Benzinga·2025-10-31 11:27Core Insights - Agnico Eagle Mines reported strong third-quarter results, with net income reaching $1.06 billion or $2.10 per share, driven by high gold prices and strong production [1][2] - The company established a new subsidiary, Avenir Minerals, to consolidate its investments in critical minerals, with an initial portfolio valued at approximately $80 million [7][8] Financial Performance - The third-quarter operating cash flow was $1.82 billion, and free cash flow was $1.19 billion, benefiting from increased production and higher gold prices [1] - Cash costs were reported at $994 per ounce, while all-in sustaining costs were $1,373 per ounce, with an average realized gold price of $3,476 per ounce [3] Production and Cost Guidance - Agnico reaffirmed its 2025 production target of 3.3–3.5 million ounces, with costs expected to be at the upper end of the range due to higher royalty-linked expenses [4] - The company anticipates capital spending for the year to be between $1.75 billion and $1.95 billion, excluding capitalized exploration costs of approximately $290–$310 million [4] Balance Sheet and Shareholder Returns - The company strengthened its balance sheet, increasing its cash position to $2.36 billion and reducing long-term debt to $196 million, resulting in a net cash position of $2.16 billion [5] - A quarterly dividend of 40 cents was declared, and over one million shares were repurchased for $150 million, reflecting a commitment to shareholder returns [5] Growth Pipeline and Exploration - Development projects are advancing at Canadian Malartic, Detour Lake, Upper Beaver, and Hope Bay, with exploration work on schedule and promising results, particularly at Hope Bay [6] - Engineering work at San Nicolas in Mexico is nearly 30% complete [6] Strategic Focus on Critical Minerals - Avenir Minerals will operate independently while Agnico maintains a right of first refusal on new projects, allowing the company to focus on gold while exploring opportunities in critical metals [8][9]