Earnings Analysis October 30, 2026

Agnico Eagle Mines ($AEM) Q3 2026 Earnings Analysis: Revenue and EPS Beat Expectations, Production Falls Below Guidance

Earnings Report

Revenue: $3.5836 billion (Q3 2026, +17.1% YoY, vs. $3.499 billion expected) ✅ Beat

EPS (Earnings Per Share): $2.61 (vs. $2.56 expected, +2.1%) ✅ Beat

Guidance: Maintained · Annual gold production 3.3 million to 3.5 million ounces (lower end of guidance), Total sustaining costs $1,400 to $1,550 per ounce (upper end of guidance)

Stock Reaction: -3.9% (Based on next-day closing price after AMC)

What Went Well

$3.58 billion Revenue: Increased 17.1% year-over-year, exceeding expectations

$2.61 Adjusted EPS: Surpassed the expected $2.56

$3.42 billion Net Cash: Returned $478 million to shareholders in Q3

Gold selling prices rose 22.7% year-over-year to $4,264 per ounce, driving up revenue and profits. Net income increased 28.2% to $1.353 billion. However, most of the improvement came from prices rather than sales volume.

What Was Lacking

814,000 ounces Gold Production: Decreased 6.1% year-over-year

$1,648 Total Sustaining Costs: Cost per ounce rose 23.8%

$852 million Free Cash Flow: Decreased 28.4% year-over-year

Production slumps at Canadian Malartic and Meadowbank dragged down total volume. Due to rock movement at the Banbark open-pit mine in July, production is expected to decrease by 60,000 to 80,000 ounces in the second half of the year, and could drop by up to 150,000 ounces annually in 2027 and 2028. Increased capital expenditures for development projects meant that the rise in gold prices did not fully translate into free cash flow.

What the Company Said

CEO Ammar Al-Joundi stated that free cash flow was strong due to the team's consistent execution and that the company is on track to achieve its annual guidance. The company also presented a plan to return more than half of its free cash flow through dividends and share repurchases based on current gold prices.

Market Reaction and Future Key Points

While revenue and profit exceeded expectations, the company stated that production will be at the lower end of guidance and costs will be at the upper end, which combined to impact the market.

It is necessary to confirm whether Meadowbank's gold grade recovers as planned in Q4.

A 10% increase in diesel prices will increase Q4 cash costs by approximately $3 per ounce.

We must monitor whether the plan to return more than half of annual free cash flow to shareholders is maintained.

Earnings Call Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added here. We will select and summarize only the most important points, such as how management explained performance and outlook, and what analysts asked.