) reached a new 52-week high of $37.89 on Jun 23, eclipsing its
previous high of $37.51. The stock retraced a bit to end the
trading session at $37.74 on that day.
The gold miner, which has a market cap of around $6.6 billion, has
seen its shares shot up roughly 43% so far this year. Average
volume of shares traded over the last three months is around
What's Driving AEM?
Agnico Eagle posted forecast-topping first-quarter 2014 results on
May 1. Profit for the quarter surged as lower costs and higher gold
production offset a decline in metal pricing. Both revenues and
adjusted earnings topped Zacks Consensus Estimates. The company
expects gold production for 2014 to exceed the higher end of its
Agnico Eagle, a Zacks Rank #1 (Strong Buy) stock, maintains a solid
exploration budget and is reinvesting in its assets to expand
output. Moreover, the company's revised life of mine plan is
expected to yield significant free cash flows over the next several
Agnico Eagle is currently progressing with an expansion at Kittila
- its largest contributor to proven and probable gold reserves -
which is expected to boost throughput capacity at the mine starting
mid-2015. The expansion is expected to cut total cash costs per
ounce over the next several years.
The company's move to jointly acquire Osisko Mining Corporation
represents another positive, which will boost its production
profile and improve cost structure. Agnico Eagle and
Yamana Gold Inc.
) recently completed the acquisition of the issued and outstanding
common shares of Osisko. Agnico Eagle and Yamana now each own 50%
of the shares of Osisko.
The acquisition is a strategic fit for Agnico Eagle. The buyout is
expected to be accretive to the company and will also improve its
total cash cost and all-in sustaining cost profiles. Agnico Eagle
also gets an access to Canadian Malartic, the largest producing
gold mine in Canada that has the potential to produce an average of
roughly 600,000 gold ounces per year for 14 years.
Other Stocks to Consider
Other gold mining companies with favorable Zacks Rank include
Alamos Gold Inc.
Pretium Resources Inc.
), both holding a Zacks Rank #2 (Buy).
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