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AEM

Agnico Eagle Mines NYSE:AEM Stock Report

Last Price

US$42.23

Market Cap

US$19.2b

7D

8.1%

1Y

-17.2%

Updated

30 Sep, 2022

Data

Company Financials +
AEM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance1/6
Financial Health5/6
Dividends3/6

AEM Stock Overview

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland.

Agnico Eagle Mines Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Agnico Eagle Mines
Historical stock prices
Current Share PriceUS$42.23
52 Week HighUS$67.14
52 Week LowUS$36.69
Beta0.82
1 Month Change2.48%
3 Month Change-10.93%
1 Year Change-17.18%
3 Year Change-22.27%
5 Year Change-7.84%
Change since IPO411.88%

Recent News & Updates

Sep 28

Agnico Eagle: A Smart Move To Boost The Pipeline

Summary Agnico Eagle Mines is down more than 50% from its highs, a decline that is completely detached from fundamentals. This is because the company has one of the best track records sector-wide, already has an incredible portfolio of assets, and has now added three of the best mines globally. The most recent move by Agnico might have caught some off guard, but it looks brilliant, adding exposure to an extremely high-margin project in a very friendly mining state. Given the extreme valuation disconnect, I have continued to add to my position on weakness, and I see AEM as a Strong Buy below $40.00. It was the best of times. It was the worst of times. This is consistent with what investors have experienced in the general market, coming off a euphoric 100% plus rally in 18 months with a sudden descent into an unforgiving cyclical bear market. For the Gold Miners Index (GDX), it was the worst of times of 2021, it was an even worse time in 2022, and Q3 2022 has been so ugly that it's led most investors to give up all hope. Sentiment for gold is in the dumps, and sentiment for miners in the incinerator. In fact, the GDX has slid 47% in five months, an annualized decline of (-) 78%. This would place it near zero if this persists for another six months, something that many investors might actually be starting to believe is possible given how disgusted they've become with the space. Admittedly, some of the declines across the sector are justified, with several producers becoming un-investable and others mismanaging projects so poorly that they've diluted shareholders by criminal levels. However, in the case of Agnico Eagle Mines Limited (AEM), the company posted blowout results in H1 2022. It is ahead of plans on synergies and reported a massive increase in reserves at what could be a million-ounce per annum mine. Meanwhile, it has a track record that most can't match, going from a one-mine company to an eleven-mine company in 16 years with very modest dilution, with an additional three mines in the wings. Given the extreme valuation disconnect (~7.0x cash flow) for a business with peer-leading margins, organic growth, and jurisdictional risk, I see AEM as a Strong Buy below $40.00. Canadian Malartic Mine (Company Presentation) San Nicolás Partnership With Teck Agnico Eagle announced last week that it would be partnering with Teck Resources (TECK) on its advanced-stage San Nicolás Project in southeast Zacatecas in Mexico, ~250 kilometers south of Penasquito, and arguably the most attractive mining jurisdiction in Mexico. San Nicolás was discovered by Teck in 1997 and is one of the most significant undeveloped volcanic-hosted massive sulfide deposits globally. Historically, VHMS deposits have contributed significantly to the world's zinc, copper, and leader production. Notably, this is a project Teck has spent considerable time on. Agnico also has dedicated lots of time to it, having conducted dozens of site visits and looking at the project for three years before making this deal. San Nicolás Mineralization (Teck Resources Presentation) Some investors might wonder why Agnico would veer away from a gold focus toward a potential open-pit copper-zinc project with gold/silver by-product credits. The answer should be quite simple when looking at the economics and the partnership. In the case of San Nicolás, this project is well advanced, with Teck having completed a Pre-Feasibility Study in Q1 2021 and an Environmental Impact Assessment ((EIA)) in Q3 2021, and it boasts a very long mine life in