Agnico Eagle Mines Limited AEM reported third-quarter 2024 adjusted earnings of $1.14 per share, up from 44 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 98 cents.

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The company generated revenues of $2,155.6 million, up 31.2% year over year. The top line surpassed the Zacks Consensus Estimate of $1,825.8 million.

Net income, in the reported quarter, increased due to stronger mine operating margins resulting from higher realized gold prices and higher sales volumes, gains on derivative financial instruments and lower amortization expenses. These were partly offset by higher income and mining tax expenses and increased production costs.

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

Agnico Eagle Mines Limited price-consensus-eps-surprise-chart | Agnico Eagle Mines Limited Quote

AEM’s Operational Highlights

Payable gold production was 863,445 ounces in the reported quarter, up from 850,429 ounces in the prior-year quarter. The figure surpassed our estimate of 811,249 ounces.

Total cash costs per ounce for gold were $921, up from $898 a year ago. It was higher than our estimate of $903.

Realized gold prices were $2,492 per ounce in the quarter, up from $1,928 a year ago. It was above our estimate of $2,265.

All-in-sustaining costs (AISC) were $1,286 per ounce in the quarter compared with $1,210 per ounce a year ago. It was higher than our estimate of $1,260.

AEM’s Financial Position

Agnico Eagle ended the quarter with cash and cash equivalents of $977.2 million, up 174.8% year on year. Long-term debt was around $1,052.2 million, down 42.9%.

Total cash from operating activities amounted to $1,084.5 million in the third quarter, up from $502 million a year ago.

AEM’s Outlook

The company expects its 2024 gold production to be in the range of 3.35-3.55 million ounces and is on track to meet the mid-point of the range. AEM anticipates meeting its 2024 projection of between $875 and $925 for total cash costs per ounce and between $1,200 and $1,250 for AISC per ounce. With capitalized exploration excluded, it expects total capital expenditures for 2024 to be in the range of $1.6 million to $1.7 million.

AEM’s Stock Price Performance

Shares of Agnico Eagle have gained 83.5% in the past year against a 43.9% rise of the industry.

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AEM’s Rank & Key Picks

AEM currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation IAG, Kinross Gold Corporation KGC and Barrick Gold Corporation GOLD.

IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kinross Gold is slated to report third-quarter results on Nov 5, after market close. The Zacks Consensus Estimate for KGC’s third-quarter earnings is pegged at 17 cents. KGC beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 29.1%. KGC currently carries a Zacks Rank #1.

Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 33 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.2%.