Bull of the Day: Agnico Eagle (AEM)

Agnico Eagle Mines Ltd. AEM is posting record net income as gold soars to new highs. This Zacks Rank #1 (Strong Buy) is expected to return a lot of cash to shareholders this year.

Agnico Eagle is headquartered in Toronto, Canada and is the third largest gold producer in the world. It has operations in Canada, Australia, Finland, and Mexico with other exploration and development projects ongoing.

Founded in 1957, Agnico Eagle is focused on the shareholder. It has paid a cash dividend every year since 1983.

Agnico Eagle Beats on Earnings Again in Q1

On Apr 24, 2025, Agnico Eagle reported its first quarter 2025 results and beat on the Zacks Consensus Estimate by $0.14. Earnings were $1.53, easily beating the Zacks Consensus of $1.39.

It was the 13^th consecutive earnings beat.

Agnico Eagle saw payable gold production of 873,794 ounces at an all-in sustaining costs (“AISC”) per ounce of $1,183. It was led by Canadian Malartic, LaRonde, Macassa and the Nunavut operations.

The company reaffirmed full year production and cost guidance.

With gold at record highs, so was adjusted net income. It also had a strong free cash flow of $594 million.

Agnico Eagle’s cash position rose by $212 million to $1.138 billion and approached a zero net debt position. At the end of the first quarter, total debt outstanding was $1.143 billion and net debt was reduced to just $5 million.

Agnico Eagle is Focused on Shareholders with Dividends and Share Buy Backs

Agnico Eagle has focused on the shareholders for decades. With gold at record levels, that continues to be true.

It is paying a quarterly dividend of $0.40, which is yielding 1.3%. The company is also repurchasing shares. It repurchased 488,047 shares during the quarter at an average price of $102.44.

Agnico Eagle intends to renew the share buyback program under the same terms this year.

Analysts are Bullish on Agnico Eagle in 2025

Analysts remain bullish on Agnico Eagle for this year. 1 earnings estimate was raised in just the last week for 2025, but 4 were raised after the earnings report.

The Zacks Consensus Estimate has risen to $6.11 from $5.30 just 30 days ago. That’s earnings growth of 44.4% as the company made just $4.23 last year.

Here is what it looks like on the 5-year price and consensus chart.

Shares Near New Multi-Year Highs

Shares of Agnico Eagle have been red-hot for the last year, easily outperforming the S&P 500 during the same time.

They are still attractively priced with a forward price-to-earnings (P/E) ratio of just 19.5. Agnico Eagle also has a PEG ratio of 1.0. A PEG under 1.0 usually indicates a company has both growth and value.

For investors interested in the gold miners and the gold trade, Agnico Eagle should be on your short list.

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This article originally published on Zacks Investment Research (zacks.com).

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