# Agnico Eagle Mines Limited (AEM) — Narrative, Third Quarter 2026 Agnico Eagle reports in US dollars under IFRS, so amounts below are as the company reports them. The one figure the company gives in Canadian dollars has been converted to US dollars and is marked where it appears. Sources: the annual report on Form 40-F for the year ended December 31, 2025 (accession 0001104659-26-032153), meaning its Annual Information Form (Exhibit 99.1), audited financial statements (Exhibit 99.2) and annual MD&A (Exhibit 99.3); and the Third Quarter Report 2026 on Form 6-K (accession 0001104659-26-119671, Exhibit 99.1), which contains the quarterly MD&A and the condensed interim financial statements for the period ended September 30, 2026. --- ## Business *From the FY2025 Form 40-F, accession 0001104659-26-032153 (Annual Information Form and annual MD&A).* Agnico Eagle mines gold and sells it at spot. It describes itself as Canada's largest mining company and the world's second-largest gold producer. It runs mines in Canada, Australia, Finland and Mexico, and nearly all of its revenue and cash flow comes from selling gold as doré bars and concentrate. Gold and silver made up 99.5% of 2025 mining revenue of $11.91 billion: gold $11.74 billion, silver $105.3 million, copper $52.0 million and zinc $8.7 million. The company has a long-standing policy of not selling future gold production forward, so its earnings move directly with the gold price. It has declared a cash dividend every year since 1983. In 2025 it produced 3,447,367 payable ounces of gold. Production costs were $965 per ounce, total cash costs $979 per ounce and all-in sustaining costs (AISC) $1,339 per ounce. The last two are non-GAAP measures reported on a by-product basis. Proven and probable gold reserves were 55.4 million ounces at December 31, 2025, up 2.1% from 54.3 million a year earlier. The company sets its reserves at a $1,600 per ounce gold price and its resources at $2,000. **Operating mines (all 100% owned).** The company reports each mine as a segment and groups the mines into regions: - **Quebec (Abitibi):** LaRonde (the LaRonde mine plus LZ5), with about 2.8 million ounces of reserves and production expected through 2034 (LaRonde) and 2036 (LZ5). Canadian Malartic (the Barnat open pit plus the underground Odyssey mine), with about 9.1 million ounces of reserves, 5.7 million of them at East Gouldie, to be reached through Odyssey's planned 1,800-metre shaft; expected life to 2042. Goldex (with the Akasaba West satellite pit), with about 0.9 million ounces, to 2032. - **Ontario:** Detour Lake, the largest reserve base at about 18.6 million ounces and a planned mine life to 2052, with an underground expansion being studied toward a potential approval decision in 2027. Macassa (Kirkland Lake), with about 2.2 million ounces, to 2032. - **Nunavut:** Meliadine, with about 3.6 million ounces, to 2036. Meadowbank, where the Meadowbank mill processes ore from the Amaruq open pit and underground mines; about 1.5 million ounces, to 2030. Hope Bay is a development project with about 3.4 million ounces of reserves; see "Current quarter" for the 2026 investment decision. - **Finland:** Kittila in Lapland, with about 3.3 million ounces, to 2037. - **Australia:** Fosterville in Victoria, with about 1.7 million ounces, to 2037. - **Mexico:** Pinos Altos, with about 0.3 million ounces, to 2028. The company is also earning a 50% interest in the San Nicolás copper-zinc project in Zacatecas, a joint venture with Teck, under a commitment to contribute $580.0 million toward the project's costs. The company treats five operations as its material properties. Their shares of 2025 gold production were Detour Lake 20.1%, Canadian Malartic 18.6%, Meadowbank 14.3%, Meliadine 10.9% and LaRonde 10.0%. All five are in Canada. The company expected Canadian operations to supply 86.9% of its forecast 2026 production. Most of their costs are incurred in Canadian dollars, while all revenue is in US dollars, so the Canadian dollar exchange rate is a main earnings driver. **Strategy and portfolio shape.** The company's strategy rests on "performance, pipeline, people": run the existing mines to generate free cash flow, and keep building a project pipeline in regions where it already operates. Today's portfolio is largely the product of three deals: the 2022 merger with Kirkland Lake Gold, which brought Detour Lake, Macassa and Fosterville; the March 2023 purchase of Yamana's Canadian assets, which took Canadian Malartic to 100%; and the 2025 acquisition of O3 Mining, whose Marban deposit lies next to Canadian Malartic. In October 2025 the company announced it would move its investments in non-gold, non-copper projects into a new wholly owned company, Avenir Minerals Limited. --- ## Risk factors *From the FY2025 Annual Information Form, Form 40-F accession 0001104659-26-032153.* The risks below are the ones that drive the company's economics most directly, condensed from the company's longer list. - **Gold price.