AEM's Reserve Growth Spurs Confidence: Can It Keep Drilling Success?
Agnico Eagle Mines Limited AEM made substantial efforts in the first quarter for the continuation of its mineral reserve replacement, a critical metric reflecting growth potential. At the end of 2024, AEM boosted its proven and probable gold reserves by 0.9% year over year to 54.3 million ounces. More notably, inferred mineral resources expanded around 9% to 36.2 million ounces, thanks to successful exploration drilling at Detour Lake, East Gouldie, Hope Bay, Meliadine, Fosterville and Macassa.
Year-end expansion set a strong foundation, and the first quarter of 2025 saw further progress as drilling campaigns advanced key projects. During the quarter, AEM continued exploration drilling to extend the East Gouldie deposit at Canadian Malartic to the east and extend the newly discovered Eclipse zone. Underground conversion drilling into the upper eastern extension of the East Gouldie deposit also indicated potential to add mineral resources and mineral reserves to East Gouldie by the end of 2025.
At Hope Bay, shallow drilling at Patch 7 also suggests the potential for mineral resource expansion. Drilling at the Marban deposit, added through the acquisition of O3 Mining, also focuses on mineral reserve and mineral resource expansion.
Agnico Eagle's initiatives in expanding its reserve base and inferred resources position it as a growth-oriented player among major peers. Maintaining drilling pace and converting potential into formally declared reserves through 2025 will be key, as it constitutes a critical barometer for long-term growth.
Among its peers, Newmont Corporation NEM logged gold reserves of 134.1 million attributable ounces at the end of 2024 (including assets held for sale), a 1.3% decline from 135.9 million attributable ounces a year ago, weighed down by depletion and unfavorable revisions. Newmont's go-forward Tier 1 portfolio included 125.5 million attributable gold ounces. While Newmont's overall reserve base remains substantial, the lack of growth raises red flags.
Barrick Mining Corporation B reported robust growth in reserves, with its proven and probable gold mineral reserves climbing approximately 17.4 million ounces in 2024, a clear sign of strong reserve replacement. Barrick's attributable proven and probable mineral reserves were at 89 million ounces at the end of 2024, up from 77 million ounces a year ago. Barrick demonstrates proactive exploration and conversions, insulating its reserve profile from near-term production drawdowns.
The Zacks Rundown for AEM
Agnico Eagle's shares have rallied 56.8% year to date against the Zacks Mining – Gold industry's rise of 56.4%, driven by the record-setting upside in gold prices.
From a valuation standpoint, AEM is currently trading at a forward 12-month earnings multiple of 20.27, a roughly 42.6% premium to the industry average of 14.21X. It carries a Value Score of C.
The Zacks Consensus Estimate for AEM's 2025 and 2026 earnings implies a year-over-year rise of 42.6% and 0.8%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
AEM stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Newmont Corporation (NEM): Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
Barrick Mining Corporation (B): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
32 minutes ago
- Globe and Mail
Canada is not for sale – and neither are our skies
Ajay Virmani CM is the founder and executive chair of Cargojet. Thursday's recommendations from the Competition Bureau to open Canada's skies to foreign airlines may sound like a pro-consumer move. But beneath the surface, the move risks undermining our aviation industry, threatening Canadian jobs, and handing over control of a vital sector – all without getting a single thing in return. The bureau suggests allowing foreign carriers to fly domestic routes in Canada – a move known as 'cabotage' – and phasing out foreign ownership restrictions entirely. If adopted, these changes would fundamentally alter the aviation landscape in Canada. And not for the better. Watchdog says Ottawa should allow foreign-owned airlines to fly domestic routes to boost competition Let's start with the obvious: There is no reciprocal access. The foreign carriers most likely to cash in on this opportunity will be American ones, because of geography. But the United States, our closest trading partner, does not allow foreign carriers to operate domestic routes. It guards that privilege closely – as does many other major nations. Why, then, should Canada unilaterally open our skies? Competition is healthy – but only when it's fair. We cannot be the only country willing to give away our market while others protect theirs. That's not strategy – that's surrender. Canada is a country of extremes. We are the second-largest nation by landmass, but with a population spread thinly across vast geography. Air travel isn't just a convenience – it's a necessity. But let's be blunt: Canada is not big enough to support even three major airlines as the past two decades have shown. More than 15 carriers – from Jetsgo to Lynx – have gone out of business trying. Foreign airlines, with deep pockets and no long-term obligation to our infrastructure, will swoop in to cherry-pick profitable urban routes – Toronto to Vancouver, Montreal to Calgary – and leave Canadian carriers to subsidize unprofitable regional and remote routes. When