Agnico Eagle Mines Limited
(AEM - Free Report
) reported a net income of $61.9 million or 26 cents per share in the second quarter of 2017, compared with net income of $19 million or 8 cents recorded in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of 17 cents.
Revenues and Operational Highlights
Agnico Eagle recorded revenues of $550 million in the second quarter of 2017, up 2.2% from $538 million in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $500 million.
Payable gold production in the second quarter improved 4.6% year over year to 427,743 ounces from 408,932 ounces in the year-ago quarter owing to higher grades mined at Meadowbank and Canadian Malartic.
Total cash costs per ounce for the second quarter was $556, down 6% from the prior-year quarter figure of $592.
All-in sustaining costs per ounce (AISC) were $785 for the second quarter, lower than the prior-year quarter figure of $848. This is mainly due to lower total cash costs per ounce and reduced sustaining capital expenditures on a year-over-year basis.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
As of June 30, 2017, cash and cash equivalents were around $952.4 million, up 387.4% from year-ago quarter. Long-term debt was $1,371.9 million in the reported quarter up 27.9% from the prior-year quarter.
There was no outstanding balance on Agnico Eagle’s credit facility as of Jun 30, 2017. This resulted in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditures in the reported quarter was $226.3 million.
Agnico Eagle expects total cash costs in the range of $580–$610, down from the previous guidance of $595–$625 per ounce. AISC is anticipated to be in the range of $830–$880 per ounce in 2017, lower than previous guidance of $850–$900 per ounce. The company anticipates production to be 1.62 million ounces in 2017 compared with the previous guidance of 1.57 million ounces.
Agnico Eagle’s shares have rallied 12.6% year to date, outperforming the industry
’s gain of 9.4%.
Zacks Rank & Key Picks
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Akzo Nobel has an expected long-term earnings growth of 11.1%.
Arkema has an expected long-term earnings growth of 12.4%.
Hitachi Chemical has an expected long-term earnings growth of 5%.
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