AEM's Q4 Earnings Surpass on Higher Realized Gold Prices

Core Insights - Agnico Eagle Mines Limited (AEM) reported adjusted earnings of $2.69 per share for Q4 2025, a significant increase from $1.26 in the same quarter last year, exceeding the Zacks Consensus Estimate of $2.56 [1] - The company generated revenues of $3,564 million, reflecting a year-over-year increase of approximately 60.3%, surpassing the Zacks Consensus Estimate of $3,240.7 million [1] Operational Highlights - Payable gold production was 840,608 ounces in the reported quarter, slightly down from 847,401 ounces in the prior-year quarter, but above the estimate of 839,674 ounces [2] - Total cash costs per ounce for gold increased to $1,089 from $923 a year ago, exceeding the estimate of $945 [2] - Realized gold prices reached $4,163 per ounce, up from $2,660 a year ago, surpassing the estimate of $3,593 [2] - All-in-sustaining costs (AISC) were $1,517 per ounce, higher than $1,316 per ounce a year ago and above the estimate of $1,315 [3] Financial Position - AEM ended the quarter with cash and cash equivalents of $2,866 million, a sequential increase of 21.7% [4] - Long-term debt stood at approximately $196.3 million [4] - Total cash from operating activities was $2,112 million in Q4, up from $1,132 million a year ago [4] Outlook - For 2026, AEM expects gold production to be between 3.3 million and 3.5 million ounces [5] - Total cash costs per ounce are projected to be between $1,020 and $1,120, while AISC is forecasted to range from $1,400 to $1,550 per ounce [5] - Exploration and corporate development expenses are expected to be between $275 million and $305 million, with a midpoint of $290 million [6] - Depreciation and amortization expenses are forecasted to be $1.55-$1.75 billion, averaging $1.65 billion [6] - General and administrative expenses are anticipated to be in the range of $230 million to $260 million, with other costs projected between $75 million and $95 million [6] - The effective tax rate for 2026 is expected to be between 34% and 36%, with cash taxes estimated in the range of $3.4 billion to $3.6 billion [7] - Capital expenditures (excluding capitalized exploration) are planned at roughly $2.2-$2.4 billion, with capitalized exploration spending forecasted to be between $290-330 million [7] Price Performance - Agnico Eagle's shares have gained 117% in the past year, compared to a 144.4% rise in the industry [8]