Opinions
David Burrows
Agnico-Eagle Mines
AEM-T
TOP PICK
Jun 11, 2025
Stock price when the opinion was issued
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Nice beat on recent earnings announcement. $600M in free cashflow. 3% higher production. Importantly, 3-6% lower costs than market expected. Very important that they maintained guidance for projects. Not cheap at 23x 2026 earnings.
Gold will keep working if clarity doesn't come from the US administration. Risk is that you get something that's necessary and sufficient from them; clarity and good policy would cause gold to fall off a lot, and the rest of the market will rally. Don't add here.
Premium contentAEM is reiterated as a TOP PICK as its strong cash flows under higher commodity pricing is allowing the company to aggressively retire debt and buy back shares. It recently announced a growth in ownership of a Canadian based mining company involved in the country's only copper and zinc mine under development. It trades at 16x earnings and 2.4x book. We will continue to recommend a stop at $136, looking to achiever $186 -- upside potential of 24%. Yield 1.5%
(Analysts’ price target is $185.78)He continues to be bullish on gold. Still owns, but took partial profits just before it reported. Nothing against AEM, but wanted to spread the risk via another gold producer with more torque. Major thrust behind the move has been the gold price moving higher.
Believes we're in very early stages of a gold bull market. Best operator. 5 of their major projects have exploration growth opportunities. Great dividend growth. Last year's acquisition of O3 Mining is a positive.
(Analysts’ price target is $187.36)Multiple will go up once people realize how much cash the company will generate. If gold just stays where it is at $3400, generates a ton of cash. He guesses that gold prices will go higher, which means the whole group will be revalued. Yield is 1.36%.