Quarterly Dividend of 0.40 CAD Announced
Agnico Eagle Mines (WKN 860325) can once again report a quarterly record. The Canadian gold producer also clearly exceeds analysts’ expectations with its first-quarter figures.
As Agnico reported at the end of last week, the group made a net profit of 815 million dollars or 1.62 dollars per share in the three months to the end of March. The adjusted net profit reached 770 million dollars or 1.53 dollars per share – a record value. Analysts had previously expected a profit of only 1.38 CAD per share.
According to the company, they also generated cash from operating activities amounting to 1.044 billion dollars or 2.08 dollars per share, as well as free cash flow of 594 million dollars or 1.18 dollars per share.
Rising Gold Price, Stable Costs
Agnico Eagle is thus benefiting strongly from the high gold price of recent months and weeks while maintaining stable production and costs. The Canadians produced 873,794 ounces of gold in the first quarter, which represents a slight decrease compared to 878,652 ounces in the same period in 2024. They sold 842,965 ounces of gold during the reporting period, compared to 879,063 ounces in the previous year’s quarter.
Agnico also reported that in the first three months of 2025, they were able to realize an average gold price of 2,891 USD per ounce. In the first quarter of 2024, it was only 2,062 USD per ounce. At the same time, the group managed to keep its costs under control. According to Agnico, the so-called All-In Sustaining Costs (AISC) of the first quarter were lower at 1,183 USD per ounce than in the first three months of 2024.
In the current year, Agnico sees itself on track to achieve the production target of 3.3 to 3.5 million ounces. The company is also confident that the cost forecast of 1,250 to 1,300 USD per ounce of gold can be maintained.
Dividend Announced
In view of the increasing cash balance, Agnico Eagle Mines has announced a quarterly dividend of 40 Canadian cents per share. In addition, the group had repurchased 488,047 common shares at an average price of 102.44 CAD per share in the first quarter of this year, spending a total of 50 million CAD.
Incidentally, Agnico Eagle, like Wallbridge Mining, is among the previous owners of the N2 gold project in Quebec, which now has a historical resource of almost 900,000 ounces of gold. Despite promising drilling results, the group did not pursue the project further, mainly because the gold price at that time was only a fraction of today’s value and the project was perhaps too small for a company of this size.
However, this is not at all the case for the current operator Formation Metals (WKN A3D492 / CSE FOMO). The exploration company led by CEO Deepak Varshney not only wants to confirm the historical resources, but above all to work towards expanding them to 3 million ounces of the yellow metal!
In an interview with Goldinvest.de (in German!), Mr. Varshney explains his plans in more detail:
