Toronto-listed Agnico Eagle Mines has kicked off 2025 with a strong first-quarter performance, underpinned by solid gold production, robust financial results, and continued progress across its key development projects.

President and CEO Ammar Al-Joundi described the quarter as “an excellent start to the year", noting that the company’s performance had strengthened its balance sheet and positioned it well for the remainder of 2025. 

“We remain focused on execution and cost control to continue delivering expanding operating margins in a rising gold price environment,” he said.

Agnico Eagle produced 873 794 oz of payable gold during the three months to March 31, with production costs averaging $879/oz, total cash costs of $903/oz, and all-in sustaining costs of $1 183/oz. The company reaffirmed its full-year production and cost guidance.

The miner posted quarterly net income of $815-million, or $1.62 a share, and record adjusted net income of $770-million, or $1.53 a share. Cash provided by operating activities totalled $1.04-billion, while free cash flow came to $594-million.

The strong financial performance enabled Agnico Eagle to increase its cash balance by $212-million to $1.14-billion and reduce its net debt to $5-million. Total debt at the end of March stood at $1.14-billion. Credit rating agency Moody’s revised the company’s outlook to positive in February and reaffirmed its Baa1 issuer rating.

The board has declared a quarterly dividend of $0.40 a share.

Operationally, Agnico Eagle reported progress across its five key pipeline projects. At Canadian Malartic, ramp development reached the bottom of the first mining horizon at East Gouldie, mid-shaft excavation began, and drilling extended both East Gouldie and the sub-parallel Eclipse zone. The company also completed its acquisition of O3 Mining during the quarter and allocated $5.5-million for a 24 000-m drill campaign at the Marban deposit, near Canadian Malartic.

At Detour Lake, the company advanced temporary infrastructure for the underground project, completed overburden removal for the exploration ramp portal and received a water permit. Drilling into the West Pit and West Extension zones returned high-grade intercepts, supporting early underground mining potential.

At the Upper Beaver project, the box cut for the exploration ramp was completed and surface construction progressed, with ramp excavation and shaft sinking planned for the fourth quarter.

At Hope Bay, drilling totalled 29 450 m, focused on the Patch 7 and Suluk zones. The latest assays confirmed mineral continuity and highlighted the potential for resource growth, including a notable intercept of 24.1 g/t gold over 9.5 m at depth.

The company’s San Nicolás project in Mexico also progressed, with the feasibility study on track for completion in the second half of the year.