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Agnico Eagle Mines (AEM) stock trades at 14.0 times earnings , compared with 22.8 for the median S&P 500 company. From its October 30, 2025 close to November 2, the stock returned 5.7%, compared with 11.8% for the S&P 500. That is either a sound gold miner on sale or a fair price for profits near their peak, and the price appears to assume the second. For buyers to get a bargain, Agnico must maintain its margin as mining costs rise and pay for its new mines from its own cash. So what is Agnico earning at that price?
How Much Is Agnico Eagle Earning Now?
Agnico earned $6.17 billion of net income over the twelve months to September 30, 2026, up from $3.45 billion a year earlier. The company recorded an operating margin of 58.8% over those twelve months, compared with 18.6% for the median S&P 500 company. The quarterly operating margin also improved year over year, reaching 55.6% in fiscal Q3 2026 from 53.7% in fiscal Q3 2025.
Detour Lake, the largest of its mines, generated $2.36 billion of revenue in fiscal 2025, up 49.1% from fiscal 2024. Across the entire company, Agnico turns its sales into cash, generating free cash flow of $4.21 billion over the twelve months to September. As of September 30, the company held $3.3 billion more cash than debt.
Is Agnico Eagle's Margin Higher Than Usual?
Yes. Agnico's twelve-month operating margin stands at its highest point for any quarter end from fiscal Q4 2016 through fiscal Q3 2026. That margin climbed to 58.8% in the twelve months to September 2026, up from 34.2% in the twelve months to September 2024. The average across the last three twelve-month periods is 47.4%, so the stock's low multiple is set on a year when Agnico's margin ran well above its own average. Management tied its fiscal Q3 2026 cash flow to solid production and gold prices averaging about $4,300 an ounce.
During 2026, the quarterly operating margin fell from 62.4% in fiscal Q1 to 55.6% in fiscal Q3, while costs climbed. Management said cash costs of $1,133 an ounce in fiscal Q3 came in 1% above the top of its cost guidance. Higher diesel prices added more than $30 an ounce against the budget. Management said that could reach $50 to $60 an ounce in Q4.
How Agnico Eagle Is Paying For New Mines
So far, Agnico is paying for its new mines from its own cash. Management said the company directed about $1.6 billion of development capital into Detour Lake, Odyssey, Hope Bay, and Upper Beaver during the first nine months of 2026. Total capital spending will top $3 billion in 2026 and likely rise after that. Management expects to fund this spending from operating cash flow.
Most of the planned production growth is years away. Management aims to grow production by 20% to 30% over the next decade, with that growth beginning in the early 2030s. In the nearer term, first production from the new shaft at Malartic is due in the second quarter of 2027. For full-year 2026, management expects production at the lower end of its guidance and costs at the upper end.
What A Buyer Of Agnico Eagle Is Betting On
A buyer at today's price is betting that the market has mispriced a sound business, not that Agnico has a broken one to fix. Its cash covers its new mines so far, but its margin is less settled, since the quarterly figure fell through 2026 while diesel and other costs climbed. In the fourth-quarter report, Agnico's operating margin and full-year 2026 costs against guidance are the numbers to watch, along with the guidance management publishes in February 2027.
Beyond AEM: A Systematic Way To Invest
Before you decide on AEM, consider a better choice. Since its September 2020 launch, the Trefis High Quality (HQ) Portfolio has returned 105%, ahead of a benchmark that combines the S&P 500, S&P MidCap and Russell 2000, without betting on one stock.
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