a jurisdiction where Agnico has a long history of success with Pinos Altos and La India in Mexico. Digging into the economics and resource, the project is home to 105.2 million tonnes of reserves at a 1.12% copper grade, 1.48% zinc grade, 0.40 gram per tonne gold grade, and 22 gram per tonne silver grade, of ~2.0% copper-equivalent. The project is expected to produce copper and zinc in concentrate if developed and will produce 63,000 tonnes of copper, 147,000 tonnes of zinc, 31,000 ounces of gold, and a silver contribution, or approximately ~125,000 copper equivalent tonnes. Given the extremely high margins of (-) $0.16/lb copper or $0.44/lb over the mine life and reasonable capex (~$1.0 billion), the project has a 33% after-tax IRR even at conservative metals prices ($3.50/lb copper and $1.15/lb zinc). San Nicolás Project Economics - Pre-Feasibility Study (Teck Resources Presentation) Although some investors may not like this added exposure to copper/zinc, I think the move is brilliant, especially the way it was done with a shared approach. Besides, Agnico has confirmed that it is not abandoning its gold-focused strategy but that this was a unique opportunity given the exceptional economics and long mine life in a jurisdiction where it's already present. Besides, whether one prefers solely gold or not, one cannot deny the attractive supply/demand picture for copper, with a sharp rise in demand due to the trend towards electrification and declining grades and declining production due to lower head grades, long build times, and the fact that most projects need at least $4.25/lb to be worth building given their high capex. Copper Supply/Demand Picture (Wood Mackenzie Research) In terms of the deal, Agnico Eagle has subscribed for 50% of the project for $290 million, or $580 million when including its first half of project costs. Teck will benefit from Agnico's mine-building and operating experience in Mexico while Agnico will benefit from Teck's base metals expertise and marketing leadership. Given the relatively modest capex on a shared basis (~$500 million) and sharing the project, this does not disrupt Agnico's capital allocation plans (dividend & buyback plus aggressive portfolio-wide exploration), nor does it disrupt its organic growth plans. Like most deals in the sector, each one draws criticism. However, I see this deal as a great move, given that it is not easy to find projects with these economics in the gold sector. This project offers high single-digit production growth attributable to Agnico on a gold-equivalent basis at Fosterville-like cash cost margins over 15+ years. In fact, on an attributable basis over the mine life, the cash cost margins would be over 80%, equivalent to producing gold at cash costs of less than $250/oz (Agnico's current cash costs are ~$800/oz). Agnico Eagle Mines - Current Production & Forward Production Potential (Company Filings, Author's Estimates & Chart) Based on the current schedule, the hope is to see the first production in 2026, with the first full year of commercial production likely to be in 2027. The contribution from San Nicolás is shown in the bar's blue/white gradient area, and contribution from this asset, combined with growth at Macassa/Amalgamated Kirkland (#4 Shaft) and Hope Bay coming back online, could push Agnico's production to ~3.9 million ounces in 2027. Assuming the company can add additional ounces in the Kirkland Lake Camp (Upper Beaver, existing Holt Mill, Upper Canada) and leverage off existing infrastructure in the area, there's a path to ~4.0 million ounces by 2028 potentially. Just as importantly, this project will pull down consolidated costs for Agnico at a time when many other producers are struggling to keep costs below $1,275/oz, with Agnico potentially having paved a path to maintain sub $1,000/oz costs. I believe this makes Agnico Eagle stand out relative to its peer group, with up to 20% production growth this decade at lower costs, as it benefits from lower unit costs due to economies of scale at Macassa, higher throughput at Detour, and the possibility of lower costs due to by-product credits at Upper Beaver, in addition to San Nicolás. If we look elsewhere among the 3.0+ million-ounce producers, it's much harder to find growth, meaning Agnico is a nice combination of growth & value, which