We're pleased to announce a solid start to the year, with production slightly above budget and with costs in line with our guidance. This solid operating performance, coupled with exceptional gold prices, has allowed Agnico Eagle to announce yet another quarter of record net income driven by record operating margins. We are reiterating 2026 production guidance, with production expected to be weighted approximately 48%, 52% between the first and second halves of the year. Solid operations, strong progress on moving our growth pipeline forward, continued exceptional exploration results, as mentioned, another quarter of record financial results.

one, as mentioned, we're off to a good start to the year with solid operating performance, delivering record operational and financial results. Record mill throughput at Macassa, record development rates at Meliadine, record pit tonnage at Detour. Two, we continue to strengthen our financial position and to increase returns to shareholders. We invested almost $400 million into our high-quality growth projects, all while increasing our cash position by almost $250 million.

At these gold prices, we will increase our share repurchases, and we are increasing our normal course issuer bid to $2 billion. We have a path to industry-leading production growth over the next decade. Our execution of delivering this growth remains on track, and at these gold prices, we think we can deliver this growth and reduce share count at the same time. We've mobilized our teams to reinforce across our company and at all levels and to all employees our commitment to not only deliver on our guidance, but to do so safely and responsibly.

What went well
  • Record net income and record operating margins; adjusted net income ~$1.7B ($3.41/share) and adjusted EBITDA just over $3B
  • Q1 gold production ~825,000 oz, slightly above budget; ~24% of annual guidance midpoint with output weighted to H2
  • Costs held within full-year guidance: total cash costs $1,093/oz and AISC $1,483/oz
  • Operating records: mill throughput at Macassa, development rates at Meliadine, pit tonnage at Detour
  • Strongest balance sheet in company history: net cash ~$2.9B and Fitch upgrade to A- (stable)
  • Growth projects advancing, many ahead of schedule (Malartic first East Gouldie stope, Upper Beaver ramp/shaft, Hope Bay engineering >50%)
What went wrong
  • Two fatalities over the past five months; company mandated a company-wide safety stand-down
  • Gold production down year-over-year on mine sequencing at LaRonde, Macassa and Fosterville
  • Total mill tonnage below plan, mainly from old paste-plant challenges at Macassa while commissioning the new one (expected fully operational in Q2)
  • Buyback pace slowed QoQ to $150M (half of Q4) due to a large cash tax payment, including a $1.3B 2025 tax catch-up
  • Higher royalty costs from the higher realized gold price plus a stronger Canadian dollar pressured AISC; Finnish mining-tax change also factored into evaluations

Guidance Changes

MetricPeriodCurrent guidance
2026 gold productionFY2026reiterated (weighted ~48%/52% H1/H2)
Total cash costsFY2026$1,020-1,120/oz (reiterated)
All-in sustaining costsFY2026$1,400-1,550/oz (reiterated)
Capital returns (dividends + buybacks)FY2026~40% of free cash flow (floor; may exceed)
Total capital spendingFY2026~$3B all-in

Performance Breakdown

MetricYoYNote
Gold production ~825,000 oz, down YoY Mine sequencing at LaRonde, Macassa and Fosterville
All-in sustaining costs $1,483/oz, higher Higher royalty costs on higher realized gold price, lower planned volumes, and a stronger Canadian dollar vs Q1 2025
Free cash flow ~$730M in Q1 Strong gold prices, though reduced by ~$1.8B of cash taxes paid in the quarter (incl. $1.3B 2025 catch-up)
Share repurchases $150M, half of Q4 Lower Q1 free cash flow from the large cash tax payment; expected to ramp through the year

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Production growth pipelineFive key value-driver projectsTargeting 20%-30% production growth over the next decade (Detour and Malartic each to 1M oz, Hope Bay, Upper Beaver, San Nicolas)—
Finland consolidationKittila plus standalone IkkariConsolidating ~2,500 sq km via Rupert, Orion and 70% of B2Gold FinGold JV toward a 500,000 oz multi-decade platform—
Capital returnsPrior NCIB / dividendNCIB increased to $2B, ~$375M returned in Q1, 43 consecutive years of dividends—
Cost discipline / energy exposureRegional operating modelHydro/nuclear power in Ontario and Quebec plus diesel hedging in Nunavut; 10% diesel move = ~$6/oz on total cash costs—

Q&A Summary

What are the value-creation steps over the next 12-24 months for the Finnish acquisition?
First step was consolidating the previously fragmented land package; the team will restart drilling once the deal closes and expects a revised concept (pit design, infrastructure location) with current information by end of 2027, iterating like Malartic.
Has your understanding of Detour Lake underground evolved given the strong drill intercepts?
Results (e.g. 8.9 g/t over 14m, 10.7 g/t over 10m) are in line with expectations; the west zone averages ~2.5-3.5 g/t. A study team is weighing optionality - higher mill capacity, larger underground, another pit pushback - but it is early days.
Why did the buyback slow, and what minimum cash do you want to hold?
Yes, the slowdown reflected the large cash tax payment; only $150M repurchased vs half that pace. Comfortable with ~$3.1B cash / $2.9B net cash and a $3-5B range; buybacks ramp through the year, targeting ~40% of FCF.
How are you incorporating input-cost inflation into the May Hope Bay project update?
Inflation has not been that bad; existing infrastructure (camp, mill building, water treatment) and heavy engineering give strong execution control. Assumptions are long-term with sensitivities to be shown; Hope Bay adds 400,000+ oz toward ~1M oz in Nunavut.
What drove Malartic's grade improvement, and what will the September update cover?
Grade improvement was mainly Barnat pit sequencing. September will update reserves/resources and show how the second shaft, Marban and Wasamac fit toward 1M oz/year; full studies come later in the year.
Why use Agnico shares rather than cash for the Finland deal, and could you exceed the 40% payout?
Agnico wanted to pay cash but the sellers wanted 100% shares (other deals were cash); the company may exceed 40% and offset dilution using proceeds from portfolio investment sales.
San Nicolas seems subscale at 50% - would you consolidate ownership?
Still viewed as a good project; Agnico would look at consolidating if the partner were interested, but would not forecast partners' intentions.
What is the cadence of the production ramp through the year?
Q2 similar to Q1; it is mostly mine sequencing plus items like the caribou migration season, with the back half stronger. Q1 was slightly above budget, nothing unusual driving it.
Where do capital-allocation priorities rank as cash builds?
Reinvestment in the 30%-60% IRR value-driver projects is always a high priority (capex rising from ~$2.3B to ~$3B); 40% of FCF returns is a floor, and a $3-5B net cash buffer preserves flexibility even at much lower gold prices.
What have you learned from the fatalities and what changed?
Reinforced that safety can never slow down, especially on routine tasks; a company-wide stand-down was mandated. Investigations remain ongoing with authorities, and learnings on major hazards and critical controls are being shared internally and with industry peers.

More on Agnico Eagle Mines Ltd

Reported 2026-05-01 · figures from the Agnico Eagle Mines Ltd Q1 2026 earnings call.

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