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Agnico-Eagle Mines Limited (TSE:AEM)
:AEM
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Agnico Eagle
(NYSE:AEM)
Rating:78Outperform
Price Target:
C$181.00
▲(12.38%Upside)
Positive Factors
Debt Management
Net debt was significantly reduced while maintaining a strong free cash flow and executing share buybacks.
Financial Performance
Agnico Eagle Mines reported a solid earnings beat on lower unit costs, with higher gold production.
Project Development
Upper Beaver is progressing well, ahead of schedule and benefiting from synergies with Macassa and AEM's in-house approach to construction.
Negative Factors
Competitive Growth
Agnico is a quality gold producer with strong margins, but has been lacking in growth vs. peers.
Growth Potential
Agnico is a quality gold producer with strong margins, but has been lacking in growth vs. peers due to the long-dated nature of the growth.
Agnico Eagle (AEM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$80.37B
Dividend Yield1.43%
Average Volume (3M)1.01M
Price to Earnings (P/E)24.1
Beta (1Y)1.01
Revenue Growth32.68%
EPS Growth419.46%
CountryCA
Employees10,125
SectorBasic Materials
Sector Strength73
IndustryGold
Share Statistics
EPS (TTM)2.12
Shares Outstanding505,539,430
10 Day Avg. Volume1,069,832
30 Day Avg. Volume1,005,965
Financial Highlights & Ratios
PEG Ratio1.05
Price to Book (P/B)2.81
Price to Sales (P/S)0.00
P/FCF Ratio26.31
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue2.25
Enterprise Value/Gross Profit18.88
Enterprise Value/Ebitda4.91
Forecast
1Y Price Target
C$190.31Price Target Upside18.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Agnico Eagle Business Overview & Revenue Model
Company DescriptionAgnico Eagle Mines Limited (AEM) is a leading Canadian gold mining company, involved primarily in the exploration, development, and production of gold in Canada, Finland, and Mexico. The company also has exploration and development activities in the United States. Established in 1957, Agnico Eagle is known for its sustainable and responsible mining practices, and it focuses on generating long-term value through its high-quality asset base and operational expertise.
How the Company Makes MoneyAgnico Eagle generates its revenue primarily through the extraction and sale of gold. The company owns and operates several gold mines and projects, which produce gold that is sold in the global marketplace. Additionally, Agnico Eagle occasionally produces by-products such as silver, zinc, and copper, which also contribute to its revenue streams. The company's financial performance is influenced by factors such as gold market prices, production levels, and operational efficiency. Agnico Eagle also engages in strategic partnerships and joint ventures to enhance its exploration and production capabilities, thereby supporting its revenue growth.
Agnico Eagle Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -2.52%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Agnico Eagle Mines demonstrated solid operational performance and financial results, highlighted by record financial metrics and successful cost management. Despite some challenges related to safety, royalty costs, and potential tariff impacts, the company's strategic focus on exploration, sustainability, and shareholder returns underline a positive outlook.Q1-2025 Updates
Positive Updates
Record Financial Results
Agnico Eagle Mines reported record revenue of $2.5 billion, record adjusted earnings of $770 million or $1.53 per share, and record adjusted EBITDA of $1.6 billion.
Gold Production and Cost Management
Gold production in Q1 was approximately 874,000 ounces with a total cash cost of $903 per ounce, below guidance, supported by higher grades and favorable currency exchange rates.
Strong Cash Flow and Debt Reduction
The company generated $594 million of free cash flow, significantly reducing net debt to nearly zero from $1.5 billion at the start of 2024.
Exploration Success
Excellent exploration results at Hope Bay and Detour, with strong drill results indicating potential resource expansion.
Operational Milestones
Major milestones achieved in several projects, including the commissioning of a temporary loading station at Canadian Malartic and progress on Detour and Upper Beaver projects.
Sustainability Achievements
Agnico Eagle published its 16th annual sustainability report, highlighting a GHG intensity of 0.38 tons of CO2 equivalent per ounce, well below the industry average.
Negative Updates
Safety Performance
While 2023 was the best year for safety in the company's history, 2024 saw a decline in safety performance, with a focus on reducing harm across sites.
Rising Royalty Costs
Higher royalty costs were incurred due to rising gold prices, with every $100 increase in gold price adding approximately $5 per ounce in royalty costs.
Challenging Weather Conditions
Detour experienced an abnormal winter, impacting mining activities and leading to reliance on lower grade stockpiles.
Potential Cost Increases Due to Tariffs
The company anticipates possible cost increases related to tariffs, although these may be offset by a weaker Canadian dollar.
Company Guidance
During the Agnico Eagle Mines Limited Q1 2025 conference call, significant guidance was provided with a focus on key metrics and strategic initiatives. The company reported strong financial performance, including record revenue of $2.5 billion, record adjusted earnings of $770 million, and record adjusted EBITDA of $1.6 billion. Gold production for the quarter was approximately 874,000 ounces, with cash costs of $903 per ounce and all-in sustaining costs of $1,183 per ounce. The company maintained its full-year cost guidance, with expected cash costs between $915 and $965 per ounce and all-in sustaining costs between $1,250 and $1,300 per ounce. Agnico highlighted its continued efforts in cost control and production reliability, with a focus on maintaining low turnover rates and leveraging regional strengths. Shareholder returns were emphasized, with approximately $0.25 billion returned through dividends and share buybacks in the quarter, and an increased focus on share repurchases as the company approaches zero net debt. The call also detailed the progress on several growth projects, including Detour, Malartic, Upper Beaver, Hope Bay, and San Nicolas, positioning the company for future production increases and value creation.Agnico Eagle Financial Statement Overview
Summary
Agnico Eagle's financial health is strong, with high profitability and efficient cash flow management. The company maintains solid margins and asset management practices, although recent revenue challenges suggest a need for strategic focus on growth opportunities.Income Statement
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.85
Very Positive
Balance Sheet
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.82
Very Positive
Cash Flow
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.88
Very Positive
| 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
Neutral
161.06
Price Trends
161.48
Negative
155.50
Positive
136.88
Positive
Market Momentum
-0.20
Positive
46.89
Neutral
48.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AEM, the sentiment is Neutral. The current price of 161.06 is below the 20-day moving average (MA) of 164.90, below the 50-day MA of 161.48, and above the 200-day MA of 136.88, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 48.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AEM.
Agnico Eagle Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $50.76B | 15.91 | 9.70% | 1.94% | 19.13% | 66.78% | |
78 Outperform | C$80.37B | 24.14 | 11.45% | 1.43% | 32.68% | 419.46% | |
77 Outperform | $25.52B | 15.16 | 18.12% | 0.79% | 30.84% | 188.80% | |
75 Outperform | $53.85B | 62.15 | 8.51% | 0.80% | 37.40% | 8.55% | |
74 Outperform | $41.67B | 48.23 | 10.19% | 0.96% | -7.22% | ― | |
71 Outperform | $15.03B | 41.52 | 7.85% | 0.38% | 37.83% | 24.13% | |
62 Neutral | $10.18B | 9.76 | -0.16% | 2.86% | 2.22% | -32.49% |
* Basic Materials Sector Average
Performance Comparison
TSE:AEM
Agnico Eagle
161.06
61.05
61.04%
TSE:AGI
Alamos Gold
36.25
12.48
52.50%
TSE:K
Kinross Gold
20.98
8.59
69.30%
TSE:WPM
Wheaton Precious Metals
121.60
41.52
51.84%
TSE:FNV
Franco-Nevada
217.89
46.01
26.77%
TSE:ABX
Barrick Mining
28.59
4.38
18.08%
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.