Agnico Eagle Reports Second Quarter 2025 Results – Record Free Cash Flow with Another Quarter of Strong Production and Cost Performance; Balance Sheet Further Strengthened by Transition to Net Cash Position and Long-Term
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations (416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS SECOND QUARTER 2025 RESULTS – RECORD FREE CASH FLOW WITH ANOTHER QUARTER OF STRONG PRODUCTION AND COST PERFORMANCE; BALANCE SHEET FURTHER STRENGTHENED BY TRANSITION TO NET CASH POSITION AND LONG-TERM DEBT REPAYMENT
Toronto (July 30, 2025) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the second quarter of 2025.
"Our portfolio of high-quality assets continued to deliver exceptional results this quarter, generating record free cash flow, more than doubling the prior quarter. This performance reflects the strength of the gold price environment, our disciplined cost management and the consistency of our operational execution," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "While delivering record free cash flow, we remained disciplined in our capital allocation – reinvesting in our business, strengthening our balance sheet and returning capital to shareholders. We ended the quarter with a significant net cash position and returned approximately $300 million to shareholders through dividends and share repurchases this quarter. We remain focused on executing on our 2025 guidance and advancing our key growth projects to drive long-term value creation."
Second quarter 2025 highlights:
- Strong quarterly gold production and cost performance – Payable gold production1 was 866,029 ounces at production costs per ounce of $911, total cash costs per ounce2 of $933 and allin sustaining costs ("AISC") per ounce2 of $1,289. The strong operational performance in the second quarter of 2025 was led by Canadian Malartic, LaRonde, Macassa and Fosterville. At midyear, the Company has achieved approximately 51% of the mid-point of its full-year gold production guidance, while achieving total cash costs per ounce below the mid-point of guidance, despite higher royalty costs resulting from higher gold prices
1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. Payable gold production for the three months ended June 30, 2025 excludes payable gold production at La India and Creston Mascota of 858 and 39 ounces, respectively, which were produced from residual leaching.
2 Total cash costs per ounce and all-in sustaining costs per ounce or AISC per ounce are non-GAAP ratios that are not standardized financial measures under IFRS® Accounting Standards and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP ratios and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding Certain Measures of Performance" below.
- Record quarterly adjusted net income and free cash flow – The Company reported quarterly net income of $1,069 million or $2.13 per share and record adjusted net income3 of $976 million or $1.94 per share. The Company generated cash provided by operating activities of $1,845 million or $3.67 per share ($1,332 million or $2.65 per share of cash provided by operating activities before changes in non-cash components of working capital4) and record free cash flow4 of $1,305 million or $2.60 per share ($792 million or $1.58 per share of free cash flow before changes in non-cash components of working capital4)
- 2025 gold production and cost guidance reiterated – Full year expected payable gold production in 2025 remains unchanged at 3.3 to 3.5 million ounces, with total cash costs per ounce and AISC per ounce in 2025 unchanged at $915 to $965 and $1,250 to $1,300, respectively. Total capital expenditures (excluding capitalized exploration) for 2025 remain estimated to be between $1.75 billion to $1.95 billion and capitalized exploration remains expected to be between $290 and $310 million. Further details are set out in the 2025 Guidance Summary section below
- Balance sheet strengthened by transition to net cash position and debt redemption – The Company transitioned to a net cash5 position of $963 million as at June 30, 2025 as a result of the increase in its cash position by $419 million to $1,558 million and the reduction of long-term debt by $550 million to $595 million. On June 30, 2025, the Company repaid $40 million of the 2017 Series A 4.42% senior notes at maturity and also redeemed the remaining outstanding principal of $260 million of the 2017 senior notes and $250 million of the 2016 senior notes with interest rates ranging from 4.64% to 4.94%. The aggregate payments were comprised of $40 million of the current portion of long-term debt and $510 million of long-term debt
- Increased quarterly share repurchases demonstrate continued focus on shareholder returns
- A quarterly dividend of $0.40 per share has been declared. In addition, the Company
