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Agnico Eagle (AEM) Beats Earnings and Sales Estimates in Q2

Zacks Equity Research

Agnico Eagle Mines Limited AEM logged net income of $27.8 million or 12 cents per share in second-quarter 2019, up from around $5 million or 2 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 10 cents, which beat the Zacks Consensus Estimate of 2 cents.

Agnico Eagle generated revenues worth $526.6 million, down around 5.3% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $493.8 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

Gold production rose 1.8% year over year to 412,315 ounces. The figure includes pre-commercial production of 29,699 ounces at Meliadine and 2,147 ounces at Amaruq. Total cash costs per ounce were $652, down from $656 in the prior-year quarter.

All-in sustaining costs (AISC) were $953 per ounce, up 3.5% from year over year.

Financial Position

At the end of second quarter, cash and cash equivalents were around $118.7 million, down from around $708.3 million in the year-ago quarter.

Long-term debt was $1,362.7 million at the end of the quarter.

Total cash from operating activities amounted to $126.3 million in the reported quarter, up 5.2% year over year.   

Outlook

Agnico Eagle reaffirmed production and cost guidance for 2019.

Gold production for the year is projected at 1.75 million ounces. The projection includes pre-commercial production from Meliadine and Amaruq.

Total cash costs per ounce are projected between $620 and $670. AISC is expected in the range of $875-$925 per ounce.

Price Performance

Agnico Eagle’s shares have gained 26.6% in the past year compared with the industry’s 37.8% rally.



Zacks Rank & Other Key Picks

Agnico Eagle currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are SSR Mining Inc. SSRM, Kinross Gold Corporation KGC and Arconic Inc. ARNC, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SSR Mining has an expected earnings growth rate of 69.6% for 2019. The company’s shares have rallied 48.3% in the past year.

Kinross has projected earnings growth rate of 80% for the current year. The company’s shares have gained 16.2% in a year’s time.

Arconic has an estimated earnings growth rate of 38.2% for the current year. Its shares have moved up 19.8% in the past year.

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