Agnico Eagle (AEM) AI Stock Analysis

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Agnico Eagle

(TSX:AEM)

Rating:82Outperform

Price Target:

C$224.00

▲(5.30% Upside)

Agnico Eagle's overall stock score is driven by its robust financial performance and positive earnings call sentiment. The company's strong profitability, stable financial structure, and strategic focus on growth projects are significant strengths. Technical indicators support a bullish outlook, though valuation suggests limited upside without further earnings growth.

Agnico Eagle (AEM) vs. iShares MSCI Canada ETF (EWC)

Market Cap

$106.47B

Dividend Yield1.06%

Average Volume (3M)880.65K

Price to Earnings (P/E)25.7

Beta (1Y)1.01

Revenue Growth36.19%

EPS Growth392.37%

CountryCA

Employees10,125

SectorBasic Materials

Sector Strength62

IndustryGold

Share Statistics

EPS (TTM)2.68

Shares Outstanding502,341,980

10 Day Avg. Volume986,846

30 Day Avg. Volume880,647

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.76

Enterprise Value/Revenue11.92

Enterprise Value/Gross Profit24.88

Enterprise Value/Ebitda20.61

Forecast

1Y Price Target

$217.66

Price Target Upside2.32% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

Agnico Eagle Business Overview & Revenue Model

Company DescriptionAgnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. It operates through Northern Business and Southern Business segments. The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits. Its flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2021, the company's LaRonde mine had proven and probable mineral reserves of approximately 3.0 million ounces of gold. It is also involved in exploration activities in Europe, Latin America, and the United States. The company was incorporated in 1953 and is headquartered in Toronto, Canada.

How the Company Makes MoneyAgnico Eagle generates revenue primarily through the sale of gold and silver produced at its mining operations. The company employs a revenue model based on the extraction and processing of precious metals, which are then sold on the global market. Key revenue streams include the sale of refined gold and silver, with prices influenced by market demand and commodity prices. Additionally, Agnico Eagle may engage in forward sales and hedging strategies to manage price fluctuations. The company benefits from strategic partnerships in the mining sector and has a strong focus on exploration to expand its resource base, which can lead to increased production and future revenue growth. Factors contributing to Agnico Eagle's earnings include operational efficiency, cost management, and the ability to navigate regulatory environments effectively.

Agnico Eagle Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong positive sentiment overall, with record-breaking financial performance and significant operational achievements. The company demonstrated effective cost management, exploration success, and robust financial health with debt reduction. Despite some operational challenges, the focus on future growth and development projects remains solid.

Q2-2025 Updates

Positive Updates

Record Financial Performance

Agnico Eagle reported record free cash flow of $1.3 billion, record adjusted EBITDA of $1.9 billion, and record adjusted net income of $1.94 per share. Additionally, record cash flows were returned to shareholders through $200 million in dividends and $100 million in share buybacks.

Strong Operational Performance

Gold production for the quarter was approximately 866,000 ounces at total cash costs of $933 per ounce. The company reported peer-leading costs and a 9% reduction in costs per meter drilled.

Exploration Success

The company made significant exploration progress with exciting results at key sites such as Odyssey, Detour, and Hope Bay, contributing to strong potential for future reserve additions.

Debt Reduction and Financial Strengthening

The company ended the quarter with a net cash position of almost $1 billion and prepaid $550 million of long-term debt, significantly deleveraging the balance sheet.

Project Development Progress

Significant progress was made on key projects including Detour, Upper Beaver, and Hope Bay, with expectations of increased production capacity.

Negative Updates

Nunavut Operations Challenges

Lower production was reported at Nunavut operations due to an extended Caribou migration, impacting overall production.

Detour Lake Production Guidance

Due to lower grades, the Detour Lake production is now expected to be at the lower end of the full year production guidance range.

Potential Future Tax Liabilities

Significant cash tax payments are expected in Q1 2026, potentially impacting future cash flow due to rising gold prices leading to a higher tax liability.

Company Guidance

In the second quarter of 2025, Agnico Eagle Mines Limited reported exceptional financial results, driven by robust operational performance and favorable gold prices. The company achieved record financial metrics, including free cash flow of $1.3 billion, adjusted EBITDA of $1.9 billion, and adjusted net income of $1.94 per share. Shareholders benefited from $200 million in dividends, $100 million in share buybacks, and $550 million in debt repayments. Gold production reached 866,000 ounces at total cash costs of $933 per ounce, while all-in sustaining costs were $1,289 per ounce. The quarter also featured significant operational achievements such as record production at Odyssey and Macassa, and a 9% reduction in exploration costs per meter drilled. Agnico Eagle continues to focus on operational improvements, capital discipline, and enhancing shareholder value, with strategic investments aimed at expanding future production capacity across several key projects.

