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

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Agnico Eagle Mines Limited (AEM - Free Report) 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

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.

Outlook

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 - Free Report) , Fortuna Silver Mines Inc. (FSM - Free Report) , and Newmont Corporation (NEM - Free Report) , 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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