Canadian major Agnico Eagle Mines on Wednesday reported record quarterly profit and free cash flow, buoyed by higher gold prices and solid production across its operations, and reaffirmed its 2025 production and cost guidance.

The gold miner said net income for the third quarter rose to $1.06-billion, or $2.10 a share, while adjusted net income reached a record $1.09-billion, or $2.16 a share. Cash provided by operating activities totalled $1.82-billion, with free cash flow of $1.19-billion.

“We delivered another quarter of strong and consistent operational performance, which translated into record financial results as higher gold prices continue to drive expanded margins,” said president and CEO Ammar Al-Joundi. “We are well on track to meet our full-year production and cost guidance, supported by disciplined cost management and a focus on productivity.”

Payable gold production for the quarter was 866 936 oz, with total cash costs of $994/oz and all-in sustaining costs (AISC) of $1 373/oz. The company said the strong performance was led by the Meadowbank and LaRonde mines.

The average realized gold price in the quarter was $3 476/oz, well above the company’s guidance assumption of $2 500/oz, boosting margins but also increasing royalty costs, which are linked to gold prices.

Agnico Eagle reaffirmed its full-year production guidance of 3.3-million to 3.5-million ounces of gold, saying costs were expected to trend toward the upper end of its guidance range owing to higher royalties.

Capital spending for 2025 is expected to remain between $1.75-billion and $1.95-billion, excluding capitalised exploration of between $290-million and $310-million.

The miner strengthened its balance sheet by increasing its cash position to $2.36-billion and reducing long-term debt to $196-million, giving it a net cash position of $2.16-billion as of September 30. Moody’s upgraded the company’s long-term issuer rating to A3 from Baa1 in August.

Agnico declared a quarterly dividend of $0.40 a share and repurchased just over one-million shares during the quarter for a total of $150-million.

Development work continued across its key growth projects, including the Canadian Malartic, Detour Lake, Upper Beaver, Hope Bay and San Nicolas projects.

At Canadian Malartic, shaft sinking and development of the East Gouldie production levels are progressing toward planned production in the second half of 2026, while drilling continues to extend mineralisation at depth. The Detour Lake underground ramp advanced 259 m in the quarter, and construction of the shaft at Upper Beaver is set to begin in the fourth quarter.

Exploration at Hope Bay continued to show strong results, including high-grade intercepts of 16.9 g/t gold over 4.6 m and 12.7 g/t gold over 9.3 m in the Madrid deposit’s Patch 7 zone.

At San Nicolas in Mexico, engineering for the feasibility study is expected to be 30% complete by year-end.