Shares of Agnico-Eagle Mines Limited (AEM) rose to a fresh 52-week high of $50.23 on Jun 3.
Goldcorp's (GG) President and CEO Chuck Jeannes will retire from his post in Apr 2016 after the company???s Annual General Meeting.
Agnico-Eagle Mines (AEM -0.2%) is downgraded to Sector Perform from Outperform with a $31 target price, down from $38, at RBC Capital, the result of lower financial estimates generated by the firm's reduced long-term gold price assumption from $1,400 to $1,300/oz. The firm forecasts negative free cash flow at AEM in 2014 and believes the market will need to see capital and operating guidance before it re-rates shares higher. Meanwhile, RBC upgrades Franco-Nevada (FNV -0.2%) to Outperform with a $53 target, up from $43, citing operating royalties and new feasibility and development stage gold assets (Brucejack, Golden Meadows, Kirkland Lake, ABX royalty portfolio), which the firm says have the potential to add 8%-12% in annual revenue. Post your comment!
Morgan Stanley throws in the towel on its Overweight rating for Kincross Gold (KGC), cutting the stock to Equalweight. At the same time, the team ups Agnico-Eagle Mines (AEM) to Overweight.Cut to Underweight is IAMGOLD (IAG)AEM +1.4% IAG -0.5% premarket Post your comment!
Agnico-Eagle Mines (AEM): Q3 EPS of $0.35.Revenue of $444.3M beats by $75.04M. (PR) 1 comment!
HSBC upgraded its stock ratings on various gold mining companies, noting that recent weak stock performance has "opened up value again," demand for gold remains strong, lower prices are resulting in reduced supply. The firm expects gold prices to rebound again, bringing better value in some gold miners, particularly Barrick Gold (ABX +1.9%), Goldcorp (GG +2.1%) and IAMGOLD (IAG +3%), upgraded to Overweight from Neutral (I, II, III); it also raises Agnico-Eagle Mines (AEM +0.4%), Yamana Gold (AUY +2%) and AngloGold (AU +0.3%) to Neutral from Underweight (I, II, III). HSBC, however, cuts Gold Fields (GFI +0.2%) to Underweight from Neutral, in part due to higher risk related to an SEC investigation. ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING. 1 comment!
Not surprisingly, a focus on cost controls and cash flow are familiar pledges from the gold miners at this year's Denver Gold Forum (webcasts here).Speaking a couple of hours ago, Agnico-Eagle Mines (AEM -0.4%) laid out plans to cut costs by $50M this year and $200M in 2014, while limiting exploration costs to just $50M. AuRico Gold (AUQ -0.1%) and IAMGOLD (IAG +0.5%) offered similar outlines yesterday, as did Barrick Gold earlier today.The question now, writes Ben Levisohn in Barron's, is whether they can deliver.Gold miner ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING. 3 comments!
Agnico-Eagle Mines (AEM) +1.7% premarket after providing a development project update. Commissioning is in progress at the La India mine in Mexico; mining and pad loading are underway with initial leaching expected to begin in October, and commercial production is seen for Q1 2014. Mining and milling resumes at the Goldex mine in Quebec; first gold pour is expected in October, and the project remains on track to produce 15K oz. of gold in 2013. Post your comment!
Agnico-Eagle Mines Limited posted net loss of $24.4 million or 14 cents per share in second-quarter 2013, down from a profit of $43.3 million or earnings of 25 cents per share a year ago.
Here's your Cheat Sheet to earnings...
Agnico-Eagle Mines (AEM): Q2 EPS of -$0.03 misses by $0.11. Revenue of $336.4M misses by $23.67M. (PR)
Agnico-Eagle Mines (AEM): Q2 EPS of -$0.03 misses by $0.11. Revenue of $336.4M misses by $23.67M. (PR) Post your comment!
Quebec's government lays out plans to extract higher taxes from the mining sector over the next 12 years, with measures such as a minimum royalty. The province wants new funding sources to bring its debt under control, but miners already facing falling profits due to falling commodity prices oppose the plan, though Agnico-Eagle Mines (AEM) says the overall impact on its operations appears to be minor.
Quebec's government lays out plans to extract higher taxes from the mining sector over the next 12 years, with measures such as a minimum royalty. The province wants new funding sources to bring its debt under control, but miners already facing falling profits due to falling commodity prices oppose the plan, though Agnico-Eagle Mines (AEM) says the overall impact on its operations appears to be minor. Post your comment!
Agnico-Eagle Mines Limited's first-quarter 2013 adjusted earnings (excluding one-time items other than stock-based compensation expenses) of 24 cents per share were well below the Zacks Consensus Estimate of 34 cents.
(Kitco News) - Despite the recent sharp drop in metal prices and rising costs, Agnico-Eagle Mines Limited (NYSE:AEM, TSX:AEM) will continue with its current strategy, which includes a push in production.
