Agnico Eagle (AEM) Q4 Earnings Meet Estimates, Sales Lag


Agnico Eagle Mines Limited


AEM

reported net income of $205.2 million or 85 cents per share in fourth-quarter 2020, down from net income of $331.7 million or $1.39 per share reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 67 cents, in-line with the Zacks Consensus Estimate.

The company generated revenues of $928.4 million, up 23.3% year over year. However, the figure lagged the Zacks Consensus Estimate of $944.1.

Operational Highlights

Payable gold production was up 1.4% year over year to 501,445 ounces in the reported quarter. The figure includes pre-commercial production from the IVR open pit at the Meadowbank Complex and the Tiriganiaq open pit at Meliadine. Total cash costs per ounce for gold were $701, down 6% year over year.

All-in sustaining costs (AISC) were $985 per ounce, down 5.2% year over year.

FY20 Results

Earnings (as reported) for full-year 2020 were $2.12 per share compared with earnings of $2.00 per share a year ago. Net sales rallied 25.8% year over year to $3,138.1 million.

Financial Position

Agnico Eagle ended 2020 with cash and cash equivalents of $402.5 million compared with $321.9 million as of Dec 31, 2019. Long-term debt was around $1,565.2 million as of Dec 31,2020, compared with $1,364.1 million as of Dec 31, 2019.

Total cash from operating activities amounted to $403.5 million in the fourth quarter, up 56.7% year over year.

Outlook

The company expects gold production for 2021 to be 2,047,500 ounces. It also expects total cash costs per ounce of $700-$750 and AISC of $950-$1,000 per ounce in 2021.

Capital expenditures are predicted to be roughly $803 million in 2021 and in the range of $750-$800 million through 2024.

Price Performance

Shares of Agnico Eagle have gained 20.1% in the past year compared with 19.8% rise of the

industry

.

Zacks Rank & Key Picks

Agnico Eagle currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are

Fortescue Metals Group Limited


FSUGY

,

BHP Group


BHP

and

Impala Platinum Holdings Limited


IMPUY

.

Fortescue has a projected earnings growth rate of 74.2% for the current fiscal. The company’s shares have surged around 150.1% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see


the complete list of today’s Zacks #1 Rank stocks here.

BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 34.1% in the past year. It currently flaunts a Zacks Rank #1.

Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 50.1% in the past year. It currently sports a Zacks Rank #1.

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