Agnico Eagle Mines reported adjusted earnings of **$2.69 per share** for **Q4 2025**, up from **$1.26** a year earlier and above the Zacks estimate of **$2.56**. Revenue was **$3,564 million**, up **60.3%** year over year, beating the **$3,240.7 million** estimate. **Payable gold production** was **840,608 ounces** versus **847,401 ounces** a year earlier and above the estimate of **839,674 ounces**. **Total cash costs** were **$1,089 per ounce** versus **$923**, above the estimate of **$945**. **Realized gold prices** were **$4,163 per ounce** versus **$2,660**, above the estimate of **$3,593**. **AISC** was **$1,517 per ounce** versus **$1,316**, above the estimate of **$1,315**. **Cash and cash equivalents** ended at **$2,866 million**, up **21.7%** sequentially, with **long-term debt** of about **$196.3 million**. **Cash from operating activities** was **$2,112 million** versus **$1,132 million**. For **2026**, gold production is forecast at **3.3-3.5 million ounces**, with **cash costs** of **$1,020-$1,120** and **AISC** of **$1,400-$1,550 per ounce**. Guidance includes **$275-$305 million** in exploration and corporate development spending, **$1.55-$1.75 billion** in depreciation, **$230-$260 million** in G&A, **$75-$95 million** in other costs, a **34%-36%** tax rate, **$3.4-$3.6 billion** in cash taxes, **$2.2-$2.4 billion** in capex, and **$290-$330 million** in capitalized exploration. Shares rose **117%** over the past year versus a **144.4%** industry gain. Zacks ranks: **AEM #2**; **Coeur Mining** (42 cents estimate, 106.61% average surprise, #1) reports **18 Feb**; **Valmont** ($4.95, 4.38%, #2) reports **17 Feb**; **Avino** (6 cents, 150%, #2) reports **11 March**. Agnico Eagle’s **Q4 2025** results show a company that benefited from a sharp jump in gold prices. The realized price of **$4,163 per ounce** was the main reason earnings beat estimates. Results were highly sensitive to the gold spot price. The price strength also fits with the inflation and “safe haven” demand seen through 2025. The main drawback was the steep rise in costs. **AISC climbed to $1,517 per ounce.** That is not surprising given high inflation last year. For example, the U.S. Consumer Price Index averaged above **4%** in 2025, which raised labor and energy costs across the industry. The 2026 cost outlook points to more stability, but costs are still high. That leaves less room for error if gold prices fall. Because of this setup, Agnico Eagle’s **implied volatility** may stay high in the near term. The stock often trades like a high-beta bet on gold itself. Hitting the 2026 production target of **3.3 to 3.5 million ounces** matters, but gold prices will likely matter more. For traders who think the forces that pushed gold above **$4,000** will continue, **buying call options** on AEM can provide leveraged upside. The stock also lagged the industry last year (up **117%** versus **144.4%**), which may leave room to catch up if sentiment stays positive. This approach assumes strong gold prices will outweigh concerns about higher operating costs. If gold has peaked and a correction is coming, Agnico Eagle’s high cost base increases downside risk. **Buying put options** or using **bearish put spreads** could be ways to position for a pullback. Even a **10%-15%** drop in gold prices could squeeze margins and lead to a larger percentage drop in AEM’s share price.

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