AEM Stock Fair Value Calculation – AGNICO EAGLE MINES Reports Q4 FY2022 Revenue and Net Income Increase of 102.8% and 45.9%, Respectively.
March 13, 2023
Earnings Overview
On February 21 2023, Agnico Eagle Mines ($NYSE:AEM) reported total revenue of USD 205.0 million and net income of USD 1384.7 million for the fourth quarter of FY2022, ending December 31 2022, exhibiting a 102.8% and 45.9% year-over-year growth, respectively.
Transcripts Simplified
Agnico Eagle Mines is focusing on increasing production from existing near-surface ore deposits, namely, Macassa AK Zone, Upper Beaver and Kirkland Lake satellites. This could yield 500,000 ounces per year and cut CapEx in half, resulting in doubled returns on capital. In the next three years, the company expects to achieve a moderate growth of 7%, with 3.3 midpoint in 2023, 3.45 midpoint in 2024 and 3.5 midpoint in 2025.
This assumes constraints at Kittila and Fosterville, however if these can be removed there is potential for an additional 30,000 to 80,000 ounces. The company also expects to fill the mill starting in 2024, which could add even more production to their figures.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AEM. More…
| Total Revenues | Net Income | Net Margin |
| 5.74k | 670.25 | 13.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AEM. More…
| Operations | Investing | Financing |
| 2.1k | -710.46 | -914.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AEM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.49k | 7.25k | 35.58 |
Key Ratios Snapshot
Some of the financial key ratios for AEM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.0% | 46.5% | 20.9% |
| FCF Margin | ROE | ROA |
| 9.7% | 4.6% | 3.2% |
Market Price
The stock opened at $46.0 and closed at $46.5, up by 0.6% from its last closing price of 46.2. The increased gold production and sales volume have translated into higher profits for AEM. Overall, AEM has seen a marked increase in its revenues and net income due to an increase in gold production and sales volume, as well as a growth in its assets. This has led to a 0.6% rise in its stock price, with the stock opening at $46.0 and closing at $46.5. Live Quote…
Analysis – AEM Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of AGNICO EAGLE MINES’s financials, resulting in an intrinsic value of around $53.0. This was calculated using our proprietary Valuation Line. Currently, AGNICO EAGLE MINES stock is trading at $46.5, which is a fair price, although slightly undervalued by 12.2%. This could present an opportunity for investors looking to make a return on their investments. More…
Summary
AGNICO EAGLE MINES has reported impressive financial results for the fourth quarter of fiscal year 2023. Total revenue increased 102.8% year-over-year to USD 205.0 million, while net income rose 45.9% to USD 1384.7 million. This is a strong indication of the company’s growth and stability, making it a compelling investment opportunity for investors. The impressive financial results, together with AGNICO EAGLE MINES’ strong portfolio of assets and long-term strategy, make it a good choice for investors looking to diversify and grow their portfolios.
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