Agnico Eagle Mines (TSX: AEM) rode a 40% jump in realized gold prices to a “record” second quarter. Revenue surged 36% YoY to $2.82 billion from $2.08 billion in Q2 2024, as realized gold price for the quarter jumped to $3,288 per ounce from last year’s $2,342.
The increase in the topline seems to be entirely price-driven as payable gold production slipped 3% YoY to 866,029 ounces from 895,838 ounces a year ago. Operating margin expanded 55% to $2.03 billion from $1.30 billion, but production costs also climbed 6% to $911 per ounce from $862 and AISC leapt 10% to a two-year high of $1,289 per ounce from $1,169.
Despite this, the revenue surge led to net income more than doubling to $1.07 billion, or $2.13 per share, from $472 million last year, or $0.95 per share. CEO Ammar Al-Joundi credited “record free cash flow” and “disciplined capital allocation,” but the comparison flatters: nearly half the earnings beat stems from a $125 million derivative gain and a 6% softer Canadian dollar.
Calculating for one-off items, adjusted net income comes in at $976 million, still a huge jump over last year’s $535 million. Adjusted EPS lands at $1.94, up from $1.07 per share.
Adjusted EBITDA rose 63% to $1.91 billion, and free cash flow rocketed 134% to $1.31 billion even after capital expenditures jumped 32% to $538 million, the steepest quarterly spend since the Kirkland Lake merger.
Long term debt fell 43% year-to-date to $595 million after a $550 million note redemption, lifting the company into a $963 million net cash position.
On operations, Q2 2025 gold output was the lowest since the Fosterville acquisition, hurt by Meadowbank’s caribou-related downtime and ongoing grade erosion at Fosterville and Canadian Malartic. To hit the midpoint of unchanged 2025 guidance (midpoint 3.4 million ounces), H2 production must average roughly 1.66 million ounces—about 7% above the Q2 run-rate—while keeping cash costs within the $915-965 per ounce band already breached in Q2.
Management says tariffs and trade spats should be “largely unaffected,” yet per-ounce royalties, energy and contractor costs now comprise over 60% of the cost stack.
Agnico Eagle last traded at $123.37 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