repurchased 836,488 common shares during the quarter at an average share price of $119.47 for aggregate consideration of $100 million under its normal course issuer bid ("NCIB"). The NCIB was renewed in May 2025 with an increased purchase limit of up to $1 billion of common shares
- Update on key value drivers and pipeline projects
- Canadian Malartic – In the second quarter of 2025, total development reached a quarterly record of 4,850 metres. This included the ramp reaching the mid-shaft loading station at level 102, advancement of the ramp toward shaft bottom at a depth of 1,179 metres, and continued development of the East Gouldie production levels in preparation for initial production in the second half of 2026. Excavation of the mid-shaft loading station between levels 102 and 114 progressed, with steel installation underway and completion expected in the third quarter of 2025. The temporary service hoist ramped up to its design hoisting capacity of 3,500 tonnes per day ("tpd"). Exploration drilling continued to extend the East Gouldie deposit to the east in both the upper and lower portions of the deposit. Regional exploration is prioritizing the newly acquired Marban project including pit design optimization and potential lateral extension of the Marban deposit
- Detour Lake – In the second quarter of 2025, the Company initiated development of the exploration ramp with the mobilization of the contractor, completion of the ramp portal and the first blast for the exploration ramp that occurred on July 4, 2025. Exploration drilling into the high-grade corridor in the West Pit zone further defined the high-grade domains that
3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS Accounting Standards. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
4 Cash provided by operating activities before changes in non-cash components of working capital, free cash flow and free cash flow before changes in non-cash components of working capital and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS Accounting Standards. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below.
5 Net cash (debt), that is, a negative "net debt" position, and net debt are non-GAAP measures that are not standardized financial measures under IFRS Accounting Standards. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance" below.
could potentially be mined early in the underground project, with highlight intercepts of 3.4 grams per tonne ("g/t") gold over 67.2 metres at 416 metres depth and 2.3 g/t gold over 42.6 metres at 525 metres depth. Drilling into the West Extension zone at underground depths further confirmed the grades and continuity of mineralization in the western plunge of the deposit
- Upper Beaver – In the second quarter of 2025, structural steel installation for the shaft head frame progressed and cladding installation began. In addition, installation of the hoists for service and potential production commenced. At the ramp portal, supporting infrastructure was completed, with excavation of the exploration ramp now expected to begin in the third quarter of 2025
- Hope Bay – In the second quarter of 2025, site infrastructure upgrades advanced, including dismantling major components of the existing mill and the refurbishment of the first wing at the Doris camp. In the second quarter of 2025, exploration drilling at Hope Bay totalled 39,390 metres (68,800 metres year-to-date), with a continued focus on mineral resource expansion and conversion of the Patch 7 and Suluk zones in the Madrid deposit. Recent drilling results, including 25.7 g/t gold over 8.4 metres at 754 metres depth in one of the deepest intercepts of the Patch 7 zone to date, continue to support the potential for mineral resource expansion at depth and along strike
- San Nicolas project – In the second quarter of 2025, Minas de San Nicolas continued working on a feasibility study, with completion expected late in 2025. Minas de San Nicolas received an exploration permit authorizing additional drill pads across the property and the joint venture approved supplemental drilling activities focused on geotechnical, hydrological, and geological evaluation in proximity to the projected mine area
Second Quarter 2025 Results Conference Call and Webcast Tomorrow
The Company's senior management will host a conference call on Thursday, July 31, 2025, at 11:00 AM (E.D.T.) to discuss the Company's financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may register on the Company's website at www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.945.7677 or toll-free 1.888.699.1199 to be entered into the call by an operator. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
To join the conference call by phone without operator assistance, you may register your phone number here 30 minutes prior to the scheduled start of the call to receive an automated call back.
