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Agnico Eagle keeps 2026 gold output target despite 370,000-oz loss
The company expects to resume mining in the fourth quarter by processing lower-grade stockpiles after a July 1 pit wall rock movement at its Canadian Malartic complex removed 370,000 ounces from its mine plan.
Agnico Eagle Mines kept its 2026 production guidance at 3.3 million to 3.5 million ounces this week, even after a pit wall movement at its Canadian Malartic complex in Quebec permanently removed 370,000 ounces from its mine plan, Mining.com reports.
The company said it exceeded budget with 856,000 ounces of gold produced in the second quarter for a second straight quarter, while keeping cash costs and all-in sustaining costs within guidance. It also reported record free cash flow of more than $1.3 billion, supporting adjusted net income of about $1.5 billion, or $3.07 per share, and adjusted EBITDA of about $2.7 billion.
Agnico ended the quarter with a record $3.5 billion in cash and a net cash position of about $3.3 billion after returning $625 million to shareholders through dividends and share buybacks. Management said production remains on track for 2026 overall, but results are expected to fall near the lower end of the range after the July 1 rock movement at the Barnat pit.
The update also outlined near-term operational steps, with the company expecting to resume mining in the fourth quarter by processing lower-grade stockpiles in the meantime. Longer term, Agnico reiterated plans to grow company-wide output by 20% to 30% over the next decade, including the planned Hope Bay project expected to produce 450,000 ounces annually for decades, and it noted labor inflation of 3% to 4% as a factor it is watching.
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