Video: Agnico Eagle CEO vows to return unused cash, not chase weak deals

Sitting on significant free cash amid gold trading at record price levels, Agnico Eagle Mines (NYSE; TSX: AEM) would rather hand back surplus cash than chase marginal deals, CEO Ammar Al‑Joundi says.

Agnico reported record net income of $815 million (C$1.1 billion) and free cash flow of nearly $600 million in the first quarter of 2025. The Toronto‑based producer says it won’t sacrifice returns per share for size.

“If I can’t find something good to do with your money, I would rather give it back to you than invest in something that doesn’t make sense,” Al‑Joundi told The Northern Miner’s western editor, Henry Lazenby, at an industry conference this month in Boca Raton, Fla.

Agnico’s preference for working in areas with a rich mining history and political stability gives it a “knowledge advantage,” according to Al‑Joundi. As a result, Agnico plans to soon lift production at both its Detour Lake mine in Ontario and LaRonde in Quebec to 1 million oz. a year each – a feat only four mines match globally.

“We see the potential for both of those mines to be million-ounce-a-year producers for decades,” Al‑Joundi said.

Agnico also has a healthy near-term organic growth pipeline. Key assets include Nunavut’s Hope Bay, slated to add 400,000 oz. gold a year, Quebec’s Upper Beaver, which could add 200,000 oz., and the company’s share of San Nicolás in central Mexico, set to add 250,000 ounces.

Watch the full interview: