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Agnico Eagle (AEM) to Restart Operations in Quebec Mines
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Agnico Eagle Mines Limited (AEM - Free Report) has provided an update on its Quebec operations. The company stated that it is taking steps to restart its operations in the Abitibi region of Quebec, which includes the Goldex mine, the LaRonde Complex and the Canadian Malartic mine (50% interest).
This follows the government of Quebec's announcement on Apr 13 to add mining operations to the list of priority activities and services that are allowed to operate, while the province responds to the coronavirus pandemic. Notably, mining operations will be permitted to restart in a gradual and supervised manner on Apr 15.
Agnico Eagle expects to report its first-quarter results on Apr 30, when it intends to provide operational updates for each of its mines, including those in the Abitibi region of Quebec.
The company stated that it expects exploration activities to remain suspended until May 4, 2020.
Its shares have gained 26.7% in the past year compared with the industry’s 54.7% growth.
In the last month, Agnico Eagle said that it was withdrawing its 2020 production and costs guidance in view of the lower production activities at the Quebec and Nunavut operations along with future uncertainties and the severity of the coronavirus outbreak. The company expects payable gold production of around 400,000 ounces for the first quarter. However, gold sales may be potentially affected by transport and refining headwinds.
Given the uncertainties surrounding the pandemic, it has also drawn down $1 billion from its $1.2-billion unsecured revolving bank credit facility in March. While Agnico Eagle has expressed no intentions to use the funds, it may use a portion to repay part of the $360 million of 6.67% series B notes due April 2020. Also, the company will review its 2020 sustaining and growth capital budget to lower expenditure.
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Novagold Resources Inc. (NG - Free Report) .
Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 77.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 69.1% in a year.
Novagold currently has a Zacks Rank #2 and a projected earnings growth rate of 11.1% for 2020. The company’s shares have shot up 177.1% in a year.
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Agnico Eagle (AEM) to Restart Operations in Quebec Mines
Agnico Eagle Mines Limited (AEM - Free Report) has provided an update on its Quebec operations. The company stated that it is taking steps to restart its operations in the Abitibi region of Quebec, which includes the Goldex mine, the LaRonde Complex and the Canadian Malartic mine (50% interest).
This follows the government of Quebec's announcement on Apr 13 to add mining operations to the list of priority activities and services that are allowed to operate, while the province responds to the coronavirus pandemic. Notably, mining operations will be permitted to restart in a gradual and supervised manner on Apr 15.
Agnico Eagle expects to report its first-quarter results on Apr 30, when it intends to provide operational updates for each of its mines, including those in the Abitibi region of Quebec.
The company stated that it expects exploration activities to remain suspended until May 4, 2020.
Its shares have gained 26.7% in the past year compared with the industry’s 54.7% growth.
In the last month, Agnico Eagle said that it was withdrawing its 2020 production and costs guidance in view of the lower production activities at the Quebec and Nunavut operations along with future uncertainties and the severity of the coronavirus outbreak. The company expects payable gold production of around 400,000 ounces for the first quarter. However, gold sales may be potentially affected by transport and refining headwinds.
Given the uncertainties surrounding the pandemic, it has also drawn down $1 billion from its $1.2-billion unsecured revolving bank credit facility in March. While Agnico Eagle has expressed no intentions to use the funds, it may use a portion to repay part of the $360 million of 6.67% series B notes due April 2020. Also, the company will review its 2020 sustaining and growth capital budget to lower expenditure.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited price-consensus-chart | Agnico Eagle Mines Limited Quote
Zacks Rank & Stocks to Consider
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Novagold Resources Inc. (NG - Free Report) .
Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 77.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 69.1% in a year.
Novagold currently has a Zacks Rank #2 and a projected earnings growth rate of 11.1% for 2020. The company’s shares have shot up 177.1% in a year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>