Cara Community GSM: Agnico-Eagle Mines

Agnico Eagle Mines (NYSE and TSX: AEM) reviewed 11-09-2020

(All figures in USD)

Market Cap:       $18.5 Billion       Share Price:        $76.10

Shares outstanding: 242,991,213 as of Sep 2020

Cash and cash equivalents: $321.5 M as of 30 Sep 2020

Debt: $1.56 B as of 30 Sep 2020                 Credit facility: $1.2 Billion (undrawn as of 30 Sep)

Current operations: Yes.

Insider holdings: Low                      Institutional:  714 institutions own about 72%


Investor Presentation:

CEO: Sean Boyd                                HQs: Toronto, Canada

Agnico Eagle Mines is a senior Canadian gold miner engaged in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland

Primarily produces and sells gold deposit, as well as explores for silver, zinc, and copper deposits

Reported 2020 Q3 revenues of $980.6 M, a 29.1% increase over Q3 2019, primarily due to the increase in the price of gold in the quarter

Cash from operations $462.5 M in Q3 and $788.5 M in the first nine months of 2020

Earnings $0.92 cents per share in the quarter

Cash costs were $764 per gold ounce on a by-product basis and AISC stated at $1016 per oz

The company will spend 720-740 M, up from $680 M as it develops the Kittila mine in Finland

All eight of the company’s mines are operating at full capacity

The company offers full exposure to the gold price as it does not sell forward (hedge)

Agnico has an estimated 22 M oz of gold reserves and a resource of 60 M oz

Bottom line:

  • A top-rated major Goldminer
  • Blow-out quarter
  • Nov.9-10 sell-off from US$84.40 to US$73.40 presents a buying opportunity at prices lower than any since July
  • Highly recommended

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