Agnico Eagle Mines Ltd (TSX:AEM) shares moved higher after it reported strong third quarter financial results, with earnings per share (EPS) surpassing Wall Street expectations amid strong gold production and elevated gold prices.
The company posted net income of $1.06 billion, or $2.10 per share, exceeding the EPS estimate of $1.76.
Adjusted net income reached a record $1.09 billion, or $2.16 per share.
Revenue for the quarter of $3.06 billion beat the Street estimate of $2.95 billion.
Payable gold production in the quarter totaled 866,936 ounces, with production costs per ounce of $963, total cash costs of $994 per ounce, and all-in sustaining costs of $1,373 per ounce.
Operational performance was led by the Meadowbank and LaRonde mines.
For the first nine months of 2025, gold production reached roughly 77% of the midpoint of the company’s full-year guidance, with total cash costs near the guidance midpoint.
The average realized gold price in the quarter was $3,476 per ounce, well above the company’s $2,500 guidance assumption.
Higher gold prices contributed to stronger margins but also increased royalty costs, affecting total cash costs and all-in sustaining costs by approximately $61 per ounce in the quarter.
The company also reaffirmed its 2025 guidance of 3.3 to 3.5 million ounces of payable gold production.
If gold prices remain elevated, total cash costs and all-in sustaining costs are expected toward the high end of the guidance ranges, at $915 to $965 and $1,250 to $1,300 per ounce, respectively.
Analysts at Jefferies repeated their ‘Hold’ rating on Agnico Eagle and awarded it a price target of $193, implying upside of 23% at the time of writing.
“We appreciate AEM's consistent execution and cost control, and rate it as a ‘Hold’ based on valuation,” the analysts wrote.
They highlighted the company’s quarter-end cash position of $2.2 billion, expecting the company will face questions on what do with “all this cash,” as, so far, there haven’t been significant share buybacks.
Agnico Eagle shares traded up 3% at about $162 late morning on Thursday.