Agnico Eagle Financial Statement Overview

Summary

Agnico Eagle exhibits strong financial health with high profitability, stable leverage, and efficient cash flow management. The company maintains solid margins and asset management practices, though recent revenue challenges suggest a need for strategic focus on growth opportunities.

Income Statement

Very Positive

Agnico Eagle demonstrates strong profitability with a consistent increase in gross and net profit margins. The TTM gross profit margin is 47.9% and the net profit margin is 26.5%, reflecting efficient cost management. EBIT and EBITDA margins are robust at 42.5% and 57.8% respectively. However, the recent revenue decline from the previous annual period warrants attention, indicating potential market challenges or operational adjustments.

Balance Sheet

Very Positive

The balance sheet presents a stable financial structure with a low debt-to-equity ratio of 0.06, showcasing a conservative leverage approach. The equity ratio is healthy at 70.7%, signifying strong asset backing by shareholders' equity. Return on Equity stands at 8.3% annually, showing moderate profitability relative to equity. These indicators highlight financial stability, though the moderate ROE suggests room for enhanced shareholder returns.

Cash Flow

Very Positive

Cash flow metrics are strong, with a significant operating cash flow to net income ratio of 1.75, indicating excellent cash earnings quality. Free cash flow generation remains robust, despite a decline in growth rate, reflecting effective capital expenditure management. The cash flow profile highlights the company's ability to generate and manage cash efficiently, providing a solid foundation for future investment and debt service.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.77B	8.29B	6.63B	5.74B	3.82B	3.14B
Gross Profit	3.24B	3.69B	3.72B	2.00B	1.33B	1.08B
EBITDA	3.91B	4.42B	4.05B	2.27B	1.75B	1.57B
Net Income	1.80B	1.90B	1.94B	670.25M	561.95M	511.61M
Balance Sheet
Total Assets	30.59B	29.99B	28.68B	23.49B	10.19B	9.61B
Cash, Cash Equivalents and Short-Term Investments	1.15B	933.74M	348.85M	658.63M	191.07M	406.46M
Total Debt	1.28B	1.28B	2.00B	1.49B	1.70B	1.69B
Total Liabilities	8.95B	9.15B	9.26B	7.25B	4.21B	3.93B
Stockholders Equity	21.64B	20.83B	19.42B	16.24B	5.98B	5.68B
Cash Flow
Free Cash Flow	1.71B	2.13B	953.66M	558.40M	398.31M	432.71M
Operating Cash Flow	3.14B	3.96B	2.65B	2.10B	1.32B	1.19B
Investing Cash Flow	-1.71B	-2.01B	-2.81B	-710.46M	-1.23B	-808.81M
Financing Cash Flow	-863.05M	-1.36B	-163.96M	-914.85M	-297.24M	-302.82M

Agnico Eagle Technical Analysis

Technical Analysis Sentiment

Positive

Last Price212.73

Price Trends

50DMA

181.10

Positive

100DMA

171.26

Positive

200DMA

152.16

Positive

Market Momentum

MACD

9.17

Negative

RSI

80.55

Negative

STOCH

86.59

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AEM, the sentiment is Positive. The current price of 212.73 is above the 20-day moving average (MA) of 196.54, above the 50-day MA of 181.10, and above the 200-day MA of 152.16, indicating a bullish trend. The MACD of 9.17 indicates Negative momentum. The RSI at 80.55 is Negative, neither overbought nor oversold. The STOCH value of 86.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AEM.

Agnico Eagle Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEM	82 Outperform	$106.47B	25.74	13.92%	1.06%	36.19%	392.37%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
B	56 Neutral	$50.13B	18.50	11.41%	1.53%	19.79%	-262.11%
FNV	―	$38.90B	48.75	12.61%	0.74%	―	―
KGC	―	$28.31B	18.42	22.05%	0.52%	―	―
WPM	―	$47.87B	60.64	10.60%	0.61%	―	―
AGI	―	$13.82B	40.08	10.18%	0.30%	―	―

* Basic Materials Sector Average

Performance Comparison

TSE:AEM

Agnico Eagle

212.73

101.36

91.01%

Barrick Mining

29.40

9.02

44.26%

FNV

Franco-Nevada

201.85

77.93

62.89%

KGC

Kinross Gold

23.26

13.51

138.56%

WPM

Wheaton Precious Metals

107.37

45.33

73.07%

AGI

Alamos Gold

32.90

12.29

59.63%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025