AEM - Agnico Eagle Q1 Earnings: Soaring Above The Peer Group

2024-04-26 08:47:28 ET

Summary

• Agnico Eagle reported strong Q1 results, with production near record levels despite difficult grade comparisons at some key assets, and reported record cash flow of ~$783 million.
• Notably, Odyssey continues to progress well with room to optimize the mine plan and the company continues to see solid exploration success across the portfolio.
• Meanwhile, although margins soared in Q1 as did free cash flow generation, this is just the tip of the iceberg with AISC margins set to push above $1,050/oz in Q2.
• In this update, we'll dig into the Q1 results, recent developments, and why Agnico Eagle continues to be the premier way to gain leverage to the gold price.

The Q1 Earnings Season for the Gold Miners Index (GDX) began this week and results have been solid overall despite the Q1 average realized gold price being well below spot levels. One of the first major producers to report was Newmont ( NEM ) which released better than expected results, and Agnico Eagle ( AEM ) is the most recent name to report with it continuing its track record of over-delivering on promises. Not only did it report Q1 production near record levels, but operating cash flow came in at a record of ~$783 million, and we also saw records at multiple sites, helping to deliver a near 900,000 ounce production quarter. Finally, quarterly earnings per share soared to $0.76 vs. $0.58 (+31% year-over-year).

In this update, we'll dig into the Q1 results, recent developments, and why Agnico Eagle continues to be the premier way to gain leverage to the gold price....

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