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Agnico Eagle Mines Ltd

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Agnico Eagle Mines Ltd AI Insights

Informational only. Not investment advice.
As of 2025-12-16

Snapshot

  • EPS 3Y CAGR of 75.9% vs industry median 19.4% - margin expansion driving outsized earnings growth despite mature revenue base[EPS Growth 3Y]
  • Debt/equity of 0.01 with 2.4B cash vs 336M total debt - fortress balance sheet rare in capital-intensive mining[Debt to Equity]
  • FCF TTM of 3.6B (34% of revenue) funds 1.6/share dividend at just 24% payout - substantial capacity for returns[Free Cash Flow TTM]

Watch Triggers

  • Operating Margin TTM: Falls below 40%Signals cost inflation or gold price weakness eroding structural advantage
  • Free Cash Flow TTM: Drops below 2.5BWould pressure dividend coverage and limit capital allocation flexibility
  • Capital Expenditure TTM: Exceeds 3BRising capex without revenue growth indicates reserve depletion or cost overruns

Bull Case

Industry-leading profitability (49.6% op margin vs 0% median) with near-zero leverage creates asymmetric upside to gold prices

Operating Margin TTMDebt to EquityROIC TTM

FCF yield of 4.3% with 7x dividend coverage enables aggressive buybacks or accretive M&A without dilution

Free Cash Flow TTMDividends Paid Per Share TTMCash and Equivalents

Bear Case

P/B of 4.3x and P/S of 7.9x (vs industry median 6.1x) prices in elevated gold - reversion risk if prices normalize

PB RatioPS RatioPE Ratio

Goodwill of 4.2B (18% of equity) from acquisitions - impairment risk if acquired assets underperform

GoodwillCommon Stockholders Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
60%

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Forward Thesis

Operating leverage to sustain 15%+ ROE as gold prices remain elevated above all-in sustaining costs

1-3ymed
  • 49.6% operating margin TTM vs industry median 0%
  • 2.2B annual capex maintaining production capacity
  • Net cash position eliminates interest rate risk
ROE TTM 15.7% vs industry median -4.2%ROIC TTM 15.0% vs industry median -3.3%Operating cash flow 5.8B TTM covers capex 2.7x

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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