Agnico Eagle: Gold at a discount price?

Gold producer Agnico Eagle released this week its figures for the third quarter. The group clearly exceeded analysts’ profit expectations. In addition, the Group is raising its forecast for the full year. Agnico Eagle now wants to produce 1.77 to 1.78 million ounces of gold. So far, the forecast is 1.75 million ounces. But there is a small drop of bitterness.


Analysts had expected Agnico Eagle to post adjusted earnings of $0.27 per share in the third quarter, but Agnico actually reported adjusted earnings of $0.37 per share. This clearly beat analysts’ estimates. Gold production reached a new record of 477,000 ounces in the third quarter. The costs were 903 dollars per ounce and thus slightly higher than in the same period last year, when Agnico reported 848 dollars per ounce. However, Amaruq is currently being ramped up for commercial production. Here the costs are naturally somewhat higher.

And it is precisely this ramp-up of Amaruq that is the reason why the forecast for the coming year has been slightly lowered. Agnico now expects 1.9 to 2.0 million ounces, up from 1.96 to 2.04 million ounces. This is certainly not a break in the leg and only clouds the otherwise very strong figures a little. The share gained just under two percent in post-trading trading. Agnico is certainly not favourably valued. But in recent years, the share has practically never been that. The setback in the overall market, which also did not stop at Agnico, represents a good entry opportunity for courageous investors. Agnico is one of the best, if not the best managed, gold companies on the list. The group is growing organically and is not dependent on spectacular acquisitions.