Agnico Eagle Suspends Barnat Mining Due to Rock Movement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Agnico Eagle reports that a rock mass movement occurred on July 1 along the north wall of the Barnat open pit at the Canadian Malartic complex in Quebec, Canada. There were no injuries, equipment damage or environmental impact as a result of the event. As a precautionary measure, the company has temporarily suspended mining operations in the Barnat open pit. The company's technical teams are conducting a geotechnical assessment to confirm stability and determine the appropriate path forward. During the suspension of in-pit mining operations, the Canadian Malartic processing plant will be supplied with low-grade ore from existing stockpiles in place of planned Barnat ore feed. This approach is expected to help mitigate the near-term impact on production. Production in Q2 was not affected and the company expects production for Q2 of approximately 845K ounces of gold, slightly ahead of plan. However, based on currently available information, the company expects the rock mass movement to reduce production in the second half of 2026 at Canadian Malartic by approximately 60K-80K ounces of gold. Accordingly, the company expects full year 2026 production to be near the lower end of its previously disclosed guidance range of 3.3M-3.5M ounces of gold. The Barnat open pit was expected to be mined out by early 2029. The event is currently expected to result in reduced production in both 2027 and 2028 of up to approximately 150K ounces of gold per year. The company is continuing to evaluate opportunities to mitigate this potential impact to its production outlook. The company believes that the rock mass movement will not affect the development or production outlook for the Odyssey mine and does not change the pathway to achieving annual production of 1M ounces of gold from the Canadian Malartic complex in the early 2030s.
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Analyst Views on AEM
Wall Street analysts forecast AEM stock price to rise
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 154.940
Low
1.60
Averages
231.12
High
337.00
Current: 154.940
Low
1.60
Averages
231.12
High
337.00
About AEM
Agnico Eagle Mines Limited is a Canadian-based and led senior gold mining company. The Company has operating mines in Canada, Australia, Finland and Mexico. It has over 70% interest in Fingold Ventures Ltd. Its operations and development projects include LaRonde Complex, Canadian Malartic Complex, Goldex Complex, Detour Lake, Macassa, Meliadine, Meadowbank Complex, Fosterville, Pinos Altos, and Kittila. Its exploration projects include Hammond Reef, Hope Bay, Upper Beaver, San Nicolas, Wasamac. Its Canadian Malartic Complex is in northwestern Quebec which consists of the Canadian Malartic mines and the Odyssey mine. The Fosterville mine is a high-grade, low-cost underground gold mine, located approximately 20 kilometers (km) from the city of Bendigo. Its Kittila mine is located in the Lapland region of northern Finland, over 150 km north of the Arctic circle. It also focuses on advancing the Ikkari project in the Central Lapland Greenstone Belt of Northern Finland.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Geological Monitoring: The area had previously been identified as having weaker geological structures and was under enhanced geotechnical monitoring, with technical teams conducting a detailed assessment to determine next steps.
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- Rating Upgrade: Jefferies upgraded Agnico Eagle Mines (AEM) from Hold to Buy with a price target increase from C$187 to C$200, indicating that recent share price weakness has created an attractive opportunity among high-quality gold producers.
- Gold Price Forecast Adjustment: Jefferies lowered its Q4 gold price forecast to $4,600/oz from $5,400 and FY 2027 forecast to $5,000/oz from $5,200, yet analysts believe that as gold prices moderate, investors will increasingly prioritize asset quality.
- Significant Cost Advantage: Agnico Eagle boasts an all-in sustaining cost of $1,456/oz, significantly lower than peers at $1,800/oz, resulting in peer-leading margins of approximately $3,140/oz compared to $2,800/oz for other producers, enhancing the company's profitability.
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- Operational Leverage Effect: When gold prices rise from $2,000 to $3,000, miners' free cash flow significantly increases, demonstrating that miners' profitability amplifies during gold price increases and declines.
- Acquisition Activity Signal: Genesis Minerals' $3.9 billion bid for Vault Minerals indicates that producers view gold resources as cheap and their cash flows as durable, reflecting confidence in the industry's future.
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- Geological Monitoring: The area had previously been identified as having weaker geological structures and was under enhanced geotechnical monitoring, with technical teams conducting a detailed assessment to determine next steps.
- Production Downgrade: The company expects the incident to reduce gold production at Canadian Malartic by 60,000 to 80,000 ounces in H2 2023, potentially pushing full-year output toward the lower end of its previously disclosed guidance range of 3.3 million to 3.5 million ounces.
- Long-term Impact: The Barnat pit was expected to be mined out by early 2029, and this incident could reduce production by as much as 150,000 ounces per year in both 2027 and 2028, pending the outcome of the geotechnical assessment.
See More
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- Project Approval Progress: Lake Victoria Gold received approval from the Tanzania Mining Commission on June 29, 2026, formally appointing City Engineering Company Ltd. as the primary EPCM contractor for the Imwelo Gold Project, marking a significant step toward construction.
- Localized Management Model: The EPCM structure combines Tanzanian engineering capabilities with international technical support, aiming to enhance local professional participation and promote economic development in Tanzania through a locally-led project delivery.
- Financing Activities Advancing: Lake Victoria Gold is progressing with a gold loan agreement of up to $25 million with Monetary Metals & Co., which, while still subject to conditions and regulatory approvals, provides financial backing for the project's construction.
- Strategic Significance: Against the backdrop of gold prices nearing record highs, the project's advancement has garnered investor attention, and the consolidation of engineering and development workflows is expected to enhance the company's position in a competitive market.
See More
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- Project Approval Milestone: Lake Victoria Gold received approval from the Tanzania Mining Commission on June 29, 2026, formally appointing City Engineering Company Ltd. as the primary EPCM contractor for the Imwelo Gold Project, marking a significant step toward construction.
- Integrated Delivery Framework: The approved EPCM structure consolidates engineering and development workstreams under a single Tanzanian-led framework, enhancing project management efficiency and laying the groundwork for future construction decisions, reflecting improved operational discipline.
- Advancing Financing Activities: Lake Victoria Gold is negotiating with Monetary Metals & Co. for a gold loan facility of up to $25 million, which will provide essential funding support for the project's further development, ensuring it progresses as planned.
- Compliance with Local Content Regulations: The company adheres strictly to Tanzania's Mining (Local Content) Regulations, collaborating with local firms not only to meet regulatory requirements but also to enhance local professional participation, thereby increasing the project's sustainability and social responsibility.
See More
