Agnico Eagle Produces 873,794oz Gold in 1Q25

Canada-based gold company Agnico Eagle reports that it produced 873,794oz of gold in 1Q25, a decrease from the 878,652oz produced in 1Q24. The company also reports advances on the San Nicolas project in Zacatecas, whose feasibility study is expected to be completed by 2H25.

Agnico Eagle produced 873,794oz of payable gold in 1Q25. Production costs were US$879/oz, total cash costs were US$903/oz, and all-in sustaining costs (AISC) were US$1,183/oz. Gold production decreased slightly year-on-year compared to the 878,652oz produced in 1Q24, primarily due to lower production at the Malartic mine in Canada, which was partially offset by higher LaRonde and Macassa’s production.

The company also reports quarterly net income of US$815 million and adjusted net income of US$770 million. It generated cash provided by operating activities of US$1,04 million and free cash flow of US$594 million. Net income increased compared to the prior-year period primarily due to record operating margins from higher realized gold prices and lower production costs, partially offset by lower gold sales and higher income and mining taxes expense in the current period.

Agnico Eagle reports an increase in its cash position by US$212 million, reaching US$1,138 million, and notes that it is approaching a zero net debt position. Total debt outstanding at the end of the quarter was US$1.1 billion and net debt was reduced to US$5 million.

Agnico Eagle reiterates its 2025 guidance, expecting gold production of about 3.3Moz to 3.5Moz, total cash costs of US$915/oz to US$965/oz, and AISC of US$1,250/oz to US$1,300/oz. Total expected capital expenditures for 2025 are still estimated to be between US$1.75 billion to US$1.95 billion.

The company says that its revenue structure will be largely unaffected by US tariffs, as its gold production is mostly refined in Canada, Australia, or the European Union. This position is consistent with the view expressed in the company's 2024 results, when the company noted that over 60% of its cost structure was related to labor, contractors, energy, and royalties, which are not expected to be directly affected by any of the tariffs or trade disputes. 

Progress on San Nicolas Project 

Minas de San Nicolas is working on a feasibility study for the San Nicolas Project, a 50/50 joint venture with Teck Resources. Completion of the study is expected in 2H25. Project approval is expected to follow, subject to receipt of permits and the results of the feasibility study.

According to Agnico Eagle’s website, proven and probable mineral reserves on a 50% basis representing Agnico Eagle’s interest were estimated to be 52.6Mt at average grades of 1.12% copper, 1.48% zinc, 0.40g/t gold, and 22 g/t silver.