Agnico Eagle Mines Ltd. Jefferies Global Industrials Conference 2026
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Transcript
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To our fireside chat with Agnico Eagle. My name is Fahad Tariq. I am a Mining Analyst at Jefferies, based out of Toronto. I am really pleased to have here today with us, Jamie Porter, Executive Vice President, Finance and Chief Financial Officer. Just to give a little bit of context, Agnico is a senior gold producer with a current market cap of about $102 billion, operating a portfolio concentrated in Canada, Finland, Australia, and Mexico. The company strategy is centered on reliable low-cost production, disciplined reinvestment, and growth on a per share basis with a major organic pipeline that includes the redevelopment of Hope Bay, expansion of Detour Lake, Canadian Malartic towards 1 million ounces, Upper Beaver, and the development of a larger Finnish platform around Kittilä and Ikkari. Jamie, thank you for joining us, and we are really happy to have you here.
Thanks. It is good to be here.
As I mentioned in my introduction, Agnico is simultaneously investing in five growth projects, which is a lot, returning substantial capital and building net cash. How do you think we should be thinking about the hierarchy among these uses of capital, and what would cause maybe that hierarchy to change?
Yeah. We are in a gold price environment now where we are fortunate in that we can really do a little bit of everything. Current gold prices, we should generate about $4 billion of free cash flow this year, and that is net of $3 billion of capital spending, sustaining and growing our business, and net of $600 million worth of exploration spending, which is a record for the company. So we are investing heavily in the business and still generating very strong free cash flow, net of all that. When you look at our capital allocation priorities, obviously we want to be disciplined. Our focus is really on per share value creation over time. When you look at the potential uses of that cash flow that we are generating, we have been paying a dividend for 43 years. That is an important part of our commitment to shareholders to return some of that capital.
We keep it at a relatively modest level such that we're never in a position where we need to cut it. Currently, it represents about 25% of our free cash flow for this year, about $900 million a year. That's priority one. After that, as Fahad Tariq, you mentioned, we have this great organic growth pipeline.
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