Agnico Eagle Mines Limited (AEM.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland.It operates through Northern Business and Southern Business segments.The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits.

Its flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada.As of December 31, 2021, the company's LaRonde mine had proven and probable mineral reserves of approximately 3.0 million ounces of gold.It is also involved in exploration activities in Europe, Latin America, and the United States.

The company was incorporated in 1953 and is headquartered in Toronto, Canada.

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1.b. Last Insights on AEM

Agnico Eagle Mines Limited's recent performance was driven by strong Q2 earnings, beating expectations with a 6.01% earnings surprise and 10.30% revenue surprise. The company's record financial performance, robust cash flow, and strategic portfolio moves, including the sale of its Orla Mining stake and increased investment in Maple Gold Mines, have fueled optimism. Analysts' enthusiasm for the company's dividend and growth outlook, coupled with a bullish gold market, have contributed to a positive outlook. Canaccord raised its price target on AEM to C$215, maintaining a Buy rating.

1.c. Company Highlights

Last Price	306
Change Percentage	1.21%
Open	301.3
Previous Close	302.34
Market Cap ( Millions)	153315
Volume	162237
Year High	306.85
Year Low	132.96
M A 50	260.18
M A 200	210.89

FCF Yield	3.93%
Dividend Yield	0.72%
ROE	19.25%
Debt / Equity	1.30%
Net Debt / EBIDTA	-30.48%
Price To Book	4.52
Price Earnings Ratio	25.15
Price To FCF	25.43
Price To sales	9.45
EV / EBITDA	13.12

2. Agnico Eagle Mines Shines with Record Earnings and Growth Prospects

Agnico Eagle Mines Limited reported a stellar Q4 2025, with key financial highlights including record adjusted earnings of approximately $1.4 billion or $2.70 per share, and actual EPS of $3.63, beating estimates of $3.61. The company's revenue growth was fueled by gold prices hitting new highs, resulting in over 95% of the gold price increase being passed on to shareholders. Total cash costs were $979 per ounce, and all-in sustaining costs were $1,339 per ounce. For 2026, the company guided total cash costs of $1,070 per ounce and all-in sustaining costs of $1,475 per ounce.

Publication Date: Feb -18

📋 Highlights

Operational Highlights and Growth Prospects

The company made significant progress on growth projects, including Detour Lake, Canadian Malartic, Upper Beaver, and Hope Bay. Reserves are at a record 55.4 million ounces, up 2%, while resources are at a record 47.1 million ounces, up almost 10%. Inferred ounces are at a record 41.8 million ounces, up 15.5%. Agnico Eagle plans to increase production by up to 20-30% over the next decade, with a path to over 4 million ounces of annual production by the early 2030s. As Ammar Al-Joundi, CEO, stated, the company is focused on creating value per share, with a solid plan in place to continue growing gold production per share over the next decade.

Valuation and Return Metrics

With a P/E Ratio of 23.98 and EV/EBITDA of 12.5, the market is pricing in significant growth prospects for Agnico Eagle. The company's ROE of 19.25% and ROIC of 13.05% indicate strong profitability. The Dividend Yield is 0.75%, and Free Cash Flow Yield is 4.12%, suggesting a decent return for shareholders. The company's Net Debt / EBITDA ratio is -0.3, indicating a healthy balance sheet.

Capital Allocation and M&A

Agnico Eagle aims to return approximately 40% or more of its free cash flow to shareholders in 2026. The company is willing to consider M&A opportunities that create value per share, but is not interested in just getting bigger. The $2 billion buyback facility may be extended if gold prices remain high. The company's focus on long-term growth, financial flexibility, and maximizing shareholder value is evident in its capital allocation strategy.

Project Updates and Future Prospects

The Detour underground project is advancing, with $200 million of capital accelerated through to mid-2027 to derisk project construction and ramp-up. The project could see initial underground production from a shallower Western extension zone as early as 2028. The Hope Bay project, if approved, would add $300-350 million to capital expenditures. The company is preparing the site and procuring materials to ensure a successful execution.

3. NewsRoom

Agnico Eagle rallies on Q4 beat, maintains output outlook

Feb -13

Source: proactiveinvestors.com

AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS - RECORD QUARTERLY AND ANNUAL FREE CASH FLOW; 2025 PRODUCTION GUIDANCE ACHIEVED; TOTAL 2025 SHAREHOLDER RETURNS OF $1.4 BILLION; DIVIDEND INCREASED BY 12.5%; UPDATED THREE-YEAR GUIDANCE

Feb -12

Source: prnewswire.com

Agnico Eagle, Cameco and Freeport-McMoRan named as Bank of America’s top mining picks for 2026

Jan -07

Source: proactiveinvestors.com

Presenting on Emerging Growth Conference 88 Day 1 on December 10; Register to live stream

