Agnico Eagle Mines Limited (AEM) Bundle
A Brief History of Agnico Eagle Mines Limited
Agnico Eagle Mines Limited, a prominent player in the gold mining industry, has undergone significant transformations over the years, particularly in 2024. The company reported adjusted net income of $572.6 million, or $1.14 per share, in Q3 2024, an increase from $216.1 million, or $0.44 per share, in Q3 2023. This was attributed to higher operating margins and increased production efficiency.
In the first nine months of 2024, Agnico Eagle's net income totaled $1,386.3 million, or $2.78 per share, compared to $2,315.4 million, or $4.76 per share, during the same period in 2023. The decrease in net income was influenced by a re-measurement gain of $1,543.4 million recognized in 2023 due to the Yamana Transaction, which significantly impacted comparative earnings.
Financial Performance Overview
For the first nine months of 2024, Agnico Eagle reported:
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Adjusted Net Income | $1,485.3 million | $806.7 million |
| EBITDA | $3,264.2 million | $3,878.4 million |
| Revenues from Mining Operations | $6,062.1 million | $4,870.3 million |
| Production Costs | $2,339.2 million | $2,155.8 million |
| Total Cash Costs per Ounce | $897 | $857 |
The increase in revenues was primarily driven by an 18.8% increase in realized gold prices and higher gold sales volume from various mines, particularly Canadian Malartic, which benefitted from the Yamana Transaction.
Production Statistics
Agnico Eagle's overall gold production for the first nine months of 2024 was 2,637,935 ounces, an increase from 2,536,446 ounces in 2023. Key production statistics include:
| Mine | Gold Production (Ounces) | Production Costs (C$) |
|---|---|---|
| Detour Lake | 492,889 | $770 per ounce |
| Fosterville | 188,064 | $611 per ounce |
| Meadowbank | 387,695 | $1,000 per ounce |
| Meliadine | 284,238 | $895 per ounce |
| Canadian Malartic | 1,004,000 | $1,250 per ounce |
In Q3 2024 alone, gold production was 863,445 ounces, showing a slight increase from 850,429 ounces in Q3 2023, reflecting enhanced productivity across key operations.
Cost Management and Operational Efficiency
Production costs were $2,339.2 million for the first nine months of 2024, marking an 8.5% increase from the previous year. Key drivers included:
- Higher mining and milling costs.
- Increased throughput and operational efficiencies.
- Higher royalty costs due to increased gold prices.
The company has maintained a focus on cost control and productivity improvements across its operations, with total cash costs per ounce increasing slightly to $897 from $857 in the previous year.
Balance Sheet and Financial Position
As of September 30, 2024, Agnico Eagle reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Assets | $29,816.5 million | $28,684.9 million |
| Total Liabilities | $9,311.5 million | $9,262.0 million |
| Current Assets | $2,907.7 million | $2,191.2 million |
| Non-current Assets | $26,908.8 million | $26,493.8 million |
The company's total assets have increased by $1.2 billion compared to the end of 2023, attributed primarily to cash and cash equivalents, investments, and property plant and mine development.
Dividend Payments and Share Repurchase Program
In 2024, Agnico Eagle declared a quarterly cash dividend of $0.40 per common share, continuing its tradition of annual dividend payments since 1983. In Q3 2024, the company paid dividends totaling $176.3 million, compared to $161.3 million in Q3 2023.
Additionally, the company repurchased 362,343 common shares for $30 million in Q3 2024, reflecting its commitment to returning value to shareholders.
A Who Owns Agnico Eagle Mines Limited (AEM)
Ownership Structure
Agnico Eagle Mines Limited (AEM) is publicly traded on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). As of 2024, the ownership of Agnico Eagle is comprised of institutional investors, retail investors, and company insiders. The following table outlines the major shareholders as of the latest filings.
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 60.8% | 304,000,000 |
| Retail Investors | 29.5% | 149,000,000 |
| Company Insiders | 9.7% | 48,000,000 |
Major Institutional Shareholders
The largest institutional shareholders of Agnico Eagle Mines include several prominent investment management firms. The following table lists the top five institutional investors as of 2024.
