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Agnico Eagle (AEM) Q1 Earnings & Revenues Surpass Estimates

Agnico Eagle Mines Limited AEM reported a first-quarter 2023 net income of $1,816.9 million or $3.86 per share, surging from $119.1 million or 31 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings were 57 cents per share. The bottom line surpassed the Zacks Consensus Estimate of 50 cents.

The company generated revenues of $1,509.7 million, up around 13.9% year over year. It surpassed the Zacks Consensus Estimate of $1,300.3 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 812,813 ounces in the reported quarter, up from 660,604 ounces in the prior-year quarter. Production was driven by the inclusion of additional days of production from the Detour Lake, Fosterville and Macassa mines.

Total cash costs per ounce for gold were $832, up from $811 a year ago. Production costs per ounce were $804, down from $1,002 in the prior-year period.

All-in sustaining costs (AISC) were $1,125 per ounce in the quarter compared with $1,079 per ounce in the prior-year quarter. The rise was due to increased sustaining capital expenditures and total cash costs per ounce, partly offset by lower general and administrative expenses.

Financials

Agnico Eagle ended the quarter with cash and cash equivalents of $744.6 million, up from $658.6 million in the prior quarter. Long-term debt was $2,242.5 million, up around 80.5% sequentially.

Total cash from operating activities amounted to $649.6 million in the quarter, up around 28% year over year.

Outlook

The company continues to expect payable gold production for 2023 in the range of 3.24-3.44 million ounces. It projects total cash costs per ounce within $840 to $890 for 2023. The company expects its AISC per ounce to be in the band of $1,140-$1,190.

The forecast for capital expenditures for 2023 is roughly $1.42 billion.

Price Performance

Shares of Agnico Eagle have declined 2.6% in the past year compared with a 1.7% fall of the industry.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

AEM currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. STLD, Linde plc LIN and PPG Industries, Inc. PPG

Steel Dynamics currently carries a Zacks Rank #2. Shares of STLD have gained 14% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 9.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.97% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 12.8% over the past year.

PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 20.2% for the current year. Shares of PPG have gained 0.7% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.

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