Replay Archive:
Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 68663#. The conference call replay will expire on August 31, 2025.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Second Quarter 2025 Production and Costs
Production and Cost Results Summary
| 2025 | 2024 | 2025 | 2024 | ||
| Gold production* (ounces) . . . . . . . . . . . . . . . . . . . . . . . . | 866,029 | 895,838 | 1,739,823 1,774,490 | ||
| Gold sales (ounces)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 846,835 | 874,230 | 1,689,800 1,753,293 | ||
| Production costs per ounce*** . . . . . . . . . . . . . . . . . . . . . $ | 911 $ | 862 $ | 895 $ | 877 | |
| Total cash costs per ounce*** . . . . . . . . . . . . . . . . . . . . . $ | 933 $ | 870 $ | 918 $ | 885 | |
| AISC per ounce*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,289 $ | 1,169 $ | 1,235 $ | 1,179 |
*Gold production for the three months ended June 30, 2025 excludes payable gold production at La India and Creston Mascota of 858 and 39 ounces, respectively, which were produced from residual leaching. Gold production for the six months ended June 30, 2025 excludes payable gold production at La India and Creston Mascota of 2,669 and 64 ounces, respectively.
**Canadian Malartic's payable metal sold excludes the 5% in-kind net smelter return royalty held by Osisko Gold Royalties Ltd. Detour Lake's payable metal sold excludes the 2% in-kind net smelter royalty held by Franco-Nevada Corporation. Macassa's payable metal sold excludes the 1.5% in-kind net smelter royalty held by Franco-Nevada Corporation. For the six months ended June 30, 2025, 2,500 payable gold ounces sold are excluded at La India. ***Production costs per ounce, total cash costs per ounce and AISC per ounce are reported on a per ounce of gold produced basis.
Gold Production
- Second Quarter and First Six Months of 2025 – Gold production decreased when compared to the prior-year periods primarily due to lower production from Meadowbank (longer than expected Caribou migration affecting both mining and milling operations), Fosterville (lower grade and throughput) and Canadian Malartic (lower throughput), partially offset by higher production at Macassa and LaRonde (higher grades)
Production Costs per Ounce
- Second Quarter and First Six Months of 2025 – Production costs per ounce increased when compared to the prior-year periods primarily due to higher royalties resulting from higher gold prices and lower production, partially offset by the benefit of the weaker Canadian dollar during both periods
Total Cash Costs per Ounce
- Second Quarter and First Six Months of 2025 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to the reasons described above for the increase in production costs per ounce during both periods
AISC per Ounce
- Second Quarter and First Six Months of 2025 – AISC per ounce increased when compared to the prior-year periods due to the reasons described above for the increase in total cash costs per ounce, higher sustaining capital expenditures primarily at Meadowbank and Fosterville and higher general and administrative expenses during both periods
See the Company's Management Discussion and Analysis for the second quarter of 2025 (the "MD&A") under the caption "Financial and Operating Results" for additional variance analysis on gold production, production costs, minesite costs per tonne and total cash costs per ounce compared to the prior-year periods.
Second Quarter 2025 Financial Results
Financial Results Summary
| 2025 | 2024 | 2025 | 2024 | |
| Realized gold price (per ounce)6 . . . . . . . . . . . . . . . . . . . . . . . . . $ | 3,288 $ | 2,342 $ | 3,090 $ | 2,202 |
| Net income (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,069 $ | 472 $ | 1,883 $ | 819 |
| Adjusted net income (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 976 $ | 535 $ | 1,746 $ | 913 |
| EBITDA (millions)7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 2,021 $ | 1,123 $ | 3,655 $ | 2,006 |
| Adjusted EBITDA (millions)7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,914 $ | 1,176 $ | 3,504 $ | 2,105 |
| Cash provided by operating activities (millions) . . . . . . . . . . . . $ | 1,845 $ | 961 $ | 2,890 $ | 1,745 |
Cash provided by operating activities before changes in non- $ 1,332 $ 986 $ 2,541 $ 1,763 cash working capital balances (millions) . . . . . . . . . . . . . . . . . .
