion, or $2.70 per share, and record free cash flow exceeded $1.3 billion, or $2.62 per share [2] - Total cash costs for the full year were $979 per ounce, and AISC was $1,339 per ounce, slightly above guidance due to higher royalty costs [1] Growth Strategy - The company is accelerating an organic growth pipeline that could increase production by 20% to 30% over the next decade, targeting over 4 million ounces annually by the early 2030s [5][13] - Key projects include Detour Lake, Canadian Malartic, Upper Beaver, and Hope Bay, with significant investments planned to enhance production capabilities [14] Balance Sheet and Shareholder Returns - Management repaid about $950 million of debt and ended the year with $2.9 billion in cash, while returning a record $1.4 billion to shareholders [6][8] - The quarterly dividend was raised by 12.5% to $0.45 per share, with plans for more active share buybacks, potentially up to $2 billion [6][9] Cost Outlook - For 2026, the company guided total cash costs to a midpoint of $1,070 per ounce and AISC of $1,475 per ounce, with increases primarily due to higher royalties and inflation [11] - The company will adjust its Nunavut cost reporting starting in 2026 to exclude certain payments, which will impact cash cost calculations [12] Exploration and Resource Updates - Agnico Eagle had over 120 drill rigs active in 2025, completing nearly 1.4 million meters of drilling, with year-end reserves of 55.4 million ounces, a 2.1% increase [15] - The company is focused on exploration upside and is selective about acquisitions, emphasizing per-share value creation [16]

Core Insights - Agnico Eagle Mines Limited is experiencing record levels in reserves, resources, and inferred ounces, indicating strong growth potential and a solid position for future expansion [1][40][49] - The company aims to increase production by 20% to 30% over the next decade, targeting over 4 million ounces of annual production by the early 2030s [5][49] - Financial performance in 2025 was robust, with record adjusted earnings and free cash flow, alongside significant debt repayment and cash accumulation [3][12][13] Production and Costs - The company maintains a stable annual production profile of 3.3 to 3.5 million ounces over the next three years, with cash costs forecasted to increase slightly due to higher royalties and a stronger Canadian dollar [2][17] - In 2025, total cash costs were $979 per ounce, with all-in sustaining costs at $1,339 per ounce, slightly above guidance due to higher royalty costs [11][12] - The company has implemented strong cost control measures, keeping costs below industry inflation rates [2][18] Financial Performance - In 2025, Agnico Eagle repaid nearly $1 billion in debt and returned over $1.4 billion to shareholders through dividends and share buybacks, while also increasing cash reserves to approximately $2.9 billion [3][13][14] - The quarterly dividend was increased by 12.5% to $0.45 per share, with plans for more active share buybacks [14][49] - The company generated approximately $4.4 billion in free cash flow for the year, reflecting strong leverage to gold price increases [12][13] Growth Projects - Significant investments are being made in key growth projects, including Detour Lake and Canadian Malartic, with potential to add substantial annual production [7][10][24] - The company is accelerating capital investments in projects like Hope Bay and Upper Beaver, with expectations for production to begin as early as 2028 [9][37] - Exploration efforts have led to a notable increase in mineral resources, with a focus on converting these to reserves to support future production growth [40][46][47] Strategic Focus - Agnico Eagle emphasizes disciplined capital allocation and a focus on high-quality projects in stable jurisdictions to maximize returns for shareholders [5][50] - The company is committed to enhancing long-term shareholder value through consistent dividend payments and share buybacks, alongside strategic growth initiatives [51][52] - Future M&A opportunities will be evaluated based on their potential to create value per share, with a preference for internal projects due to better knowledge and control [56][70]

