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Agnico Eagle (AEM) Beats Earnings and Sales Estimates in Q3

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Agnico Eagle Mines Limited (AEM - Free Report) logged profit of $76.7 million or 32 cents per share in third-quarter 2019, up from $17.1 million or 7 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 37 cents, which beat the Zacks Consensus Estimate of 27 cents.

The company generated revenues of around $683 million, up nearly 32% year over year. The figure surpassed the Zacks Consensus Estimate of $678 million.

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

 

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

Gold production rose 13.1% year over year to 476,937 ounces. The figure includes pre-commercial production of 33,134 ounces at Amaruq. Total cash costs per ounce were $653, up from $637 in the prior-year quarter.

All-in sustaining costs (AISC) were $903 per ounce, up 6.5% from year over year.

Financial Position

At the end of third quarter, cash and cash equivalents were around $258.4 million, down 50.3% year over year. Long-term debt was $1,363.4 million at the end of the reported quarter.

Total cash from operating activities amounted to $349.2 million in the third quarter, up nearly three-folds year over year.  

Outlook

Agnico Eagle revised its production guidance for 2019.

Gold production for the year is now projected in the band of 1.77-1.78 million ounces, up from 1.75 million ounces expected earlier. The projection includes pre-commercial production from Meliadine and Amaruq.

The company continues to expect total cash costs per ounce between $620 and $670. AISC is expected in the range of $875-$925 per ounce.

Price Performance

Agnico Eagle’s shares have surged 52.9% in the past year compared with the industry’s 55.3% rally.



Zacks Rank & Other Key Picks

Agnico Eagle currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Kirkland Lake Gold Ltd. , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here

Kinross has an expected earnings growth rate of 190% for 2019. The company’s shares have surged 67% in the past year.

Franco-Nevada has a projected earnings growth rate of 49.3% for 2019. The company’s shares have rallied 42.8% in a year’s time.

Kirkland Lake Gold has an estimated earnings growth rate of 71.3% for the current year. Its shares have moved up 113.4% in the past year.

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