Agnico Eagle keeps 2026 target despite 370,000-ounce loss

AI desk brief

Agnico Eagle kept its 2026 gold production guidance at 3.3-3.5Moz despite a pit wall movement at Canadian Malartic that permanently removed 370koz from the mine plan. Management now expects output to land near the lower end of guidance, with the Barnat pit incident also taking 60-80koz out of 2026 and around 150koz each from 2027 and 2028. The company still delivered 856koz in Q2, its second straight beat, while cash costs and AISC stayed within guidance.

The quarter was financially strong: record free cash flow topped $1.3bn, adjusted net income was about $1.5bn, adjusted EBITDA about $2.7bn, and Agnico ended with $3.5bn in cash and roughly $3.3bn net cash after returning $625m to shareholders via dividends and buybacks. CEO Ammar Al-Joundi said the group remains on track for long-term production growth of 20%-30% over the next decade, supported by five development projects and the newly approved Hope Bay project, which is expected to add 450koz annually for decades.

For the gold market, the immediate read is modestly supportive on the supply side: a 370koz permanent mine-plan loss is meaningful, even if Agnico can still stay inside guidance this year by leaning on stockpiles and other assets. Key watchpoints are whether the company needs to revisit longer-term cost assumptions, how quickly Barnat remediation progresses, and whether labour inflation and diesel costs begin to pressure 2027 unit costs.