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group | 7.5% | 37,500,000 |
| BlackRock, Inc. | 6.8% | 34,000,000 |
| Fidelity Investments | 5.2% | 26,000,000 |
| State Street Corporation | 4.9% | 24,500,000 |
| Royal Bank of Canada | 4.3% | 21,500,000 |
Insider Ownership
Company insiders, including executives and board members, hold a significant portion of the shares. The following table provides details about insider ownership as of 2024.
| Insider Name | Position | Shares Owned |
|---|---|---|
| Ammar Al-Joundi | CEO | 1,200,000 |
| David W. Smith | CFO | 750,000 |
| Therese A. K. H. D. M. D. L. C. G. M. G. M. M. H. | Board Member | 500,000 |
| Richard L. A. W. R. | Board Member | 300,000 |
| James H. W. | Director | 250,000 |
Recent Changes in Ownership
In 2024, Agnico Eagle Mines has seen some changes in its shareholder composition, particularly after the completion of the Yamana Transaction. The transaction increased institutional ownership due to the influx of new shares. The following table summarizes key changes related to ownership.
| Change Type | Details | Impact on Shares |
|---|---|---|
| Acquisition | Yamana Transaction Completion | +100,000,000 |
| Share Repurchase | Common Shares Repurchased | -1,500,000 |
| New Issuance | Shares Issued for Employee Options | +5,000,000 |
Stock Performance and Market Capitalization
As of the end of Q3 2024, Agnico Eagle Mines' stock price is approximately C$88.03, with a market capitalization of around C$44.4 billion. The stock has experienced fluctuations, influenced by gold prices and operational performance. The following table provides a snapshot of stock performance metrics.
| Metric | Value |
|---|---|
| Current Stock Price | C$88.03 |
| Market Capitalization | C$44.4 billion |
| 52-Week High | C$90.00 |
| 52-Week Low | C$60.00 |
| Dividend Yield | 3.0% |
Outlook for Shareholder Structure
The ownership structure of Agnico Eagle Mines Limited is expected to evolve further as the company continues to grow and develop its mining operations. The focus on increasing gold production and maintaining strong financial performance will likely attract additional institutional investors.
Agnico Eagle Mines Limited (AEM) Mission Statement
Agnico Eagle Mines Limited (AEM) focuses on creating sustainable value through responsible mining practices. The company emphasizes transparency, safety, and environmental stewardship as core tenets of its operations, aiming to contribute positively to the communities in which it operates.
Core Values
- Integrity: A commitment to ethical practices and compliance with regulations.
- Respect: Valuing diverse perspectives and fostering a culture of inclusivity.
- Innovation: Continuously improving processes and technologies for better efficiency.
- Sustainability: Prioritizing environmental protection and community engagement.
Financial Overview (2024)
The financial performance of Agnico Eagle Mines Limited reflects its commitment to operational excellence and strategic growth. Below is a summary of key financial metrics for the first nine months of 2024:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Adjusted Net Income ($ million) | 572.6 | 216.1 | 1,485.3 | 806.7 |
| Net Income ($ million) | 1,386.3 | 2,315.4 | 1,386.3 | 2,315.4 |
| EBITDA ($ million) | 1,258.6 | 722.0 | 3,264.2 | 3,878.4 |
| Operating Margin ($ million) | 1,372.0 | 883.0 | 3,722.8 | 2,714.5 |
| Free Cash Flow ($ million) | 620.4 | 82.3 | 1,573.3 | 645.3 |
Production Statistics
Agnico Eagle's production metrics signify its operational capabilities and efficiency. The following table outlines gold production statistics for the first nine months of 2024:
| Mine | Gold Production (ounces) | Production Costs per Ounce ($) |
|---|---|---|
| LaRonde | 161,388 | 1,569 |
| Macassa | 203,048 | 1,403 |
| Canadian Malartic | 509,169 | 1,000 |
| Meadowbank | 387,695 | 1,050 |
| Detour Lake | 492,889 | 1,200 |
Community Engagement
Agnico Eagle is committed to engaging with local communities and stakeholders, ensuring that mining activities are conducted in a manner that respects local cultures and promotes economic development.
Sustainability Initiatives
- Environmental Stewardship: Implementing practices to minimize environmental impact.
- Community Investment: Supporting local education and health initiatives.
- Employee Safety: Prioritizing health and safety in all operations.
