Agnico Eagle (AEM) Earnings and Sales Surpass Estimates in Q1

Zacks Equity Research

May 3, 2022 at 11:10 AM·3 min read

Agnico Eagle Mines Limited AEM reported a net income of $109.8 million or 29 cents per share in first-quarter 2022, down from $145.2 million or 60 cents per share reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 61 cents. The bottom line surpassed the Zacks Consensus Estimate of 36 cents per share.

The company generated revenues of $1,325.7 million, up 39.6% year over year. The top line surpassed the Zacks Consensus Estimate of $1,153.3 million.

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 660,604 ounces (806,329 ounces including production from the legacy Kirkland Lake Gold mines) in the reported quarter, up from 516,804 ounces in the prior-year quarter.

Total cash costs per ounce for gold were $811, up from $734 in the year-ago quarter. All-in sustaining costs (AISC) were $1,079 per ounce in the quarter compared with $1,007 per ounce in the prior-year quarter.

Financial Position

Agnico Eagle ended the quarter with cash and cash equivalents of $1,062 million, up471.6% sequentially. Long-term debt was around $1,340.7 million, slightly higher than $1340.2million in the prior quarter.

Total cash from operating activities amounted to $507.4 million in the first quarter, up 38.4% year over year.

Outlook

The company expects payable gold production for 2022 in the range of 3.2-3.4 million ounces. It also projects total cash costs per ounce of $725-$775 and AISC of $1,000-$1,050 per ounce for 2022.

The forecast for 2022 capital expenditures is pegged at roughly $1.4 billion.

Price Performance

Shares of Agnico Eagle have declined 13.3% in the past year compared with a 0.9% decline of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Agnico Eagle currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Nutrien Ltd. NTR, AdvanSix Inc. ASIX and Allegheny Technologies Incorporated ATI.

Nutrien has a projected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 31.1% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 70% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.

AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 40.7% in a year. The company carries a Zacks Rank #1.

Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.4% over a year.

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Allegheny Technologies Incorporated (ATI) : Free Stock Analysis Report

Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report

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Nutrien Ltd. (NTR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

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