Here's Why You Should Invest In Agnico Eagle (AEM) Stock Now
Zacks Investment Research | Nov 27, 2019 08:20PM ET
Agnico Eagle Mines Limited (NYSE:AEM) stock looks promising at the moment. The company’s shares have surged more than 43% year to date.
If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to your portfolio as it is poised to sustain its momentum.
Let’s delve into the factors that make this gold mining company an attractive investment option.
Upbeat 2019 View
In October, the company revised production guidance for 2019. Gold production for the year is now projected in the band of 1.77-1.78 million ounces, up from 1.75 million ounces expected previously. The projection includes pre-commercial production from Meliadine and Amaruq.
Notably, the company’s gold production rose 13% year over year in the third quarter and nearly 6% for the first nine months of 2019.
Key Growth Drivers
Agnico Eagle is making a good progress with its key growth projects and is also expanding mine life across a number of properties.
The company is ramping production at Meliadine, which is expected to produce around 230,000 ounces of gold in 2019 and includes pre-commercial production ounces. The project commenced commercial production in May 2019.
In October, Agnico Eagle announced that the Amaruq satellite deposit at the Meadowbank Complex achieved commercial production on Sep 30, 2019. Notably, the start of production at the Meliadine and Amaruq projects is expected to enable Agnico Eagle to generate net free cash flow in second-half 2019. It will also help the company lower net debt and increase dividend payout while steadily growing business. As such, these key growth drivers are likely to support the company’s earnings in 2019.
An Outperformer
Agnico Eagle has outperformed the Zacks Investment Research
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