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Investing.com -- Agnico Eagle Mines Limited (NYSE:AEM) (TSX:AEM) reported second quarter earnings that surpassed analyst expectations, driven by strong gold production and higher gold prices, sending shares up 3.3% following the announcement.
The gold miner posted adjusted earnings of $1.94 per share for the second quarter of 2025, beating analyst estimates of $1.75. Revenue reached $2.82 billion, exceeding the consensus forecast of $2.65 billion. The company generated record free cash flow of $1.305 billion, more than doubling from the previous quarter, reflecting strong operational execution and favorable gold prices.
Gold production for the quarter totaled 866,029 ounces at total cash costs of $933 per ounce and all-in sustaining costs (AISC) of $1,289 per ounce. The company has achieved approximately 51% of its mid-point annual production guidance at the year’s halfway mark.
"Our portfolio of high-quality assets continued to deliver exceptional results this quarter, generating record free cash flow, more than doubling the prior quarter," said Ammar Al-Joundi, Agnico Eagle’s President and CEO. "This performance reflects the strength of the gold price environment, our disciplined cost management and the consistency of our operational execution."
Agnico Eagle strengthened its balance sheet significantly, transitioning to a net cash position of $963 million as of June 30, 2025. The company increased its cash position by $419 million to $1.558 billion while reducing long-term debt by $550 million to $595 million.
The company maintained its 2025 production guidance of 3.3 to 3.5 million ounces of gold, with total cash costs per ounce of $915 to $965 and AISC of $1,250 to $1,300 per ounce.
Agnico Eagle continued its focus on shareholder returns, declaring a quarterly dividend of $0.40 per share and repurchasing 836,488 common shares during the quarter at an average price of $119.47 for a total of $100 million. The company renewed its normal course issuer bid in May with an increased purchase limit of up to $1 billion.
The company also reported progress on key growth projects, including record development at Canadian Malartic, initiation of exploration ramp development at Detour Lake, and advancement of infrastructure upgrades at the Hope Bay project.
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