Dec -09

Source: globenewswire.com

Formation Metals Closes $8.26M First Tranche of Its Private Placements, Fully Funding 20,000 Metre Drill Program at the Advanced N2 Gold Project

Oct -16

Source:

Update On White Gold: PowerOne Capital Acquires Shares Of White Gold

Oct -15

Source:

STLLR Gold Up as Raises $36.6 Million Via Private Placement Financing; Eric Sprott Increases Stake by 14.9%

Oct -15

Source:

Royal Gold's Q3 Stream Segment Sales Volume Up 18% Sequentially

Oct -15

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.80%)

6. Segments

7. Detailed Products

Gold

Agnico Eagle Mines Limited is a Canadian-based gold producer with a diverse portfolio of high-quality mines and projects in Canada, Finland and Mexico.

Silver

Agnico Eagle Mines Limited also produces silver as a by-product of its gold mining operations.

Zinc

Agnico Eagle Mines Limited produces zinc as a by-product of its gold mining operations in Finland.

Copper

Agnico Eagle Mines Limited produces copper as a by-product of its gold mining operations in Canada.

8. Agnico Eagle Mines Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Agnico Eagle Mines Limited has a diversified portfolio of gold mines, which reduces the threat of substitutes. The company's focus on gold production makes it less susceptible to substitutes.

Bargaining Power Of Customers

Agnico Eagle Mines Limited sells its gold to a diverse range of customers, including refineries, banks, and other financial institutions. While customers have some bargaining power, the company's diversified customer base mitigates this risk.

Bargaining Power Of Suppliers

Agnico Eagle Mines Limited has a strong bargaining position with its suppliers, given its large scale of operations and diversified supply chain. The company is not heavily reliant on any single supplier.

Threat Of New Entrants

The gold mining industry has significant barriers to entry, including high capital costs, regulatory hurdles, and environmental concerns. This makes it difficult for new entrants to join the market.

Intensity Of Rivalry

The gold mining industry is highly competitive, with several large players competing for market share. Agnico Eagle Mines Limited faces intense rivalry from other major gold producers, which can lead to downward pressure on prices and margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.36%
Debt Cost	5.53%
Equity Weight	90.64%
Equity Cost	9.14%
WACC	8.80%
Leverage	10.32%

11. Quality Control: Agnico Eagle Mines Limited passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Lundin Gold

A-Score: 6.5/10

Value: 1.9

Growth: 9.1

Quality: 8.2

Yield: 6.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Agnico Eagle Mines

A-Score: 6.2/10

Value: 2.8

Growth: 6.6

Quality: 8.2

Yield: 3.0

Momentum: 10.0

Volatility: 6.3

1-Year Total Return ->

Newmont

A-Score: 6.1/10

Value: 4.6

Growth: 4.8

Quality: 8.0

Yield: 4.0

Momentum: 10.0

Volatility: 5.3

1-Year Total Return ->

Wheaton

A-Score: 5.5/10

Value: 0.2

Growth: 5.9

Quality: 8.0

Yield: 2.0

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

Barrick Gold

A-Score: 5.4/10

Value: 4.0

Growth: 1.0

Quality: 7.6

Yield: 4.0

Momentum: 10.0

Volatility: 6.0

1-Year Total Return ->

LyondellBasell

A-Score: 4.6/10

Value: 6.8

Growth: 2.6

Quality: 1.9

Yield: 10.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

13.06%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.80%

Agnico Eagle Mines Limited - CA0084741085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AEM

1.c. Company Highlights

Expensive

Less Volatile

Average Growth

Earnings Beats

Revenues Beats

Medium Volatility

Strong Momentum

Revenues Miss

Average Quality

Better Quality

2. Agnico Eagle Mines Shines with Record Earnings and Growth Prospects

Operational Highlights and Growth Prospects

Valuation and Return Metrics

Capital Allocation and M&A

Project Updates and Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.80%)

6. Segments

Ontario - Detour Lake mine

Expected Growth: 2.1%

Quebec - Canadian Malartic complex

Expected Growth: 2.3%

Nunavut - Meadowbank complex

Expected Growth: 2.2%

Nunavut - Meliadine mine

Expected Growth: 2.2%

Ontario - Macassa mine

Expected Growth: 2.1%

Quebec - La Ronde mine

Expected Growth: 2.2%

Australia - Fosterville mine

Expected Growth: 2.0%

Europe - Kittila mine

Expected Growth: 2.1%

Quebec - Goldex mine

Expected Growth: 2.2%

Mexico - Pinos Altos mine

Expected Growth: 2.1%

Quebec - La Ronde Zone 5 mine

Expected Growth: 2.2%

Mexico - La India mine

Expected Growth: 2.1%

7. Detailed Products

Gold

Silver

Zinc

Copper

8. Agnico Eagle Mines Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Agnico Eagle Mines Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

12.e Scoring ^Insights

12.f DCF ^BETA