** Revenue and earnings rise and fall with gold, and the company does not hedge production. The filing illustrates how fast the price can move: the London P.M. Fix fell almost $700 an ounce, from $5,405 to $4,714.75, between January 29 and February 2, 2026. If prices fall below the company's AISC or its reserve price assumptions, mines could become uneconomic, reserves could be cut, impairments could follow, and dividends or buybacks could be reduced. - **Concentration in a few Canadian mines.** Five Canadian properties produced about three-quarters of 2025 output, so a problem at any one of them matters at the group level. Canada's concentration also exposes the company to US–Canada trade disputes. Retaliatory Canadian tariffs could raise the cost of imported inputs. - **Operational and geotechnical hazards.** The company names pit-wall failures, rock falls, seismicity and equipment failures as production risks. LaRonde is described as the deepest mining operation in the Western Hemisphere, at more than three kilometres, and continues to have seismic events, which led to a slower "pillarless" mining method and lower production guidance. Seismic events have also occurred at Goldex, Macassa, Kittila and Fosterville. In November 2024 a 3.4 Mw event at Fosterville damaged underground infrastructure. - **Remote Nunavut logistics.** Meadowbank depends on a shipping season of about 10 weeks through Baker Lake, Meliadine on about 14 weeks through Rankin Inlet, and Hope Bay on an August–September ice-free window. Missing a sealift, or a caribou migration that blocks haul roads (41 days in the second quarter of 2025), can cut production or raise costs. The sites run as fly-in/fly-out camps. - **Currency exposure.** All revenue is in US dollars, but most Canadian operating costs are in Canadian dollars, and costs at Kittila, Fosterville and Pinos Altos are largely in euros, Australian dollars and Mexican pesos. The company uses currency options and forwards, with no assurance they will work. - **Cost inflation and inputs.** Labour, contractor, energy, diesel and consumables costs, together with royalties that rise with the gold price, push up total cash costs and AISC. Tariffs and supply-chain disruptions add to the pressure. - **Reserve replacement and project execution.** Holding production steady depends on replacing reserves and delivering projects such as Odyssey/East Gouldie, Detour Lake underground, the Amaruq underground and Hope Bay. These carry risks of construction delays, permitting problems, cost overruns and ramp-up difficulties. The plan to use spare mill capacity at Canadian Malartic and LaRonde for ore from other properties carries its own processing and transport risks. - **Regulation, permitting and Indigenous rights.** The mines operate under extensive permitting regimes. Long-life mines such as Detour Lake (2052) and Canadian Malartic (2042) are exposed to future rule changes. A proposed Mexican constitutional reform would ban open-pit mining, which would hit San Nicolás and Pinos Altos. Mexican surface rights depend on agreements with Ejido communities: a dispute over hauling work blocked road access to Pinos Altos and halted operations for four days in July 2025. - **Climate and greenhouse-gas regulation.** Canadian federal carbon pricing applies in Nunavut, where the company generates power from diesel. The filing says the federal carbon price rises by a fixed amount per tonne each year through 2030. The company also faces physical climate risks, including water shortages or excess, wildfires and the vulnerability of northern sites. - **Acquisitions and joint ventures.** Acquired assets may come with unreliable technical data or hidden liabilities and may be hard to integrate. At San Nicolás the company shares control with a partner. - **Impairment.** Higher cost or lower price assumptions can force write-downs. Past examples include $787 million at Macassa and Pinos Altos in 2023. In 2025 the company recorded a $229.0 million impairment reversal at Macassa. - **Refinery and counterparty dependence.** Doré is refined by third-party refineries, and losing one without an alternative could delay sales. --- ## Management's discussion — fiscal 2025 *From the FY2025 annual MD&A, Form 40-F accession 0001104659-26-032153 (Exhibit 99.3).* The gold price drove 2025 results. The average realized price rose 44.9% to $3,454 an ounce from $2,384, while payable production slipped 0.9% to 3,447,367 ounces. Lower output at Fosterville and Canadian Malartic, in line with their expected grade profiles, and the planned closure of La India at the end of 2024 were partly offset by gains at LaRonde, Macassa and Detour Lake. - **Revenue** rose 43.7% to $11.91 billion from $8.29 billion, because higher prices more than offset a 1.0% drop in gold sales volume. - **Production costs** rose to $3.34 billion from $3.09 billion, mainly because royalties increased with the gold price and contractor and labour costs at underground operations went up. A weaker Canadian dollar partly offset the increase. - **Net income** was $4.46 billion ($8.89 