JPMorgan on Thursday initiated coverage of Agnico-Eagle Mines Ltd. (NYSE:AEM) with a Neutral recommendation and set a price objective of $248.00. In its research note, the firm framed Agnico-Eagle as a substantial, low-risk participant in the global gold sector, noting the company’s scale and regional concentration.
The bank identifies Agnico-Eagle as the second-largest gold miner worldwide and estimates production of roughly 3.4 million ounces for the current year. The company operates ten wholly owned mines across jurisdictions JPMorgan characterizes as low-risk and mining-friendly, with about 85% of operations concentrated in Canada.
JPMorgan emphasized that Agnico-Eagle’s geographic focus supports long-term value creation. The firm pointed to the combination of geological potential over time and political stability in the regions where the company operates. Those factors, JPMorgan said, have fostered established supply chains, durable stakeholder relationships and meaningful exploration upside.
The research note also underscored management’s operational track record. Agnico-Eagle was described as a "reliable, low-risk vehicle to gain leverage to gold," with JPMorgan estimating a roughly 95% correlation to the metal over a 10-year period.
On costs and share performance, JPMorgan highlighted that Agnico-Eagle’s fiscal year 2025 production costs rose an estimated 4% year-over-year, compared with a 45% increase in the price of gold over the same interval. Over the period referenced, AEM shares climbed about 90%, outpacing the Philadelphia Gold and Silver Index (XAU), which gained approximately 61%.
Separately, Agnico-Eagle reported third-quarter 2025 results that beat market expectations. The company posted earnings per share of $2.16 versus the $1.95 that had been forecast, and reported record revenues of $3.06 billion, above the $2.95 billion consensus.
In corporate activity, Agnico-Eagle agreed to sell its remaining 55% interest in the Barsele project to Goldsky Resources Corp. Under the terms disclosed, Goldsky will pay $20 million in cash, issue about 75.5 million common shares to Agnico-Eagle and grant a 2% net smelter return royalty on the Barsele project. Goldsky’s shares were valued at C$2.64 each, based on a 20-day volume-weighted average price prior to the agreement.
Market moves in the wider sector were mixed following a pullback in precious metal prices. JPMorgan noted that gold and silver mining stocks, including Agnico-Eagle, experienced declines as metals retreated from recent peaks. Nonetheless, the company’s quarterly results and the Barsele divestiture were highlighted as indicators of solid financial performance and active portfolio management.
The initiation from JPMorgan frames Agnico-Eagle as a company with sizable scale, a concentrated and lower-risk operating footprint and a history of steady execution. The Neutral rating and $248 target reflect the bank’s view of the balance between the firm’s exposure to gold prices and the operational, regional and corporate factors that support its long-term value proposition.