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Agnico Eagle's (AEM) Q3 Earnings Top Estimates, Revenues Up Y/Y

Zacks Equity Research
·3 min read

Agnico Eagle Mines Limited AEM reported net income of $222.7 million or 92 cents per share in third-quarter 2020, up from the net income of $76.7 million or 32 cents per share reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 78 cents, beating the Zacks Consensus Estimate of 68 cents.

The company generated revenues of $981 million, significantly up 43.6% 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 was up 3.3% year over year to 492,693 ounces in the reported quarter. The figure includes pre-commercial production from the Barnat deposit at Canadian Malartic and the Tiriganiaq open pit at Meliadine. Total cash costs per ounce for gold were $764, up 17% year over year.

All-in sustaining costs (AISC) were $1,016 per ounce, up 12.5% year over year.

Financial Position

Agnico Eagle ended the third quarter with cash and cash equivalents of $316 million, compared with $322 million as of Dec 31, 2019. Long-term debt was around $1,565 million as of Sep 30, 2020 compared with $1,364 million as of Dec 31, 2019.

Total cash from operating activities amounted to $462.5 million in the third quarter, up 32.4% year over year.


Agnico Eagle reaffirmed its current-year guidance. The company expects gold production for the year between 1.68 million and 1.73 million ounces. Management expects total cash costs per ounce of $740-$790 and AISC of $1,025-$1,075 per ounce.

Capital expenditure is predicted between $720 million and $740 million compared with the prior guidance of $690 million.

Price Performance

Agnico Eagle’s shares have gained 23.6% so far this year, compared with the industry’s 28.3% rise.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Barrick Gold Corporation GOLD, Fortuna Silver Mines Inc. FSM, and Newmont Corporation NEM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fortuna Silver Mines has an expected earnings growth rate of 5.9% for 2020. The company’s shares have surged 31% year to date.

Barrick Gold has a projected earnings growth rate of 100% for the current year. The stock has gained 46% in the year-to-date period.

Newmont has an estimated earnings growth rate of 91% for the ongoing year. Shares of the company have appreciated 42% so far this year.

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