Agnico Eagle: Near Flawless Execution For This Consistent Producer

Summary:

  • Agnico Eagle Mines Limited reported another blowout quarter in Q3 ’24 with 2% higher production to ~863,400 ounces and solid cost control with just a 2% increase in cash costs year-over-year.
  • This impressive cost control combined with record gold prices allowed the company to enjoy an 1100 basis point increase in AISC margins and a 600%+ increase in free cash flow.
  • Even more importantly than any quarterly result, the company’s pipeline continues to improve each quarter with consistent exploration success across the portfolio of key assets.
  • In this update, we’ll dig into Agnico’s Q3-24 results, recent developments, and why it continues to be the premier way to gain exposure to gold assuming the stock is bought on sharp pullbacks.

An open-pit mine

Claude Laprise

The Q3 Earnings Season for the VanEck Gold Miners ETF (GDX) began last week, and two of the world’s largest gold producers have now reported their results. Fortunately, Agnico Eagle Mines Limited (NYSE:AEM) fared


Analyst’s Disclosure: I/we have a beneficial long position in the shares of AEM, AEM:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying small-cap precious metals stocks, position sizes should be limited to 5% or less of one's portfolio.

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