Agnico Eagle (AEM) AI Stock Analysis

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Agnico Eagle

(NYSE:AEM)

Rating:80Outperform

Price Target:

C$195.00

▲(15.32%Upside)

Agnico Eagle Mines demonstrates strong financial performance and operational excellence, as reflected in its record earnings and strategic initiatives. Technical indicators show positive momentum, although caution is advised due to potential overvaluation and overbought signals. The company's robust cost management and focus on shareholder returns reinforce its position as a solid investment in the gold industry.

Positive Factors

Construction Progress

Upper Beaver is progressing well, ahead of schedule and benefiting from synergies with Macassa and AEM's in-house approach to construction.

Financial Performance

Agnico Eagle Mines reported a solid earnings beat on lower unit costs, with higher gold production.

Productivity Improvements

Macassa productivity also continues to benefit from Shaft 4, additional investments in underground infrastructure, and increasingly a push on mill throughput.

Negative Factors

Growth Challenges

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.

Growth Visibility

Growth will begin to come into sight in the guidance picture, demonstrating a path to over 4Mozpa by the early 2030s.

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

Market Cap

C$85.15B

Dividend Yield1.34%

Average Volume (3M)988.82K

Price to Earnings (P/E)25.6

Beta (1Y)1.00

Revenue Growth32.68%

EPS Growth419.46%

CountryCA

Employees10,125

SectorBasic Materials

Sector Strength67

IndustryGold

Share Statistics

EPS (TTM)2.12

Shares Outstanding505,539,430

10 Day Avg. Volume842,860

30 Day Avg. Volume988,817

Financial Highlights & Ratios

PEG Ratio0.99

Price to Book (P/B)0.78

Price to Sales (P/S)0.00

P/FCF Ratio22.75

Enterprise Value/Market Cap0.16

Enterprise Value/Revenue0.50

Enterprise Value/Gross Profit4.17

Enterprise Value/Ebitda1.08

Forecast

1Y Price Target

C$184.75

Price Target Upside9.26% 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: 2.34%|

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
2.88B	3.15B	3.25B	1.33B	1.01B	777.31M
	EBITDA
3.91B	4.42B	4.05B	2.27B	1.75B	1.57B
	Net Income Common Stockholders
1.80B	1.90B	1.94B	670.25M	561.95M	511.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15B	933.74M	348.85M	658.63M	191.07M	406.46M
	Total Assets
30.59B	29.99B	28.68B	23.49B	10.19B	9.61B
	Total Debt
1.28B	1.28B	2.00B	1.49B	1.70B	1.69B
	Net Debt
142.42M	355.75M	1.67B	834.79M	1.51B	1.28B
	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 Price169.09

Price Trends

50DMA

161.03

Positive

100DMA

151.68

Positive

200DMA

132.94

Positive

Market Momentum

MACD

2.55

Negative

RSI

57.72

Neutral

STOCH

75.41

Neutral

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 169.09 is above the 20-day moving average (MA) of 164.47, above the 50-day MA of 161.03, and above the 200-day MA of 132.94, indicating a bullish trend. The MACD of 2.55 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.41 is Neutral, 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABX	81 Outperform	$50.04B	15.68	9.70%	1.89%	19.13%	66.78%
AEM	80 Outperform	C$85.15B	25.58	11.45%	1.34%	32.68%	419.46%
K	77 Outperform	$26.14B	15.53	18.12%	0.78%	30.84%	188.80%
WPM	75 Outperform	C$56.53B	65.25	8.51%	0.76%	37.40%	8.55%
FNV	74 Outperform	$44.94B	52.01	10.19%	0.90%	-7.22%	―
AGI	74 Outperform	$15.34B	42.38	7.85%	0.37%	37.83%	24.13%
Sector *	51 Neutral	$2.01B	-1.26	-21.11%	4.38%	2.92%	-30.46%

* Basic Materials Sector Average

Performance Comparison

TSE:AEM

Agnico Eagle

167.98

79.10

88.99%

TSE:AGI

Alamos Gold

36.61

14.96

69.09%

TSE:K

Kinross Gold

21.28

10.87

104.34%

TSE:WPM

Wheaton Precious Metals

124.77

51.68

70.71%

TSE:FNV

Franco-Nevada

230.43

71.38

44.88%

TSE:ABX

Barrick Mining

28.91

6.19

27.27%

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.