Yelena Rodriguez Mena/iStock via Getty Images Introduction Approximately one year I reviewed the Q2 financial results for Agnico Eagle Mines Limited (NYSE:AEM) and gave the company a 'Strong Buy' rating and commented that "If I could only hold one gold miner then Agnico Eagle would be it" The price at publication was $51.32 and recently Agnico closed on Friday 26th of July 2024 at $73.40 registering a gain of 43.02% which is not too shabby. Today, I will take a look at the Q2 financial results for 2024 to s ...

Agnico Eagle Mines (AEM) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.05%. A quarter ago, it was expected that this gold mining company would post earnings of $0.60 per share when it actually produced earnings of $0.76, delivering a surprise of 26.67%.Over the last four quarters ...

| --- | --- | |----------------------------|--------------| | | | | | Exhibit 99.1 | | | | | AGNICO EAGLE | | | Second Quarter Report 2024 | | | | | AGNICO EAGLE MINES LIMITED MANAGEMENT'S DISCUSSION AND ANALYSIS (Prepared in accordance with International Financial Reporting Standards) For the Three and Six Months Ended June 30, 2024 This Management's Discussion and Analysis ("MD&A") dated July 31, 2024 of Agnico Eagle Mines Limited ("Agnico Eagle" or the "Company") should be read in conjunction with the Co ...

Core Insights - Gold prices have risen 14.6% in 2023 and an additional 12.2% in the first half of 2024, with J.P. Morgan forecasting an average price of $2,500 per ounce in Q4 2024 [1] Group 1: Agnico Eagle Mines - Agnico Eagle has become one of the largest gold producers, with projected gold production between 3.35 million ounces and 3.55 million ounces in 2024, up from 240,000 ounces in 2005 [2] - The company reported a record free cash flow of $947 million in 2023, equating to $1.91 per share, which comfortably covered its dividend of $1.60 per share [3] Group 2: Franco-Nevada - Franco-Nevada operates as a royalty and streaming company, providing upfront capital to mining companies and receiving a percentage of the mined minerals, with 63% of its revenue coming from gold in Q1 2024 [4] - The company has no debt, making it an attractive option for risk-averse investors [4] Group 3: Newmont - Newmont, with a market capitalization of $53.7 billion, forecasts gold production of 6.9 million ounces in 2024, but its stock has only risen 9% despite a 22% increase in gold prices over the past year [5] - The company reduced its quarterly dividend from $0.40 to $0.25 per share in February, aiming to optimize its portfolio, but plans to repurchase $1 billion in stock over the next two years [6] - Newmont shares are currently valued at 9.8 times operating cash flow, close to their five-year average of 9.9, presenting a potential buying opportunity [6] Group 4: Investment Considerations - Both Agnico Eagle and Newmont offer forward dividend yields of 2.2%, with Agnico Eagle being more appealing for its strong free cash flow, while Newmont may attract those looking for a less expensive valuation [8] - Investors seeking indirect exposure to gold may find Franco-Nevada a suitable option to diversify their holdings [8]

Core Viewpoint - Agnico Eagle Mines Limited (AEM) is expected to report strong second-quarter 2024 results, benefiting from higher gold prices and robust production levels [1][3][10] Earnings Expectations - The Zacks Consensus Estimate for second-quarter earnings has been revised upward by 9.9% in the past 60 days, with earnings projected at 89 cents per share, reflecting a 36.9% year-over-year increase [1] - Revenue estimates stand at $1.72 billion, indicating no change year-over-year [1] - AEM has consistently beaten earnings estimates in the last four quarters by an average of approximately 16.5% [1] Factors Influencing Performance - Higher gold prices are anticipated to positively impact AEM's performance, with gold prices rising about 16% this year due to strong central bank demand and geopolitical tensions [3] - Realized gold prices for the quarter are estimated at $2,021 per ounce, a 2.3% year-over-year increase [3] - Continued strong production is expected, driven by increased mill throughput at Detour Lake and productivity improvements at Macassa [3][4] Production Insights - Payable gold production is estimated at 843,693 ounces for the June quarter, bolstered by the acquisition of the remaining 50% of the Canadian Malartic complex [4] - All-in-sustaining costs (AISC) are projected to rise to $1,193 per ounce, reflecting a 3.7% year-over-year increase due to higher sustaining capital expenditures [4] Stock Performance and Valuation - AEM's shares have increased by 33.8% year-to-date, outperforming the industry and S&P 500 [5] - The company is currently trading at a forward 12-month earnings multiple of 20.29X, which is a 35.5% premium to the peer group average of 14.97X [7] Investment Thesis - AEM is positioned for growth through key projects like Odyssey, Detour Lake, and Hope Bay, enhancing production and cash flows [9] - The merger with Kirkland Lake Gold has established AEM as a leading senior gold producer with a strong project pipeline [9] - AEM maintains a solid liquidity position and generates substantial cash flows, supporting exploration and growth initiatives [9] Conclusion - With a strong project pipeline, healthy financials, and favorable market conditions, AEM stock presents a compelling investment opportunity ahead of its earnings announcement [10]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [1] Style Scores Breakdown - **Value Score**: Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [2] - **Growth Score**: Evaluates a company's financial health and future growth potential through earnings, sales, and cash flow analysis [2] - **Momentum Score**: Assesses stock price trends and earnings outlook to identify optimal entry points for trading [2] - **VGM Score**: Combines Value, Growth, and Momentum Scores to highlight stocks with the best overall potential [3] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [4] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [5] Company Spotlight: Agnico Eagle Mines (AEM) - Agnico Eagle Mines Limited is a gold producer with operations in Canada, Mexico, and Finland, and has a recent merger with Kirkland Lake Gold [6] - AEM holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [6] - The company is projected to achieve year-over-year earnings growth of 53.4% for the current fiscal year, with upward revisions in earnings estimates [6]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments in complex instruments like cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are encouraged to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about high-risk financial instruments, including cryptocurrencies and CFDs, which are complex and can lead to significant financial losses [1]. - It highlights the necessity for users to understand how these instruments work and the associated risks before investing [1]. - The content warns that the information may not be real-time or accurate, and prices may be provided by market makers rather than exchanges [1].