More on Agnico-Eagle Mines' (AEM) Q1 results: Payable gold production was ~237K oz., -7% Y/Y, due primarily to the suspension of the Creston Mascota heap leach. Total cash costs were $740/oz. vs. $594 a year ago, due to lower byproduct revenue at LaRonde, lower grades at Meadowbank and a lack of production from Creston Mascota. Maintains 2013 production guidance of 970K-1.01M oz. of gold.
More on Agnico-Eagle Mines' (AEM) Q1 results: Payable gold production was ~237K oz., -7% Y/Y, due primarily to the suspension of the Creston Mascota heap leach. Total cash costs were $740/oz. vs. $594 a year ago, due to lower byproduct revenue at LaRonde, lower grades at Meadowbank and a lack of production from Creston Mascota. Maintains 2013 production guidance of 970K-1.01M oz. of gold. Post your comment!
Agnico-Eagle Mines (AEM): Q1 EPS of $0.31 misses by $0.01. Revenue of $423M (-10.7% Y/Y) beats by $15M. Shares -0.7% AH. (PR)
Agnico-Eagle Mines (AEM): Q1 EPS of $0.31 misses by $0.01. Revenue of $423M (-10.7% Y/Y) beats by $15M. Shares -0.7% AH. (PR) 1 comment!
As long as the price of gold continues to drift lower, it seems earnings expectations for miners of the yellow metal are following its decline. And in the high-risk metal mining industry, costs can quickly escalate too. This week, Agnico-Eagle Mines (AEM) dropped to a Zacks #5 Rank as analyst 2013 EPS estimates have fallen from $2.44 to $2.04 in the past 60 days. And downward revisions have taken the full-year 2014 down to $2.36 from $2.80. Agnico-Eagle Mines Limited is a Toronto-based gold producer with operations in Canada, Finland and Mexico. The company's LaRonde mine in Quebec is one of Canada's largest operating gold mines by gold reserves and has provided the company s foundation for domestic and international expansion. The company missed expectations in fourth-quarter 2012 with both revenues and adjusted earnings falling short of the Zacks Consensus Estimate. But this was a welcome return to profitability from a year ago. On a reported basis, AEM turned to a profit of $82.8 million or $0.48 per share in the quarter compared with a loss of $601.4 million or $3.53 per share a year ago. The bottom line in the year-ago quarter was hit by $907.7 million of impairment charge at their Meadowbank mine in northern Canada. Special Offer: Stock picks from Forbes Dividend Investor are up 15.9% since July. Average yield on buys is 5.9%. Click here now to try Forbes Dividend Investor free for 30 days. For full-year 2012, AEM posted a profit of $310.9 million $1.81 per share versus a loss of $568.9 million or $3.36 per share in 2011. The hefty impairment loss coupled with production suspension at the Goldex mine crimped the bottom line in 2011. Adjusted earnings of $1.87 per share fell behind the Zacks Consensus Estimate of $2.12. While Agnico-Eagle maintains a solid exploration budget and is reinvesting in its assets to expand output, any potential delay associated with the development projects may jeopardize its future production. And here's the view of future profits according to the analysts: One of Agnico-Eagle's main issues has been the persistently high operating costs at its Meadowbank mine in the Canadian Arctic. Ore dilution resulted in lower than expected grades to the mill, and the cost of transportation, logistics, labor and maintenance continued to be much higher than expected. According to the company, Meadowbank previously had a property, plant and mine development book value of about $1.7 billion. Owing to persistently high operating costs, the latest optimized mine plan for Meadowbank resulted in shorter mine life and the company had to reduce the carrying value of the operation. Agnico expects cash costs to increase across a number of mines in 2013. Shut-Down = Write-Down Agnico-Eagle suspended operations at the Goldex mine in October 2011 due to suspected rock subsidence in the hanging wall above the GEZ orebody. Considering the safety of its employees, and the integrity of surface infrastructure, the company decided to stop production at the mine. Due to the uncertainty regarding any future production at Goldex, a $161 million after-tax write down was incurred. In addition, all proven and probable reserves at Goldex were transferred into mineral resources. AEM's fortune's are closely tied to the barbarous relic, as are those of most miners. One business practice that could be a double-edge sword is the fact that the company is that they don't hedge. Throughout its 40-year history, Agnico-Eagle's policy has been not to sell forward its future gold production. In 2012, Agnico- Eagle produced 1,043,811 ounces of gold at total cash costs of $640 per ounce. The advantages to hedging might become apparent if gold enters an extended decline. Many miners will wish they would have sold gold forward contracts above $1600 should the price drop persist. For further perspective, the gold miners are currently ranked in the bottom 10% of Zacks Industry groups. Until the outlook for the miners and the metal changes, it's probably best to stay away. Kevin Cook is a senior stock strategist with Zacks.com Read the full Analyst Report on AEM