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Agnico Eagle's (AEM) Q4 Earnings Beat, Sales Miss Estimates
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Agnico Eagle Mines Limited (AEM - Free Report) reported a net income of $205 million or 45 cents per share in fourth-quarter 2022, up from $101.4 million or 41 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 41 cents. The bottom line surpassed the Zacks Consensus Estimate of 39 cents.
The company generated revenues of $1,384.7 million, up around 46% year over year. It lagged the Zacks Consensus Estimate of $1,423.3 million.
AEM’s performance in the fourth quarter was supported by higher mine operating margins due to higher sales volume resulting from the merger between Agnico and Kirkland Lake Gold and gains from derivative financial instruments. AEM also saw higher payable gold production in the reported quarter.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Payable gold production was 799,438 ounces in the reported quarter, up 59.3% from 501,932 ounces in the prior-year quarter. Production was driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. However, lower production at Pinos Altos mine, Kittila mine and the LaRonde Complex and the company’s decision to use Hope Bay infrastructure for exploration activities offset the same in the fourth quarter.
Total cash costs per ounce for gold were $863, up from $814 a year ago. Production costs per ounce were $834, down from $934 in the prior-year period.
All-in sustaining costs (AISC) were $1,231 per ounce in the quarter compared with $1,136 per ounce in the prior-year quarter. The increase was due to increased sustaining capital expenditures and reduced by-product metal revenues from lower production volumes.
FY22 Results
Earnings for full-year 2022 were $1.53 per share compared with $2.31 a year ago. Net sales climbed 48.4% to $5,741.2 million.
Financials
Agnico Eagle ended the year with cash and cash equivalents of $658.6 million, up 254% year over year. Long-term debt was $1,242 million, down around 7.3%.
Total cash from operating activities amounted to $2,096.6 million in full-year 2022, up around 59% year over year.
Outlook
The company expects payable gold production for 2023 in the range of 3.24-3.44 million ounces. It projects total cash costs per ounce in the range of $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 13.8% in the past year compared with an 11.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Agnico Eagle currently carries a Zacks Rank #1 (Strong Buy).
Alpha Metallurgical’s shares have gained 87.3% in the past year. The Zacks Consensus Estimate for AMR’s current-year earnings has been revised 1.7% upward in the past 60 days. The company has an earnings growth rate of 425% for the current year.
Alpha Metallurgical topped Zacks Consensus Estimate in two of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.1% on average.
ATI’s shares have gained 72.7% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 0.9% upward in the past 60 days. The company has an earnings growth rate of 8% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 41.6% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.5% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
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Agnico Eagle's (AEM) Q4 Earnings Beat, Sales Miss Estimates
Agnico Eagle Mines Limited (AEM - Free Report) reported a net income of $205 million or 45 cents per share in fourth-quarter 2022, up from $101.4 million or 41 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 41 cents. The bottom line surpassed the Zacks Consensus Estimate of 39 cents.
The company generated revenues of $1,384.7 million, up around 46% year over year. It lagged the Zacks Consensus Estimate of $1,423.3 million.
AEM’s performance in the fourth quarter was supported by higher mine operating margins due to higher sales volume resulting from the merger between Agnico and Kirkland Lake Gold and gains from derivative financial instruments. AEM also saw higher payable gold production in the reported 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 799,438 ounces in the reported quarter, up 59.3% from 501,932 ounces in the prior-year quarter. Production was driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. However, lower production at Pinos Altos mine, Kittila mine and the LaRonde Complex and the company’s decision to use Hope Bay infrastructure for exploration activities offset the same in the fourth quarter.
Total cash costs per ounce for gold were $863, up from $814 a year ago. Production costs per ounce were $834, down from $934 in the prior-year period.
All-in sustaining costs (AISC) were $1,231 per ounce in the quarter compared with $1,136 per ounce in the prior-year quarter. The increase was due to increased sustaining capital expenditures and reduced by-product metal revenues from lower production volumes.
FY22 Results
Earnings for full-year 2022 were $1.53 per share compared with $2.31 a year ago. Net sales climbed 48.4% to $5,741.2 million.
Financials
Agnico Eagle ended the year with cash and cash equivalents of $658.6 million, up 254% year over year. Long-term debt was $1,242 million, down around 7.3%.
Total cash from operating activities amounted to $2,096.6 million in full-year 2022, up around 59% year over year.
Outlook
The company expects payable gold production for 2023 in the range of 3.24-3.44 million ounces. It projects total cash costs per ounce in the range of $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 13.8% in the past year compared with an 11.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Agnico Eagle currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks to consider in the basic materials space are Alpha Metallurgical Resources, Inc. (AMR - Free Report) , ATI Inc. (ATI - Free Report) and Nucor Corporation (NUE - Free Report) . ATI and NUE currently sport a Zacks Rank #1, while AMR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alpha Metallurgical’s shares have gained 87.3% in the past year. The Zacks Consensus Estimate for AMR’s current-year earnings has been revised 1.7% upward in the past 60 days. The company has an earnings growth rate of 425% for the current year.
Alpha Metallurgical topped Zacks Consensus Estimate in two of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.1% on average.
ATI’s shares have gained 72.7% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 0.9% upward in the past 60 days. The company has an earnings growth rate of 8% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 41.6% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.5% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.