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Agnico Eagle (AEM) Beats Earnings and Sales Estimates in Q2

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Agnico Eagle Mines Limited (AEM - Free Report) reported net income of $189.6 million or 77 cents per share in second-quarter 2021 compared with $105.3 million or 43 cents per share reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 68 cents, surpassing the Zacks Consensus Estimate of 58 cents per share.

The company generated revenues of $966.3 million, up 73.4% year over year. The figure topped the Zacks Consensus Estimate of $901.4.

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 58.9% year over year to 526,006 ounces in the reported quarter. The figure includes gold production at Hope Bay. Total cash costs per ounce for gold were $748, down 9.3% year over year.

All-in sustaining costs (AISC) were $1,037 per ounce in the quarter, including Hope Bay.

Financial Position

Agnico Eagle ended the quarter with cash and cash equivalents of $277.7 million compared with $126.5 million as of Mar 31, 2021. Long-term debt was around $1,441.5 million as of Jun 30, 2021 compared with $1,565.8 million as of Mar 31, 2021.

Total cash from operating activities amounted to $406.9 million in the second quarter, up 150.2% 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 for 2021.

The quarterly production guidance for Hope Bay is 18,000-20,000 ounces of gold at total cash costs per ounce of $950-$975 and AISC per ounce of $1,525-$1,575.

Price Performance

Shares of Agnico Eagle have declined 17.9% in the past year compared with 22.3% decline of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Agnico Eagle currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .

Nucor has a projected earnings growth rate of around 444.9% for the current year. The company’s shares have surged 137.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 48.2% in the past year. It currently carries a Zacks Rank #2.

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 44.9% in the past year. It currently holds a Zacks Rank #2.

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