A gold player that doesn’t make the typical roster of many investors due to its status as a growing mid to large cap player in gold production relative to larger peers such as Barrick and Newmont, Agnico Eagle Mines (TSX:AEM)(NYSE:AEM) still commands respect and ought to be assessed by those considering value in this sector today.
One of the best performers on a year-over-year basis with a return of over 30% at the time of writing, Agnico provides excellent exposure to investors interested in cashing in on the gold trade today.
Agnico has come under pressure since Q4 2019 due to issues with its Nunavut and Quebec mines which missed production estimates at the time and have been slow to ramp since then.
The coronavirus pandemic resulted in the idling of two Quebec mines. These production issues have hampered the stock somewhat compared to where the stock could have traded if the company’s mines were all operating at capacity.
That said, the fact that Agnico has a considerable amount of room to grow production in the near-term is extremely bullish for investors given where the price of gold is trading today. This is a well-loved stock in North America.
However, the overall number of investors in this sector remains small, meaning there continues to be significant room for capital appreciation for Agnico should capital inflows into this sector pick up meaningfully. Overall, the future looks bright for Agnico in the blue-chip gold mining space, making this a great value pick for investors at these levels.
Invest wisely, my friends.