Capital expenditures (millions)8 . . . . . . . . . . . . . . . . . . . . . . . . . . $ 538 $ 407 $ 957 $ 779 Free cash flow (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,305 $ 557 $ 1,899 $ 953 Free cash flow before changes in non-cash working capital $ 792 $ 582 $ 1,551 $ 972 balances (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
| Net income per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 2.13 $ | 0.95 $ | 3.75 $ | 1.64 |
| Adjusted net income per share (basic) . . . . . . . . . . . . . . . . . . . . $ | 1.94 $ | 1.07 $ | 3.47 $ | 1.83 |
| Cash provided by operating activities per share (basic) . . . . . $ | 3.67 $ | 1.92 $ | 5.75 $ | 3.50 |
Cash provided by operating activities before changes in non- $ 2.65 $ 1.97 $ 5.06 $ 3.54 cash working capital balances per share (basic) . . . . . . . . . . .
Free cash flow per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.60 $ 1.12 $ 3.78 $ 1.91 Free cash flow before changes in non-cash working capital $ 1.58 $ 1.17 $ 3.09 $ 1.95 balances per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Income
- Second Quarter of 2025
- Net income increased when compared to the prior-year period primarily due to record operating margins resulting from higher realized gold prices and gains on derivative financial instruments (compared to losses in the prior-year period), partially offset by higher income and mining taxes expense in the current period
- Net income of $1,069 million ($2.13 per share) includes the following items (net of tax): net gains on derivative financial instruments of $83 million ($0.17 per share), foreign currency translation gains on deferred tax liabilities and other tax adjustments of $18 million ($0.04 per share), foreign exchange gains of $12 million ($0.02 per share per share), net asset disposal losses of $4 million ($0.01 per share), debt extinguishment costs of $4 million ($0.01 per share) and reclamation and other adjustments totalling $12 million (0.02 per share). Excluding these items results in adjusted net income of $976 million or $1.94 per share
6 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold.
7 "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures that are not standardized financial measures under IFRS Accounting Standards. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
8 Includes capitalized exploration. Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS Accounting Standards. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of Performance" below.
- First Six Months of 2025 – Net income increased when compared to the prior-year period primarily due to record operating margins resulting from higher realized gold prices and gains on derivative financial instruments (compared to losses in the prior-year period), partially offset by higher income and mining taxes expense in the current period
Adjusted EBITDA
- Second Quarter and First Six Months of 2025 – Adjusted EBITDA increased when compared to the prior-year period primarily due to higher mine operating margins from higher realized gold prices, partially offset by lower gold sales, higher production costs and higher general and administrative expenses
Cash Provided by Operating Activities
- Second Quarter and First Six Months of 2025 – Cash provided by operating activities and cash provided by operating activities before changes in non-cash working capital balances increased when compared to the prior-year periods primarily due to the reasons described above related to the increases in adjusted EBITDA. Cash provided by operating activities benefited from favourable changes in non-cash working capital balances, primarily due to an increase in the accrued taxes payable as a result of higher operating margins
Free Cash Flow Before Changes in Non-cash Working Capital Balances
- Second Quarter and First Six Months of 2025 – Free cash flow before changes in non-cash working capital balances increased when compared to the prior-year periods due to the reasons described above related to cash provided by operating activities, partially offset by higher additions to property, plant and mine development
Capital Expenditures
In the second quarter of 2025, capital expenditures were $460 million and capitalized exploration expenditures were $78 million, for a total of $538 million. For the first six months of 2025, capital expenditures were $815 million and capitalized exploration expenditures were $143 million, for a total of $957 million. Total capital expenditures for 2025 (including capitalized exploration) are expected to remain in line with full year guidance as set out in the 2025 Guidance Summary below.
The following table sets out a summary of capital expenditures, in each case broken down as between sustaining capital expenditures and development capital expenditures, and capitalized exploration by mine in the second quarter of 2025 and the first six months of 2025.
