Agnico Eagle Mines Limited
- Open
- 143.41
- Day high
- 145.31
- Day low
- 141.01
- Prev close
- 145.96
- Volume
- 1.9M
- Mkt cap
- $72.0B
- P/E (TTM)
- 13.5
- EPS (TTM)
- $10.66
- P/B
- 2.7
- P/S
- 5.3
- Yield
- 1.18%
- Per share
- $1.70
Agnico Eagle Mines Limited (AEM) is a Basic Materials company listed on NYSE. The stock is up 13% over the past year. Drillr has 1 published research article covering AEM.
Agnico Eagle Mines Limited (AEM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AEM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 1, 2026 | $3.19 | $3.40 | +6.6% | $4.0B | +1.2% |
| Feb 12, 2026 | $2.58 | $2.69 | +4.3% | $3.6B | -7.7% |
| Oct 29, 2025 | $1.76 | $2.16 | +22.7% | $3.0B | -11.3% |
| Jul 30, 2025 | $1.83 | $1.94 | +6.0% | $2.8B | +4.3% |
| Apr 24, 2025 | $1.39 | $1.53 | +10.1% | $2.5B | -0.8% |
| Feb 13, 2025 | $1.70 | $1.26 | -25.9% | $2.2B | -2.0% |
| Oct 30, 2024 | $1.02 | $1.14 | +11.8% | $2.2B | -6.4% |
| Jul 31, 2024 | $0.90 | $1.07 | +18.9% | $2.1B | -0.9% |
| Apr 25, 2024 | $0.60 | $0.76 | +26.7% | $1.8B | +5.9% |
| Feb 15, 2024 | $0.48 | $0.57 | +18.7% | $1.8B | -11.7% |
| Oct 25, 2023 | $0.46 | $0.44 | -4.3% | $1.6B | -1.1% |
| Jul 26, 2023 | $0.55 | $0.65 | +18.2% | $1.7B | +2.2% |
AEM research & analysis
Agnico Eagle Mines Limited company profile
Overview
Agnico Eagle Mines Limited (NYSE:AEM) is a Canadian gold mining company founded in 1953 and headquartered in Toronto. The company has evolved from a small mining operation into one of the world's largest gold producers, operating mines across Canada, Mexico, Australia, and Finland. With over 70 years of operating history, Agnico Eagle has established itself as a prominent player in the global gold mining industry, known for its focus on politically stable jurisdictions and consistent dividend payments spanning 41 consecutive years. The company went public in 1972 and has grown significantly through both organic development and strategic acquisitions, including the notable 2022 merger with Kirkland Lake Gold.
Business
Agnico Eagle operates in the gold mining industry, which involves the exploration, development, extraction, and processing of gold ore from underground and open-pit mines. Gold mining is a capital-intensive industry that requires significant upfront investment in exploration, mine development, and processing facilities. The extracted gold is then refined and sold primarily to precious metals dealers, banks, and industrial users. The company operates through two main business segments. The Northern Business encompasses operations in Canada (Quebec, Ontario, and Nunavut territories) and Finland, representing approximately 85-90% of total production. Key Northern operations include the LaRonde mine in Quebec (the company's flagship property), Detour Lake in Ontario, Canadian Malartic in Quebec, and operations in Nunavut including Meliadine and Meadowbank. The Southern Business includes operations in Mexico and Australia, contributing roughly 10-15% of total production, with notable assets including the Pinos Altos mine in Mexico and the Fosterville mine in Australia. The company's core business involves extracting gold from various geological formations using both underground and open-pit mining methods. Underground mining involves creating shafts and tunnels to access ore bodies deep below the surface, while open-pit mining removes overburden to access near-surface deposits. The extracted ore is then processed through crushing, grinding, and chemical treatment (typically using cyanide leaching) to separate gold from other minerals. Beyond gold, Agnico Eagle also produces silver, zinc, and copper as byproducts, though these represent a small fraction of total revenue.
