TORONTO – Record gold prices are translating into higher profits for Canadian producers and excitement about the potential for more growth, though miners remain cautious on spending.
Agnico Eagle Mines Ltd. is among the first big producers to report results after a quarter that saw gold top US$3,000 an ounce, while this week it pushed to over US$3,500 an ounce for the first time on U.S. instability fears.
The higher prices led Agnico Eagle, one of the world’s biggest gold producers, to report record adjusted net income of $770 million for the quarter ending March 31, up from $377 million last year.
While the price is translating to bumper profits, chief executive Ammar Al-Joundi emphasized on an earnings call Friday that it won’t lead to any big ramp-ups in spending as the company keeps a tight focus on returning money to shareholders.
The industry is still working to move past the shadow of the commodity boom over a decade ago that saw miners splash out on huge debt-fuelled takeovers that led to major writedowns when prices dropped.
Dean Braunsteiner, EY Canada’s assurance mining leader, says the high prices should lead to more mine expansions and the reopening of some shuttered projects, but early stage explorations will still struggle for attention.
This report by The Canadian Press was first published April 25, 2025.
Companies in this story: (TSX:AEM)
