Agnico Eagle (AEM) Earnings and Sales Exceed First Quarter Estimates – May 3, 2022

Agnico Eagle Mines Limited (AEM Free Report) reported net income of $109.8 million or 29 cents per share in the first quarter of 2022, down from $145.2 million or 60 cents per share reported in the year-ago quarter.

Excluding one-time items, adjusted earnings per share were 61 cents. Net income topped Zacks’ consensus estimate of 36 cents a share.

The company generated revenue of $1,325.7 million, up 39.6% year-over-year. The top line topped Zacks’ consensus estimate of $1,153.3 million.

Operational Highlights

Payable gold production was 660,604 ounces (806,329 ounces including production from the former Kirkland Lake gold mines) in the current quarter, compared to 516,804 ounces in the prior year quarter.

Total cash costs per ounce of gold were $811 compared to $734 in the prior year quarter. All-in sustaining costs (AISC) were $1,079 per ounce in the quarter, compared to $1,007 per ounce in the prior year quarter.

Financial situation

Agnico Eagle ended the quarter with cash and cash equivalents of $1,062 million, up 471.6% sequentially. Long-term debt was approximately $1,340.7 million, slightly higher than $1,340.2 million in the prior quarter.

Total cash flow from operating activities was $507.4 million in the first quarter, up 38.4% year-over-year.

Outlook

The company expects payable gold production for 2022 to be between 3.2 and 3.4 million ounces. It also forecasts total cash costs per ounce of $725 to $775 and AISC of $1,000 to $1,050 per ounce for 2022.

The capital expenditure forecast for 2022 is set at approximately $1.4 billion.

Price performance

Shares of Agnico Eagle are down 13.3% over the past year, compared to an industry decline of 0.9%.

Image source: Zacks Investment Research

Zacks ranking and key picks

Agnico Eagle currently holds a Zacks rank of #4 (sell).

Some top-ranked stocks in the base materials space are Nutrien Ltd. (RNT free report), AdvanSix Inc. (AT SIX free report) and Allegheny Technologies Incorporated (ATI free report).

Nutrien forecasts a profit growth rate of 127.9% for the current year. The Zacks consensus estimate for NTR’s current-year earnings has been revised up 31.1% in the past 60 days.

Nutrien’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters, while falling short once. It generated an earnings surprise for the last four quarters of around 5.9% on average. NTR is up about 70% in one year and currently sports a Zacks rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

AdvanSix forecasts a profit growth rate of 54.7% for the current year. The Zacks consensus estimate for ASIX earnings for the current year has been revised up 43.6% in the past 60 days.

AdvanSix’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters, averaging 23.6%. ASIX jumped 40.7% in one year. The company carries a No. 1 Zacks rank.

Allegheny, which currently sports a No. 1 Zacks rank, has an expected earnings growth rate of 707.7% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 6.1% over the past 60 days.

Allegheny’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 127.2%. ATI rebounded around 15.4% year-on-year.

Sallie R. Loera