Agnico Eagle Mines Limited: Rating Report
On April 7, 2021, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Senior Unsecured Notes ratings of Agnico Eagle Mines Limited (Agnico or the Company) at BBB with Stable trends. The confirmations are based on the Company’s success in ramping up production at its Nunavut and Québec operations and implementing operational controls to manage the disruptions caused by the Coronavirus Disease (COVID-19) pandemic. The Stable trends are based on the Company’s favourable financial risk profile in the A (high) range that is supported by (1) the repayment of $160 million in debt in April 2020; (2) management guidance of 2.05 million ounces (oz) of payable gold production in 2021, rising to approximately 2.15 million oz in 2024; and (3) Bloomberg consensus gold price forecasts (as of March 24, 2021) that are expected to average $1,818 per oz, $1,776 per oz, and $1,682 per oz in 2021, 2022, and 2023, respectively, compared with $1,773 per oz and $1,406 per oz, respectively, in 2020 and 2019.Agnico-Eagle Mines is a gold mining company with mining operations in Canada, Mexico and Finland. Co. earns a proportion of its revenues from the production and sale of gold in both dore bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of byproduct metals. The revenue from byproduct metals is mainly generated by production at the LaRonde mine in Canada (silver, zinc, copper and lead) and the Pinos Altos mine in Mexico (silver).
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