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Agnico Eagle's (AEM) Q2 Earnings and Sales Beat Estimates

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Agnico Eagle Mines Limited (AEM - Free Report) reported adjusted earnings of $1.07 per share in the second quarter of 2024, up from 65 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 93 cents.

The company generated revenues of $2,076.6 million, up nearly 21% year over year. The top line surpassed the Zacks Consensus Estimate of $1,719 million.

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 895,838 ounces in the reported quarter, up from 873,204 ounces in the prior-year quarter. The figure surpassed our estimate of 843,693 ounces.

Total cash costs per ounce for gold were $870, up from $840 a year ago. It was lower than our estimate of $878.

Realized gold prices were $2,342 per ounce in the quarter, up from $1,975 a year ago. It was above our estimate of $2,021.

All-in-sustaining costs (AISC) were $1,169 per ounce in the quarter compared with $1,150 per ounce a year ago. It was lower than our estimate of $1,193.

Financial Position

AEM ended the quarter with cash and cash equivalents of $922 million, up 113% year over year. Long-term debt was around $1,101.7 million, down 46.7% year over year.

Total cash from operating activities amounted to $961.3 million in the second quarter, up from $722 million a year ago.

Outlook

In 2024, the company anticipates producing 3.35-3.55 million ounces of gold. AEM projects total cash costs per ounce in the range of $875-$925 and AISC per ounce to be between $1,200 and $1,250. Excluding capitalized exploration, capital expenditures for 2024 are projected to be between $1.6 billion and $1.7 billion.

Price Performance

Agnico Eagle’s shares have gained 52.5% in the past year compared with a 21.6% rise of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

AEM currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Basic Materials space are Hecla Mining Company (HL - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Ashland Inc. (ASH - Free Report) . Hecla and Franco-Nevada sport a Zacks Rank #1 (Strong Buy), and Ashland carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hecla's current-year earnings is pegged at 5 cents, indicating a rise of 600% from year-ago levels. The consensus estimate for HL’s earnings has increased 25% in the past 60 days.The stock has gained nearly 9% in the past year. It will report second-quarter results on Aug 6.

The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.

The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.8%. The company’s shares have increased 5.4% in the past year. It is slated to report fiscal third-quarter results on Aug 6.

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