Company Performance - Agnico Eagle Mines (AEM) closed at $74.76, reflecting a +0.8% change from the previous day, which is lower than the S&P 500's gain of 1.08% [1] - Over the past month, AEM shares have increased by 13.7%, outperforming the Basic Materials sector's decline of 1.57% and the S&P 500's increase of 0.43% [1] - The company is set to announce its earnings on July 31, 2024, with an expected EPS of $0.86, indicating a 32.31% increase from the same quarter last year [1] Financial Estimates - For the full year, analysts project earnings of $3.33 per share and revenue of $7.65 billion, representing increases of +49.33% and +15.49% from the previous year [2] - Recent changes in analyst estimates for AEM suggest a positive outlook for the company's business and profitability [2] Valuation Metrics - AEM currently has a Forward P/E ratio of 22.27, which is higher than the industry's average Forward P/E of 16.14 [3] - The company has a PEG ratio of 0.79, compared to the industry average PEG ratio of 0.77 [3] - The Mining - Gold industry, to which AEM belongs, has a Zacks Industry Rank of 30, placing it in the top 12% of over 250 industries [3]

Core Insights - The company has streamlined its project portfolio by divesting two non-core assets in the Americas, focusing on Scandinavian projects moving forward [1][8] - The Northern Finland Copper-Gold Project consists of five exploration licenses with granted drill permits, targeting priority areas such as Killero E and W, and Saattopora W [1][9] - In Norway, the company is focused on high-grade copper-rich VMS deposits in the Løkken and Røros mining districts, with specific targets identified for exploration [4][9] Northern Finland Copper-Gold Project - The priority targets for drill testing include Killero E, Killero W, and Saattopora W, with plans for a drone-based EM survey to better define sulfide-rich areas [2][3] - Historical drill core from Saattopora W has been relogged and resampled to characterize metal concentrations, which will inform the drill hole targeting program [3] - Conceptual targets Jolhikko and Keisunselka will undergo reconnaissance sampling during the 2024/2025 winter season [3] Norwegian Copper-Cobalt-Zinc VMS Assets - The company has identified five priority target areas near the former Løkken mine, which had past production of 24 million tonnes at 2.3% copper and 1.8% zinc [4][6] - The Åmot target, located approximately 5 km east of the former Løkken mine, is defined by geophysical anomalies and is interpreted to lie about 150 meters below the surface [4] - At the Hessjøgruva project, a 4,000-meter drill program is planned based on historical drilling data and new information from a technical report [5][6] Strategic Focus and Future Plans - The company aims to advance its copper-gold and copper-cobalt-zinc projects in northern Finland and central Norway, with a focus on effective exploration strategies [7][8] - The divestiture of assets in the Americas allows the company to concentrate on fewer jurisdictions and projects, enhancing potential exploration success [8][10] - The company retains a direct interest in the Perho lithium-REE project and has equity positions in several other companies as a result of recent divestitures [9][10]

Group 1: Gold Market Overview - Gold has underperformed compared to key US stock indices over the past decade, with the SPDR Gold Shares ETF (GLD) up 76%, while the S&P 500 and NASDAQ-100 are up 180% and 400% respectively [4] - Year-to-date performance of gold has improved amid macroeconomic uncertainty, with expectations for further price increases as a safe-haven investment [5] - JPMorgan forecasts a 4% increase in gold prices by Q4 2024, following a 21% rise in the past six months, with an expected 8% increase by the end of 2025 [5] Group 2: Agnico Eagle Mines (AEM) Performance - AEM's production in Q1 2024 was at the upper end of guidance, with 0.88 million ounces produced, and an annual production forecast of 3.35-3.55 million ounces [6] - AEM experienced a 21% year-on-year revenue increase in Q1 2024, surpassing previous growth rates [6] - The company’s revenue growth projections for 2024 have been upgraded to 14.1%, driven by higher gold prices and production levels [7] Group 3: Financial Projections and Valuation - AEM's adjusted earnings per share (EPS) is projected to rise to USD 2.5, representing a 12% year-on-year increase, with potential for a 40% increase if the adjusted net margin remains at 20.7% [7] - The stock's forward non-GAAP price-to-earnings (P/E) ratio is currently at 29.7x, indicating fair pricing, with potential upside to 27% based on revised estimates [8] - Analysts estimate a higher EPS of USD 3.54, resulting in a forward P/E of 20.9x, suggesting further upside potential [8] Group 4: Dividend Outlook - AEM maintained its dividend at USD 0.4 per share in Q1 2024, with a lower payout ratio of 52.6%, indicating potential for future increases [9] - The company has demonstrated a compounded annual growth rate (CAGR) of 27.7% for dividends over the past five years, suggesting a strong dividend growth potential [9] - AEM's trailing twelve months (TTM) dividend yield is currently at 2.16%, competitive among major gold mining stocks [9] Group 5: Investment Outlook - AEM is considered a strong buy due to positive gold market outlook, healthy production levels, and robust revenue growth [10] - The company’s financial forecasts have been upgraded, and market multiples appear attractive [10] - Despite a lower dividend yield, the consistency and potential for dividend increases make AEM an appealing investment [10]