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Agnico Eagle (AEM) Q3 Earnings Surpass Estimates, Sales Up Y/Y
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Agnico Eagle Mines Limited (AEM - Free Report) reported a net income of $79.6 million or 17 cents per share in third-quarter 2022, down from $119 million or 49 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 52 cents. The bottom line surpassed the Zacks Consensus Estimate of 43 cents per share.
The company generated revenues of $1,449.7 million, up around 47% year over year.
The company saw higher payable gold production in the quarter.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Payable gold production was 816,795 ounces in the reported quarter, up around 51% from 541,663 ounces in the prior-year quarter. Production was driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. Amaruq also delivered record production on the back of strong operating performance while Macassa saw sustained improvement in productivity.
Total cash costs per ounce for gold were $779, down from $784 a year ago. Production costs per ounce were $804, down from $852 in the prior-year period.
All-in sustaining costs (AISC) were $1,106 per ounce in the quarter compared with $1,059 per ounce in the prior-year quarter. The increase was due to reduced by-product metal revenues from lower production volumes and increased sustaining capital expenditures resulting from higher input costs.
Financial Position
Agnico Eagle ended the year with cash and cash equivalents of $821.8 million, up more than three-fold year over year. Long-term debt was around $1,241.6 million, down around 7% year over year.
Total cash from operating activities amounted to $575.4 million in the third quarter, up around 94% year over year.
Outlook
The company continues to expect payable gold production for 2022 in the range of 3.2-3.4 million ounces. It now projects total cash costs per ounce and ASIC to be near the top end of its guidance ranges of $725-$775 and $1,000-$1,050 per ounce, respectively.
The forecast for capital expenditures for 2022 is roughly $1.4 billion.
Price Performance
Shares of Agnico Eagle have declined 15.8% in the past year compared with a 12.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 8% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 53% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 24% over a year.
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Agnico Eagle (AEM) Q3 Earnings Surpass Estimates, Sales Up Y/Y
Agnico Eagle Mines Limited (AEM - Free Report) reported a net income of $79.6 million or 17 cents per share in third-quarter 2022, down from $119 million or 49 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 52 cents. The bottom line surpassed the Zacks Consensus Estimate of 43 cents per share.
The company generated revenues of $1,449.7 million, up around 47% year over year.
The company saw higher payable gold production in the quarter.
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 816,795 ounces in the reported quarter, up around 51% from 541,663 ounces in the prior-year quarter. Production was driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. Amaruq also delivered record production on the back of strong operating performance while Macassa saw sustained improvement in productivity.
Total cash costs per ounce for gold were $779, down from $784 a year ago. Production costs per ounce were $804, down from $852 in the prior-year period.
All-in sustaining costs (AISC) were $1,106 per ounce in the quarter compared with $1,059 per ounce in the prior-year quarter. The increase was due to reduced by-product metal revenues from lower production volumes and increased sustaining capital expenditures resulting from higher input costs.
Financial Position
Agnico Eagle ended the year with cash and cash equivalents of $821.8 million, up more than three-fold year over year. Long-term debt was around $1,241.6 million, down around 7% year over year.
Total cash from operating activities amounted to $575.4 million in the third quarter, up around 94% year over year.
Outlook
The company continues to expect payable gold production for 2022 in the range of 3.2-3.4 million ounces. It now projects total cash costs per ounce and ASIC to be near the top end of its guidance ranges of $725-$775 and $1,000-$1,050 per ounce, respectively.
The forecast for capital expenditures for 2022 is roughly $1.4 billion.
Price Performance
Shares of Agnico Eagle have declined 15.8% in the past year compared with a 12.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 8% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 53% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 24% over a year.