Agnico Eagle Mines (TSX, NYSE: AEM) has announced a new venture focused on the growing critical minerals sector, marking a strategic step beyond its core gold and copper portfolio. The Toronto-based miner announced the creation of Avenir Minerals Limited, a wholly owned subsidiary established to manage and advance nearly $80 million in early-stage critical mineral investments.

In addition to transferring those existing investments, Agnico will inject $50 million in cash into Avenir to fund operations and growth. The parent company will retain a right of first refusal on future investment opportunities and may choose to provide additional financing over time. According to Agnico, the new company will operate as an independent and self-sustaining entity, tasked with identifying and developing strategic projects, primarily within Canada, while seeking partnerships and government support for critical mineral initiatives.

The move follows Agnico’s $180 million investment in Perpetua Resources (NASDAQ, TSX: PPTA) earlier in the week. Perpetua is advancing the $1.3 billion Stibnite gold and antimony project in Idaho—one of the few U.S. sources of antimony, a critical mineral used in defense and energy storage technologies. The project is backed by the U.S. government as part of efforts to rebuild domestic supplies of essential materials.

Agnico’s establishment of Avenir comes at a time of record financial performance. The company reported third-quarter net income of $1.06 billion, or $2.10 per share, bolstered by higher gold prices and steady operational performance across its portfolio. Adjusted net income reached $1.09 billion, or $2.16 per share, both record highs for the miner. Operating cash flow totalled $1.82 billion, while free cash flow came in at $1.19 billion.

Ammar Al-Joundi, Agnico’s president and CEO, commented in a press release: “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.”

The company reaffirmed its 2025 production target of between 3.3 million and 3.5 million ounces of gold. Unit costs, however, are expected to track toward the upper end of the company’s range due to higher royalties. Agnico projected capital spending for 2025 between $1.75 billion and $1.95 billion, excluding capitalised exploration of $290 million to $310 million.

Agnico ended the quarter with $2.36 billion in cash and long-term debt reduced to $196 million, resulting in a net cash position of $2.16 billion as of September 30. Its strong financial position prompted Moody’s Investors Service to upgrade the company’s long-term issuer rating to A3 from Baa1 in August.

Operationally, Agnico continued advancing key development projects across its portfolio. At Canadian Malartic, shaft sinking and development of the East Gouldie deposit remain on schedule for first production in the second half of 2026. Drilling also continues to extend mineralization at depth. At Detour Lake, the underground ramp advanced 259 metres during the quarter, and shaft construction for the Upper Beaver project is set to begin in the fourth quarter.

In Nunavut, drilling at the Hope Bay property returned several high-grade results, including 16.9 g/t gold over 4.6 metres and 12.7 g/t gold over 9.3 metres in the Madrid deposit’s Patch 7 zone. Meanwhile, at the San Nicolas copper-zinc project in Mexico, engineering for the feasibility study is expected to reach 30% completion by year-end.

The launch of Avenir Minerals signals Agnico Eagle’s broadening focus beyond gold, positioning the miner to participate in the accelerating shift toward critical minerals needed for electrification, renewable energy, and advanced manufacturing. While Avenir will operate independently, Agnico’s capital support and right of first refusal ensure it remains closely tied to the company’s long-term strategic direction.

Together, Agnico’s record financial results and its push into critical minerals is an expansion of scope for one of Canada’s leading resource companies, balancing its traditional gold dominance with an emerging role in the evolving global materials landscape.

Pan American Silver (TSX:PAAS) and Agnico Eagle Mines (TSX:AEM) have agreed to buy Yamana Gold (TSX:YRI) in a $4.8 billion transaction including cash and shares. The deal was made on Tuesday after Gold Fields (NYSE:GFI) waived its right to match any rival bid on Monday.

The board recommended that shareholders reject the Gold Fields takeover at a vote on November 21. Gold Fields responded by noting that it is disappointed in the outcome: “We continue to believe that the transaction was a financially and strategically superior offer for shareholders of both Gold Fields and Yamana,” the company said.

Due to the lack of a deal with Gold Fields, Yamana will have to pay a $300 million break fee to Gold Fields since it has walked out of the deal just two business days before it was set to close. In a statement, Yunus Suleman, chair of Gold Fields said: “The emergence of another bid highlighted the value of [Yamana’s] assets and the need to respond to systemic strategic challenges facing the gold industry. However, we are disciplined in how we assess the value of assets and opportunities, and we were not prepared to be drawn into a bidding war which would have been value destructive for our shareholders.”

On Friday, Pan American and Agnico Eagle revealed the rival offer, which also which might split up Yamana’s assets in Canada and Latin America between the two companies. While the new deal is large, the previously considered Yamana-Gold Fields transaction would have made the fourth-largest gold miner in the world, passing even the value of Agnico Eagle.

Pan American will solidify its current position as a top precious metals producer in Latin America with this latest deal. For Agnico Eagle, the deal will mean consolidating ownership of the Canadian Malartic gold mine in Quebec, one of the world’s biggest.

Dealmaking has slowed in the mining industry this year, with this marking one of the biggest deals of the year. Gold mining companies have struggled to keep up with demand due to a variety of factors.

The first is declining gold grades across existing projects. This happens because as gold is mined, it becomes more difficult to extract and the amount of ore that can be mined per day decreases.

The second is the lack of new projects to replace ageing mines that are nearing the end of mine life. Costs have also risen, with companies spending more as extraction becomes more costly.

The third is the impact of China’s slowdown. China is the world’s second-largest consumer of precious metals, and its slowdown has had a ripple effect across the industry.