Agnico Eagle Mines Ltd (TSX:AEM) nearly doubled its first-quarter profit, beating analyst expectations as the Canadian gold miner posted strong production and lower operating costs.
Adjusted net income rose to $1.53 per diluted share in the quarter ended March 31, up from $0.76 a year earlier and ahead of the $1.38 average estimate from analysts polled by FactSet.
Revenue climbed to $2.47 billion from $1.83 billion, surpassing forecasts of $2.26 billion.
The company has now exceeded earnings expectations for nine consecutive quarters.
Jefferies analysts noted the latest beat was driven by higher production and lower costs at key assets including Malartic, Macassa and LaRonde, which benefited from strong grades and throughput.
Total gold production of 874,000 ounces came in above Jefferies’ estimate of 843,000 ounces, while all-in sustaining costs (AISC) fell slightly year-over-year to $1,183 per ounce, below forecasts.
Free cash flow also exceeded expectations at $590 million, helped by lower capital spending. Agnico ended the quarter with $1.14 billion in cash and net debt close to zero, down from $1.3 billion a year earlier.
The company reiterated its 2025 guidance for gold production of 3.3 million to 3.5 million ounces and AISC of $1,250 to $1,300 per ounce. It also doubled its share buyback authorization to $1 billion.
Jefferies maintained a “Hold” rating on the stock, citing valuation as the main constraint despite the company’s operational consistency. “Agnico deserves its premium valuation,” the firm said, noting the miner “has been a predictable producer that is managing costs exceptionally well.”
Development work at the Odyssey and Detour Lake projects remains on track, with key milestones advancing ahead of schedule.