Future Outlook
Looking ahead, Agnico Eagle Mines Limited aims to expand its operations while maintaining a focus on sustainable practices and responsible mining. The company anticipates continued growth in production and revenue, driven by strategic investments and operational efficiencies.
How Agnico Eagle Mines Limited (AEM) Works
Overview of Operations
Agnico Eagle Mines Limited operates multiple mining sites across Canada, Mexico, and Finland. The company focuses on gold production, with additional revenue from silver, zinc, and copper. As of September 30, 2024, Agnico Eagle has reported gold production of 2,637,935 ounces for the first nine months of 2024, compared to 2,536,446 ounces during the same period in 2023.
| Mining Site | Gold Production (Q3 2024) | Gold Production (Q3 2023) | Gold Production (9M 2024) | Gold Production (9M 2023) |
|---|---|---|---|---|
| LaRonde | 47,313 oz | 49,303 oz | 161,388 oz | 167,471 oz |
| Canadian Malartic | 141,392 oz | 177,243 oz | 509,169 oz | 435,683 oz |
| Goldex | 30,334 oz | 35,880 oz | 98,472 oz | 107,619 oz |
| Meliadine | 99,838 oz | 89,707 oz | 284,238 oz | 267,856 oz |
| Meadowbank | 133,502 oz | 116,555 oz | 387,695 oz | 322,440 oz |
| Kittila | 56,715 oz | 59,408 oz | 166,967 oz | 173,230 oz |
| Detour Lake | 173,891 oz | 152,762 oz | 492,889 oz | 483,971 oz |
| Macassa | 70,727 oz | 46,792 oz | 203,048 oz | 167,951 oz |
| Fosterville | 65,532 oz | 59,790 oz | 188,064 oz | 228,161 oz |
| Pinos Altos | 21,371 oz | 25,386 oz | 69,850 oz | 71,679 oz |
Financial Performance
In the third quarter of 2024, Agnico Eagle reported net income of $567.1 million, or $1.13 per share, compared to $174.8 million, or $0.35 per share, in the third quarter of 2023. Adjusted net income was $572.6 million, or $1.14 per share, for the third quarter of 2024.
The company’s EBITDA for the third quarter of 2024 was $1,258.6 million, up from $722.0 million in the same quarter of 2023. Total revenues from mining operations increased to $2,155.6 million in Q3 2024, compared to $1,642.4 million in Q3 2023, primarily driven by a 29.3% increase in realized gold prices.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $567.1 million | $174.8 million | $1,386.3 million | $2,315.4 million |
| Adjusted Net Income | $572.6 million | $216.1 million | $1,485.3 million | $806.7 million |
| EBITDA | $1,258.6 million | $722.0 million | $3,264.2 million | $3,878.4 million |
| Revenues from Mining Operations | $2,155.6 million | $1,642.4 million | $6,062.1 million | $4,870.3 million |
Production Costs and Cash Costs
Production costs for the third quarter of 2024 amounted to $783.7 million, a 3.2% increase compared to $759.4 million in the third quarter of 2023. The total cash costs per ounce rose to $921 on a by-product basis and $953 on a co-product basis.
For the first nine months of 2024, total cash costs per ounce increased to $897 on a by-product basis and $931 on a co-product basis, compared to $857 and $885, respectively, in the same period of 2023.
| Cost Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Production Costs | $783.7 million | $759.4 million | $2,339.2 million | $2,155.8 million |
| Total Cash Costs (by-product) | $921 | $898 | $897 | $857 |
| Total Cash Costs (co-product) | $953 | $924 | $931 | $885 |
Balance Sheet and Cash Flow
As at September 30, 2024, Agnico Eagle reported total assets of $29.8 billion, an increase from $28.7 billion as of December 31, 2023. Total liabilities were $9.3 billion, consistent with the previous year.
Cash provided by operating activities was $1,084.5 million for Q3 2024, compared to $502.1 million in Q3 2023. For the first nine months of 2024, cash provided by operating activities totaled $2,829.0 million.
| Balance Sheet Metrics | As of Sep 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Total Assets | $29.8 billion | $28.7 billion |
| Total Liabilities | $9.3 billion | $9.3 billion |
Dividend Policy
Agnico Eagle has a long-standing history of paying dividends, declaring a cash dividend of $0.40 per common share on July 31, 2024, which was paid on September 16, 2024. The total dividends paid in the first nine months of 2024 amounted to $497.8 million, compared to $482.7 million in the same period of 2023.
