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Agnico-Eagle Mines Limited (TSE:AEM)
TSX:AEM
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Agnico Eagle
(TSX:AEM)
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Rating:82Outperform
Price Target:
C$224.00
▼(-2.68% Downside)
Agnico Eagle's overall stock score is driven by its robust financial performance and positive earnings call sentiment. The company's strong profitability, stable financial structure, and strategic focus on growth projects are significant strengths. Technical indicators support a bullish outlook, though valuation suggests limited upside without further earnings growth.
Positive Factors
Negative Factors
Agnico Eagle (AEM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$115.62B
Dividend Yield0.98%
Average Volume (3M)1.04M
Price to Earnings (P/E)27.9
Beta (1Y)1.05
Revenue Growth36.19%
EPS Growth392.37%
CountryCA
Employees10,125
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)2.68
Shares Outstanding502,341,980
10 Day Avg. Volume744,839
30 Day Avg. Volume1,036,776
Financial Highlights & Ratios
PEG Ratio-4.55
Price to Book (P/B)1.88
Price to Sales (P/S)4.71
P/FCF Ratio18.37
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue10.75
Enterprise Value/Gross Profit20.06
Enterprise Value/Ebitda16.77
Forecast
1Y Price Target
$241.67Price Target Upside5.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Agnico Eagle Business Overview & Revenue Model
Company DescriptionAgnico Eagle Mines Limited (AEM) is a leading Canadian gold mining company with a focus on the exploration, development, and production of gold in North America and Europe. Founded in 1953 and headquartered in Toronto, Ontario, Agnico Eagle operates several mines in Canada, Finland, and Sweden, with a commitment to sustainable mining practices. The company is recognized for its strong operational track record and its emphasis on safety, environmental stewardship, and community engagement. Agnico Eagle's core products include gold and, to a lesser extent, silver, which are produced through both underground and open-pit mining operations.
How the Company Makes MoneyAgnico Eagle generates revenue primarily through the sale of gold and silver produced at its mining operations. The company employs a revenue model based on the extraction and processing of precious metals, which are then sold on the global market. Key revenue streams include the sale of refined gold and silver, with prices influenced by market demand and commodity prices. Additionally, Agnico Eagle may engage in forward sales and hedging strategies to manage price fluctuations. The company benefits from strategic partnerships in the mining sector and has a strong focus on exploration to expand its resource base, which can lead to increased production and future revenue growth. Factors contributing to Agnico Eagle's earnings include operational efficiency, cost management, and the ability to navigate regulatory environments effectively.
Agnico Eagle Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive sentiment overall, with record-breaking financial performance and significant operational achievements. The company demonstrated effective cost management, exploration success, and robust financial health with debt reduction. Despite some operational challenges, the focus on future growth and development projects remains solid.Q2-2025 Updates
Positive Updates
Record Financial Performance
Agnico Eagle reported record free cash flow of $1.3 billion, record adjusted EBITDA of $1.9 billion, and record adjusted net income of $1.94 per share. Additionally, record cash flows were returned to shareholders through $200 million in dividends and $100 million in share buybacks.
Strong Operational Performance
Gold production for the quarter was approximately 866,000 ounces at total cash costs of $933 per ounce. The company reported peer-leading costs and a 9% reduction in costs per meter drilled.
Exploration Success
The company made significant exploration progress with exciting results at key sites such as Odyssey, Detour, and Hope Bay, contributing to strong potential for future reserve additions.
Debt Reduction and Financial Strengthening
The company ended the quarter with a net cash position of almost $1 billion and prepaid $550 million of long-term debt, significantly deleveraging the balance sheet.
Project Development Progress
Significant progress was made on key projects including Detour, Upper Beaver, and Hope Bay, with expectations of increased production capacity.
Negative Updates
Nunavut Operations Challenges
Lower production was reported at Nunavut operations due to an extended Caribou migration, impacting overall production.
Detour Lake Production Guidance
Due to lower grades, the Detour Lake production is now expected to be at the lower end of the full year production guidance range.
Potential Future Tax Liabilities
Significant cash tax payments are expected in Q1 2026, potentially impacting future cash flow due to rising gold prices leading to a higher tax liability.
