Agnico Eagle Mines Limited
) reached a new 52-week high of $41.79 on Jul 10, surpassing its
previous high of $40.53. Its shares eventually ended the day a bit
lower at $39.69.
Shares of this gold mining company, which has a market cap of $6.91
billion, have shot up roughly 49% over a year. Its year-to-date
return is around 51%, much higher than the S&P 500's total
return of 7.5%. Average volume of shares traded over the last three
months is 2,134.5K. The company's long-term projected EPS growth
rate is 10.4%.
What's Driving AEM Up?
Agnico Eagle's first-quarter 2014 reported profit surged as lower
costs and higher gold production offset a decline in metal pricing.
Its adjusted earnings (barring one-time items other than
stock-option expenses) were 56 cents per share in the quarter,
beating the Zacks Consensus Estimate of 25 cents.
Agnico-Eagle registered revenues of $491.8 million in the quarter,
up 17% from $420.4 million in the year-ago quarter. The results
also surpassed the Zacks Consensus Estimate of $445 million. The
company expects gold production in 2014 to exceed the higher end of
its guidance range.
Agnico Eagle has delivered three positive earnings surprises in the
trailing four quarters with an average beat of 72.3%. The company's
expected long-term EPS growth further underscores its potential.
Agnico Eagle maintains a solid exploration budget and is
reinvesting in its assets to expand output, which is expected to
yield significant free cash flow over the next several years. The
company recently completed its acquisition of Osisko Mining
Corporation along with
Yamana Gold Inc.
The acquisition is expected to boost Agnico Eagle's production
profile and improve its cost structure. It is also expected to be
accretive to the company.
Agnico Eagle will also have access to Canadian Malartic, the
largest producing gold mine in Canada with the potential to produce
an average of roughly 600,000 gold ounces per year for 14 years.
Agnico Eagle currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other companies in the gold mining industry worth considering
Gold Resource Corp
). Both these stocks hold a Zacks Rank #2.
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AGNICO EAGLE (AEM): Free Stock Analysis Report
YAMANA GOLD INC (AUY): Free Stock Analysis
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GOLD RESOURCE (GORO): Free Stock Analysis
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