Ratings and rationale
In the senior and intermediate gold miner space (GDX) (GDXJ), excluding royalty and streaming companies, analysts are most bullish on Agnico Eagle Mines (AEM), with ~78.0% recommending “buy” and 22.0% recommending “hold.” Its project execution has changed analysts’ views on the stock. A year ago, only 50.0% of analysts were recommending “buy” for AEM.
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IAMGOLD (IAG) is following closely behind AEM, with 75% of analysts recommending “buy” for its stock. About a year ago, only 54% of analysts were recommending “buy.” IAG’s decision to defer the construction of its Côté Gold project in Ontario, Canada, rekindled analysts’ interest—they seem to have become more interested in companies focusing on maximizing shareholder returns rather than increasing production. Going ahead with the Côté Gold project would have increased IAG’s risk profile.
AUY and NEM
Newmont Mining (NEM) ranks third among the stocks we’re looking at, with 71% of analysts covering the stock recommending “buy.” Newmont merged with Goldcorp on April 18. While analysts were initially skeptical of the merger and the premium offered by NEM to Goldcorp, some seem to be turning around. TD Securities upgraded NEM from “hold” to “buy” on April 22.
Yamana Gold (AUY) comes next, with 67% of analysts recommending “buy.” Analysts’ views on AUY have changed with the successful start of production at its mine, Cerro Moro. For a detailed analysis of senior and intermediate miners’ ratings, read Wall Street Is Loving these Five Gold Stocks Lately.