the local players fold, who will serve the North? Who will fly to the small towns? Prices will go up, and service will disappear. The impact won't just be felt in boardrooms – it will hit everyday Canadians across the aviation workforce. We're talking about pilots, engineers, mechanics, technology professionals, baggage handlers, call centre teams and support staff. Foreign carriers have no incentive to hire in Canada beyond what's absolutely necessary. Opening the door to foreign dominance means exporting opportunity, experience and expertise – and leaving a skilled Canadian workforce behind. In today's geopolitical climate, the last thing we should do is hand over our aviation sector to foreign ownership. Aviation isn't just another business – it's a strategic asset. In emergencies, natural disasters and national defence, a strong domestic aviation backbone matters. Foreign ownership comes with no such loyalty. If the government truly wants to improve Canadian aviation, it should start with what's in its control: modernize our airports, lower sky-high airport rents and fees, invest in regional infrastructure and overhaul NAV Canada, which operates our civil air navigation system. These structural issues are what make flying in Canada expensive – not a lack of foreign players. Opinion: Stop the charade. Ottawa isn't prepared to do what it takes to improve airline competition Opening the door to foreign carriers without fixing the broken foundation is like inviting guests into a crumbling house and hoping they'll renovate it for you. The promise of cheaper fares is always tempting. But the reality is, foreign carriers will skim the cream off the top – and leave Canadian operators to handle the rest. Once Canadian carriers are weakened or gone, what leverage will we have left? The decisions will be made in boardrooms far away, with no regard for Canadian jobs, service standards, or national resilience. We need smart competition, not blind deregulation. We need policy that supports homegrown carriers and gives them the tools to grow and compete globally. And we need to recognize that our aviation sector isn't just about profits – it's about sovereignty, accessibility and nation-building. Canada is not for sale – and neither are our skies. Let's not let short-term thinking cost us our long-term future.
CBC
an hour ago
- CBC
Nova Scotia government contracts new emergency alert app
The Nova Scotia government has contracted an Alberta company to help improve the emergency alert system in the province. The Emergency Management Department awarded Alertable a $1-million, untendered contract for a new app on March 25. The government has the ability to sign deals without open calls for bids in certain situations. A department spokesperson said there is no other provider that can deliver the option. "The vendor specializes in emergency alerting, successfully developing similar solutions in Saskatchewan and Alberta for about 10 years," Patricia Jreige said in an email. "More information on the app will come soon." According to the Alertable website, the company's mass notification software allows messages to be sent to a variety of social media platforms, as well as by text message, phone call and email. Some municipalities in Nova Scotia, including the Town of Digby and Town of Yarmouth, already use the company's software for notices about traffic disruptions, public meetings and other advisories. The Annapolis Regional Emergency Management Organization also uses the app. There have been ongoing questions and concerns about emergency alerts in Nova Scotia in the face of natural disasters and a mass shooting in recent years. Alerts were delayed by several hours during fatal floods in the Annapolis Valley in 2023. There were also concerns about how emergency alerts were used during wildfires in Halifax Regional Municipality that same year. during the mass shootings that started in Portapique in 2020, leaving 22 people dead over a two-day period. The force relied instead on social media to provide updates.
CBC
an hour ago
- CBC
Carney curbs steel imports to prop up industry hard hit by Trump's tariffs
Prime Minister Mark Carney announced Thursday new measures to help stabilize Canada's steel and aluminum sectors that have been hard hit by U.S. President Donald Trump's tariffs — with exports down and job losses up. The new federal program includes a quota on foreign steel and a proposed tax hike on U.S. imports if Canada and the U.S. can't reach a trade deal in a month's time. Carney said Canada's counter-tariffs on U.S. steel and aluminum products would go up — or down, depending on the negotiations with Trump — on July 21. Trump hiked the U.S. tariff rate on steel and aluminum from 25 per cent to 50 per cent earlier this month and Carney, at the time, withheld matching that rate spike given talks are ongoing to get Canada out from under Trump's tariffs. Now, Carney is signalling he's willing to go higher with Canada's retaliatory response, if necessary. Carney also said he's establishing a new "tariff rate quota," as it's called in trade parlance, which means some foreign steel imports will be allowed but anything above that limit will be hit with a high tariff, making them more expensive. The purpose of this measure is to make Canadian steel more competitive and prop up an industry that has lost a lot of business amid Trump's punishing tariffs.
