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Agnico Eagle Mines Ltd (AEM) Q4 2024 Earnings Call Highlights: Record Financial Performance and ...

In This Article:

  • Gold Production (Q4 2024): Approximately 847,000 ounces.

  • Total Cash Cost (Q4 2024): $923 per ounce.

  • All-in Sustaining Costs (Q4 2024): $1,316 per ounce.

  • Gold Production (Full Year 2024): 3.49 million ounces.

  • Total Cash Costs (Full Year 2024): $903 per ounce.

  • All-in Sustaining Costs (Full Year 2024): $1,239 per ounce.

  • Revenue (Q4 2024): $2.2 billion.

  • Adjusted Earnings (Q4 2024): $632 million or $1.26 per share.

  • Operating Cash Flow (Q4 2024): Over $1.1 billion or $2.26 per share.

  • Free Cash Flow (Full Year 2024): Approximately $2.1 billion.

  • Average Gold Price (Full Year 2024): $2,384 per ounce.

  • Net Debt Reduction (2024): From $1.5 billion to $217 million.

  • Dividends Paid (2024): $800 million.

  • Share Repurchases (2024): $120 million.

  • Capital Returned to Shareholders (2024): Approximately $2.2 billion.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Agnico Eagle Mines Ltd (NYSE:AEM) achieved record financial results in 2024, including record earnings, operating cash flow, and free cash flow.

  • The company successfully controlled costs, with total cash costs and all-in sustaining costs coming in within guidance ranges.

  • Agnico Eagle Mines Ltd (NYSE:AEM) returned approximately $2.2 billion to shareholders through dividends, share buybacks, and debt reduction.

  • The company is investing heavily in exploration, with more than 1.2 million meters of drilling completed in 2024, leading to significant resource growth.

  • Agnico Eagle Mines Ltd (NYSE:AEM) is well-positioned for future growth with a strong project pipeline, including potential expansions at Malartic and Detour to over 1 million ounces of gold production annually.

Negative Points

  • Production guidance for 2025 to 2026 is down marginally by about 2.9% due to challenges at Pinos Altos and other minor deferrals.

  • The company faces potential cost pressures from tariffs and inflation, with about one-third of costs potentially impacted.

  • There is uncertainty regarding the timeline for the Hope Bay project, with more details expected in the first half of 2026.

  • Agnico Eagle Mines Ltd (NYSE:AEM) has a significant tax payment of $400 million due in Q1 2025, which may impact cash flow allocation.

  • The company operates in mature mines like Pinos Altos, which face challenges due to mining at the extremities or in remnant areas.

Q & A Highlights

Q: Can you provide an update on the timeline for the Hope Bay project and when it might start production? A: Dominique Girard, Executive Vice-President, COO - Nunavut, Quebec and Europe, explained that the focus this year is to finalize the project scope, including Patch 7 resources, and achieve 40% engineering completion by year-end. The approach mirrors that of Meliadine, aiming to de-risk the project before announcing it. More details are expected in the first half of 2026, with production likely starting early next decade.