Agnico Eagle Mines Limited AEM posted a net income of $105.3 million or 44 cents per share in second-quarter 2020, up from a net income of $27.8 million or 12 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 18 cents, which beat the Zacks Consensus Estimate of 17 cents.
The company generated revenues of $557.2 million, up 5.8% year over year.
Agnico Eagle Mines Limited Price, Consensus and EPS Surprise
Operational Highlights
Payable gold production fell 19.7% year over year to 331,064 ounces in the reported quarter. The figure includes pre-commercial production from the Barnat deposit at Canadian Malartic. Total cash costs per ounce for gold were $825, up 26.5% year over year.
All-in sustaining costs (AISC) were $1,142 per ounce, up 19.8% year over year.
Financial Position
Agnico Eagle ended the second quarter with cash and cash equivalents of $329.6 million, up 177.7% year over year. Long-term debt was around $1,814 million, down 22.9% year over year.
Total cash from operating activities amounted to $162.6 million in the quarter, up 28.7% year over year.
Outlook
Agnico Eagle revised its production guidance for 2020.
Gold production for the year is now projected to be 1.68-1.73 million ounces compared with the previously mentioned 1.63-1.73 million ounces. Capital expenditure is anticipated to be $690 million in 2020.
The company expects total cash costs per ounce of $740-$790 and AISC of $1,025-$1,075 per ounce.
Price Performance
Agnico Eagle’s shares have gained 41.4% in the past year compared with the industry’s 57.5% rise.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Royal Gold, Inc. RGLD, Equinox Gold Corp. EQX andB2Gold Corp BTG.
Royal Goldhas a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained 17.5 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.
Equinox Gold has a projected earnings growth rate of 255.2% for the current year. The stock has gained around 102% in a year. It currently has a Zacks Rank of 2 (Buy).
B2Gold has an expected earnings growth rate of 257.1% for 2020. The company’s shares have rallied 100% in the past year.It is presently a Zacks #2 Ranked player.
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