Agnico Eagle Mines (TSX: AEM) posted record adjusted net income for the first quarter of 2026, as a sharp climb in the gold price more than offset softer production and a steep tax bill tied to the prior year, mirroring a trend seen across gold producers in the first quarter.
The miner reported adjusted net income of $1.71 billion, or $3.41 per share, up from $770 million, or $1.53 per share, in the same period last year. Net income rose to $1.70 billion, or $3.39 per share, from $815 million. The result was driven almost entirely by a realized gold price of $4,861 per ounce, compared with $2,891 a year earlier and $4,163 in the fourth quarter of 2025.
Cash from operating activities reached $1.35 billion, while free cash flow came in at $732 million. Both figures were tempered by roughly $1.8 billion in cash taxes paid during the quarter, $1.3 billion of which related to the 2025 tax year. That payment alone explains why first-quarter free cash flow trailed the $1.31 billion record set in the fourth quarter, despite stronger headline earnings.
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The balance sheet continued to firm up. Cash and equivalents rose by $246 million to $3.11 billion, lifting the net cash position to $2.92 billion against $197 million in long-term debt. Fitch followed the print by upgrading the company’s long-term issuer rating one notch to A-.
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Shareholder returns totalled $375 million for the quarter, comprising the quarterly dividend of $0.45 per share, held at the level set when it was raised 12.5% in February, and 721,211 shares repurchased at an average $207.68 for $150 million. Management said it intends to ask the TSX to renew the buyback program with an expanded internal limit of $2 billion, double the current ceiling.
Production told a more measured story. Payable gold production of 825,109 ounces fell from 873,794 ounces a year earlier and from 840,608 in the fourth quarter, with declines at Macassa and Meadowbank partially offset by stronger output at Detour Lake. Full-year guidance of 3.3 million to 3.5 million ounces was reiterated, with output now expected to skew slightly toward the second half.
Unit costs rose meaningfully. Total cash costs climbed to $1,093 per ounce from $895 a year earlier, and all-in sustaining costs reached $1,483 per ounce versus $1,175. Both sit within the company’s 2026 guidance ranges of $1,020 to $1,120 and $1,400 to $1,550, respectively, though the AISC figure tracks toward the upper half of that band. Higher royalty expense, which moves with the gold price, was the primary driver, alongside currency effects and elevated sustaining capital at Macassa and Fosterville.
One non-financial item warrants flagging. The company disclosed a fatal accident at Canadian Malartic in April, following another fatality at Fosterville last December. Management said it has called global safety meetings in response and reiterated that work that cannot be done safely should not be done.
Agnico Eagle last traded at $255.43 on the TSX.
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