we'll discuss later. Kirkland Lake Camp - A New Complex (Company Presentation) Overall, I see this deal as very positive, given that it is consistent with Agnico's risk-averse growth strategy and ensures it doesn't pay for growth at any price as some other producers have in the past couple of years. In fact, this deal is a very nice deviation from the deals we saw in the past cycle for gold in the 2007-2012 period, which were major acquisitions done near the top of the cycle with massive capex bills, and high prices paid. In many cases, these projects required high metal price assumptions to work. In the case of San Nicolás, this project works even at $2.75/lb copper, given its margins, with five times the copper-equivalent grade of other development projects globally. So, when it comes to marrying the strengths of both companies and sharing the capex risk, I think this is a model that could be embraced by the market. It allows the companies to add growth in a period of extreme pessimism without any share dilution and with limited risk due to partnering. Hence, I think this was an A+ deal by Agnico Eagle, even if it's something I would never have expected. A Long-Term Track Record Worth Betting On If we look at the charts below, we can see that Agnico Eagle has arguably the best track record sector-wide among its peers, growing from one mine in 2005 (LaRonde) to 11 mines today without sacrificing on jurisdictional risk and with relatively low share dilution. This is evidenced by the fact that Agnico Eagle has grown production from ~271,000 ounces in 2004 to ~3.30 million ounces in 2022 (1100% growth), while its share count has increased from just ~86.0 million shares to 455 million shares. The result is an industry-leading production growth per share rate, and if a company is not growing production per share, it is better to hold the physical metal itself. However, it's important to note that this growth from 0.022 ounces of gold production per share held in 2005 to 0.074 ounces in 2022 does not do this figure justice. The reason is that Agnico has another 1.0+ million ounces bought and paid for within its portfolio without the need for any additional share dilution, suggesting significant further production per share growth on deck. In fact, production growth per share could accelerate, with the company recently approving opportunistic share buybacks as a new tool to return capital. The 1.0+ million ounces of growth in the tank is related to organic growth at Detour Lake, Meliadine, and Macassa/AK, as well as Hope Bay (permitted, pat producer, infrastructure in place), Upper Beaver (advanced-stage, benefits from regional infrastructure), Santa Gertrudis (low-capex growth), and San Nicolás (advanced stage, now shared with Teck). Agnico Eagle Mines - Shares Outstanding & Gold Production + Forward Estimates (Company Filings, Author's Chart) Agnico Eagle - Production Growth Per Share, Dividend Per Share, Shares Outstanding (Company Filings, Author's Chart) Digging into the second chart, we can see that while Agnico's production growth per share has been phenomenal, its dividend growth rate has rivaled that of Dividend Champions, which is especially impressive for a stock in a cyclical industry. The company's annualized dividend has grown from $0.03 per share in 2004 to $1.60 in FY2022, a ~24% compound annual growth rate that is in line with Apple (AAPL) and only just behind that of Starbucks (SBUX) since they began paying dividends in 2010 and 2012, respectively. In fact, Agnico has consistently paid a dividend since 1983 and is a clear outlier in the sector. Finally, it's important to note that Agnico Eagle has been very disciplined when it comes to allocating capital. While its share count grew quite rapidly during its high-growth phase, it made very modest bets in early-stage stories to build itself into the company it is today. These bets have paid off multiple times over, with approximately ~$3.0 billion spent on acquisitions (Riddarhyttan (Kittila), Pinos Altos, Cumberland (Meadowbank), Meliadine, Grayd (La India), Malartic (50%), Upper Beaver/Hammond Reef). Many of these assets have already been in production for nearly a decade and have generated considerable free cash flow, and sporting a combined estimated net asset value of more than $8.5 billion.

