Trump Tariffs Unlikely to Impact Agnico Eagle’s Revenue

Canada-based precious metals producer Agnico Eagle stated that its operations are unlikely to be affected by US President Donald Trump’s tariffs, citing minimal reliance on the United States for its refining logistics chain and cost structure. 

On Feb. 1, 2025, US President Trump signed an executive order imposing a 25% tariff on imports from Mexico and Canada and a 10% tariff on imports from China. In response, the Canadian government announced retaliatory tariffs on US imports. However, both measures were paused for 30 days. While many companies, especially in the steel and aluminum industries, warn that tariff increases could weaken the region’s competitiveness, Agnico Eagle expects little impact on its costs. The company stated that most of its gold production is refined in Canada, EU, and Australia. Additionally, over 60% of its cost structure is tied to labor, contractors, energy, and royalties, which are unlikely to be affected by tariffs. 

On the supplier side, Agnico Eagle stated that it is assessing its exposure to tariffs and exploring alternative input sources. “While there is uncertainty as to whether the tariffs or retaliatory tariffs will be implemented, the quantum of such tariffs, the goods on which they may be applied, and the ultimate effect on the company's supply chains, the company will continue to monitor developments and may take steps to limit the impact of any tariffs as may be appropriate in the circumstances. (The company’s) cost guidance does not factor any potential impact from such tariffs,” reads Agnico Eagle’s 2024 results report. 

Agnico Eagle’s 4Q24 Results

Agnico Eagle reported payable gold production of 847,401oz at production costs of US$881/oz in 4Q24. Total cash costs stood at US$923/oz, while all-in-sustaining costs (AISC) reached US$1,316/oz. Net income for the quarter was US$509 million, with adjusted net income at US$632 million.

For the full year, the company produced 3.48Moz of gold, in line with its guidance of 3.35Moz to 3.55Moz. Production costs averaged US$885/oz, with total cash costs at US$903/oz and AISC at US$1,239/oz. Higher realized gold prices contributed to record operating margins, while operational efficiencies resulted in several annual throughput and mining rate records, the company states. Free cash flow for 2024 totaled US$2.14 billion, and net debt was reduced by US$1.29 billion.

Agnico Eagle forecasts annual gold production between 3.3Moz and 3.5Moz from 2025 to 2027. The outlook for 2025 and 2026 is slightly lower than previous estimates due to adjustments in mining sequences and processing schedules, while 2027 production is expected to improve with increased contributions from its projects. The company also reported a year-end mineral reserve estimate of 54.3Moz of gold, a 0.9% increase from 2023.