Company Guidance
In the second quarter of 2025, Agnico Eagle Mines Limited reported exceptional financial results, driven by robust operational performance and favorable gold prices. The company achieved record financial metrics, including free cash flow of $1.3 billion, adjusted EBITDA of $1.9 billion, and adjusted net income of $1.94 per share. Shareholders benefited from $200 million in dividends, $100 million in share buybacks, and $550 million in debt repayments. Gold production reached 866,000 ounces at total cash costs of $933 per ounce, while all-in sustaining costs were $1,289 per ounce. The quarter also featured significant operational achievements such as record production at Odyssey and Macassa, and a 9% reduction in exploration costs per meter drilled. Agnico Eagle continues to focus on operational improvements, capital discipline, and enhancing shareholder value, with strategic investments aimed at expanding future production capacity across several key projects.Agnico Eagle Financial Statement Overview
Summary
Agnico Eagle exhibits strong financial health with high profitability, stable leverage, and efficient cash flow management. The company maintains solid margins and asset management practices, though recent revenue challenges suggest a need for strategic focus on growth opportunities.Income Statement
Agnico Eagle demonstrates strong profitability with a consistent increase in gross and net profit margins. The TTM gross profit margin is 47.9% and the net profit margin is 26.5%, reflecting efficient cost management. EBIT and EBITDA margins are robust at 42.5% and 57.8% respectively. However, the recent revenue decline from the previous annual period warrants attention, indicating potential market challenges or operational adjustments.85
Very Positive
Balance Sheet
The balance sheet presents a stable financial structure with a low debt-to-equity ratio of 0.06, showcasing a conservative leverage approach. The equity ratio is healthy at 70.7%, signifying strong asset backing by shareholders' equity. Return on Equity stands at 8.3% annually, showing moderate profitability relative to equity. These indicators highlight financial stability, though the moderate ROE suggests room for enhanced shareholder returns.82
Very Positive
Cash Flow
Cash flow metrics are strong, with a significant operating cash flow to net income ratio of 1.75, indicating excellent cash earnings quality. Free cash flow generation remains robust, despite a decline in growth rate, reflecting effective capital expenditure management. The cash flow profile highlights the company's ability to generate and manage cash efficiently, providing a solid foundation for future investment and debt service.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.51B | 8.29B | 6.63B | 5.74B | 3.82B | 3.14B |
| Gross Profit | 4.02B | 3.69B | 3.72B | 2.00B | 1.33B | 1.08B |
| EBITDA | 4.81B | 4.42B | 4.05B | 2.27B | 1.75B | 1.57B |
| Net Income | 2.39B | 1.90B | 1.94B | 670.25M | 561.95M | 511.61M |
Balance Sheet | ||||||
| Total Assets | 31.69B | 29.99B | 28.68B | 23.49B | 10.19B | 9.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.57B | 933.74M | 348.85M | 658.63M | 191.07M | 406.46M |
| Total Debt | 733.69M | 1.28B | 2.00B | 1.49B | 1.70B | 1.69B |
| Total Liabilities | 9.15B | 9.15B | 9.26B | 7.25B | 4.21B | 3.93B |
| Stockholders Equity | 22.54B | 20.83B | 19.42B | 16.24B | 5.98B | 5.68B |
Cash Flow | ||||||
| Free Cash Flow | 2.46B | 2.13B | 953.66M | 558.40M | 398.31M | 432.71M |
| Operating Cash Flow | 4.02B | 3.96B | 2.65B | 2.10B | 1.32B | 1.19B |
| Investing Cash Flow | -1.89B | -2.01B | -2.81B | -710.46M | -1.23B | -808.81M |
| Financing Cash Flow | -1.54B | -1.36B | -163.96M | -914.85M | -297.24M | -302.82M |
Agnico Eagle Technical Analysis
Positive
230.16
Price Trends
206.19
Positive
185.47
Positive
163.64
Positive
Market Momentum
8.00
Positive
59.53
Neutral
43.49
Neutral
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 230.16 is above the 20-day moving average (MA) of 226.21, above the 50-day MA of 206.19, and above the 200-day MA of 163.64, indicating a bullish trend. The MACD of 8.00 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AEM.
Agnico Eagle Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $115.62B | 27.95 | 13.92% | 0.98% | 36.19% | 392.37% | |
79 Outperform | $78.24B | 20.64 | 11.41% | 1.60% | 20.13% | 90.22% | |
76 Outperform | $67.02B | 60.73 | 10.60% | 0.62% | 51.33% | 42.31% | |
76 Outperform | $41.39B | 19.56 | 22.05% | 0.50% | 38.34% | 218.80% | |
74 Outperform | $55.14B | 50.25 | 12.61% | 0.73% | 21.83% | ― | |
72 Outperform | $19.44B | 40.41 | 10.18% | 0.30% | 38.30% | 68.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:AEM
Agnico Eagle
230.16
118.64
106.39%
TSE:ABX
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45.86
18.59
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TSE:FNV
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286.16
116.61
68.78%
TSE:K
Kinross Gold
33.96
20.39
150.22%
TSE:WPM
Wheaton Precious Metals
147.64
63.16
74.77%
TSE:AGI
Alamos Gold
46.25
19.27
71.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.