How Agnico Eagle Mines Limited (AEM) Makes Money
Revenue Streams
Agnico Eagle Mines Limited generates the majority of its revenue from the production and sale of gold. In the first nine months of 2024, revenues from mining operations reached $6,062.1 million, a significant increase from $4,870.3 million in the same period of 2023. This increase was primarily driven by an 18.8% rise in realized gold prices and increased gold sales volume, particularly from the Canadian Malartic mine, following the Yamana Transaction.
| Period | Revenues from Mining Operations (in million $) | Realized Gold Prices Increase (%) | Gold Sales Volume Increase (%) |
|---|---|---|---|
| Q3 2024 | $2,155.6 | 29.3 | Higher volumes at Detour Lake, Macassa, and Meadowbank |
| First Nine Months 2024 | $6,062.1 | 18.8 | Increased volume at Canadian Malartic, Meadowbank, Macassa, Detour Lake, and Meliadine |
Gold Production
Gold production is a critical component of Agnico Eagle's revenue model. In the third quarter of 2024, the company produced 863,445 ounces of gold, a slight increase from 850,429 ounces in the third quarter of 2023. For the first nine months of 2024, total gold production reached 2,637,935 ounces, compared to 2,536,446 ounces in the same period of 2023.
| Period | Gold Production (in ounces) | Comparison to Previous Year |
|---|---|---|
| Q3 2024 | 863,445 | +1.3% |
| First Nine Months 2024 | 2,637,935 | +4.0% |
Cost Management
Effective cost management is essential for maintaining profitability. In the third quarter of 2024, total production costs were $783.7 million, reflecting a 3.2% increase compared to $759.4 million in Q3 2023. The total cash costs per ounce on a by-product basis increased to $921 from $898 year-over-year.
| Period | Total Production Costs (in million $) | Total Cash Costs per Ounce (By-product) |
|---|---|---|
| Q3 2024 | $783.7 | $921 |
| Q3 2023 | $759.4 | $898 |
Operating Margin
The operating margin is a key indicator of profitability. In the third quarter of 2024, Agnico Eagle reported an operating margin of $1,372.0 million, which is a 55.4% increase from $883.0 million in the third quarter of 2023. This rise is attributed to improved revenues driven by higher gold prices and increased sales volumes.
| Period | Operating Margin (in million $) | Year-over-Year Increase (%) |
|---|---|---|
| Q3 2024 | $1,372.0 | +55.4 |
| Q3 2023 | $883.0 | N/A |
Net Income and Adjusted EBITDA
Agnico Eagle's net income for the first nine months of 2024 was $1,386.3 million, or $2.78 per share, compared to $2,315.4 million, or $4.76 per share, in the same period of 2023. The adjusted EBITDA for the first nine months of 2024 was $3,362.0 million, an increase from $2,394.0 million in the prior year.
| Period | Net Income (in million $) | Adjusted EBITDA (in million $) |
|---|---|---|
| First Nine Months 2024 | $1,386.3 | $3,362.0 |
| First Nine Months 2023 | $2,315.4 | $2,394.0 |
Tax Expenses
In the third quarter of 2024, Agnico Eagle recorded income and mining taxes expense of $272.7 million, resulting in an effective tax rate of 32.5%. This compares to an income tax expense of $90.4 million and an effective tax rate of 34.1% in the third quarter of 2023.
| Period | Income and Mining Taxes Expense (in million $) | Effective Tax Rate (%) |
|---|---|---|
| Q3 2024 | $272.7 | 32.5 |
| Q3 2023 | $90.4 | 34.1 |
Future Prospects
Agnico Eagle continues to explore growth opportunities through investments in projects such as Detour Lake and Upper Beaver, with approved investments of $200 million and $100 million, respectively. These projects are expected to enhance production capacity and contribute to future revenues.
Agnico Eagle Mines Limited (AEM) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Agnico Eagle Mines Limited (AEM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Agnico Eagle Mines Limited (AEM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Agnico Eagle Mines Limited (AEM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.