Sep 24
Slowing Rates Of Return At Agnico Eagle Mines (NYSE:AEM) Leave Little Room For Excitement

Slowing Rates Of Return At Agnico Eagle Mines (NYSE:AEM) Leave Little Room For Excitement

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...

Sep 21

Premier Leverage To Gold Prices: Buy Agnico Eagle

Summary Over the past 12 months, Agnico Eagle has morphed into perhaps the top blue-chip pick in the precious metals mining industry. Today's valuation is at a company record low on trailing results, especially when measured against a richly-priced U.S. stock market. The dividend yield story is excellent (near 4%), with the possibility of far greater payouts in future years. Gold appears ready to reverse strongly higher, influenced by a weakening stock market and economy. If you are searching for low-risk gold exposure in your portfolio, please consider Agnico Eagle Mines (AEM). It is one of the lowest-AISC gold miners in the world, with assets located in the safest political jurisdictions of Canada (74% of 2021 production and 85% of reserves), Finland, Australia and Mexico. The company has quietly been increasing its reserves into a 30-year plan of operation, and sports a conservative balance sheet. Valuations have reached an all-time low in the summer of 2022, and the dividend yield proposition is approaching best in class. Agnico Eagle - September 2022 Presentation Agnico Eagle - September 2022 Presentation The company has digested the merger with Canadian miner Kirkland Gold (closed in February), and has witnessed amazing success increasing reserves over the past year. To get a clearer picture of drilling results and the jump in economically recoverable reserves, I hope you can read Seeking Alpha contributor Taylor Dart's latest missive on Agnico posted a few weeks ago here. One of the article's bullet points summarized his bullish view, With the stock having industry-leading margins, a flawless track record, meaningful organic growth on deck, and being a top-10 exploration story, I see it as a must-own producer, especially with it now paying a 4% dividend yield. And, last week the company announced a spend of $580 million to become a 50/50 joint partner with Teck Resources (TECK) developing a copper-zinc asset in Mexico through the San Nicolás project. The unexpected move is an effort to supply the budding and potential exponential electric vehicle [EV] demand for battery and electric motor critical metals. A 15-year mine life, with production beginning in 2026, and $500 million in future capital costs are prorated for Agnico's development share. Total operating costs are projected below $0.50 per pound of copper, net of credits from other metals mined. What I like best about Agnico Eagle is its disciplined spending approach to growing the company. Almost no debt exists, net of cash on hand. This low leverage profile is the old-fashioned and conservative way to run a business, which few in the capital-intensive mining business have been able to pull off. Agnico Eagle - September 2022 Presentation All-Time Low Valuation The quality of its assets, including long-life reserves in safer jurisdictions, combined with limited debt means Wall Street values the company on the high end of the spectrum vs. other precious and base metal mining enterprises. You can review this premium valuation vs. a group of leading global miners below. On forward price to earnings and enterprise value to EBITDA, Agnico does not appear to be a bargain at first glance. YCharts - Gold and Base Metal Mining Leaders, Price to Forward Projected Earnings, 12 Months YCharts - Gold and Base Metal Mining Leaders, EV to Forward Projected EBITDA, 12 Months However, simple analysis of basic fundamental ratios on the company's operations since 1995 pinpoints a record low valuation today. Despite its most diversified setup, massive resource base, positive growth future, and rock-solid financials, you can buy Agnico today at its cheapest price to sales, cash flow, and book value multiples EVER (in combination). YCharts - Agnico Eagle Price to Sales, Cash Flow, Book Value, 1995-Present Another smart reason to buy and hold AEM today is found in its highest dividend yield EVER. It's also the best "relative" yield setting to the overall U.S. equity market in its history. I know plenty of investors are flocking to royalty companies in the mining sector paying 1% or 2% dividend distributions. Why not capture DOUBLE and TRIPLE the yields on royalty setups upfront, with dramatically better leverage to rising gold prices in the future through this "premier" mining security? YCharts - AEM Dividend Yield vs. S&P 500 ETF, 1990-Present Bullish Gold Outlook This company represents another great pick in the bottoming gold/silver/platinum/palladium mining sectors of the investment market. I have become increasingly bullish on gold and related mining investments during the course of the year, and near-unanimous sentiment by analysts/investors that gold cannot rise while the Federal Reserve and other central banks are aggressively tightening has pushed long-term valuations into ridiculously oversold and undervalued territory. StockCharts.com - Gold Nearest Futures, 18 Months of Daily Changes With gold reaching a 2-year low price in U.S. dollars last week, while silver, platinum and palladium are holding above their 2022 bottoms, the odds of a reversal higher in all precious metals is growing. Technically, this is the type of divergent action you see at important inflection points. Just as important, the gold price adjusted to fluctuations in the U.S. Dollar Index of paper currency exchange rates is still trading ABOVE its July low point. YCharts - Precious Metals Pricing, Past 2 Months Measured against money printing through the rise in M2 money stock or future requirements for money printing in the total Treasury debt outstanding number, US$1671 an ounce for gold (the ultimate store of value and monetary metal) is just as cheap as $1100 gold in 2018! So, predicting and preparing for $2500 to $3000 gold in a few years is just plain common sense in a world full of record debts. Whose to say a deep global recession in 2023 won't cause another round of record money printing by central banks, eclipsing even the COVID-19 pandemic shutdown response? YCharts - M2 Money Stock vs. Gold Price, 1990-Present YCharts - U.S. Treasury Debt vs. Gold Price, 1990-Present Final Thoughts The logic to own Agnico Eagle revolves around (1) capturing a record low valuation from a top gold miner in your portfolio, (2) a terrific above-normal dividend yield that can rise substantially with gold prices, and (3) the potential of a double or triple in the stock quote if gold prices are headed to $2500+ an ounce during 2023-24. As a bonus, gold assets have a history of leading the stock market higher after bear markets, and hedging out-of-control money printing. What's not to like?

