Agnico Eagle(US:AEM) ZACKS·2025-12-12 14:20Core Insights - Agnico Eagle Mines Limited (AEM) is utilizing its strong free cash flow to enhance shareholder value through dividends and share buybacks, with a third-quarter free cash flow of approximately $1.2 billion, nearly doubling from $620 million in the prior year [1][8] - The company returned around $350 million to shareholders in the third quarter, totaling approximately $900 million for the first nine months of 2025, representing about one-third of its free cash flow during this period [2][8] - AEM plans to further increase shareholder returns through additional buybacks and dividends, supported by a favorable gold price environment and a solid financial position [3][4] Financial Performance - AEM's operating cash flow for the third quarter was roughly $1.8 billion, reflecting a 67% increase from the same quarter last year [1] - The company executed a disciplined capital allocation strategy, focusing on enhancing shareholder value, supporting growth projects, and reducing debt [4] Industry Comparison - Among peers, Barrick Mining Corporation returned $1.2 billion to shareholders in 2024 and authorized a new repurchase program for up to $1 billion [5] - Newmont Corporation has distributed over $5.7 billion to shareholders in the past two years, with a record free cash flow of $1.6 billion in the third quarter [6] Stock Performance - AEM's shares have increased by 117.8% year to date, compared to a 138.1% rise in the Zacks Mining – Gold industry, driven by record gold prices [7] - The Zacks Consensus Estimate for AEM's earnings implies a year-over-year rise of 83.9% for 2025 and 21.3% for 2026, with EPS estimates trending higher [10] Valuation - AEM is currently trading at a forward 12-month earnings multiple of 18.24, which is approximately 37.5% higher than the industry average of 13.27 [11]