Agnico Eagle Mines’ stock performance
While Agnico Eagle Mines (AEM) has lost 1.4% YTD (year-to-date) until July 13, its performance is still stronger than many of its peers (RING), including Yamana Gold (AUY), Kinross Gold (KGC), Eldorado Gold (EGO), and New Gold (NGD). It has also outperformed the SPDR Gold Shares ETF (GLD) and the VanEck Vectors Gold Miners ETF (GDX). Agnico Eagle is known to deliver consistent results throughout its cycles.
Declining production profile
Agnico Eagle Mines’ production profile is expected to decline in the near term as its existing mines approach the end of their useful mine lives while the new projects are still in various phases of construction. These projects should start from 2020 onward.
Agnico Eagle Mines has a robust project pipeline—probably one of the best in the industry. During its second-quarter results release on July 25 after the market closed, Agnico Eagle is expected to provide an update on these projects. Newmont Mining (NEM) also has a strong project pipeline.
Kinross Gold’s (KGC) Tasiast Expansion could provide an upside to its medium-term production. Yamana Gold (AUY) could face long-term production issues due to its thinning pipelines.
In the next part of this series, we’ll look at Eldorado Gold’s (EGO) second-quarter expectations.