Gold prices cool after hitting over 2-week high on Fed independence fears
Investing.com -- Moody’s Ratings has upgraded Agnico Eagle Mines Limited’s long-term issuer rating to A3 from Baa1, with the outlook changed to stable from positive.
The upgrade reflects Agnico’s strengthening credit profile, supported by stable gold production and conservative financial policies, including $1.25 billion in debt repayments between January 2024 and June 2025.
"We expect that Agnico will be able to maintain production at over 3 million ounces per year with operating cash costs under $1000 per ounce, and continue to adhere to conservative financial policies, with financial leverage remaining below 0.5x," said Moody’s Ratings Vice President - Senior Analyst Jamie Koutsoukis.
Agnico’s A3 rating benefits from its scale as the third largest global gold producer, with production expected to be sustained between 3.3 to 3.5 million gold ounces annually over the next three years. The company also maintains low leverage with adjusted debt/EBITDA below 0.5x and has mine diversity through ten operating mines in favorable mining jurisdictions, with over 85% of production coming from Canada.
The rating is constrained by gold price volatility and limited product diversity, as over 95% of revenues come from gold.
The company produced 3.49 million gold ounces in 2024, up from 2.1 million ounces in 2021, at a cost that has resulted in gross margins above 60%.
Agnico has excellent liquidity, with approximately $5 billion in total sources and about $50 million in uses through June 2026. Sources include about $1.6 billion in cash at the end of June 2025, estimated free cash flow of about $1.4 billion through June 2026, and full availability on its $2 billion revolving credit facility that expires in February 2029.
According to Moody’s, the ratings could be upgraded if Agnico significantly increases its product diversity while maintaining its strong geopolitical risk profile and consistent operating performance. Conversely, the ratings could be downgraded if the company’s operating profile deteriorates materially or if it adopts more aggressive financial policies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.