Can Agnico Eagle Elevate Shareholder Returns Even Further Ahead?

Agnico Eagle Mines Limited AEM is leveraging its strong free cash flow to boost shareholder value through dividends and share buybacks. AEM recorded third-quarter free cash flow of roughly $1.2 billion, nearly doubling the prior-year figure of $620 million. The strength in gold prices and robust operational results backed this growth. Its operating cash flow was roughly $1.8 billion in the third quarter, up around 67% from the year-ago quarter.

AEM also returned around $350 million to its shareholders in the third quarter, bringing the cumulative return to roughly $900 million for the first nine months of 2025. It returned around one-third of its free cash flow through dividends and buybacks in the first nine months. In 2024, AEM returned about 43% of free cash flow to its shareholders via dividends and share repurchases. It had returned nearly $1 billion to its shareholders last year. 

The company, on its third-quarter call, said that it sees potential to further increase shareholder returns through incremental buybacks and dividends, considering the favorable gold price environment and its solid financial position.

AEM is executing a disciplined capital allocation strategy, capitalizing on its strong cash generation to enhance shareholder value, support a robust pipeline of growth projects and reduce debt. With gold prices staying elevated and costs under control, AEM is well-positioned to sustain this shareholder-focused approach.

Among its peers, Barrick Mining Corporation B has a solid liquidity position. It generates healthy cash flows, positioning it well to take advantage of attractive development and exploration opportunities and drive shareholder value. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $1 billion under this program during the first nine months of 2025, including $589 million in the third quarter.   

Newmont Corporation NEM has distributed more than $5.7 billion to its shareholders through dividends and share repurchases over the past two years. Newmont has repurchased shares worth $2.1 billion this year, executing $3.3 billion from $6 billion of authorization. Newmont generated a record free cash flow of $1.6 billion in the third quarter, reflecting strong financial health supporting growth initiatives and shareholder returns.

The Zacks Rundown for AEM

Agnico Eagle’s shares have rallied 117.8% year to date against the Zacks Mining – Gold industry’s rise of 138.1%, driven by the record-setting upside in gold prices.

From a valuation standpoint, AEM is currently trading at a forward 12-month earnings multiple of 18.24, a roughly 37.5% premium to the industry average of 13.27X. It carries a Value Score of C.

The Zacks Consensus Estimate for AEM’s 2025 and 2026 earnings implies a year-over-year rise of 83.9% and 21.3%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

AEM stock currently sports a Zacks Rank #1 (Strong Buy). 

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This article originally published on Zacks Investment Research (zacks.com).

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