Aug 30

Agnico Eagle goes ex-dividend tomorrow

Agnico Eagle (NYSE:AEM) had declared $0.40/share quarterly dividend, in line with previous. Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See AEM Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

AEMUS Metals and MiningUS Market
7D8.1%-2.2%-3.1%
1Y-17.2%-14.1%-21.5%

Return vs Industry: AEM underperformed the US Metals and Mining industry which returned -14.1% over the past year.

Return vs Market: AEM exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is AEM's price volatile compared to industry and market?
AEM volatility
AEM Average Weekly Movement6.0%
Metals and Mining Industry Average Movement8.8%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: AEM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AEM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19536,810Ammar Al-Joundihttps://www.agnicoeagle.com

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. It operates through Northern Business and Southern Business segments. The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits.

Agnico Eagle Mines Fundamentals Summary

How do Agnico Eagle Mines's earnings and revenue compare to its market cap?
AEM fundamental statistics
Market CapUS$19.21b
Earnings (TTM)US$586.98m
Revenue (TTM)US$4.80b

32.7x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEM income statement (TTM)
RevenueUS$4.80b
Cost of RevenueUS$2.04b
Gross ProfitUS$2.75b
Other ExpensesUS$2.17b
EarningsUS$586.98m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 26, 2022

Earnings per share (EPS)1.29
Gross Margin57.38%
Net Profit Margin12.24%
Debt/Equity Ratio8.9%

How did AEM perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

85%

Payout Ratio

Does AEM pay a reliable dividends?

See AEM dividend history and benchmarks
When do you need to buy AEM by to receive an upcoming dividend?
Agnico Eagle Mines dividend dates
Ex Dividend DateNov 30 2022
Dividend Pay DateDec 15 2022
Days until Ex dividend60 days
Days until Dividend pay date75 days

Does AEM pay a reliable dividends?

See AEM dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is AEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AEM?

Other financial metrics that can be useful for relative valuation.

AEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.1x
Enterprise Value/EBITDA8.7x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does AEM's PE Ratio compare to its peers?

AEM PE Ratio vs Peers
The above table shows the PE ratio for AEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.2x
NEM Newmont
45x5.4%US$33.4b
RGLD Royal Gold
22.2x8.5%US$6.2b
BVN Compañía de Minas BuenaventuraA
9.1x21.3%US$1.7b
DRD DRDGOLD
8.6xn/aUS$468.5m
AEM Agnico Eagle Mines
32.7x12.1%US$19.2b

Price-To-Earnings vs Peers: AEM is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the peer average (21.2x).


Price to Earnings Ratio vs Industry

How does AEM's PE Ratio compare vs other companies in the US Metals and Mining Industry?