Summary of Capital Expenditures*
(thousands)
Capital Expenditures** Capitalized Exploration Three Months Six Months Three Months Six Months Ended Ended Ended Ended Jun 30, 2025 Jun 30, 2025 Jun 30, 2025 Jun 30, 2025 Sustaining Capital Expenditures
| LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 20,402 $ | 37,905 $ | 1,105 $ | 1,999 |
| Canadian Malartic . . . . . . . . . . . . . . . . . . . . . . . . | 28,235 | 53,037 | 954 | 1,313 |
| Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,558 | 26,260 | 641 | 1,172 |
| Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 61,195 | 117,202 | 2,700 | 4,484 |
| Detour Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 63,741 | 99,599 | — | — |
| Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,199 | 18,730 | 331 | 747 |
| Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 73,940 | 118,329 | 331 | 747 |
| Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,075 | 30,469 | 1,178 | 2,033 |
| Meadowbank . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 34,160 | 57,528 | — | — |
| Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 50,235 | 87,997 | 1,178 | 2,033 |
| Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,985 | 28,615 | — | — |
| Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,985 | 28,615 | — | — |
| Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,568 | 28,999 | 884 | 1,609 |
| Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,568 | 28,999 | 884 | 1,609 |
| Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,969 | 16,344 | 577 | 852 |
| Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,969 | 16,344 | 577 | 852 |
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,708 | 4,190 | (156) | 237 |
| Total Sustaining Capital Expenditures . . . . . . . . . . $ | 233,600 $ | 401,676 $ | 5,514 $ | 9,962 |
Development Capital Expenditures
| LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 18,139 $ | 35,082 $ | 11 $ | 11 |
| Canadian Malartic . . . . . . . . . . . . . . . . . . . . . . . . | 68,090 | 118,961 | 6,973 | 12,806 |
| Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,650 | 5,631 | 578 | 1,075 |
| Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 89,879 | 159,674 | 7,562 | 13,892 |
| Detour Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 58,734 | 112,666 | 8,628 | 17,396 |
| Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,058 | 41,875 | 8,569 | 19,043 |
| Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 78,792 | 154,541 | 17,197 | 36,439 |
| Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14,961 | 26,451 | 4,553 | 9,154 |
| Meadowbank . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,356 | 2,681 | — | — |
| Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,317 | 29,132 | 4,553 | 9,154 |
| Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,303 | 14,773 | 3,025 | 5,400 |
| Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,303 | 14,773 | 3,025 | 5,400 |
| Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (968) | (63) | 1,782 | 3,009 |
| Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (968) | (63) | 1,782 | 3,009 |
| Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5 | 2,916 | 11 | 23 |
| San Nicolas (50%) . . . . . . . . . . . . . . . . . . . . . . . | 1,962 | 4,047 | — | — |
| Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,967 | 6,963 | 11 | 23 |
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 33,356 | 47,850 | 38,045 | 64,762 |
| Total Development Capital Expenditures . . . . . . . $ | 226,646 $ | 412,870 $ | 72,175 $ | 132,679 |
| Total Capital Expenditures . . . . . . . . . . . . . . . . . . $ | 460,246 $ | 814,546 $ | 77,689 $ | 142,641 |
*Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS Accounting Standards. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of Performance" below.
**Excludes capitalized exploration
2025 Guidance Reiterated
Based on the operational performance in the first six months of 2025, the Company expects to meet its gold production guidance for the full year 2025. The Company's total cash costs per ounce, AISC per ounce and capital expenditures guidance for 2025 remain unchanged. At mid-year, the Company has achieved approximately 51% of the mid-point of its full-year gold production guidance, while achieving total cash costs per ounce below the mid-point of guidance, despite higher royalty costs resulting from higher gold prices. A summary of the Company's guidance is set out below.
2025 Guidance Summary
(millions, unless otherwise stated)
2025 2025 Range Mid-Point
| Gold production (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,300,000 | 3,500,000 | 3,400,000 |
| Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . | $915 | $965 | $940 |
| AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $1,250 | $1,300 | $1,275 |
| Exploration and corporate development expense . . . . . . . | $215 | $235 | $225 |
| Depreciation and amortization expense . . . . . . . . . . . . . . . | $1,550 | $1,750 | $1,650 |
| General & administrative expense . . . . . . . . . . . . . . . . . . . . | $190 | $210 | $200 |
| Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $105 | $115 | $110 |
| Tax rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 33% | 38% | 35% |
| Cash taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $1,100 | $1,200 | $1,150 |
| Capital expenditures (excluding capitalized exploration) . | $1,750 | $1,950 | $1,850 |
| Capitalized exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $290 | $310 | $300 |
Tariffs
On February 1, 2025, the United States introduced tariffs on imports from countries including Canada. In response, the Canadian and other governments announced retaliatory tariffs on imports from the United States. In certain cases, the implementation or application of these tariffs has been postponed or modified and exceptions to such tariffs have been made in respect of certain goods. However, the international trade disputes set in motion by these tariffs, retaliatory tariffs and other actions remain fluid.
