Agnico Eagle Mines Ltd (USA) (NYSE:AEM) Notes Barron’s Analyst Speak


Dallas, Texas 02/04/2014 (FINANCIALSTRENDS) – Agnico Eagle Mines Ltd (USA) (NYSE:AEM) the gold mining stock which has grown by over four times in as many years, was one of the stocks discussed during Barron’s annual mega event, the three-part analyst and investors meet. The group was decidedly bearish about the gold miners, declaring their disappointing performance, the cause of the decline.

Meet saw four-reasons for the poor performance

Agnico Eagle Mines Ltd (USA) (NYSE:AEM) was one of the many gold mining companies, which as part of the larger gold mining group reported over 50% decline, even though the drop in gold was reported at 28% for the year.  Besides, the closure of non-operative and non-effective mines meant there was a drop in supply, though only marginally. However, the greatest impact on the sector was the high-profile regulation the Government of India introduced to curtail domestic Cash Deficit. The restrictions on gold import into India, saw a drop in gold demand from 162 tons in the month of May 2013 to 7 tons by the month of November, 2013.

Of the two gold mines that analysts and investors’ meet hosted by Barron’s identified were Canadian gold miners Agnico Eagle Mines Ltd (USA) (NYSE:AEM) and GoldCorp(GG).

Agnico Eagle Mines Ltd (USA) (NYSE:AEM) along with GoldCrop posted record production in the past year besides substantial profits. Though the former is smaller in size by nearly four times in comparison to GoldCorp market cap, it is considered a safer mining company. This is because the location of the company mines is in Finland, Canada and Mexico, which are politically safe countries, besides two new mines which will off Mexico and Canada.

The upside for Agnico Eagle is that its production outlay has grown over four times in comparison to the 2008 levels. Agnico Eagle has been successful in hurtling past estimates for its previous quarter results. Barron’s Meet analysis of Agnico Eagle rings true indeed.

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