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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.
 
Outlook
 
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.
 
Price Performance
 
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).
 
Some better-ranked companies in the basic material space include Akzo Nobel N.V. (AKZOY - Free Report) , Arkema S.A. (ARKAY - Free Report) and Hitachi Chemical (HCHMY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 
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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