Agnico Eagle (AEM, Financial) has secured approval from the Toronto Stock Exchange to renew its normal course issuer bid (NCIB). This allows the company to repurchase its own shares on the open market at its discretion. The buyback period begins on May 4, 2025, ending either on May 3, 2026, or when the buyback target is met. The program permits the acquisition of up to 25,174,240 common shares, equivalent to 5% of its outstanding shares, or up to a total purchase price of $1 billion.
Based on the closing share price of $119.02 on April 28, 2025, Agnico Eagle can potentially buy back 8,401,949 shares, or about 1.67% of its outstanding shares as of that date. At that time, the company had 503,484,810 shares in circulation. Daily purchases up to 248,879 shares will be possible, representing 25% of its average daily trading volume of 995,517 shares over the six months ending March 31, 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Agnico Eagle Mines Ltd (AEM, Financial) is $134.63 with a high estimate of $159.57 and a low estimate of $97.00. The average target implies an upside of 14.50% from the current price of $117.58. More detailed estimate data can be found on the Agnico Eagle Mines Ltd (AEM) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Agnico Eagle Mines Ltd's (AEM, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Agnico Eagle Mines Ltd (AEM, Financial) in one year is $80.51, suggesting a downside of 31.53% from the current price of $117.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Agnico Eagle Mines Ltd (AEM) Summary page.
AEM Key Business Developments
Release Date: April 25, 2025
- Revenue: Record revenue of $2.5 billion.
- Gold Production: Approximately 874,000 ounces.
- Cash Costs: $903 per ounce.
- All-in Sustaining Costs: $1,183 per ounce.
- Adjusted Earnings: $770 million or $1.53 per share.
- Adjusted EBITDA: $1.6 billion.
- Free Cash Flow: $594 million.
- Net Debt: Close to zero net debt.
- Shareholder Returns: $0.25 billion returned through dividends and share buybacks.
- GHG Intensity: 0.38 tons of CO2 equivalent per ounce.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Agnico Eagle Mines Ltd (AEM, Financial) reported strong financial performance with record revenue of $2.5 billion and record adjusted earnings of $770 million.
- The company achieved gold production of 874,000 ounces with cash costs of $903 per ounce, benefiting from higher gold prices.
- Agnico Eagle Mines Ltd (AEM) returned $0.25 billion to shareholders through dividends and share buybacks, while significantly reducing net debt.
- The company is making excellent progress on key growth projects, including Detour, Upper Beaver, and Hope Bay, which are expected to significantly increase future production.
- Agnico Eagle Mines Ltd (AEM) continues to focus on sustainability, publishing its 16th annual sustainability report and maintaining a low GHG intensity of 0.38 tons of CO2 equivalent per ounce.
Negative Points
- Despite strong safety performance in 2023, the company did not perform as well in 2024, indicating room for improvement in safety measures.
- Higher royalty costs are expected to increase in a rising gold price environment, impacting overall cost management.
- Weather challenges at Detour affected mining operations, leading to the processing of lower-grade stockpile material.
- The company anticipates higher all-in sustaining costs in subsequent quarters, which could impact overall cost efficiency.
- Agnico Eagle Mines Ltd (AEM) faces potential tariff impacts on consumables, which could increase costs by an estimated 3% to 4%.