Price-To-Earnings vs Industry: AEM is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the US Metals and Mining industry average (6.2x)


Price to Earnings Ratio vs Fair Ratio

What is AEM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.7x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: AEM is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).


Share Price vs Fair Value

What is the Fair Price of AEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AEM ($42.23) is trading below our estimate of fair value ($98.28)

Significantly Below Fair Value: AEM is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Agnico Eagle Mines forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEM's forecast earnings growth (12.1% per year) is above the savings rate (1.9%).

Earnings vs Market: AEM's earnings (12.1% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: AEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: AEM's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AEM's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEM's Return on Equity is forecast to be low in 3 years time (8.4%).


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Past Performance

How has Agnico Eagle Mines performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


32.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AEM has a large one-off loss of $308.8M impacting its June 30 2022 financial results.

Growing Profit Margin: AEM's current net profit margins (12.2%) are lower than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: AEM's earnings have grown significantly by 32.9% per year over the past 5 years.

Accelerating Growth: AEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AEM had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (82.4%).


Return on Equity

High ROE: AEM's Return on Equity (3.6%) is considered low.


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Financial Health

How is Agnico Eagle Mines's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AEM's short term assets ($2.5B) exceed its short term liabilities ($984.4M).

Long Term Liabilities: AEM's short term assets ($2.5B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: AEM's net debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: AEM's debt to equity ratio has reduced from 28.2% to 8.9% over the past 5 years.

Debt Coverage: AEM's debt is well covered by operating cash flow (115.9%).

Interest Coverage: AEM's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


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Dividend

What is Agnico Eagle Mines's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.79%

Current Dividend Yield

Upcoming Dividend Payment

TodayOct 01 2022Ex Dividend DateNov 30 2022Dividend Pay DateDec 15 202215 days from Ex DividendBuy in the next 60 days to receive the upcoming dividend

Dividend Yield vs Market

Agnico Eagle Mines Dividend Yield vs Market
How does Agnico Eagle Mines dividend yield compare to the market?
SegmentDividend Yield
Company (Agnico Eagle Mines)3.8%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Metals and Mining)3.6%
Analyst forecast in 3 Years (Agnico Eagle Mines)3.7%

Notable Dividend: AEM's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: AEM's dividend (3.79%) is low compared to the top 25% of dividend payers in the US market (4.7%).


Stability and Growth of Payments

Stable Dividend: AEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: AEM's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.9%), AEM's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (142.7%), AEM's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Ammar Al-Joundi (58 yo)

0.50yr

Tenure

US$6,675,959

Compensation

Mr. Ammar Al-Joundi, MBA is Independent Director at Canadian Imperial Bank of Commerce from April 07, 2022. He had been the President of Agnico Eagle Mines Limited since April 6, 2015 and served as its Sen...


CEO Compensation Analysis

Ammar Al-Joundi's Compensation vs Agnico Eagle Mines Earnings
How has Ammar Al-Joundi's remuneration changed compared to Agnico Eagle Mines's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$587m

