This means we delivered over 95% of this gold price increase to the benefit of our shareholders, delivering on our core mandate of providing gold upside leverage to our owners. Our resources are at a record 47.1 million oz, up almost 10%, and our inferred oz are at a record 41.8 million oz, up a remarkable 15.5%. The real excitement this morning is that Agnico Eagle is in the best position we've ever been in, and we're already aggressively advancing our next phase of growth and growth per share. This growth is from the highest quality projects in the best jurisdictions in the world.

This growth is from projects we already own, in jurisdictions we know well with existing teams and in most cases, leveraging off existing infrastructure. In our industry, growing in stable jurisdictions, leveraging existing infrastructure not only delivers to our owners the best return on capital, but also the best risk-adjusted return on capital. At Hope Bay, where we're working on a study that supports a 400- to 425,000-oz per year operation, we saw a 46% increase in inferred mineral resources, primarily from Patch Seven. With that introduction, I will now turn over the presentation to our CFO, Jamie Porter, to review our third quarter and full year results.

As Ammar mentioned, we delivered record financial results in 2025, driven by a strong operating performance, disciplined cost control, and a supportive gold price environment. For the full 2025 year, we exceeded the midpoint of our guidance, with gold production of 3.45 million oz, underscoring our consistent track record of execution. Both were slightly above the top end of our guidance ranges due to higher royalty costs, driven by an average realized gold price of $3,454, nearly $1,000 per ounce above our guidance assumption. Our total cash costs would have been $937 per ounce, $42 per ounce lower and below the midpoint of our guidance, again, reflecting strong cost discipline and execution by our operating teams.

What went well
  • Record full-year 2025 results: 3.45M oz gold, exceeding the midpoint of guidance
  • Record Q4 adjusted earnings ~$1.4B ($2.70/share) and record Q4 free cash flow over $1.3B ($2.62/share)
  • ~$4.4B free cash flow for the year; repaid ~$950M debt and ended 2025 with $2.9B cash
  • Record shareholder returns of $1.4B in 2025 (dividends + buybacks); dividend raised 12.5% to $0.45/quarter
  • Record reserves 55.4M oz (+2.1%), resources 47.1M oz (~+10%), and inferred 41.8M oz (+15.5%)
  • Strong gold-price leverage: captured ~95% of the gold-price increase as cash costs rose only $76/oz YoY
What went wrong
  • Full-year total cash costs ($979) and AISC ($1,339) came in slightly above the top end of guidance, driven by higher royalties
  • Q4 costs rose quarter-over-quarter on higher royalties, lower production volumes, and higher Meadowbank costs from the mine-life extension
  • 2026 cash costs guided up ~$100/oz, with royalties, a stronger Canadian dollar, inflation (~4-5%), and lower-grade mining sequences
  • Detour Lake saw pit delays this year and a slower, more measured mill ramp to 29M tons
  • Declining reserve grades flagged at Macassa and Fosterville, plus a large ~$1.3B cash tax liability due in February

Guidance Changes

MetricPeriodCurrent guidance
Total cash costs (midpoint)2026$1,070/oz
All-in sustaining costs (midpoint)2026$1,475/oz
Gold productionnext three years (2026-2028)3.3-3.5M oz per year
Quarterly dividend2026$0.45/share (+12.5%)
Budgeted gold price assumption2026$4,500/oz
Share buyback (NCIB) limit2026 (renew in May)up to $2B
Long-term production growthover next decade / early 2030sup to 20-30% growth, path to over 4M oz per year

Performance Breakdown

MetricYoYNote
Total cash costs +$76/oz Cost discipline held the increase to $76/oz even as gold rose ~$1,700 YoY, delivering ~95% of the price gain to shareholders
Realized gold price ~$3,454/oz, nearly $1,000 above guidance Supportive gold-price environment; higher prices also raised royalty costs
Mineral reserves +2.1% to 55.4M oz Successful exploration, conversion, study delivery, and the Marban acquisition, net of ~15M oz mined since the 2022 merger
Inferred mineral resources +15.5% to 41.8M oz Strong drill results, notably Patch 7 at Hope Bay and East Gouldie/Eclipse at Canadian Malartic
Free cash flow ~$4.4B for the year Strong operating performance, disciplined costs, and record gold prices

