Agnico Eagle Mines, founded in 1957 and based in Toronto, has evolved into the world's second-largest gold producer, operating mines in Canada, Australia, Finland, and Mexico. The company reported an all-in sustaining cost (AISC) of $1,648 per ounce in the third quarter, up from $1,331 a year earlier.
Despite this increase, Agnico Eagle sold gold at an average price of $4,264 per ounce, indicating strong profit margins. The company generated $852 million in free cash flow during the same quarter and plans to return over half of its 2026 free cash flow to shareholders through dividends and buybacks.
The recent pullback in Agnico Eagle's stock, which is about one-third below its 52-week high, is seen as a buying opportunity. The ongoing demand for gold from central banks and limited new supply support a positive long-term outlook for the gold market.
Tim Seymour, founder and CIO of Seymour Asset Management, emphasizes the potential for profitability and shareholder returns, despite the inherent volatility in gold mining stocks