Mar 31 2022n/an/a

US$508m

Dec 31 2021US$7mUS$758k

US$543m

Sep 30 2021n/an/a

US$661m

Jun 30 2021n/an/a

US$770m

Mar 31 2021n/an/a

US$678m

Dec 31 2020US$5mUS$621k

US$512m

Sep 30 2020n/an/a

US$638m

Jun 30 2020n/an/a

US$492m

Mar 31 2020n/an/a

US$415m

Dec 31 2019US$4mUS$678k

US$473m

Sep 30 2019n/an/a

-US$252m

Jun 30 2019n/an/a

-US$312m

Mar 31 2019n/an/a

-US$335m

Dec 31 2018US$5mUS$695k

-US$327m

Sep 30 2018n/an/a

US$104m

Jun 30 2018n/an/a

US$160m

Mar 31 2018n/an/a

US$210m

Dec 31 2017US$5mUS$655k

US$241m

Sep 30 2017n/an/a

US$266m

Jun 30 2017n/an/a

US$243m

Mar 31 2017n/an/a

US$207m

Dec 31 2016US$3mUS$589k

US$159m

Sep 30 2016n/an/a

US$81m

Jun 30 2016n/an/a

US$33m

Mar 31 2016n/an/a

US$24m

Dec 31 2015US$2mUS$429k

US$25m

Compensation vs Market: Ammar's total compensation ($USD6.68M) is below average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Ammar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AEM's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: AEM's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:AEM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
09 May 22BuyUS$109,516Peter GrosskopfIndividual2,000US$54.76
05 May 22SellUS$105,198Robert GemmellIndividual1,792US$58.70
28 Feb 22BuyUS$1,048,474Sean BoydIndividual20,000US$52.68
28 Feb 22BuyUS$162,210Ammar Al-JoundiIndividual3,200US$50.69

Ownership Breakdown

What is the ownership structure of AEM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders764,4090.2%
General Public155,044,86434.1%
Institutions299,134,00665.8%

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 86.7%.


Top Shareholders

Top 25 shareholders own 43.11% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
4.42%
Van Eck Associates Corporation
20,098,838$848.8m-3.03%1.62%
3.84%
GQG Partners LLC
17,466,650$737.6m12.17%1.02%
3.72%
BlackRock, Inc.
16,943,934$715.5m0%0.02%
3.4%
The Vanguard Group, Inc.
15,490,656$654.2m2.81%0.01%
2.84%
Fidelity International Ltd
12,899,297$544.7m20.09%0.26%
2.77%
Massachusetts Financial Services Company
12,602,893$532.2m8.02%0.13%
2.4%
RBC Global Asset Management Inc.
10,905,430$460.5m-1.56%0.32%
2.32%
FMR LLC
10,552,278$445.6m-21.33%0.04%
1.85%
Mackenzie Financial Corporation
8,422,407$355.7m-19.14%0.41%
1.72%
Flossbach von Storch AG
7,808,910$329.8m12.9%0.77%
1.66%
BMO Asset Management Corp.
7,545,748$318.7m37.09%0.18%
1.49%
Deutsche Asset & Wealth Management
6,775,428$286.1m224.02%0.11%
1.32%
First Eagle Investment Management, LLC
6,008,988$253.8m-17.37%0.4%
1.22%
CIBC Asset Management Inc.
5,553,062$234.5m-0.54%0.54%
1.11%
Manulife Asset Management
5,027,160$212.3m79.83%0.18%
1.03%
Franklin Resources, Inc.
4,666,017$197.0m0.66%0.08%
1.02%
Amundi Asset Management
4,645,472$196.2m17.56%0.05%
0.73%
Invesco Ltd.
3,317,026$140.1m-5.96%0.04%
0.66%
TD Asset Management, Inc.
2,996,558$126.5m-2.87%0.11%
0.66%
IG Investment Management, Ltd.
2,986,842$126.1m0%0.36%
0.65%
Canadian Imperial Bank of Commerce, Asset Management Arm
2,954,063$124.8m0.73%0.46%
0.64%
Renaissance Technologies LLC
2,920,523$123.3m-8.08%0.14%
0.62%
Legal & General Investment Management Limited
2,807,478$118.6m1.02%0.03%
0.52%
Norges Bank Investment Management
2,377,243$100.4m0%0.01%
0.52%
J.P. Morgan Asset Management, Inc.
2,364,963$99.9m2.78%0.02%

Company Information

Agnico Eagle Mines Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Agnico Eagle Mines Limited
  • Ticker: AEM
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: US$19.212b
  • Shares outstanding: 454.94m
  • Website: https://www.agnicoeagle.com

Number of Employees


Location

  • Agnico Eagle Mines Limited
  • 145 King Street East
  • Suite 400
  • Toronto
  • Ontario
  • M5C 2Y7
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEMNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
AEMTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
AE9DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
AEMSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1972
0R2JLSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
AEM NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
AEMBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/3 COM NPVARARSSep 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.