Agnico Eagle Mines (NYSE: AEM, TSX: AEM) reported stronger-than-expected earnings for the third quarter of 2026, with higher gold prices helping to offset rising costs and lower production. The company posted adjusted net income of $1.324 billion, or $2.62 per share, surpassing analysts’ estimates of $2.56 per share. This marks a 21.3% increase from the $2.16 per share reported a year earlier.
The company’s net income rose to $1.353 billion, or $2.67 per share, up from $1.055 billion, or $2.10 per share, in the same period of 2025. Despite historically high gold prices, Agnico Eagle faced cost pressures from higher energy prices, labor expenses, and royalties. The average realized gold price during the quarter was $4,264 an ounce, a 22.7% increase from $3,476 a year earlier. However, production fell 6.1% to 814,012 ounces, while all-in sustaining costs (AISC) rose nearly 24% to $1,648 an ounce.
Despite these challenges, Agnico Eagle generated $1.755 billion in operating cash flow and $852 million in free cash flow. CEO Ammar Al-Joundi emphasized the company’s solid operational performance and its ability to meet full-year targets. The company maintained its 2026 production guidance of 3.3 million to 3.5 million ounces, with costs expected near the upper ends of their guidance ranges. Inflationary pressures, particularly on diesel and consumables, remain a concern, but the company is advancing long-term growth projects.
Agnico Eagle ended the quarter with $3.613 billion in cash and returned $478 million to shareholders through dividends and share repurchases. The company expects to return more than 50% of its free cash flow to shareholders in 2026, subject to operational requirements.