Financial Data and Key Metrics Changes - In 2025, Agnico Eagle achieved record financial results, producing approximately 3.45 million ounces of gold with total cash costs of $979 per ounce and all-in sustaining costs of $1,339 per ounce, slightly above guidance due to higher royalty costs [12][13][15] - The company reported record adjusted earnings of approximately $1.4 billion, or $2.70 per share, and record free cash flow of over $4.4 billion for the year [12][15] - Cash position increased by $1.9 billion, ending the year with $2.9 billion in cash, while approximately $950 million of debt was repaid [15][16] Business Line Data and Key Metrics Changes - The Detour Lake project is expected to deliver an additional 300-350,000 ounces per year through underground development, with a tripling of investment from $100 million to $300 million [9][10] - The Canadian Malartic Complex added 9 million ounces of reserves, with production expected to increase by 400-500,000 ounces per year through a fill-the-mill strategy [10][24] - At Hope Bay, a 46% increase in inferred mineral resources was reported, with potential production of 400-425,000 ounces per year [11][27] Market Data and Key Metrics Changes - Gold prices increased by $1,700 year-over-year, with Agnico Eagle capturing approximately 95% of this increase in margin expansion [3][14] - The company anticipates cash costs to rise slightly over $100 per ounce in 2026, primarily due to higher royalties and a stronger Canadian dollar [5][18] Company Strategy and Development Direction - Agnico Eagle aims to increase production by 20%-30% over the next decade, targeting over 4 million ounces of annual production by the early 2030s [7][49] - The company focuses on high-quality projects in stable jurisdictions, leveraging existing infrastructure to enhance returns [8][50] - Continued investment in exploration and development projects is emphasized, with a disciplined approach to capital allocation [17][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term gold price outlook due to global structural, financial, and political factors [51] - The company is well-positioned to deliver meaningful leverage to higher gold prices while maintaining a strong financial position [16][49] Other Important Information - The company plans to renew its normal course issuer bid in May, increasing the purchase limit up to $2 billion [16] - A significant cash tax liability of approximately $1.3 billion is expected for the 2025 fiscal year, which the company is prepared to fund [17] Q&A Session Summary Question: M&A Activity and Tendering Shares - Inquiry about Agnico's stance on M&A and whether they would tender shares to the offer currently out on Floran was met with a response emphasizing that such decisions are up to shareholders [53][54] Question: Cost Productivity Initiatives - Clarification sought on whether cost productivity initiatives were included in the 2026 AISC guidance, with management indicating partial inclusion [60][61] Question: Future CapEx Expectations - Inquiry about whether CapEx should be expected to increase in future years, with management indicating that current elevated levels are likely to continue [67][68] Question: Cost Estimates for Meadowbank Life Extension - A request for cost estimates related to the life extension at Meadowbank was addressed, with figures around $2,200-$2,300 per ounce provided [84][86]

Financial Data and Key Metrics Changes - In 2025, Agnico Eagle achieved record adjusted earnings of approximately $1.4 billion, or $2.70 per share, and record free cash flow of over $1.3 billion, or $2.62 per share [12][15] - The company repaid almost $1 billion in debt and increased its cash position by $1.9 billion, ending the year with $2.9 billion in cash [4][15] - Total cash costs for 2025 were $979 per ounce, and all-in sustaining costs were $1,339 per ounce, slightly above guidance due to higher royalty costs [13][15] Business Line Data and Key Metrics Changes - Gold production for 2025 was 3.45 million ounces, exceeding the midpoint of guidance [13] - The company reported a stable annual production profile of between 3.3-3.5 million ounces over the next three years [5] - Cash costs for 2026 are forecasted to be slightly over $100 per ounce higher than 2025, primarily due to higher royalties and a stronger Canadian dollar [5][18] Market Data and Key Metrics Changes - The average realized gold price in 2025 was $3,454 per ounce, nearly $1,000 per ounce above guidance assumptions [13][15] - The company captured approximately 95% of the increase in gold price, reflecting strong leverage to gold prices [14][15] Company Strategy and Development Direction - Agnico Eagle plans to increase production by 20%-30% over the next decade, targeting over 4 million ounces of annual production by the early 2030s [7][8] - The company is focused on projects in stable jurisdictions, leveraging existing infrastructure to enhance returns [8][50] - The strategic focus includes disciplined capital allocation and enhancing long-term shareholder value through investments in high-return organic growth opportunities [17][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term gold price outlook due to global structural, financial, and political factors [51] - The company is well-positioned to continue increasing shareholder returns, with plans to renew its normal course issuer bid and increase the purchase limit up to $2 billion [16][50] - Management highlighted the importance of maintaining low turnover rates and strong relationships with employees to ensure productivity [64] Other Important Information - The company reported record reserves of 55.4 million ounces, up 2%, and record resources of 47.1 million ounces, up almost 10% [5][40] - Significant exploration success was noted, with a 15.5% increase in inferred resources to 41.8 million ounces [6][40] Q&A Session Summary Question: M&A Activity and Foran Offer - Agnico Eagle's management refrained from discussing specific M&A activities, emphasizing that decisions are up to shareholders [53][56] Question: Cost Productivity Initiatives - Management indicated that some cost productivity initiatives are partially included in the 2026 AISC guidance, but not all [60][61] Question: Inflation and Cost Structure - Labor constitutes about 45% of overall costs, with labor inflation running around 4% and overall consumables inflation around 5% [62][63] Question: Future CapEx Expectations - CapEx is expected to remain elevated in the coming years, particularly with the potential approval of the Hope Bay project [67][68] Question: Allocating Excess Cash - Management aims to maintain financial flexibility and is open to further growth opportunities, balancing cash reserves with potential investments [72][75] Question: Compelling M&A Opportunities - The focus for M&A would be on exploration upside, with internal projects generally preferred due to better knowledge and confidence [77][78]

Agnico Eagle Mines (NYSE:AEM) Q4 2025 Earnings call February 13, 2026 11:00 AM ET Speaker12Good morning, ladies and gentlemen. My name is Vanessa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Agnico Eagle Mines Limited Q4 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star ...