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Agnico-Eagle Mines Limited (TSE:AEM)
TSX:AEM
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Agnico Eagle
(TSX:AEM)
80Outperform
Positive Factors
Debt Reduction
Net debt reduced significantly as at 31-Dec-24, with Q4’24 free cash flow reported as a solid $570m.
Operational Growth
Fleet expansion is warranted, reflecting confidence in increased demand and operational capacity.
Stock Target Increase
Increasing target to C$158.00 for Agnico Eagle Mines Limited indicates a positive outlook.
Negative Factors
Financial Performance
Agnico Eagle Mines (AEM) reported a Q4’24 earnings beat on lower taxes and depreciation.
Agnico Eagle (AEM) vs. S&P 500 (SPY)
Market Cap
$75.47B
Dividend Yield1.51%
Average Volume (3M)1.28M
Price to Earnings (P/E)28.7
Beta (1Y)1.14
Revenue Growth26.99%
EPS Growth-6.63%
CountryCA
Employees10,125
SectorBasic Materials
Sector Strength52
IndustryGold
Share Statistics
EPS (TTM)5.20
Shares Outstanding505,539,430
10 Day Avg. Volume1,331,305
30 Day Avg. Volume1,275,556
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.28
Price to Cash Flow (P/CF)11.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$167.38Price Target Upside7.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Agnico Eagle Business Overview & Revenue Model
Company DescriptionAgnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. It operates through Northern Business and Southern Business segments. The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits. Its flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2021, the company's LaRonde mine had proven and probable mineral reserves of approximately 3.0 million ounces of gold. It is also involved in exploration activities in Europe, Latin America, and the United States. The company was incorporated in 1953 and is headquartered in Toronto, Canada.
How the Company Makes MoneyAgnico Eagle makes money primarily through the extraction and sale of gold, which is its main product. Revenue is generated by mining gold ore, processing it to extract gold, and then selling the refined gold on the global market. The company operates several mines, which provide a steady stream of gold production. In addition to gold, Agnico Eagle also earns revenue from the sale of by-products such as silver, copper, zinc, and lead, which are extracted during the gold mining process. The company's revenue is influenced by factors such as global gold prices, production output, and operational efficiency. Agnico Eagle also benefits from strategic partnerships and joint ventures that enhance its mining capabilities and resource base.
Agnico Eagle Financial Statement Overview
Summary
Agnico Eagle exhibits strong financial performance characterized by robust revenue and profit growth, solid balance sheet management, and efficient cash flow generation. The strategic focus on cost management and equity strengthening positions it well within the mining industry.Income Statement
Agnico Eagle has demonstrated strong revenue growth with a significant increase from $3.8 billion in 2021 to $8.3 billion in 2024. Gross profit margin is notable, indicating efficient cost management. While EBIT margin calculation is not possible for 2024 due to zero EBIT, EBITDA margin remains robust. Consistent net income over the years enhances the overall profitability outlook.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio shows a healthy leverage position, with total debt decreasing over time. The equity ratio is strong, reflecting a solid equity base. Return on equity increased significantly in recent years, showcasing effective use of shareholder funds. However, fluctuations in total assets and liabilities suggest potential risks in asset management.78
Positive
Cash Flow
Operating cash flow has increased steadily, supporting substantial free cash flow growth. The free cash flow to net income ratio is favorable, indicating efficient conversion of income into cash. Despite high capital expenditures, the company maintains positive cash flow from operations, underscoring financial stability.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.29B | 6.63B | 5.74B | 3.82B | 3.14B | Gross Profit |
| 3.69B | 3.72B | 2.00B | 1.33B | 1.08B | EBIT |
| 0.00 | 3.25B | 1.33B | 1.01B | 777.31M | EBITDA |
| 4.42B | 4.05B | 2.27B | 1.75B | 1.57B | Net Income Common Stockholders |
