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Gold hit new record highs above $4,500 per ounce, with strong tailwinds indicating even higher highs are coming.

Agnico Eagle Mines (AEM) produced 3.4 million ounces of gold in 2024 with all-in sustaining costs around $1,373 per ounce.

Barrick Mining (B) generated record operating cash flow of $2.4B and free cash flow of $1.5B in Q3.

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Gold is surging to new all-time highs, trading well above $4,500 per ounce with spot prices reaching as high as $4,575. This marks a gain of approximately 71% year-to-date, representing the metal’s strongest annual performance since 1979.

Several factors have propelled this rise. Strong central bank purchases have provided consistent support, with institutions adding hundreds of tonnes to reserves as they continue diversifying away from the U.S. dollar. Investor inflows into gold-backed exchange-traded funds (ETFs) have also remained robust, reflecting demand for safe-haven assets. Geopolitical tensions, including ongoing conflicts and trade uncertainties, also boosted gold’s appeal as a hedge.

With expectations of further Federal Reserve rate cuts lowering the opportunity cost of holding gold – which doesn’t have a yield – and a weaker dollar making it more attractive for overseas buyers, the yellow metal is soaring.

Yet as gold ratchets higher with no end in sight, miners Agnico Eagle Mines (NYSE:AEM) and Barrick Mining (NYSE:B) are uniquely positioned to capitalize on the situation.

Agnico Eagle Mines operates as a senior gold producer with mines primarily in Canada, Australia, Finland, and Mexico – jurisdictions known for lower political risk.

The company is focused on regions that offer stability and provide for consistent operations and long-term planning. In 2024, it produced approximately 3.4 million ounces of gold, with reserves providing about 15 years of mine life at current rates.

Agnico Eagle maintains costs in the second quartile of the global curve, reporting all-in sustaining costs (AISC) around $1,373 per ounce in the third quarter. This means that while Agnico is not the lowest-cost miner, it is competitive, with costs below the industry median. This allows for it to expand margins as gold prices rise, as higher realized prices directly boost profitability without increasing cost at the same rate. In Q3, Agnico’s gold production was approximately 77% of management’s guidance, while costs came in at about the midpoint.