At this time, the Company believes its revenue structure will be largely unaffected by the tariffs as its gold production is mostly refined in Canada, Australia or Europe. The Company continues to review its exposure to the tariffs and trade disputes and its alternatives to inputs sourced from suppliers that are or may become subject to the tariffs or other trade disputes. However, approximately 60% of the Company's cost structure relates to labour, contractors, energy and royalties, which are not expected to be directly affected by any of the tariffs or trade disputes. While there is uncertainty as to whether the tariffs or retaliatory tariffs will be implemented, the quantum of such tariffs, the goods on which they may be applied and the ultimate effect of tariffs or other trade disputes on the Company's supply chains, the Company continues to monitor developments and may take steps to limit the effect of any tariffs or trade disputes on it as may be appropriate in the circumstances. The costs guidance provided in this news release does not include any potential impact from such tariffs or trade disputes.
Transition to Net Cash Position and Repayment of Long-term Debt
Cash and cash equivalents increased by $419 million when compared to the prior quarter primarily due to higher cash provided by operating activities resulting from higher operating margins due to higher realized gold prices and favourable changes in non-cash components of working capital in the current period. The increase was partially offset by cash used in financing activities in the current period as $550 million of debt was repaid in the second quarter of 2025.
As at June 30, 2025, the Company's total long-term debt was $595 million. On June 30, 2025, the Company repaid $40 million of the 2017 Series A 4.42% senior notes at maturity and also redeemed the remaining outstanding principal of $260 million of the 2017 senior notes and $250 million of the 2016 senior notes with interest rates ranging from 4.64% to 4.94%. The aggregate payments were comprised of $40 million of the current portion of long-term debt and $510 million of long-term debt. The repayment of debt demonstrates the Company's continued commitment to financial discipline and balanced approach to capital allocation. The repayment will reduce interest expense, strengthen the balance sheet and enhance financial flexibility going forward. No amounts were outstanding under the Company's unsecured revolving bank credit facility as at June 30, 2025 and available liquidity under the facility remained at approximately $2 billion, not including the uncommitted $1 billion accordion feature.
The Company transitioned from a net debt position of $5 million as at March 31, 2025 to a net cash position of $963 million as at June 30, 2025 as a result of the increase in cash and cash equivalents of $419 million and the reduction of long-term debt of $550 million. The following table sets out the calculation of net cash (debt).
Net Cash (Debt) Summary
(millions)
As at As at Jun 30, 2025 Mar 31, 2025
| Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . $ | (50) $ | (90) |
| Non-current portion of long-term debt . . . . . . . . . . . . . . . . . . | (545) | (1,053) |
| Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | (595) $ | (1,143) |
| Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,558 | 1,138 |
| Net cash (debt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 963 $ | (5) |
Hedges
The Company's full year 2025 cost guidance is based on assumed exchange rates of 1.38 C$/US$, 1.08 US$/EUR, 1.50 A$/US$ and 20.00 MXP/US$. The Company has set up the following hedge positions based on its currency assumptions for 2025 cost estimates:
- Approximately 55% of the remaining estimated Canadian dollar exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements below 1.37 C$/ US$, while allowing for participation in respect of exchange rate movements up to an average of 1.42 C$/US$;
- Approximately 25% of the remaining estimated Euro exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements above 1.09 US$/EUR, while allowing for participation in respect of exchange rate movements down to an average of 1.05 US$/ EUR;
- Approximately 51% of the remaining estimated Australian dollar exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements below 1.50 A$/ US$, while allowing for participation in respect of exchange rate movements up to an average of 1.70 A$/US$; and
- Approximately 37% of the remaining estimated Mexican peso ("MXN") exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements below 19.50 MXP/US$, while allowing for participation in respect of exchange rate movements up to an average of 24.00 MXP/US$.
