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Agnico Eagle (AEM) Q1 Earnings and Revenues Surpass Estimates

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Agnico Eagle Mines Limited AEM reported net income of $136.1 million or 56 cents per share in first-quarter 2021, against a net loss of $21.6 million or 9 cents per share reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 67 cents, surpassing the Zacks Consensus Estimate of 56 cents per share.

The company generated revenues of $934.4 million, up 39.1% year over year. The figure topped the Zacks Consensus Estimate of $889.

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

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 up 25.63% year over year to 516,804 ounces in the reported quarter. The figure includes gold production at Hope Bay. Total cash costs per ounce for gold were $734, down 12.2% year over year.

All-in sustaining costs (AISC) were $1,007 per ounce in the quarter, including Hope Bay.

Financial Position

Agnico Eagle ended the quarter with cash and cash equivalents of $126.5 million compared with $402.5 million as of Dec 31, 2020. Long-term debt was around $1,565.8 million as of Mar 31,2021, compared with $1,565.2 million as of Dec 31, 2020.

Total cash from operating activities amounted to $356.4 million in the first quarter, up 118% year over year.

Outlook

The company expects gold production for 2021 to be 2,047,500 ounces. It also expects total cash costs per ounce of $700-$750 and AISC of $950-$1,000 per ounce in 2021.

The second quarter is expected to have the weakest production. This is due to scheduled maintenance at several operations in the second quarter, which results in changes in the mining sequence. This brings in slightly lower grades.

Price Performance

Shares of Agnico Eagle have declined 1.5% in the past year compared with 10.3% decline of the industry.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Dow Inc. DOW, Nucor Corporation NUE and Impala Platinum Holdings Limited IMPUY.

Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 89.1% 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.

Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 100.4% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 235.4% in the past year. It currently flaunts a Zacks Rank #1.

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