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Agnico Eagle Mines Limited (AEM - Free Report) reported net income of $17.1 million or 7 cents per share in third-quarter 2018, down from $72.5 million or 31 cents in the year-ago quarter.
Barring one-time items, adjusted earnings came in at a penny per share, which compared favorably with the Zacks Consensus Estimate of a loss of 5 cents.
Agnico Eagle recorded revenues of $518.7 million, down around 10.6% from $580 million in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $492 million.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Payable gold production fell 7.2% year over year to 421,718 ounces from 454,362 ounces in the year-ago quarter, mainly due to lower throughput levels at Meadowbank.
Total cash costs per ounce were $637, up roughly 16.7% from $546 in the prior-year quarter.
All-in sustaining costs (AISC) were $848 per ounce, up 7.5% from the prior-year quarter’s $789. The rise can be attributed to higher total cash costs per ounce and expected drop in gold production.
Financial Position
As of Sep 30, 2018, cash and cash equivalents were around $520 million, down roughly 39.2% from year-ago quarter’s tally.
Long-term debt was $1,721.5 million at the end of the quarter, up 25.4% from $1,372.4 million in the year-ago quarter.
There was no outstanding balance on credit facility as of Sep 30, 2018. This resulted in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditure in the quarter totaled $337.7 million.
Outlook
For 2018, Agnico Eagle raised its production guidance. It now expects to produce around 1.60 million ounces of gold, up from 1.58 million ounces expected earlier. Total cash costs and AISC for 2018 are projected to be at or modestly lower the mid-point of the guidance ranges of $625-$675 per ounce and $890-$940 per ounce, respectively. Production for 2019 is forecast to exceed the mid-point of the current guidance of 1.63-1.77 million ounces. Price Performance
Agnico Eagle’s shares have lost 16.2% in the past three months compared with 11.6% decline of the industry.
Zacks Rank & Stocks to Consider
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , KMG Chemicals, Inc. and The Mosaic Company (MOS - Free Report) .
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 18.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #2 (Buy). Its shares have risen 37.3% in a year’s time.
Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #2. The company’s shares have rallied 43% in the past year.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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Image: Bigstock
Agnico Eagle (AEM) Beats on Q3 Earnings & Sales, Lifts View
Agnico Eagle Mines Limited (AEM - Free Report) reported net income of $17.1 million or 7 cents per share in third-quarter 2018, down from $72.5 million or 31 cents in the year-ago quarter.
Barring one-time items, adjusted earnings came in at a penny per share, which compared favorably with the Zacks Consensus Estimate of a loss of 5 cents.
Agnico Eagle recorded revenues of $518.7 million, down around 10.6% from $580 million in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $492 million.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise | Agnico Eagle Mines Limited Quote
Operational Highlights
Payable gold production fell 7.2% year over year to 421,718 ounces from 454,362 ounces in the year-ago quarter, mainly due to lower throughput levels at Meadowbank.
Total cash costs per ounce were $637, up roughly 16.7% from $546 in the prior-year quarter.
All-in sustaining costs (AISC) were $848 per ounce, up 7.5% from the prior-year quarter’s $789. The rise can be attributed to higher total cash costs per ounce and expected drop in gold production.
Financial Position
As of Sep 30, 2018, cash and cash equivalents were around $520 million, down roughly 39.2% from year-ago quarter’s tally.
Long-term debt was $1,721.5 million at the end of the quarter, up 25.4% from $1,372.4 million in the year-ago quarter.
There was no outstanding balance on credit facility as of Sep 30, 2018. This resulted in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditure in the quarter totaled $337.7 million.
Outlook
For 2018, Agnico Eagle raised its production guidance. It now expects to produce around 1.60 million ounces of gold, up from 1.58 million ounces expected earlier. Total cash costs and AISC for 2018 are projected to be at or modestly lower the mid-point of the guidance ranges of $625-$675 per ounce and $890-$940 per ounce, respectively. Production for 2019 is forecast to exceed the mid-point of the current guidance of 1.63-1.77 million ounces.
Price Performance
Agnico Eagle’s shares have lost 16.2% in the past three months compared with 11.6% decline of the industry.
Zacks Rank & Stocks to Consider
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , KMG Chemicals, Inc. and The Mosaic Company (MOS - Free Report) .
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 18.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #2 (Buy). Its shares have risen 37.3% in a year’s time.
Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #2. The company’s shares have rallied 43% in the past year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>