(Kitco News) - According to some analysts, Agnico Eagle Mines (NYSE: AEM; TSX: AEM) continues to fire on all cylinders, as its solid production in the final three months of the year capitalized on an unprecedented rise in gold prices, according to the company’s fourth-quarter earnings report.
Wednesday evening, after the North American equity market close, Canada’s largest gold miner announced adjusted fourth-quarter earnings of $1.351 billion, or $2.70 per share, beating consensus expectations of $2.68 per share, while adjusted EBITDA totaled $2.51 billion, also ahead of estimates.
The company produced 841,000 ounces of gold in the fourth quarter, in line with consensus estimates, and met its full-year production target with 3.45 million ounces in 2025.
For the full year, Agnico generated record free cash flow of $4.40 billion and cash from operating activities of $6.82 billion. However, free cash flow in the fourth quarter totaled $1.31 billion, missing consensus forecasts and reflecting higher-than-expected capital spending, according to some market analysts.
“In 2025, we delivered on our commitments, generating record free cash flow and shareholder returns. We've also updated our three-year outlook, which reflects stable production at peer-leading costs," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "Agnico Eagle has never been better positioned, with the strongest balance sheet in our history, an exploration program that is creating tremendous value, and a pipeline of organic projects that will drive strong production growth over the next decade. What excites me most is the depth and quality of our growth pipeline, which has the potential to increase annual gold production by 20% to 30% over the next decade, exceeding four million ounces by the early 2030s.”
While production was largely in line with expectations, costs came in above estimates.
Fourth-quarter total cash costs were $1,089 per ounce, and all-in sustaining costs (AISC) were $1,517 per ounce. For the full year, AISC totaled $1,339 per ounce, slightly above the top end of company guidance, largely due to higher royalty payments tied to stronger gold prices.
Looking ahead, Agnico expects 2026 AISC to be between $1,400 and $1,550 per ounce.
Agnico maintained its three-year production outlook of 3.3 million to 3.5 million ounces annually from 2026 through 2028.
Agnico ended 2025 with $2.87 billion in cash and just $196 million in debt, finishing the year in a net cash position.
The company repurchased about 4.1 million shares for $600 million in 2025 and increased its quarterly dividend by 12.5% to $0.45 per share. The company also said it intends to renew and increase its normal course issuer bid to $2 billion when it comes up for renewal in May.
