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Agnico Eagle's (AEM) Q1 Earnings Lag, Sales Beat Estimates

Agnico Eagle Mines LimitedAEM reported net income of $44.9 million or 19 cents per share for the first quarter of 2018, down 41% from year-ago quarter's net income of $76 million or 33 cents.

Barring one-time items, earnings for the quarter were 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents.

Agnico Eagle recorded revenues of $578.4 million in the first quarter of 2018, up about 5.7% from $547.5 million in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $557 million.

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise | Agnico Eagle Mines Limited Quote

Operational Highlights

Payable gold production in the first quarter fell 6.9% year over year to 389,278 ounces from 418,216 ounces in the year-ago quarter. The decline is mainly due to lower throughput levels at Meadowbank.

Total cash costs per ounce for the first quarter were $648, up 20.2% from the prior-year quarter figure of $539.

All-in sustaining costs (AISC) was $889 for the first quarter, 20% higher compared to the prior-year quarter figure of $741. This is mainly due to expected lower gold production and higher total cash costs per ounce.

Financial Position

As of Mar 31, 2018, cash and cash equivalents were around $452.3 million, up 43% from year-ago quarter.

Long-term debt was $1,372.4 million at the end of the quarter, up 27.9% from $1,073.4 million the year ago quarter.

There was no outstanding balance on credit facility as of Mar 31, 2018. This resulted in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.

Total capital expenditure in the first quarter was $179.4 million.

Outlook

Agnico Eagle has reiterated its previous guidance for total cash costs for full-year 2018 that is expected in the range of $625-$675 per ounce. AISC is expected in the range of $890-$940 per ounce for 2018.

The company's production guidance for 2018 remains unchanged at 1.53 million ounces of gold.

Price Performance

Agnico Eagle's shares have declined 5.9% over a year, underperforming the 0.3% upside recorded by its industry .

Zacks Rank & Stocks to Consider

Agnico Eagle currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic material space are Kronos Worldwide Inc. KRO , Celanese Corporation CE and BASF SE BASFY . All three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Kronos has an expected long-term earnings growth of 5%. Its shares have gained 36.2% over a year.

Celanese has an expected long-term earnings growth of 8.9%. Its shares have moved up 26.3% over a year.

BASF has an expected long-term earnings growth of 6.24%. Its shares have gained 24.6% over a year.

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Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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