Two of Canada’s largest gold miners reported first-quarter earnings that beat analyst expectations, as realized gold prices nearing $5,000 per ounce bolstered revenues even as production costs climbed. Agnico Eagle Mines Ltd. (TSX:AEM) and Eldorado Gold Corp. (TSX:ELD) both delivered strong results, with investors now watching major growth projects in Canada and Greece.
"We’re generating an awful lot of cash in this gold price environment," Ammar Al-Joundi, president and CEO of Agnico Eagle Mines, said in an interview with BNN Bloomberg. "What we do is focus on generating a lot of cash and maintaining a very strong balance sheet."
For Eldorado Gold, the beat came despite a 13 percent decrease in year-over-year production. The company’s financial performance was significantly lifted by a 67 percent increase in its average realized gold price to $4,891 per ounce. Agnico Eagle reiterated its full-year guidance, citing strong first-quarter production and disciplined cost control, which supported a record operating margin.
The results highlight a divergent environment for gold producers where high prices are masking underlying operational challenges, including rising costs and project-related capital escalations. For Eldorado, all-in sustaining costs rose to $1,942 per ounce, while Agnico Eagle managed to maintain its cost discipline.
Agnico Eagle's Canadian growth
Agnico Eagle reaffirmed its full-year production guidance after a strong start to the year, supported by robust gold prices and cost management. The company generated adjusted EBITDA of $3.01 billion, ahead of analyst forecasts, and is advancing several key growth projects in Canada. CEO Ammar Al-Joundi highlighted plans to develop Detour Lake and Canadian Malartic into mines producing over one million ounces annually for decades. The company also expects to make a go-ahead decision in May on the Hope Bay project in the Canadian Arctic, which is projected to produce over 400,000 ounces per year. With over $3 billion in cash and under $200 million in debt, the company is funding growth while returning capital to shareholders, having paid a dividend for 43 consecutive years.
Eldorado's Skouries project cost rises
Eldorado Gold saw its revenue climb 50 percent to $532 million, with net earnings nearly doubling to $136 million, or $0.69 per share. However, the company announced a significant capital increase for its flagship Skouries project in Greece. The total project capital was revised to $1.315 billion, a $155 million increase primarily due to higher contractor labor costs for electrical and instrumentation work. First concentrate from Skouries is now expected in the third quarter of 2026. The company also initiated a quarterly dividend of $0.075 per share and repurchased over $80 million of its shares in the first quarter.
The performance of these miners shows how higher gold prices can offset operational headwinds, but project execution remains critical. For Agnico Eagle, the focus is on delivering its pipeline of large-scale Canadian assets, while for Eldorado, successfully commissioning the Skouries project on its revised budget and timeline is the key catalyst.
This article is for informational purposes only and does not constitute investment advice.
