Bear of the Day: Agnico-Eagle Mines (AEM) - Bear of the Day
April 03 2013 - 1:53AM
Zacks
As long as the price of gold continues to drift lower, it seems
earnings expectations for miners of the yellow metal are following
its decline. And in the high-risk metal mining industry, costs can
quickly escalate too.
This week, Agnico-Eagle Mines (AEM) dropped
to a Zacks #5 Rank as analyst 2013 EPS estimates have fallen from
$2.44 to $2.04 in the past 60 days. And downward revisions have
taken the full-year 2014 down to $2.36 from $2.80.
Agnico-Eagle Mines Limited is a Toronto-based gold
producer with operations in Canada, Finland and Mexico. The
company's LaRonde mine in Quebec is one of Canada s largest
operating gold mines by gold reserves and has provided the company
s foundation for domestic and international expansion.
Profits Again, But Rising Costs
The company missed expectations in fourth-quarter
2012 with both revenues and adjusted earnings falling short of the
Zacks Consensus Estimate. But this was a welcome return to
profitability from a year ago.
On a reported basis, the company turned to a profit
of $82.8 million or $0.48 per share in the quarter compared with a
loss of $601.4 million or $3.53 per share a year ago. The bottom
line in the year-ago quarter was hit by $907.7 million of
impairment charge at their Meadowbank mine in northern Canada.
For full-year 2012, the company posted a profit of
$310.9 million $1.81 per share versus a loss of $568.9 million or
$3.36 per share in 2011. The hefty impairment loss coupled with
production suspension at the Goldex mine crimped the bottom line in
2011. Adjusted earnings of $1.87 per share fell behind the Zacks
Consensus Estimate of $2.12.
While Agnico-Eagle maintains a solid exploration
budget and is reinvesting in its assets to expand output, any
potential delay associated with the development projects may
jeopardize its future production.
And here's the view of future profits according to
the analysts...
VanEck Gold Miners ETF (AMEX:GDX)
Historical Stock Chart
From Jun 2024 to Jul 2024
VanEck Gold Miners ETF (AMEX:GDX)
Historical Stock Chart
From Jul 2023 to Jul 2024