Including the diesel purchased for the Company's Nunavut operations that was delivered as part of the 2024 sealift, approximately 54% of the Company's remaining estimated diesel exposure for 2025 is hedged at an average benchmark price of $0.74 per litre (excluding transportation and taxes), which is expected to continue to reduce the Company's exposure to diesel price volatility for 2025. The Company's full year 2025 cost guidance is based on an assumed diesel benchmark price of $0.78 per litre (excluding transportation and taxes).
The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs for the balance of 2025. Current hedging positions are not factored into 2025 or future guidance.
Shareholder Returns
Dividend Record and Payment Dates for the Third Quarter of 2025
The Company's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on September 15, 2025 to shareholders of record as of September 2, 2025. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2025 Fiscal Year
| Record Date | Payment Date |
| February 28, 2025* | March 14, 2025* |
| May 30, 2025* | June 16, 2025* |
| September 2, 2025** | September 15, 2025** |
| December 1, 2025 | December 15, 2025 |
*Paid **Declared
Dividend Reinvestment Plan
For information on the Company's dividend reinvestment plan, see: Dividend Reinvestment Plan.
International Dividend Currency Exchange
For information on the Company's international dividend currency exchange program, please contact Computershare Trust Company of Canada by phone at 1.800.564.6253 or online at www.investorcentre.com or www.computershare.com/investor.
Normal Course Issuer Bid
The Company believes that its NCIB is a flexible and complementary tool that, together with its quarterly dividend, is part of the Company's overall capital allocation program and generates value for shareholders. The Company renewed the NCIB in May 2025, increasing the maximum value of its common shares authorized for purchase to $1 billion, subject to a maximum of 5% of the issued and outstanding common shares. Purchases under the NCIB may continue for up to one year from its commencement on May 4, 2025. In the second quarter of 2025, the Company repurchased 836,488 common shares under the NCIB at an average share price of $119.47 for aggregate consideration of $100 million. In the first six months of 2025, the Company repurchased 1,324,535 common shares under the NCIB at an average share price of $113.20 for aggregate consideration of $150 million.
Update on Key Value Drivers and Pipeline Projects
Canadian Malartic
The Company continues to advance the transition to underground mining with the construction of the Odyssey mine and work on several opportunities with a vision to potentially grow annual production at Canadian Malartic to one million ounces per year in the 2030s. These opportunities include the potential for a second shaft at Odyssey, the development of a satellite open pit at Marban and the development of the Wasamac underground project. Marban and Wasamac are located approximately 12 kilometres and 100 kilometres from the Canadian Malartic mill, respectively.
Odyssey
Mine development continued to advance ahead of schedule in the second quarter of 2025, with a record 4,850 metres completed. A key milestone was achieved as the ramp reached the mid-shaft loading station at level 102. The breakthrough to the shaft is scheduled for the third quarter of 2025, following the completion of the fresh air ventilation doors at level 102. The main ramp toward shaft bottom progressed to a depth of 1,019 metres as at 30 June 2025. Development of the East Gouldie production levels also advanced, with preparatory work underway for the planned production start-up in the second half of 2026. This includes installation of the ventilation system, paste distribution infrastructure, and essential services.
In the second quarter of 2025, excavation and construction of the mid-shaft loading station advanced, with excavation of the ore grizzly at level 102 and the loading pocket at level 112 completed. Steel installation between levels 102 and 112 is progressing well, with completion expected in the third quarter of 2025. Ramp excavation connecting level 102 to the crusher room (level 106) and loading station (level 112) is underway, with completion expected in the fourth quarter of 2025. As at June 30, 2025, the shaft reached a depth of 1,179 metres, with conventional shaft sinking expected to resume in the third quarter of 2025, ahead of schedule.
