Agnico Eagle Mines Limited (AEM - Free Report) reported net income of $205.2 million or 85 cents per share in fourth-quarter 2020, down from net income of $331.7 million or $1.39 per share reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 67 cents, in-line with the Zacks Consensus Estimate.
The company generated revenues of $928.4 million, up 23.3% year over year. However, the figure lagged the Zacks Consensus Estimate of $944.1.
Operational Highlights
Payable gold production was up 1.4% year over year to 501,445 ounces in the reported quarter. The figure includes pre-commercial production from the IVR open pit at the Meadowbank Complex and the Tiriganiaq open pit at Meliadine. Total cash costs per ounce for gold were $701, down 6% year over year.
All-in sustaining costs (AISC) were $985 per ounce, down 5.2% year over year.
FY20 Results
Earnings (as reported) for full-year 2020 were $2.12 per share compared with earnings of $2.00 per share a year ago. Net sales rallied 25.8% year over year to $3,138.1 million.
Financial Position
Agnico Eagle ended 2020 with cash and cash equivalents of $402.5 million compared with $321.9 million as of Dec 31, 2019. Long-term debt was around $1,565.2 million as of Dec 31,2020, compared with $1,364.1 million as of Dec 31, 2019.
Total cash from operating activities amounted to $403.5 million in the fourth quarter, up 56.7% 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.
Capital expenditures are predicted to be roughly $803 million in 2021 and in the range of $750-$800 million through 2024.
Price Performance
Shares of Agnico Eagle have gained 20.1% in the past year compared with 19.8% rise 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 Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 74.2% for the current fiscal. The company’s shares have surged around 150.1% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 34.1% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 50.1% in the past year. It currently sports a Zacks Rank #1.
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Agnico Eagle Mines Limited (AEM - Free Report) reported net income of $205.2 million or 85 cents per share in fourth-quarter 2020, down from net income of $331.7 million or $1.39 per share reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 67 cents, in-line with the Zacks Consensus Estimate.
The company generated revenues of $928.4 million, up 23.3% year over year. However, the figure lagged the Zacks Consensus Estimate of $944.1.
Operational Highlights
Payable gold production was up 1.4% year over year to 501,445 ounces in the reported quarter. The figure includes pre-commercial production from the IVR open pit at the Meadowbank Complex and the Tiriganiaq open pit at Meliadine. Total cash costs per ounce for gold were $701, down 6% year over year.
All-in sustaining costs (AISC) were $985 per ounce, down 5.2% year over year.
FY20 Results
Earnings (as reported) for full-year 2020 were $2.12 per share compared with earnings of $2.00 per share a year ago. Net sales rallied 25.8% year over year to $3,138.1 million.
Financial Position
Agnico Eagle ended 2020 with cash and cash equivalents of $402.5 million compared with $321.9 million as of Dec 31, 2019. Long-term debt was around $1,565.2 million as of Dec 31,2020, compared with $1,364.1 million as of Dec 31, 2019.
Total cash from operating activities amounted to $403.5 million in the fourth quarter, up 56.7% 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.
Capital expenditures are predicted to be roughly $803 million in 2021 and in the range of $750-$800 million through 2024.
Price Performance
Shares of Agnico Eagle have gained 20.1% in the past year compared with 19.8% rise 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 Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 74.2% for the current fiscal. The company’s shares have surged around 150.1% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 34.1% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 50.1% in the past year. It currently sports a Zacks Rank #1.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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