Agnico’s $130M Avenir to probe beyond gold

Canada’s Agnico Eagle Mines (TSX, NYSE:AEM) has launched a new subsidiary, Avenir Minerals, to manage and advance nearly $80 million in early-stage critical minerals investments. 

The Toronto-based gold miner plans to contribute $50 million in cash to fund the new company, it said in a release Wednesday accompanying quarterly results. Agnico retains a right of first refusal on future investment opportunities with the option to provide additional capital later.

Avenir is to evaluate and develop critical mineral opportunities outside Agnico’s core gold and copper operations. Operating as an independent and self-sustaining entity, it will pursue strategic partnerships and government support for critical mineral projects with a primary focus on Canada.

The move follows Agnico’s $180 million investment earlier this week in Perpetua Resources (Nasdaq, TSX: PPTA), a U.S.-based gold and antimony producer developing the $1.3-billion Stibnite project in Idaho. The project, supported by Washington, aims to rebuild domestic supplies of critical minerals.

Third quarter

Agnico’s decision to fold its non-core investments into Avenir came alongside record third-quarter results, fuelled by higher gold prices and consistent output across its mines.

Agnico Eagle shares gained 3% to $161.69 apiece in New York on Thursday morning. The company’s market value stands at $80.4 billion.

The company reaffirmed its 2025 production and cost forecast. It reported net income of $1.06 billion, or $2.10 a share, for the quarter. Adjusted net income reached a record $1.09 billion, or $2.16 a share. Operating cash flow totalled $1.82 billion, with free cash flow of $1.19 billion.

BMO Capital Markets analysts described Agnico’s quarter as “solid,” noting production and sales exceeded expectations. “Projects are on track and guidance was reiterated, although unit costs could trend to the high end given gold pricing well above guidance levels,” analyst Matthew Murphy wrote.

Forecasts

The miner maintained its full-year production forecast of 3.3 million to 3.5 million oz. of gold, with costs expected to trend toward the higher end of its range due to increased royalties. Capital spending for 2025 is projected between $1.75 billion and $1.95 billion, excluding capitalized exploration of $290 million to $310 million.

“We delivered another quarter of strong and consistent operational performance, which translated into record financial results as higher gold prices continue to drive expanded margins,” president and CEO Ammar Al-Joundi said in a statement. “We are well on track to meet our full-year production and cost guidance, supported by disciplined cost management and a focus on productivity.”

Agnico ended the quarter with a strengthened balance sheet, holding $2.36 billion in cash and reducing long-term debt to $196 million, resulting in a net cash position of $2.16 billion as of Sept. 30. Moody’s upgraded its long-term issuer rating to A3 from Baa1 in August. The company declared a quarterly dividend of 40¢ a share and repurchased just over one million shares for $150 million.

Key projects

Development work continued across Agnico’s key growth assets, including Canadian Malartic, Detour Lake, Upper Beaver, Hope Bay, and San Nicolas.

At Canadian Malartic, shaft sinking and development of East Gouldie levels are advancing toward production in the second half of 2026, while drilling continues to extend mineralisation at depth.

The Detour Lake underground ramp advanced 259 metres in the quarter, and construction of the Upper Beaver shaft is set to begin in the fourth quarter.

Exploration at Hope Bay returned high-grade intercepts, including 16.9 grams gold per tonne over 4.6 metres and 12.7 grams over 9.3 metres in the Madrid deposit’s Patch 7 zone. At San Nicolas in Mexico, engineering for the feasibility study is expected to be 30% complete by year-end.