Agnico-Eagle Mines Limited
) announced that its board of directors has approved a 10% hike
in its regular quarterly cash dividend to 22 cents per share. The
increased dividend will be paid on Mar 15, 2013 to shareholders
of record as of Mar 1, 2013. This reflects the company's
commitment toward increasing its shareholder's value.
In February 2012, the company announced a 25% hike in its
regular quarterly cash dividend to 20 cents per share, which was
paid on Mar 15, 2012 to shareholders of record as of Mar 1,
In October 2012, Agnico-Eagle released its third quarter 2012
results. The company's adjusted earnings (excluding one-time
items other than stock-based compensation expenses) of 63 cents
per share outpaced the Zacks Consensus Estimate of 40 cents
during the quarter.
Profit, as reported, came in at $106.3 million or 62 cents per
share for the quarter compared with a loss of $81.6 million or 48
cents a year ago. The bottom line was boosted by strong gold
production and healthy performance across its mines, especially
at Meadowbank in Nunavut.
Consolidated revenues rose roughly 4.3% year over year to
$537.8 million, beating the Zacks Consensus Estimate of $436.0
million. Payable gold production in the third quarter climbed
7.9% year over year to 286,971 ounces, riding on higher grades at
LaRonde, Kittila, Meadowbank and Pinos Altos, as well as record
throughput at Meadowbank.
Agnico-Eagle lifted its gold production guidance for 2012. The
company now expects production to be 1,025,000 ounces of gold, up
from its earlier view of 975,000 ounces. Total cash costs per
ounce are projected to be approximately $660, down from the
previous estimate of $690. Capital expenditure is expected to be
approximately $457 million in 2012.
The company maintained its production guidance of
approximately 990,000 ounces of gold for 2013. For 2014 and 2015,
Agnico-Eagle is expected to realize organic production growth
from the new La India mine, the restart of Goldex (M and E zones)
mine, higher gold grades at LaRonde and continued operating
strength at Meadowbank.
Agnico-Eagle, which competes with
Barrick Gold Corporation
Kinross Gold Corporation
), currently retains a Zacks #3 Rank (Hold) for the short-term (1
to 3 months). Currently, we have a long-term (more than 6 months)
Neutral recommendation on the stock.
BARRICK GOLD CP (ABX): Free Stock Analysis
AGNICO EAGLE (AEM): Free Stock Analysis
KINROSS GOLD (KGC): Free Stock Analysis
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