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Agnico Eagle (AEM) Q1 Earnings Top Estimates, Revenues Up Y/Y

Zacks Equity Research

Agnico Eagle Mines Limited AEM posted a net loss of $21.6 million or 9 cents per share in first-quarter 2020 against net income of $37 million or 16 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 23 cents, which beat the Zacks Consensus Estimate of 18 cents.

The company generated revenues of $671.9 million, up 26.2% year over year.

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 rose 3.3% year over year to 411,366 ounces in the reported quarter. The figure includes pre-commercial production at Canadian Malartic from the Barnat deposit. Total cash costs per ounce for gold were $836, up 34.2% year over year.

All-in sustaining costs (AISC) were $1,099 per ounce, up 31.5% from year over year.

Per the company, production costs and total cash costs per ounce increased in the first quarter on a year-over-year basis due to higher costs at the Meliadine mine and Meadowbank Complex.

Financial Position

Agnico Eagle ended the first quarter with cash and cash equivalents of $1,255.3 million, up nearly 7-times year over year. Long-term debt was $2,351.9 million, up 36.6% year over year.

Total cash from operating activities amounted to $163.4 million in the quarter, up 9.9% year over year.


Agnico Eagle revised its production guidance for 2020.

Gold production for the year is now projected in the range of 1.63-1.73 million ounces, down from 1.875 million ounces stated earlier. The projection was lowered primarily due to the impact of coronavirus-related shutdowns.

The company expects total cash costs per ounce in the range of $740-$790 compared with $725-$775 expected earlier. AISC is now expected to be $1,025-$1,075 per ounce compared with $975-$1,025 per ounce expected earlier. Year-over-year increase in costs is primarily due to considerable reduction in production caused by the temporary suspension of the company’s operating activities. This is expected to be partly offset by favorable foreign currency translations.

Price Performance

Agnico Eagle’s shares have surged 55% in the past year compared with the industry’s 86.7% rise.

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 Newmont Corporation NEM, Barrick Gold Corporation GOLD and Franco-Nevada Corporation FNV, all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Newmont has an expected earnings growth rate of 95.5% for 2020. The company’s shares have surged 109.5% in the past year.

Barrick has an expected earnings growth rate of 70.6% for 2020. Its shares have returned 117.3% in the past year.   

Franco-Nevada has an expected earnings growth rate of 22% for 2020. The company’s shares have surged 101.2% in the past year.

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