Construction activities of key surface infrastructure progressed on schedule and on budget. At the operational complex, expected to be completed in the first quarter of 2026, interior architectural, mechanical, and electrical installations are underway. Shaft ventilation system installation at the main hoist building is progressing on schedule, with completion expected in the third quarter of 2025. The fabrication of the production hoist is underway in Germany, with delivery expected in 2026. The construction of the second phase of the paste plant has commenced, which is expected to increase capacity to 20,000 tpd.
Building on continued exploration success at depth and the expansion of the mineral resource at East Gouldie, the Company is evaluating opportunities to enhance operational efficiency over the medium to long term. One option under consideration is a 70-metre extension of Shaft #1 to a depth of 1,870 metres. This would involve relocating the loading station at shaft bottom to level 181 from level 174 and adding a loading station at level 146. This potential optimization could improve operational flexibility and efficiency in the early 2030s, reduce reliance on truck haulage, and further unlock the significant exploration potential at depth. This initiative is being assessed in parallel with the potential development of a second shaft at Odyssey.
In exploration drilling at the Odyssey mine and surrounding near-mine exploration properties during the second quarter of 2025, 13 underground rigs and 13 surface rigs drilled a total of 78,640 metres (132,016 metres year-to-date). The drilling program targeted the eastern and depth extensions of the East Gouldie deposit, the new Eclipse zone and portions of the Odyssey deposit near the Odyssey shaft. Regional exploration was focused on the 16-kilometre long land package around the mine, with additional activities conducted on the recently acquired Marban land package located immediately northeast of the Canadian Malartic property.
Drilling into the Lower East extension of the East Gouldie deposit beyond the current mineralized envelope was highlighted by hole MEX24-322WAZA intersecting 3.4 g/t gold over 36.2 metres at 1,947 metres depth and hole MEX24-322WBZ intersecting 3.5 g/t gold over 12.9 metres at 1,993 metres depth and 3.5 g/t gold over 19.2 metres at 2,013 metres depth, representing the deepest intersection of East Gouldie reported to date. These results extend East Gouldie at depth and to the east and are expected to contribute additional inferred mineral resources in this portion of the deposit at year-end 2025.
Hole MEX25-329 intersected the sub-parallel Eclipse zone approximately 300 metres to the north of East Gouldie, returning 4.3 g/t gold over 7.2 metres at 1,507 metres depth and 3.8 g/t gold over 14.0 metres at 1,519 metres depth, including 10.3 g/t gold over 2.5 metres at 1,518 metres depth. Further drilling targeting the Eclipse zone is ongoing to improve the geological understanding of the zone and its potential to add significant mineral resources near planned mine infrastructure.
Drilling in the Upper East extension of East Gouldie near the current shaft and ramp infrastructure was highlighted by hole UGEG-075-046 intersecting 5.7 g/t gold over 17.7 metres at 882 metres depth, including 8.9 g/t gold over 7.7 metres at 882 metres depth. The Company believes this area has the potential to add indicated mineral resources and potentially mineral reserves to East Gouldie by year-end.
Drilling into the Odyssey deposit during the second quarter returned highlights that included: hole UGOD-046-017 intersecting 4.6 g/t gold over 13.1 metres at 408 metres depth in the Odyssey North zone; hole UGOD-041-060 intersecting 9.1 g/t gold over 10.5 metres (core length) at 394 metres depth and hole UGOD-041-063 intersecting 13.8 g/t gold over 6.0 metres (core length) at 387 metres depth, both within the Odyssey internal zones; and, in the eastern extension of the Odyssey South zone, hole UGOD-016-311 intersecting 4.8 g/t gold over 16.1 metres at 403 metres depth, including 8.0 g/t gold over 6.9 metres at 402 metres depth, and hole MEV25-301 intersecting 4.9 g/t gold over 27.0 metres (core length) at 396 metres depth.
In regional exploration, testing for the potential extension of the Keel structure at depth in the East Gouldie deposit was highlighted by hole CHL25-2949 intersecting 2.8 g/t gold over 17.0 metres at 1,756 metres depth, approximately 150 metres below the East Gouldie mineralized envelope.
Selected recent drill intersections from Odyssey are set out in the composite longitudinal section below and in Appendix A.
[Odyssey – Composite Cross and Longitudinal Sections]