| 1.90B | 1.94B | 670.25M | 561.95M | 511.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 933.74M | 348.85M | 658.63M | 191.07M | 406.46M | Total Assets |
| 29.99B | 28.68B | 23.49B | 10.19B | 9.61B | Total Debt |
| 1.28B | 2.00B | 1.49B | 1.70B | 1.69B | Net Debt |
| 355.75M | 1.67B | 834.79M | 1.51B | 1.28B | Total Liabilities |
| 9.15B | 9.26B | 7.25B | 4.21B | 3.93B | Stockholders Equity |
| 20.83B | 19.42B | 16.24B | 5.98B | 5.68B |
| Cash Flow | Free Cash Flow | |||
| 2.13B | 953.66M | 558.40M | 398.31M | 432.71M | Operating Cash Flow |
| 3.96B | 2.65B | 2.10B | 1.32B | 1.19B | Investing Cash Flow |
| -2.01B | -2.81B | -710.46M | -1.23B | -808.81M | Financing Cash Flow |
| -1.36B | -163.96M | -914.85M | -297.24M | -302.82M |
Agnico Eagle Technical Analysis
Positive
156.03
Price Trends
144.04
Positive
131.26
Positive
119.03
Positive
Market Momentum
4.18
Negative
70.96
Negative
80.47
Negative
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 156.03 is above the 20-day moving average (MA) of 150.44, above the 50-day MA of 144.04, and above the 200-day MA of 119.03, indicating a bullish trend. The MACD of 4.18 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 80.47 is Negative, 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 (47)
Financial Indicators
Performance Comparison
TSE:AEM
Agnico Eagle
156.03
73.31
88.62%
GOLD
Barrick Gold
19.24
1.60
9.07%
EGO
Eldorado Gold
18.00
2.40
15.38%
KGC
Kinross Gold
13.69
7.29
113.91%
NGD
New Gold
3.40
1.56
84.78%
SAND
Sandstorm Gold
7.60
2.21
41.00%
Agnico Eagle Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 9.55% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
Agnico Eagle had an exceptionally strong year in 2024 with record financial and operational performance, robust cost management, and significant exploration success. Despite a minor revision in production guidance and challenges at Pinos Altos, the company is well-positioned for future growth and increased shareholder returns.Highlights
Record Financial Performance
Agnico Eagle reported record financial results in 2024, including record revenue of $2.2 billion, record adjusted earnings of $632 million, and record operating cash flow of over $1.1 billion.
Strong Gold Production
The company achieved record annual gold production, with 3.49 million ounces produced in 2024, surpassing the midpoint of their guidance.
Robust Cost Management
Agnico Eagle maintained strong cost control, with total cash costs of $903 per ounce and all-in sustaining costs of $1,239 per ounce, both within their guided range.
Exploration and Expansion Success
Significant exploration investments led to promising results, including the discovery of Patch 7 at Hope Bay, contributing to an increase in mineral resources.
Debt Reduction and Strong Balance Sheet
The company reduced net debt significantly from $1.5 billion at the start of 2024 to $217 million by year-end, strengthening their balance sheet.
Shareholder Returns
Agnico Eagle returned approximately $2.2 billion to shareholders in 2024 through dividends, share buybacks, and debt reduction.
Lowlights
Production Guidance Reduction
Production guidance for 2025-2026 was revised down by 2.9% due to ground conditions at Pinos Altos and other minor deferrals.
Challenges at Pinos Altos
Pinos Altos faced operational challenges due to its maturity and the complexity of mining at the extremities of the ore body.
Company Guidance
During the Agnico Eagle Mines Limited Q4 2024 conference call, the company provided optimistic guidance for 2025 and beyond, focusing on various growth projects and financial strategies. They highlighted potential gold production increases at Malartic and Detour to over a million ounces per year, and a 50% growth in their Ontario platform. The company also achieved record financial results in 2024, with annual gold production reaching 3.49 million ounces and record earnings of $632 million in Q4. Agnico Eagle reduced net debt from $1.5 billion to $217 million and returned $920 million directly to shareholders through dividends and share buybacks. For 2025, they projected a slight 2.9% decline in production guidance but emphasized strong cost control and ongoing investments in exploration and development, maintaining a cash cost guidance of $903 per ounce and all-in sustaining costs of $1,239 per ounce.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.