Agnico Eagle cuts FY26 guidance after wall movement at Barnat
Agnico Eagle Mines Limited temporarily suspended operations at the Barnat open pit following a rock mass movement on July 1, 2026. While Q2 production remains on track at approximately 845,000 ounces, the company expects a 60,000 to 80,000 ounce reduction in H2 2026, placing full-year output near the lower end of the 3.3 million to 3.5 million ounce guidance. Long-term projections indicate a potential reduction of up to 150,000 ounces per year in 2027 and 2028, though the Odyssey mine and 2030 production targets remain unaffected.
*this image is generated using AI for illustrative purposes only.
Agnico Eagle Mines Limited has temporarily suspended mining operations at the Barnat open pit within its Canadian Malartic complex in Quebec, Canada, following a rock mass movement on July 1, 2026. The company confirmed there were no injuries, equipment damage, or environmental impact resulting from the event. The movement occurred in an area previously identified for weaker geological structures and was under enhanced monitoring. Consequently, the company expects full year 2026 production to fall near the lower end of its guidance range of 3.3 million to 3.5 million ounces of gold.
Production Impact and Guidance
The suspension affects the north wall of the Barnat pit, where technical teams are conducting a geotechnical assessment to determine a safe restart timeline. Despite the halt in pit mining, the Canadian Malartic processing plant will utilize low-grade ore from existing stockpiles to mitigate near-term production losses.
Production in the second quarter of 2026 was unaffected, with output expected to reach approximately 845,000 ounces of gold, slightly ahead of plan. However, the company anticipates a reduction of 60,000 to 80,000 ounces of gold in the second half of 2026 due to the wall movement.
Production Outlook
| Period | Expected Production | Impact |
|---|---|---|
| Q2 2026 | ~845,000 ounces | Slightly ahead of plan |
| H2 2026 | Reduction of 60,000–80,000 ounces | Due to wall movement |
| Full Year 2026 | Near lower end of 3.3–3.5 million ounces | Guidance updated |
Long-Term Outlook
The Barnat open pit was scheduled for depletion by early 2029. Agnico Eagle currently projects reduced production of up to approximately 150,000 ounces of gold per year in both 2027 and 2028. The company stated that the event will not impact the development or production outlook for the Odyssey mine, nor does it alter the pathway to achieving annual production of 1 million ounces of gold from the Canadian Malartic complex in the early 2030s.
Further updates regarding production and cost guidance are scheduled for release with the company's second quarter 2026 results after market close on July 29, 2026.
What specific remediation measures will be required to stabilize the north wall of the Barnat pit?
How will the increased reliance on low-grade stockpiles during the suspension affect the company's all-in sustaining costs (AISC) for the second half of 2026?
Could the geotechnical risks identified at the Barnat open pit prompt a review of safety protocols at other Agnico Eagle sites with similar geological structures?
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