-- National Bank of Canada on Friday raised its price target on the shares of Agnico Eagle Mines (AEM.TO) from $345 to $350 while its outperform rating was maintained following the company's first-quarter results.
The analysts said they continue to expect production growth of 4.3-million ounces by 2034, supported by upcoming technical reports for Hope Bay and San Nicolas, an update on Canadian Malartic expansion plans in Q3, and expected approvals for Detour Lake underground and Upper Beaver in 2027.
They added that their growth estimates could increase further with recent acquisitions in Finland, which may help build a roughly 500,000-ounce production hub over the next decade.
Agnico ended Q1 with US$2.91 billion in net cash and plans to expand its share buyback program to US$2 billion. With a strong balance sheet, the company aims to keep returning cash to shareholders while also speeding up development of its organic growth projects, which should provide additional catalysts throughout the year, the analysts said.
"We updated our estimates to incorporate Agnico Eagle's reported Q1 financial and operating results, including adjusted EBITDA of US$3.01 billion and adjusted EPS of US$3.41/share. Financial Results were above NBCM Estimate due to higher sales/revenue and lower exploration costs," the analysts said.
Price: $249.58, Change: $-5.86, Percent Change: -2.29%