Agnico Eagle's Q2 Earnings Beat Estimates on Higher Gold Prices

Core Viewpoint - Agnico Eagle Mines Limited (AEM) reported strong financial results for Q2 2025, with adjusted earnings and revenues significantly exceeding estimates, driven by higher realized gold prices despite lower production and increased costs [1][9]. Financial Performance - Adjusted earnings for Q2 2025 were $1.94 per share, up from $1.07 year-over-year, surpassing the Zacks Consensus Estimate of $1.83 [1]. - Revenues reached $2,816.1 million, a 35.6% increase year-over-year, exceeding the Zacks Consensus Estimate of $2,553 million [1]. - Cash from operating activities was $1,845 million, up from $961 million a year ago [4][9]. - Cash and cash equivalents at the end of the quarter were $1,558 million, a 69% increase year-over-year [4]. Operational Highlights - Payable gold production was 866,029 ounces, down from 895,838 ounces in the prior-year quarter, missing the estimate of 866,598 ounces [2]. - Total cash costs per ounce for gold increased to $933 from $870 a year ago, exceeding the estimate of $918 [2]. - Realized gold prices were $3,288 per ounce, up from $2,342 a year ago, beating the estimate of $2,929 [2]. Cost Structure - All-in-sustaining costs (AISC) were $1,289 per ounce, compared to $1,169 per ounce a year ago, surpassing the estimate of $1,212 [3]. Future Outlook - For full-year 2025, gold production is expected to range between 3.3 and 3.5 million ounces, with a midpoint estimate of 3.4 million ounces [5]. - Total cash costs per ounce are projected between $915 and $965, while AISC is forecasted to be between $1,250 and $1,300 per ounce, with a midpoint of $1,275 [5]. - Exploration and corporate development expenses are expected to be between $215 million and $235 million, with a midpoint of $225 million [6]. Tax and Capital Expenditures - The effective tax rate for 2025 is expected to be between 33% and 38%, with cash taxes estimated between $1.1 billion and $1.2 billion [7]. - Planned capital expenditures (excluding capitalized exploration) are projected to be between $1.75 billion and $1.95 billion [7]. Stock Performance - Agnico Eagle's shares have increased by 71.1% over the past year, outperforming the industry average rise of 44.2% [8].