Canada's largest gold producer continues to fire on all cylinders, with solid production and rising gold prices pushing the company to a net cash balance in the second quarter.

After the North American market closed on Wednesday, Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) reported quarterly net income of $1.069 billion, or $2.13 per share, and record adjusted net income of $976 million, or $1.94 per share. The company's earnings exceeded the consensus estimate of approximately $1.83 per share.

The company's record earnings were driven primarily by a sharp rise in gold prices and production cost controls.



Looking at Agnico's operations, the company produced 866,029 ounces of gold in the April-June period, down from 895,838 ounces in the second quarter of 2024.

So far this year, Agnico has produced 1.74 million ounces of gold, down slightly from 1.774 million ounces in the first half of last year.

But the company reported an average realized gold price of $3,288 per ounce, significantly higher than the $2,342 per ounce reported last year.

Meanwhile, Agnico's all-in sustaining costs (AISC) rose from $1,169 per ounce in 2024 to $1,289.

"This quarter, our portfolio of high-quality assets continued to deliver exceptional performance, generating record free cash flow, more than doubling from the prior quarter," said Ammar Al-Joundi, President and CEO of Agnico Eagle. "This performance reflects the strong gold price environment, our disciplined cost management, and the consistency of our operational execution."

While the company reported stable overall results, it said production was slightly lower at its Meadowbank mine due to the impact of the caribou migration, and lower-grade production at its Malartic and Fosterville mines in Canada.

Despite the slight drop in production, the company confirmed it remains on track to meet its annual guidance.

"Full-year 2025 payable gold production expectations remain unchanged at 3.3 million to 3.5 million ounces, with all-in cash costs per ounce and AISC per ounce also unchanged at $915 to $965 and $1,250 to $1,300, respectively," the company said.

Agnico said it strengthened its balance sheet by reducing long-term debt by $550 million, riding on the record profit.

Al-Joundi added, "While generating record free cash flow, we remained disciplined in our capital allocation by reinvesting in our business, strengthening our balance sheet, and returning capital to shareholders. We ended the quarter with a significant net cash balance and returned approximately $300 million to shareholders through dividends and share repurchases. We remain focused on executing against our 2025 guidance and advancing our key growth projects to drive long-term value creation."