Largest gold producer in Canada provides strong Q2 results

Canada’s largest gold producer continues to fire on all cylinders, as solid production and higher gold prices pushed the company into a net cash position during the second quarter.

On Wednesday evening, following the close of North American equity markets, Agnico Eagle Mines Limited reported quarterly record adjusted net income of $976 million.

The company’s record earnings were primarily driven by significantly higher gold prices and controlled production costs. Looking at Agnico’s operations, the company produced 866,029 ounces of gold between April and June, down from 895,838 ounces produced during the second quarter of 2024.

So far this year, Agnico has produced 1.740 million ounces of gold, a slight decrease from the 1.774 million ounces produced in the first half of last year. However, the company reported an average realized gold price of $3,288 per ounce, significantly higher than the $2,342 per ounce reported last year.

At the same time, Agnico’s All-In Sustaining Costs (AISC) rose to $1,289 per ounce, up from $1,169 reported in 2024.

Although the company reported solid overall performance, it said production was slightly lower due to caribou migrations impacting operations at the Meadowbank mine. Additionally, it experienced lower-grade production at Canadian Malartic and Fosterville.

Despite the slight production decline, the company confirmed it remains on track to meet its annual guidance.

According to the company, 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 also unchanged at $915 to $965 and $1,250 to $1,300, respectively.

With record margins, Agnico said it strengthened its balance sheet by reducing long-term debt by $550 million.