Last close As at 05/08/2026
USD165.45
▲ 14.84 (9.85%)
Market capitalisation
USD83,846m
Research: Metals & Mining
Agnico Eagle Mines (AEM) reported record quarterly gold production of 873koz in Q223 at a US$840/oz total cash cost and a US$1,150/oz all-in sustaining cost (AISC) that drove strong financial results of adjusted EPS of US$0.65/share and operating cash flow of US$1.46/share. Record-breaking production reflects 100% ownership for the full quarter of Canadian Malartic, which will add c 80–90koz in attributable production per quarter. Additionally, AEM recorded the safest half-year performance in its history. Guidance for FY23 has been reiterated at 3.24–3.44Moz at a cash cost of US$840–890/oz and AISC of US$1,140–1,190/oz. The quarterly dividend remains at US$0.40/share.
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Agnico Eagle Mines |
Record-breaking production
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Metals and mining |
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4 August 2023 |
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Agnico Eagle Mines is a research client of Edison Investment Research Limited |
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Agnico Eagle Mines (AEM) reported record quarterly gold production of 873koz in Q223 at a US$840/oz total cash cost and a US$1,150/oz all-in sustaining cost (AISC) that drove strong financial results of adjusted EPS of US$0.65/share and operating cash flow of US$1.46/share. Record-breaking production reflects 100% ownership for the full quarter of Canadian Malartic, which will add c 80–90koz in attributable production per quarter. Additionally, AEM recorded the safest half-year performance in its history. Guidance for FY23 has been reiterated at 3.24–3.44Moz at a cash cost of US$840–890/oz and AISC of US$1,140–1,190/oz. The quarterly dividend remains at US$0.40/share.
All positives at the Canadian Malartic Complex
A new internal study on Odyssey confirmed a 23% increase in mineral resources (53% now indicated cf 5%, previously), taking new forecasts to 9Moz for the mine life and an extension to 2042. Once fully transitioned to underground mining in 2029, the Canadian Malartic Complex is forecast to average 558koz Au pa over 13 years at a total cash cost of US$768/oz. Additionally, recent inflationary increases have been fully absorbed by the larger mineable resources, the current favourable gold price and the advanced construction process of the underground transition, contributing to an after-tax internal rate of return and net present value (at a 5% discount rate) of approximately 33% and US$2.46bn, respectively (cf 24% and US$1.60bn, previously). With an estimated excess mill capacity (40ktpd) at the Canadian Malartic Complex, starting in 2028, AEM is looking to expand mineral resource exploration, leveraging organic growth, notably at East Gouldie and Camflo. Following a strong company-wide exploration program throughout H123, the budget has increased by US$32m, totalling ~US$300m. Finally, at Detour Lake, the mill is on track to increase throughput to 28Mtpa by 2025 following continued optimisation, with the potential to exceed this in the future.
Valuation: Dividend yield remains at a premium
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Consensus estimates
Source: Company data, Refinitiv. Note: EPS and historical PBT are normalised. |
AEM continues to command a premium rating relative to the sector, consistent with both its size and the low-risk jurisdictions in which it operates. Guidance is for production to increase from 3.24–3.44Moz in FY23 to 3.4–3.6Moz in FY25 and consensus earnings estimates remain mostly constant since our last note in May. However, a notable uptick in FY23e reported PBT is apparent as the market could be factoring in the revaluation gain following the close of the Yamana transaction in Q123. Otherwise, consensus forecasts for the remainder of the year and FY24 appear to be consistent with AEM’s historical performance and the current gold price. Nevertheless, AEM’s yield remains at a notable premium to its peers.
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Research: Healthcare
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