Wedoany.com Report-Oct. 31, Canada’s Agnico Eagle Mines (TSX, NYSE: AEM) has announced the creation of a new subsidiary, Avenir Minerals Limited, to oversee and advance nearly $80 million in early-stage investments in critical minerals. The Toronto-based company will contribute $50 million in cash to fund Avenir and retain a right of first refusal on future opportunities, with the option to provide additional funding when needed.

The Canadian Malartic mine.

Avenir will operate independently, focusing on identifying and developing critical mineral projects outside Agnico’s core gold and copper operations. The subsidiary aims to pursue partnerships and government support, particularly within Canada, to accelerate the development of key resources vital for emerging technologies and energy transition industries.

The establishment of Avenir follows Agnico’s $180 million investment earlier in the week in Perpetua Resources (NASDAQ, TSX: PPTA), a U.S.-based company advancing the $1.3 billion Stibnite gold and antimony project in Idaho. The project, supported by the U.S. government, seeks to strengthen domestic supply chains for essential minerals.

Agnico’s decision to consolidate non-core investments under Avenir comes as it reported record financial performance for the third quarter. The company’s results were driven by strong operational performance and elevated gold prices. It reported net income of $1.06 billion, or $2.10 per share, while adjusted net income reached a record $1.09 billion, or $2.16 per share. Operating cash flow stood at $1.82 billion, with free cash flow totaling $1.19 billion.

President and CEO Ammar Al-Joundi said: “We delivered another quarter of strong and consistent operational performance, which translated into record financial results as higher gold prices continue to drive expanded margins. We are well on track to meet our full-year production and cost guidance, supported by disciplined cost management and a focus on productivity.”

Agnico maintained its full-year production target of 3.3 million to 3.5 million ounces of gold, while acknowledging that costs could trend toward the higher end of its forecast range due to increased royalties. Capital spending for 2025 is projected between $1.75 billion and $1.95 billion, excluding exploration costs estimated between $290 million and $310 million.

The company ended the quarter with $2.36 billion in cash and reduced long-term debt to $196 million, resulting in a net cash position of $2.16 billion as of September 30. In August, Moody’s upgraded Agnico’s long-term issuer rating to A3 from Baa1. The firm also declared a quarterly dividend of $0.40 per share and repurchased just over one million shares for $150 million.

BMO Capital Markets analysts described the results as “solid,” noting production and sales exceeded forecasts. Analyst Matthew Murphy commented that while unit costs might rise due to strong gold prices, the company’s projects remain on schedule.

Development work continued across Agnico’s key growth assets, including Canadian Malartic, Detour Lake, Upper Beaver, Hope Bay, and San Nicolas. The company reported steady progress at all sites, with several projects expected to reach significant milestones between 2025 and 2026.

Agnico Eagle’s shares rose slightly in pre-market trading in New York, trading around $158, giving the company a market value of approximately $79 billion.