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Agnico Eagle Mines Ltd AEM

Morningstar Rating
$64.89 −0.77 (1.17%)
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Company Report

Agnico Eagle's Mines Performing Strongly but Shares Are Overvalued

Agnico Eagle is the world’s third-largest gold miner by production, operating mines in Canada, Mexico, Finland, and Australia, reflecting the company’s focus on lower-risk jurisdictions. Its four cornerstone assets each produce roughly 350,000-700,000 ounces of gold annually, consisting of Detour Lake, Canadian Malartic, Meadowbank and Meliadine. All four are in Canada. These mines accounted for around 60% of the company’s production of 3.4 million ounces of gold in 2023, with the company also producing minor amounts of copper, zinc, and silver. Agnico Eagle had about 15 years of gold reserves at end 2023.

Price vs Fair Value

AEM is trading at a 752% premium.
Price
$65.66
Fair Value
$38.00
Uncertainty
Medium
1-Star Price
$32.83
5-Star Price
$85.70
Economic Moat
Mkbhg
Capital Allocation
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Bulls Say, Bears Say

Bulls

Agnico Eagle has around 15 years of reserves at end December 2023, with various opportunities to incrementally increase gold production in coming years.

Bears

The company’s production sits within the second quartile of the gold cost curve, meaning it is more leveraged to changes in the gold price than its lower-cost competitors.

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News

Trading Information

Previous Close Price
$65.66
Day Range
$64.8365.64
52-Week Range
$43.2271.50
Bid/Ask
$64.77 / $65.19
Market Cap
$32.33 Bil
Volume/Avg
1.4 Mil / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
26.83
Price/Sales
4.70
Dividend Yield (Trailing)
2.44%
Dividend Yield (Forward)
2.44%
Total Yield
2.52%

Company Profile

Agnico Eagle is a gold miner with mines in Canada, Mexico, Finland, and Australia. Agnico operated just one mine, LaRonde, as recently as 2008 before bringing its other mines online in rapid succession in the following years. It merged with Kirkland Lake Gold in 2022, acquiring the Detour Lake and Macassa mines in Canada along with the high-grade, low-cost Fosterville mine in Australia. It produced more than 3.4 million gold ounces in 2023 and had about 15 years of gold reserves at end 2023. Agnico Eagle is focused on increasing gold production in lower-risk jurisdictions and bought the remaining 50% of its Canadian Malartic mine along with the Wasamac project and other assets from Yamana Gold in 2023.
Sector
Basic Materials
Industry
Gold
Stock Style Box
Large Growth
Total Number of Employees
10,447

Competitors

Valuation

Metric
AEM
KGC
GOLD
Price/Earnings (Normalized)
26.8316.0918.80
Price/Book Value
1.681.531.25
Price/Sales
4.702.152.55
Price/Cash Flow
11.196.036.98
Price/Earnings
AEM
KGC
GOLD

Financial Strength

Metric
AEM
KGC
GOLD
Quick Ratio
0.690.332.09
Current Ratio
2.211.153.32
Interest Coverage
9.5612.629.98
Quick Ratio
AEM
KGC
GOLD

Profitability

Metric
AEM
KGC
GOLD
Return on Assets (Normalized)
3.79%5.47%3.40%
Return on Equity (Normalized)
5.65%9.56%6.73%
Return on Invested Capital (Normalized)
5.30%6.92%4.86%
Return on Assets
AEM
KGC
GOLD
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1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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Wheaton Precious Metals Corp
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Gold Fields Ltd
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Kinross Gold Corp
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