Agnico-Eagle Hikes Dividend - Analyst Blog
December 13 2012 - 11:35AM
Zacks
Agnico-Eagle Mines Limited (AEM) announced that
its board of directors has approved a 10% hike in its regular
quarterly cash dividend to 22 cents per share. The increased
dividend will be paid on Mar 15, 2013 to shareholders of record as
of Mar 1, 2013. This reflects the company’s commitment toward
increasing its shareholder’s value.
In February 2012, the company announced a 25% hike in its
regular quarterly cash dividend to 20 cents per share, which was
paid on Mar 15, 2012 to shareholders of record as of Mar 1,
2012.
In October 2012, Agnico-Eagle released its third quarter 2012
results. The company’s adjusted earnings (excluding one-time items
other than stock-based compensation expenses) of 63 cents per share
outpaced the Zacks Consensus Estimate of 40 cents during the
quarter.
Profit, as reported, came in at $106.3 million or 62 cents per
share for the quarter compared with a loss of $81.6 million or 48
cents a year ago. The bottom line was boosted by strong gold
production and healthy performance across its mines, especially at
Meadowbank in Nunavut.
Consolidated revenues rose roughly 4.3% year over year to $537.8
million, beating the Zacks Consensus Estimate of $436.0 million.
Payable gold production in the third quarter climbed 7.9% year over
year to 286,971 ounces, riding on higher grades at LaRonde,
Kittila, Meadowbank and Pinos Altos, as well as record throughput
at Meadowbank.
Agnico-Eagle lifted its gold production guidance for 2012. The
company now expects production to be 1,025,000 ounces of gold, up
from its earlier view of 975,000 ounces. Total cash costs per ounce
are projected to be approximately $660, down from the previous
estimate of $690. Capital expenditure is expected to be
approximately $457 million in 2012.
The company maintained its production guidance of approximately
990,000 ounces of gold for 2013. For 2014 and 2015, Agnico-Eagle is
expected to realize organic production growth from the new La India
mine, the restart of Goldex (M and E zones) mine, higher gold
grades at LaRonde and continued operating strength at
Meadowbank.
Agnico-Eagle, which competes with Barrick Gold
Corporation (ABX) and Kinross Gold
Corporation (KGC), currently retains a Zacks #3 Rank
(Hold) for the short-term (1 to 3 months). Currently, we have a
long-term (more than 6 months) Neutral recommendation on the
stock.
BARRICK GOLD CP (ABX): Free Stock Analysis Report
AGNICO EAGLE (AEM): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
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