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Summary
The metal and mining category includes a wide range of companies with a unique appeal depending on which metal they operate on. The asset base held by these companies largely depicts the strength of these stocks.
- The strength of metal and mining stocks is determined largely by the assets held by the companies.
- Agnico Eagle Mines (TSX:AEM) is engaged in gold mining and conducts its main mining operations at the LaRonde mine.
- One of the world’s largest gold miners, Barrick Gold (NYSE:GOLD), reported total revenue of US$ 2.774 billion during the December 2022 quarter.
The major risk source for mining corporations is the possibility of their exploration efforts going in vain if they cannot derive the expected quantity of a resource. However, some of the largest companies worldwide are involved in metal and mining exploration.
Investors may examine two such metal and mining companies during this quarter.
Agnico Eagle Mines Limited (TSX: AEM)
Agnico Eagle’s primary mining operations include gold mining. Its main mining operations occur in LaRonde, which was AEM’s only operational mine up until 2008, after which the company started operating in other mines too.The company merged with Kirkland Lake Gold in 2022, acquiring the Detour Lake and Macassa mines in Canada and the high-grade, low-cost Fosterville mine in Australia. In 2022, the company produced over 3.1 million old ounces and had 15 years of gold reserves.
Agnico started the new year on a strong financial front, with a reported quarterly net income of US$ 3.87 per share during Q1 2023. This translates to a net income of US$1.816 billion during the quarter. The company also declared a quarterly dividend of US$ 0.40 per share.
Barrick Gold Corporation (TSX: BC)
Barrick Gold is a giant in the gold mining segment with a potential future in copper exploration as well. The mining giant held two decades’ worth of gold reserves by 2022 end. During the same year, Barrick Gold produced about 4.1 million ounces of gold and around 440 million pounds of copper.During the December 2022 quarter, the company generated a total revenue of US$ 2.774 billion and an EBITDA of negative US$ 194 million. Barrick Gold’s operating cash flow during the period was US$ 795 million. The company confirmed that it is on track to achieve its 2023 targets as it reported preliminary Q1 sales of 0.95 million ounces of gold with an average market price of US$ 1,890 per ounce during the period.
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The company also reported preliminary Q1 production of 88 million pounds of copper, for which the average market price was US$ 4.05 per pound during the quarter.
The company will release its financial results for the first quarter of 2023 on May 3, 2023.