(Kitco News) - Another quarterly earnings report means another record broken for Canada’s largest gold producer.
On Thursday, after the North American equity close, Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) reported first-quarter net income of $815 million, or $1.62 per share, and record adjusted net income of $770 million, or $1.53 per share.
Agnico significantly beat analyst expectations, as consensus forecasts called for average earnings per share of $1.38.
"We've had an excellent start to the year with another quarter of strong operating and financial results. This performance has allowed us to further strengthen our balance sheet and has positioned us well for the remainder of the year," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "We remain focused on execution and cost control to continue delivering expanding operating margins in a rising gold price environment. This enables us to reinvest in the business through exploration and the advancement of our five key pipeline projects, while continuing to strengthen our financial position and increase returns to shareholders.”
The company said it generated cash provided by operating activities of $1,044 million, or $2.08 per share, and reported free cash flow of $594 million, or $1.18 per share.
The company’s earnings were driven by significantly higher gold prices, along with stable production and costs. Agnico said it produced 873,794 ounces of gold in the first three months of the year, down slightly from 878,652 ounces in the first quarter of last year. At the same time, it sold 842,965 ounces of gold, down from 879,063 ounces last year.
“Gold production decreased slightly in the first quarter of 2025 when compared to the prior-year period, primarily due to lower production at Canadian Malartic, partially offset by higher production at LaRonde and Macassa. Canadian Malartic performed better than planned in the first quarter of 2025 — the decrease in gold production compared to the prior-year period was primarily due to lower gold grades at the Barnat pit,” the company said.
Meanwhile, Agnico said it saw average realized gold prices of $2,891 per ounce, up significantly from last year’s first-quarter average price of $2,062 per ounce.
The Canadian producer has also been able to keep its costs under control. Agnico said its production costs per ounce in the first quarter were $879, with total cash costs per ounce of $903 and all-in sustaining costs (AISC) per ounce of $1,183.
“AISC per ounce decreased in the first quarter of 2025 when compared to the prior-year period due to lower sustaining capital expenditures, primarily related to lower deferred development costs at Detour Lake, partially offset by higher general and administrative expenses,” the company said.
Looking ahead, Agnico said it is well-positioned to achieve its 2025 gold production guidance of approximately 3.3 to 3.5 million ounces. At the same time, the company expects to maintain its cash cost per ounce guidance of $915 to $965 and its 2025 AISC per ounce guidance of $1,250 to $1,300.
With its increased cash position, Agnico declared a quarterly dividend of $0.40 per share. The company also said it plans to increase its share buyback program to $1 billion. It repurchased 488,047 common shares during the quarter at an average share price of $102.44, for an aggregate consideration of $50 million.