per share), against $1.90 billion ($3.79) in 2024. Adjusted net income, a non-GAAP measure, was $4.17 billion ($8.31 per share). EBITDA was $8.44 billion and adjusted EBITDA $8.09 billion. The year included the $229.0 million Macassa impairment reversal ($156.0 million after tax) and a $224.0 million gain on derivatives, against a $155.8 million loss in 2024. - **Taxes**: the effective tax rate was 33.4%, above the 26.0% statutory rate because of mining taxes. - **Cash flow**: operating cash flow rose to $6.82 billion from $3.96 billion, and free cash flow was $4.40 billion. Additions to property, plant and mine development rose to $2.42 billion, mostly for Canadian Malartic and Hope Bay. - **Balance sheet and capital returns**: the company repaid $950.0 million of senior notes during the year: $90.0 million at maturity and $860.0 million early. It moved from net debt of $216.5 million to net cash of $2.67 billion, with cash of $2.87 billion at year-end. It bought back 4,114,150 shares for $599.7 million and paid $728.1 million in dividends ($1.60 per share declared). It sold its Orla Mining stake for $404.8 million. Moody's upgraded the company to A3 in August 2025. **2026 outlook (as given in the annual report):** 3.3 to 3.5 million ounces of gold at total cash costs of $1,020–$1,120 per ounce and AISC of $1,400–$1,550 per ounce, with capital expenditure, including capitalized exploration, of about $2.6 billion. At the time, the company said its revenue would be largely unaffected by tariffs because its gold is refined in Canada, Australia or Europe. It also said about 60% of its cost structure (labour, contractors, energy and royalties) was not expected to be directly affected. --- ## Current quarter — three and nine months ended September 30, 2026 *From the Third Quarter Report 2026, Form 6-K accession 0001104659-26-119671 (Exhibit 99.1, MD&A and condensed interim financial statements).* The third quarter was shaped by a pit-wall event at Canadian Malartic. Production fell, but much higher gold prices still lifted earnings. Gold production was 814,012 ounces, against 866,936 in the third quarter of 2025. The realized gold price was $4,264 an ounce, against $3,476. **Barnat pit rock mass movement.** On July 1, 2026, the rock mass moved along the north wall of the Barnat open pit at Canadian Malartic. There were no injuries, no equipment damage and no environmental impact. Mining in the pit was suspended, and the mill ran on low-grade stockpiles in the meantime. Remediation was completed in the quarter, and mining resumed on September 27, 2026. The company expects the event to reduce Canadian Malartic production by 60,000–80,000 ounces in the second half of 2026 and by up to 150,000 ounces in each of 2027 and 2028. It now expects Canadian Malartic's 2026 total cash costs to be about $1,260 an ounce, against prior guidance of $1,187. In the quarter, Canadian Malartic's production fell 29.1% to 111,202 ounces. **Results for the quarter, compared with the third quarter of 2025:** - Revenue from mining operations was $3.58 billion, against $3.06 billion. The increase came from a 22.7% higher realized gold price and higher sales at Meliadine, LaRonde and Kittila, partly offset by lower sales from Canadian Malartic and Meadowbank. - Production costs were $972.4 million, against $839.3 million, mainly because of higher royalties tied to gold prices and higher diesel prices. - Net income was $1.35 billion ($2.67 per share), against $1.05 billion ($2.10). Adjusted net income was $1.32 billion ($2.62 per share), against $1.09 billion ($2.16). - Total cash costs were $1,133 an ounce, against $952, with the increase driven mostly by Macassa, Canadian Malartic and Meadowbank. AISC was $1,648 an ounce, against $1,331. - Operating cash flow fell to $1.76 billion from $1.82 billion because of unfavourable working-capital movements. Free cash flow fell to $852.2 million from $1.19 billion. Before working-capital changes, free cash flow rose to $1.06 billion from $1.03 billion. - The effective tax rate was 31.4%, against 33.0%, because a larger share of taxable income was earned in jurisdictions with lower tax rates. By mine, Meadowbank production fell 15.2% to 115,501 ounces on lower grades and throughput, and LaRonde fell 5.2% to 77,250 ounces. Detour Lake rose 3.7% to 183,118 ounces on higher grades from the mining sequence. Fosterville rose 14.7% to 40,090 ounces. Macassa's production costs nearly doubled, up 93.8% to $94.3 million, on higher volumes mined and milled, royalties and stockpile consumption. **Nine months.** Revenue was $11.49 billion, against $8.34 billion, as the realized price rose 40.9% to $4,537 an ounce. Net income was $4.65 billion ($9.25 per share), against $2.94 billion. Production was 2,494,937 ounces, against 2,606,759. Total cash costs were $1,092 an ounce and AISC $1,529 an ounce. Second-quarter results included a $153.7 million gain on selling the company's 55.0% interest in Gunnarn Mining AB, owner of the Barsele project in Sweden. The consideration was cash, shares that left the company with a 31.4% stake in Goldsky Resources Corp., and a 2% net smelter return royalty on Barsele. **Central Lapland acquisitions (completed in the second quarter).