Opinions Stockchase Insights
Agnico-Eagle MinesAEM.TODON'T BUYFeb 17, 2023
Stock price when the opinion was issued
As of Oct 23, 2026. Market Open.
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He took profits at $290, bought in again at $229. First run of consolidation should be finishing. Expects a second leg higher over the next 12 months. Still likes it, but his firm doesn't add new positions while breadth is still weakening.
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Premium contentWe reiterate AEM as a TOP PICK. Second quarter all-in production cost was $1439 USD/oz versus market price of $4480 USD/oz. What more is there to say? It trades at 16x earnings, 3x book and supports a 22% ROE. Cash reserves are growing like crazy, while debt is aggressively retired and shares bought back. We recommend maintaining the stop at $220, looking to achieve $313 -- upside potential of 18%. Yield 0.96%
(Analysts’ price target is $313.11)
Premium contentHolding gold is always a good hedge for inflation and global geopolitical uncertainty. AEM is an outstanding low-cost producer and it reiterated as a TOP PICK. We continue to recommend a stop at $220, looking to achieve $335 -- upside potential of 18%. Yield 1%
(Analysts’ price target is $309.83)He added more shares during this pullback in the metals. It's an opportunity. However, if there's rate hikes through the end of this year, then forget the gold trade, he will be wrong about metals. Long term there's a lot of value, and the stock is cheap.
Kevin SimpsonOne of the highest-quality gold miners in Canada. Strong operating record, very good balance sheet. Most assets are in relatively stable jurisdictions. Last quarter strong, production better than expected, costs well-controlled. Record FCF. Modest upside. Wait to add on weakness, don't chase here.
Full-year production now expected near lower end of guidance. Watch that, as well as price of gold. She owns ABX instead.
Thinks we're in the second leg of the gold bull market. Printing money. Second leg might even be bigger than the first. Consistently delivers, diversified assets, more upside.
David BurrowsPremium content
Premium contentCashflow machine. $3B or so in cash on the balance sheet. Down 34% from peak (including $30 jump from yesterday). Largest and best gold miner in Canada. Low-risk jurisdictions. Lots of growth plans beyond 2030 to increase production, much of it by expanding existing mines (means lower risk). Very conservative management. Yield is 1.08%.
(Analysts’ price target is $225.15)
Rebecca TeltscherPremium contentHolding gold should be part of every portfolio and AEM is an outstanding low-cost producer. Recently reported earnings showed an all time high free cash flow which is allowing cash reserves to grow while debt is retired and shares bought back. It trades at 12x earnings, 2.6x book and supports a solid 22% ROE. We recommend setting a stop-loss at $170, looking to achieve $250 -- upside potential of 18%. Yield 1.1%
(Analysts’ price target is $314.12)It's the best gold miner in the world. He had a large holding, since trimmed. Buy at current levels. Gold is insurance, good to hold if the world goes to hell in a handbasket.
Lyle SteinGold is now trading pretty soberly on price to NAV. If you believe that the USD is eventually going to put in a high here and gold will start to assert itself (and that's the better view), then you can buy gold stocks here. Gold stocks can be fickle. Upcoming quarter may see margins pinched a bit due to higher costs, but that's already reflected in the price.
EPS was 41c, matching estimates; revenue was $1.385B, 3% short of estimates.
EBITDA of $496M was 20% short.
Guidance was weak: AEM noted it expected production to be lower and costs to be higher for the next three years.
The stock dropped the most in two years.
Guidance is about 6% below prior forecasts due to 'permit issues, noise restrictions and revised mining operations'.
Cost guidance rose 15% from the company's prior expectations. 4Q gold production was 799,438 ounces, vs 812,537 estimated.
The Yamana deal is expected to close in March. We can deal with short term issues, but we do not like a three year outlook of lower production as well as higher costs.
The price drop is justified here.
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