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Agnico Eagle (AEM) Suspends Mining Operations in Mexico
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Agnico Eagle Mines Limited (AEM - Free Report) has provided an update on its Mexico operations in response to the coronavirus outbreak.
Pursuant to the government of Mexico's decree, the company is ramping down its mining operations in Mexico, which includes Pinos Altos, Creston Mascota and La India.
Notably, Agnico Eagle is expected to place each of the operations under care and maintenance until Apr 30, 2020. Additionally, the exploration activities will be suspended during the same period in Mexico. Agnico Eagle expects the actions to allow for the timely and safe restart of normal operations once the decree is lifted.
The company’s shares have gained 2.1% in the past year compared with the industry’s 23.6% growth.
In the last month, Agnico Eagle said that it is withdrawing its 2020 production and costs guidance in view of the lower production activities at the Quebec and Nunavut operations along with future uncertainties, the scope and severity of the coronavirus outbreak. The company expects payable gold production of around 400,000 ounces for the first quarter. However, gold sales may be potentially affected by transport and refining headwinds.
Given the uncertainties surrounding the pandemic, it has also drawn down $1 billion from its $1.2-billion unsecured revolving bank credit facility in March. While Agnico Eagle has expressed no intentions to use the funds, it may use a portion to repay part of the $360 million of 6.67% series B notes due April 2020. Also, the company will review its 2020 sustaining and growth capital budget to lower expenditure.
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Harmony Gold Mining Company Limited (HMY - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Harmony Gold has a projected earnings growth rate of 185.7% for 2020. The company’s shares have gained 3.9% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 42.8% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 47.5% in a year.
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Agnico Eagle (AEM) Suspends Mining Operations in Mexico
Agnico Eagle Mines Limited (AEM - Free Report) has provided an update on its Mexico operations in response to the coronavirus outbreak.
Pursuant to the government of Mexico's decree, the company is ramping down its mining operations in Mexico, which includes Pinos Altos, Creston Mascota and La India.
Notably, Agnico Eagle is expected to place each of the operations under care and maintenance until Apr 30, 2020. Additionally, the exploration activities will be suspended during the same period in Mexico. Agnico Eagle expects the actions to allow for the timely and safe restart of normal operations once the decree is lifted.
The company’s shares have gained 2.1% in the past year compared with the industry’s 23.6% growth.
In the last month, Agnico Eagle said that it is withdrawing its 2020 production and costs guidance in view of the lower production activities at the Quebec and Nunavut operations along with future uncertainties, the scope and severity of the coronavirus outbreak. The company expects payable gold production of around 400,000 ounces for the first quarter. However, gold sales may be potentially affected by transport and refining headwinds.
Given the uncertainties surrounding the pandemic, it has also drawn down $1 billion from its $1.2-billion unsecured revolving bank credit facility in March. While Agnico Eagle has expressed no intentions to use the funds, it may use a portion to repay part of the $360 million of 6.67% series B notes due April 2020. Also, the company will review its 2020 sustaining and growth capital budget to lower expenditure.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited price-consensus-chart | Agnico Eagle Mines Limited Quote
Zacks Rank & Stocks to Consider
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Harmony Gold Mining Company Limited (HMY - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Harmony Gold has a projected earnings growth rate of 185.7% for 2020. The company’s shares have gained 3.9% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 42.8% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 47.5% in a year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>