Miners set to reap rewards of high gold prices but remain cautious on spending
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)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Canada Standard
2 hours ago
- Canada Standard
India is fifth largest economy, their presence at G7 meeting 'makes sense'
Ottawa [Canada], June 7 (ANI): Canadian Prime Minister Mark Carney on Friday (local time) said that G7 countries will hold discussions on important issues, including security and energy, in their upcoming summit, adding that India's presence at the intergovernmental political and economic forum is essential. Carney said that India being the fifth largest economy and the most populous country in the world must be at the seat. 'Let's put the two aspects in context- first is, we are in the role- Canada's in the role of the G7 chair and in those discussions as agreed with our G7 colleagues, include important discussions on energy, security, on digital future, critical minerals amongst others and partnerships actually in building infrastructure in the emerging and developing world,' he said. Carney said that India is central to a number of supply chains, which makes its presence pertinent at the G7 chair consultation. 'There are certain countries that should be at the table for those discussions, and in my capacity as G7 chair, I will consult with some others to make those determinations. India is the fifth largest economy in the world, effectively the most populous country in the world, central to a number of those supply chains at the heart of a number of those supply chains, so it makes sense,' he said. Carney said that India and Canada are acting on law enforcement, and Prime Minister Narendra Modi has accepted his invitation. 'In addition, bilaterally we have now agreed importantly to continued law enforcement to law enforcement dialogue so there's been some progress on that recognizes issues of accountability I extended the invitation to Prime Minister Modi for in in that context and he has accepted it,' he said. PM Modi on Friday confirmed he would attend the upcoming Group of Seven (G7) leaders summit in Canada after an invitation from newly elected Canadian Prime Minister Mark Carney. 'Glad to receive a call from Prime Minister Mark J Carney of Canada. Congratulated him on his recent election victory and thanked him for the invitation to the G7 Summit in Kananaskis later this month. As vibrant democracies bound by deep people-to-people ties, India and Canada will work together with renewed vigour, guided by mutual respect and shared interests. Look forward to our meeting at the Summit,' he said in a post on X. The announcement comes after a period of severely strained relations between the two countries, triggered by Canadian allegations that Indian agents were involved in the June 2023 assassination of Hardeep Singh Nijjar--a Canadian citizen and prominent pro-Khalistan activist--outside a Sikh temple in Vancouver, as per DW News. India strongly denied the claims, and both nations expelled senior diplomats in a tit-for-tat escalation, DW News reported. (ANI)
3 hours ago
Carney and Chinese premier agree to regularize communication between Canada and China
Headlines Latest News Podcasts (new window) Prime Minister Mark Carney at Parliament in Ottawa, June 5, 2025. Photo: La Presse canadienne / Sean Kilpatrick Posted: June 6, 2025 4:04 PM Leaders also committed to working together to address the fentanyl crisis, PMO readout says. Prime Minister Mark Carney and Chinese Premier Li Qiang have agreed to regularize channels of communication between the two countries. A readout from Carney's office also says the leaders committed to working together to address the fentanyl crisis. Canada and China have been involved in a trade dispute. China has imposed tariffs on Canadian canola oil and meal, peas and seafood in retaliation to Canadian levies on Chinese-made electric vehicles, steel and aluminum. In his conversation with Li, Carney raised the issue of trade affecting agriculture and agri-food products, including canola and seafood, as well as other issues. Carney said earlier this week that Ottawa is working urgently to remove Chinese tariffs on Canadian agriculture and seafood products. The Canadian Press Word of Nathaniel Veltman's appeal comes on 4th anniversary of attack on Afzaal family. 8 hours ago Courts and Crime Environment Canada says air quality in the city is 'very high risk' as of noon Friday. One Canadian Economy bill crafted to strengthen Canada's economy, sovereignty in face of Trump's tariffs. Bill C-2 gives power to pause, cancel and suspend immigration documents. Distribution sites have been plagued by deaths, reports of violence in last 2 weeks. 13 hours ago International
Winnipeg Free Press
4 hours ago
- Winnipeg Free Press
Alberta resumes buying U.S. alcohol, months after pause meant to fight tariffs
EDMONTON – Alberta is buying American alcohol and gambling machines again, three months after Premier Danielle Smith announced restrictions aimed at fighting back against U.S. tariffs. Service Alberta Minister Dale Nally says the move signals a 'renewed commitment to open and fair trade' with the United States. Smith said in March that the province would no longer buy U.S. alcohol and video lottery terminals, or sign contracts with American companies. That came a day after U.S. President Donald Trump slapped heavy tariffs on Canadian goods and energy. Nally says the decision to resume buying U.S. alcohol and gambling machines 'sets the stage for more constructive negotiations' ahead of a renewal of the Canada-U.S.-Mexico trade agreement. The minister says Albertans are encouraged to continue supporting local producers, even as more U.S. options return to store shelves. Nally said in April that the province was pausing its policy around procurement from U.S. companies 'in the spirit of diplomacy.' Monday Mornings The latest local business news and a lookahead to the coming week. He said since the province's retaliatory measures were first announced in early March, the Trump administration had put a hold on further tariffs. This report by The Canadian Press was first published June 6, 2025.
