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Agnico Eagle's (AEM) Q3 Earnings & Sales Surpass Estimates

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Agnico Eagle Mines Limited (AEM - Free Report) reported third-quarter 2023 adjusted earnings of 44 cents per share, down from 49 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 43 cents.

The company generated revenues of $1,642.4 million, up 13.3% year over year. The top line surpassed the Zacks Consensus Estimate of $1,570.7 million.

Gold production increased in the reported quarter from the prior-year period, predominantly due to production from the acquisition of the remaining 50% of the Canadian Malartic complex after the transaction with Yamana Gold Inc. was closed. This was partially offset by lower production at the Detour Lake and Fosterville mines as well as the LaRonde complex.

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

Agnico Eagle Mines Limited price-consensus-eps-surprise-chart | Agnico Eagle Mines Limited Quote

Operational Highlights

Payable gold production was 850,429 ounces in the reported quarter, up from 816,795 ounces in the prior-year quarter. The figure surpassed our estimate of 844,723 ounces.

Total cash costs per ounce for gold were $898, up from $779 a year ago. It was higher than our estimate of $864.

Realized gold prices were $1,928 per ounce in the quarter, up from $1,726 a year ago. It was above our estimate of $1,916.

All-in-sustaining costs (AISC) were $1,210 per ounce in the quarter compared with $1,106 per ounce a year ago. It was higher than our estimate of $1,187.

Financial Position

Agnico Eagle ended the quarter with cash and cash equivalents of $355.5 million, down 17.8% sequentially. Long-term debt was around $1,842.6 million, down 5.1% sequentially.

Total cash from operating activities amounted to $502.1 million in the third quarter, down from $575.4 million a year ago.

Outlook

The company expects its 2023 gold production to be above the midpoint of its guidance of 3.24-3.44 million ounces. Additionally, AEM estimates it is on pace to meet its 2023 projection of between $840 and $890 for total cash costs per ounce and between $1,140 and $1,190 for AISC per ounce. With capitalized exploration excluded, the total anticipated capital expenditures for 2023 are still projected at $1.42 billion.

Price Performance

Shares of Agnico Eagle have gained 8.9% in the past year compared with a 20% rise of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

AEM currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Equinox Gold Corp. (EQX - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and The Andersons Inc. (ANDE - Free Report) .

Equinox has a projected earnings growth rate of 90% for the current year. It currently carries a Zacks Rank #1 (Strong Buy).  Equinox delivered a trailing four-quarter earnings surprise of roughly 18.1%, on average. The stock is up around 27.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Koppers has a projected earnings growth rate of 7.5% for the current year. It currently carries a Zacks Rank #2 (Buy).  Koppers delivered a trailing four-quarter earnings surprise of roughly 21.7%, on average. The stock is up around 45.2% in a year.

Andersons currently carries a Zacks Rank #1. The stock has gained roughly 37.3% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.

 

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