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Agnico Eagle Mines Limited AEM is slated to report first-quarter 2025 results after the closing bell on April 24. The company’s performance is expected to reflect the benefits of higher gold prices and strong production.
The Zacks Consensus Estimate for first-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $1.43 per share, suggesting an 88.2% year-over-year rise. The Zacks Consensus Estimate for revenues currently stands at $2.24 billion, indicating a 22.4% rise on a year-over-year basis.
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AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of roughly 16.4%.
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Q1 Earnings Whispers for AEM Stock
Our proven model does not conclusively predict an earnings beat for AEM this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AEM has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Factors Shaping AEM’s Q1 Results
The benefits of higher gold prices are expected to reflect on the company’s performance in the March quarter. Gold prices are shooting up this year as worries over the global trade war have boosted safe-haven demand for bullion. Prices are hitting new highs on this surge in demand amid the intense trade tussle, global economic uncertainties as well as a weaker U.S. dollar. Prices of the yellow metal climbed nearly 19% in the first quarter and are already up roughly 26% this year.
Our estimate for AEM’s realized gold prices is $2,655 per ounce for the quarter, suggesting a 28.8% year-over-year increase.
Continued strong gold production is likely to have supported the company’s performance. Efforts to increase mill throughput at Detour Lake and improve productivity at Macassa are likely to have aided production. AEM is also expected to have witnessed continued strong performance in its Nunavut operations. Our estimate for payable gold production is pegged at 844,808 ounces for the first quarter.
Agnico Eagle is being challenged by higher production costs. In the fourth quarter of 2024, its total cash costs per ounce of gold were up roughly 4% from the previous year. All-in-sustaining costs (AISC) also rose roughly 7% year over year. AEM forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While AEM is taking actions to control costs, the inflationary pressure is likely to have continued in the first quarter. Higher sustaining capital spending is expected to have contributed to a rise in AISC in the first quarter.
Our estimate for AISC for gold is pegged at $1,217 per ounce, indicating a 2.2% year-over-year increase.