Zitat von Taylor Dart auf Seeking AlphaSummary
Agnico Eagle has trounced the performance of its major producer peers over the past year, justified by solid operational performance, consistent exploration success at key assets and an upgrade to its pipeline following its recently announced Detour Underground Expansion plans. And while AEM may screen expensively compared to some of its million-ounce producer peers, this is a company that has always traded at a premium valuation because it executes near flawlessly and has some of the best mining assets in the safest jurisdictions globally.
Some investors might argue that this premium has become overcooked in the share price, but Agnico Eagle carves out a near unrivaled niche that contributes to its premium multiple. This is because it offers the ideal mix of diversification (4 countries, 10 mines), scale (~3.5 million ounces with room to grow), and a robust pipeline coupled with a management that's laser focused on per share metrics. And in a sector that that is extremely unforgiving for those that invest in the wrong names, it's tough to put a price on the ability to get one's exposure to gold with a good night's sleep, which AEM offers with:
- safe mining jurisdictions
- constantly prioritizing per share growth over growth for growth's sake and showing extreme capital discipline
- “boringly” consistent operational results, with regular delivery against guidance and more upside vs. downside surprises.
Besides, it's worth noting that while cash flow metrics may make AEM look more expensive than NEM, AEM's relatively low-risk and lower capex projects like Hope Bay Restart, Detour UG Expansion, Malartic Fill The Mill, and Upper Beaver have the potential to add 1.2+ million ounces per annum if all approved/commissioned or ~20% growth from current levels even factoring in lower/no production at shorter life assets.
Hence, valuing AEM on this year's or next year's cash flow doesn't do it justice when you could build another ~1.5 million ounce gold producer out of its current pipeline of projects. Still,
Agnico Eagle Mines Limited continues to fire on all cylinders and has an extremely bright future. I continue to see AEM as the premier way for an investor to get exposure to the gold price, and I would view sharp pullbacks in the stock as buying opportunities.
https://seekingalpha.com/article/4710523-agnico-eagle-another-blowout-quarter
