Agnico Eagle (TSX: AEM) just delivered the strongest quarter in its history by free cash flow, while doing something most of its peers could not: increasing production and lowering unit costs in a tougher gold environment.
The company produced more than 855,000 ounces of gold in Q2, generated $1.34 billion in free cash flow, and posted all-in sustaining costs of $1,459 per ounce, well below major peers including Newmont, Barrick, Kinross, and Equinox. But the quarter was not perfect. Revenue declined, realized gold prices fell, capital spending increased, and a pit wall movement at Canadian Malartic removed access to hundreds of thousands of ounces.
In this video, we break down Agnico Eagle’s Q2 results, operating performance, Barnat pit issue, growth pipeline, and valuation against the senior gold miners. The company may be one of the best operators in the sector, but the stock also trades at a significant premium.
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