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Capital returnsReturned ~1/3 of free cash flow in 2025Targeting 40%+ of FCF; 12.5% dividend hike and NCIB limit up to $2B, with special dividends possible if prices stay high
Detour Lake underground2024 study used only 4.6M oz in the initial mine planResources now 5.5M oz M&I + 5.8M oz inferred; tripling investment (~$200M accelerated) toward a mid-2027 go-ahead, UG output possibly as early as 2028
Canadian Malartic fill-the-mill2023 study: 9M oz, mine life to 2042Added ~9M oz reserves; first East Gouldie production this quarter, first shaft in 2027, second shaft targeted 2033, potential 1M oz/yr with Marban and Wasamac
Hope Bay redevelopmentAcquired 2021 (TMAC), target north of 350K oz/yrStudy supports 6,000 tpd / 400-425K oz/yr, ~$2B CapEx; +46% inferred resources; study and possible approval in May with ~$300M added 2026 capital
Upper BeaverProject sanction planned mid-2027Ramp ahead of schedule, shaft sinking reached 155m; adding $100M to accelerate first production to 2030; over 200K oz/yr potential

Q&A Summary

Will Agnico tender its shares to the current offer on Foran, and what is the broader M&A view?
The CEO declined to discuss the Foran decision as it rests with shareholders. On M&A generally, Agnico is well-positioned via regional knowledge and will move only when a deal creates value per share, not just size; exploration upside is the key driver.
Are the cost-productivity initiatives already reflected in 2026 AISC guidance?
Partially included but not all; management deliberately set the budget/guidance bar conservatively and kept some flexibility.
What is the underlying cost inflation split between labor and consumables, and any labor renewals in 2026?
Labor is ~45% of the cost structure and running ~4% inflation; other consumables ~5.5-6%. Management stressed that low turnover (lowest in the industry) and productivity matter more than a point of wage inflation, especially at $5,000 gold.
Should CapEx keep increasing, or is the current run rate a plateau?
With Hope Bay approval (~$300-350M added), 2026 capital is ~$2.4-2.5B plus ~$400M capitalized exploration; capital stays elevated through the next few years and should come off once production steps up in 2030. Accelerations are voluntary, targeting 30-60% IRRs.
With cash building even after the dividend and $2B NCIB, how will excess cash be allocated?
Management wants maximum financial flexibility for further growth/accelerations; holding cash at ~3-5% of market cap is acceptable, giving capacity to invest.
What is the cost of the Meadowbank life-extension ounces to 2030?
Roughly $2,200-$2,300/oz AISC; these are incremental ounces on existing infrastructure that are highly profitable at spot, not a cost increase to the base.
Could excess cash be returned via special dividends as well as buybacks?
Yes, either is possible; a special dividend would be considered if the $2B buyback cap is reached and excess cash remains in a rising gold-price environment.
Can you give a teaser on Hope Bay CapEx ahead of the May study?
CapEx is expected around $2B, with ~$300M spendable in 2026 (all permitted); engineering is ~50-60% advanced with ~100 people working, following the Meliadine execution model.
How much capital supports the growth pipeline through 2030?
Roughly $5-6B of growth spending over 2026-2030: Detour UG ~$1B, Upper Beaver ~$1B, Hope Bay ~$2B, plus San Nicolas; sustaining CapEx kept roughly steady.
Can you unpack the Detour mill ramp slowdown and Meadowbank's post-2030 potential?
The Detour mill hit a record 28M tons and is taking time to stabilize toward 29M tons by 2030, still reaching 1M oz early 2030s. Meadowbank beyond 2030 is conceptual (~250K oz) via deeper underground and small pushbacks, aided by $5,000 gold; more detail likely after 2027.

More on Agnico Eagle Mines Ltd

Reported 2026-02-13 · figures from the Agnico Eagle Mines Ltd Q4 2025 earnings call.

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