26 Apr

AEM’s Cash Harvesting Phase Is Coming Up

WRITTEN BY Anuradha Garg

AEM’s stock outperformance

Agnico Eagle Mines’ (AEM) stock has significantly outperformed its peers year-to-date. Up to April 25, AEM’s stock has risen 43.1% compared to a 3.6% and 3.9% decline in the SPDR Gold Shares (GLD) and the VanEck Vectors Gold Miners ETF (GDX), respectively. Its close peers (NUGT) are also underperforming by a wide margin. Compared to AEM’s 43% gain, Barrick Gold (GOLD), Newmont Mining (NEM), Kinross Gold (KGC), Yamana Gold (AUY), and IAMGOLD (IAG) have seen price performance of -5.2%, -1.5%, -7.2%, 0.5%, and 16.3%, respectively.

AEM’s Cash Harvesting Phase Is Coming Up

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Harvesting phase for AEM

Agnico’s stock has been on an uptrend in 2019, mainly because of its project execution. 2019 is expected to be a harvest year for the company. Many of its projects are expected to come online this year. The Meliadine mine is expected to reach commercial production in May 2019 while Amaruq remains on schedule to begin production in Q3 2019. On the back of these projects, Agnico expects to produce 1.75 million ounces of gold in 2019, which would be a record for the company.

Cash flows to accelerate

Moreover, as the company’s capital expenditure should decline due to project completion and higher earnings, its cash flows should see a significant rise in 2019. Analysts expect the company to generate positive FCF of $131 million this year after a few negative years. Its FCF is expected to further grow by 267% and 40% year-over-year in 2020 and 2021, respectively. Improved earnings and accelerating cash flows could make the company a good long-term bet for investors.

Latest articles

On Tuesday, Tesla (TSLA) cut the prices of its vehicles to standardize its global car line-up, according to Reuters.

Yesterday, PayPal (PYPL) announced that it would expand Xoom, which is its international money transfer service, to 32 markets in Europe.

Visa stock has risen about 37% and has outperformed the S&P 500 Index so far in 2019.

16 Jul

What to Expect from Skechers’s Q2 Results

WRITTEN BY Sharon Bailey

Skechers (SKX) is set to declare its results for the second quarter after the markets close on July 18. Here's what you should know.

On Tuesday, Canadian Pacific Railway (CP) reported strong second-quarter earnings. The company's top and bottom lines touched a record mark.

16 Jul

What to Expect from Crown Castle's Q2 Results

WRITTEN BY Sushree Mohanty

Crown Castle International (CCI) is scheduled to announce its second-quarter earnings results on Wednesday after the market closes.