Revenue model
Agnico Eagle generates revenue primarily through direct gold sales to precious metals dealers, refineries, and financial institutions. The company's business model is straightforward: extract gold ore, process it into refined gold, and sell it at prevailing market prices. With annual production of approximately 3.5 million ounces, the company is a significant gold producer globally. The company's profitability is heavily dependent on the gold price, which fluctuates based on macroeconomic factors including inflation expectations, currency movements (particularly the US dollar), geopolitical tensions, and central bank monetary policies. When gold prices are high, as they have been recently, the company generates substantial cash flows. Conversely, lower gold prices can significantly impact margins and profitability. Cost management is critical to profitability, with the company reporting total cash costs of approximately $903 per ounce and all-in sustaining costs of $1,183 per ounce. Key cost drivers include labor (representing about two-thirds of costs), energy (electricity and fuel), consumables (chemicals, steel, explosives), and equipment maintenance. The company faces ongoing inflationary pressures on these inputs, though it has demonstrated ability to control costs through operational efficiency improvements and economies of scale across its regional platforms. Operational leverage significantly impacts margins - higher production volumes spread fixed costs across more ounces, improving per-unit economics. The company benefits from having multiple mines in close proximity, allowing for shared infrastructure, management expertise, and operational synergies. Currency fluctuations also affect profitability, as the company's costs are largely in Canadian dollars while gold is priced in US dollars, providing natural hedging when the Canadian dollar weakens.
Competitive moat
Agnico Eagle possesses a moderate to strong competitive moat built on several key factors. The company's primary moat stems from its high-quality, long-life mining assets in politically stable jurisdictions, particularly Canada. These assets represent decades of exploration investment and geological knowledge that would be extremely difficult and expensive for competitors to replicate. The company's 54 million ounces of proven and probable reserves provide decades of production visibility. The company's regional clustering strategy creates significant operational advantages and cost efficiencies. By concentrating multiple mines in regions like the Abitibi belt in Quebec and Ontario, Agnico Eagle achieves economies of scale in management, maintenance, supply chain, and infrastructure that standalone operations cannot match. This regional expertise and infrastructure network would be challenging for new entrants to duplicate. Operational expertise and safety record provide additional competitive advantages. The company's industry-leading safety performance and operational efficiency help attract and retain skilled mining professionals, while reducing costly accidents and downtime. The company's 70+ years of operating experience in challenging northern climates gives it specialized knowledge that competitors lack. However, the moat faces several challenges. Resource depletion is an inherent risk - mines eventually exhaust their ore bodies, requiring continuous exploration and development investment. Regulatory and environmental pressures are increasing, potentially raising costs and limiting expansion opportunities. The company also faces competition from other large gold producers and potential disruption from new mining technologies or alternative investment vehicles like gold ETFs that could affect physical gold demand.
Risks & safety
Agnico Eagle demonstrates a strong margin of safety with robust financial metrics and conservative capital structure. • Liquidity position: $1.14 billion in cash and short-term investments with minimal debt burden • Debt management: Very low debt-to-equity ratio of 0.059, indicating minimal financial leverage and solvency risk • Cash generation: Strong free cash flow of $590 million in Q1 2025, with $2.1 billion generated in full-year 2024 • Current ratio: Healthy 2.37, indicating strong ability to meet short-term obligations • Valuation metrics: Trading at 16.7x P/E ratio and 8.4x EV/EBITDA, reasonable for a profitable mining company • Dividend sustainability: 41 consecutive years of dividend payments with strong cash flow coverage • Operational cushion: All-in sustaining costs of $1,183/oz provide substantial margin at current gold prices above $2,000/oz
Recent development
Over the past few years, Agnico Eagle has undergone significant strategic transformation focused on consolidation and organic growth. The company completed a transformational merger with Kirkland Lake Gold in 2022, significantly expanding its asset base and establishing dominant positions in key Canadian mining regions. The company has pivoted toward regional platform optimization, particularly in the Abitibi belt region of Quebec and Ontario. Key development projects include the Detour Underground project, which aims to transform Detour Lake into a 1-million-ounce-per-year operation by 2030. The Odyssey Underground project at Canadian Malartic has commenced production, with potential to help the overall Malartic complex reach 1 million ounces annually through four key development phases. Exploration investment has been substantially increased, with over $300 million annually committed to exploration activities. The company has achieved significant exploration success at Hope Bay in Nunavut, where the Patch 7 zone discovery could support a 400,000-ounce-per-year operation starting in the 2030s. The Upper Beaver project in Ontario is being evaluated as a potential standalone operation that could add 200,000 ounces annually. The company has also focused on balance sheet optimization, reducing net debt from $1.5 billion to near-zero levels while returning substantial capital to shareholders through dividends and share buybacks. This financial discipline has positioned the company to fund growth projects internally while maintaining flexibility for opportunistic investments. Sustainability initiatives have become increasingly prominent, with commitments to achieve net-zero carbon emissions by 2050 and a 30% reduction in greenhouse gas emissions by 2030. The company has also implemented reconciliation action plans and enhanced ESG reporting.
AEM company profile · for informational purposes only — not investment advice.
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