Latest news with #Malartic
Globe and Mail
12 hours ago
- Business
- Globe and Mail
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
Globe and Mail
6 days ago
- Business
- Globe and Mail
AEM's Solid FCF Places It on Firm Footing: Can It Fuel Future Growth?
Agnico Eagle Mines Limited AEM generated solid first-quarter free cash flow of $594 million, marking an impressive 50% increase from $396 million a year ago. The surge was backed by the strength in gold prices, disciplined capital spending and strong operational results. Notably, free cash flow before working capital adjustments reached $759 million, nearly double the amount from the prior year. The strong free cash flow supports investments in growth initiatives, including Canadian Malartic's underground expansion, Hope Bay and Detour Lake, as well as debt repayments and shareholder returns. AEM's strong liquidity position and substantial cash flows allow it to maintain a strong exploration budget and fund a strong pipeline of growth projects. It remains focused on paying down debt using excess cash, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. AEM also returned around $920 million to its shareholders through dividends and repurchases last year and $251 million in the first quarter. Agnico Eagle's robust free cash flow generation places it firmly in the upper tier of gold producers. This allows the company to pivot these funds into high-return growth initiatives, enhance returns and further accelerate debt reduction as the year progresses. Among its peers, Newmont Corporation NEM achieved a record first-quarter free cash flow of $1.2 billion, marking a significant turnaround from a negative $74 million in the same period a year ago. This substantial improvement came on the back of Newmont's enhanced operational efficiency and the strength of its Tier 1 portfolio. However, Newmont flagged several headwinds likely to impact second-quarter free cash flow, including the impact of non-core asset divestitures, which reduce cash-generating capacity, and a spike in tax payments due to increased profitability in earlier quarters and taxes from divestments. Barrick Mining Corporation B logged a free cash flow of $375 million for the first quarter, a nearly 12-fold year-over-year rise. The surge reflects Barrick's higher operating cash flows driven by an uptick in realized gold and copper prices. Barrick reduced net debt by 5% during the quarter, leveraging healthy free cash flow generation. The Zacks Rundown for AEM Agnico Eagle's shares have shot up 56.1% year to date against the Zacks Mining – Gold industry's rise of 49.7%, largely driven by the gold price rally. From a valuation standpoint, AEM is currently trading at a forward 12-month earnings multiple of 20.18, a roughly 50% premium to the industry average of 13.46X. It carries a Value Score of C. Image Source: Zacks Investment Research 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. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them 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