** The company assembled a land package of about 2,492 km² in Finland's Central Lapland Greenstone Belt, near Kittila, including the Ikkari gold project, through three transactions, each accounted for as an asset acquisition: - **FinGold:** on April 22, 2026, it bought B2Gold's 70% of the FinGold joint venture for $325.0 million in cash. - **Aurion Resources:** on June 15, 2026, it bought the shares of Aurion it did not already own for $308.5 million in cash. Including the fair value of its previously held stake, total consideration was $339.3 million. This also gave it the other 30% of FinGold. - **Rupert Resources:** on June 16, 2026, it bought the shares of Rupert it did not already own by issuing 8,224,116 shares, valued at $1.43 billion. Total consideration was $1.69 billion, including the previously held stake and $17.7 million in cash. Rupert holders also received contingent value rights worth up to about $2.15 per Rupert share (C$3.00, converted at the June 16, 2026 exchange rate), payable if specified milestones are met. Any such payments will be added to the carrying value of the acquired properties when they become payable. **Hope Bay go-ahead.** In May 2026 the company approved development of Hope Bay in Nunavut. A preliminary economic assessment envisions an underground mine feeding a 6,000-tonne-per-day mill, producing 400,000–435,000 ounces a year over an initial 11-year life, with initial development capital of about $2.4 billion (Form 6-K accession 0001104659-26-063785). In its second-quarter report the company raised its 2026 capital expenditure guidance, excluding capitalized exploration, to $2.6–$2.8 billion from $2.2–$2.4 billion to reflect the Hope Bay approval (Form 6-K accession 0001104659-26-088794). Construction work continued through the quarter, and the company started its first drilling program at the Boston deposit since acquiring the project in 2021, with about 6,500 metres planned by the end of 2026. **Guidance and costs.** The company expects 2026 payable production at the low end of its 3.3–3.5 million ounce range, reflecting the revised Barnat mine plan. It expects total cash costs and AISC near the upper end of their $1,020–$1,120 and $1,400–$1,550 ranges. Capital expenditure guidance, excluding capitalized exploration, was unchanged this quarter at $2.6–$2.8 billion, the range set in the second quarter after the Hope Bay increase, and capitalized exploration guidance was unchanged at $290–$330 million. Depreciation and amortization should be toward the top of the $1.55–$1.75 billion range, because the revised Barnat plan raises Canadian Malartic's units-of-production amortization rate. Diesel is about 11% of operating costs. The fourth-quarter Nunavut sealift purchases are expected to add about $21 million to production costs, and each 10% change in diesel prices moves total cash costs by about $3 an ounce through direct diesel use and about $1 an ounce through transportation. Consumables, about 30% of operating costs, are seeing inflation of about 6%. Canada imposed retaliatory tariffs on certain US imports in September 2026, after trade talks collapsed in August. The company estimates these will add about $5 an ounce to operating costs, and that amount is included in guidance. It still expects revenue to be unaffected. **Balance sheet and capital returns.** At September 30, 2026, cash was $3.61 billion and net cash was $3.42 billion, up from $2.67 billion at year-end. Working capital was $3.93 billion, and total assets had grown to $39.13 billion, mainly because of the Finnish acquisitions. In April 2026 Fitch upgraded the company to A- from BBB+. The buyback program was renewed in May 2026 with authority for up to $2.0 billion of shares, up from $1.0 billion, running to May 5, 2027. In the third quarter the company bought back 1,297,940 shares for $250.0 million at an average of $192.60. Over nine months it bought 4,255,098 shares for $799.7 million. Third-quarter dividends paid totalled $204.9 million. The credit facility was undrawn throughout the nine months. --- ## Subsequent events *From Note 19 of the condensed interim financial statements and the MD&A in the Third Quarter Report 2026, Form 6-K accession 0001104659-26-119671.* - **Dividend:** on October 28, 2026, the board declared a quarterly dividend of $0.45 per share, about $227.5 million in total, payable December 15, 2026 to shareholders of record on December 1, 2026. - **Credit facility:** in October 2026, the company amended and restated its $2.0 billion unsecured revolving credit facility. The facility is now $3.0 billion, with an uncommitted accordion feature of $1.5 billion and a maturity date of October 28, 2031. The company describes the new pricing and terms as improved. No acquisitions, divestitures or new borrowings are disclosed as subsequent events in the third-quarter financial statements.