Agnico Eagle Mines Limited AEM reported adjusted earnings of $1.53 per share for first-quarter 2025, up from 76 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $1.39.

The company generated revenues of $2,468.2 million, up nearly 34.9% year over year. The top line surpassed the Zacks Consensus Estimate of $2,239.7 million.

The upside in the bottom line was mainly driven by record-high operating margins resulting from higher realized gold prices and reduced production costs. This increase was partially offset by lower gold sales and higher income and mining tax expenses in the reported quarter.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

AEM’s Operational Highlights

Payable gold production was 873,794 ounces in the reported quarter, down from 878,652 ounces in the prior-year quarter. The figure surpassed our estimate of 844,808 ounces.

Total cash costs per ounce for gold were $903, up from $901 a year ago. It missed our estimate of $942.

Realized gold prices were $2,891 per ounce in the quarter, up from $2,062 a year ago. It topped our estimate of $2,655.

All-in-sustaining costs (AISC) were $1,183 per ounce in the quarter compared with $1,190 per ounce a year ago. It lagged our estimate of $1,217.

AEM’s Financial Position

Agnico Eagle ended the quarter with cash and cash equivalents of $1,138 million, up 22.9% sequentially. Long-term debt was around $1,053 million, flat sequentially.

Total cash from operating activities amounted to $1,044 million in the first quarter, up from $783 million a year ago.

AEM’s Outlook

The company remains on track to meet its 2025 targets, including gold production of around 3.3 million to 3.5 million ounces, total cash costs per ounce between $915 and $965, and all-in sustaining costs (AISC) per ounce ranging from $1,250 to $1,300. Projected capital expenditures for 2025, excluding capitalized exploration, are still expected to be between $1.75 billion and $1.95 billion.

AEM’s Price Performance

Agnico Eagle’s shares have gained 80.1% in the past year compared with a 41.2% rise of the industry.

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AEM’s Zacks Rank & Other Key Picks

AEM currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth a look in the basic materials space include Hawkins, Inc. HWKN, SSR Mining Inc. SSRM and Intrepid Potash, Inc. IPI. While HWKN sports a Zacks Rank #1 (Strong Buy), SSRM and IPI carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is expected to report first-quarter results on May 21. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

SSRM is scheduled to release first-quarter results on May 6. The Zacks Consensus Estimate for SSRM’s first-quarter earnings is pegged at 8 cents. SSRM has a trailing four-quarter earnings surprise of 155.7%, on average.  

Intrepid Potash is slated to release first-quarter results on May 5. The consensus estimate for IPI’s first-quarter loss is pegged at 12 cents, stable over the past 60 days.

 

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