Agnico Eagle Mines engages in the exploration, development, and production of mineral properties in Canada, Europe, Latin America, and the United States. The company was founded in 1953 and is based in Toronto, Canada.
AEM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Agnico Eagle Mines Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Agnico Eagle Mines Ltd ranked in the 0th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Agnico Eagle Mines Ltd, consider:
The company's compound free cash flow growth rate over the past 5.01 years comes in at -0.57%; that's greater than only 1.68% of US stocks we're applying DCF forecasting to.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 21.28% of stocks in its sector (Basic Materials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AEM, try BIOX, GSTX, HUN, NGD, and OSN.
After being range-bound for the better part of five-years, gold broke out to the upside last year and is up $24% so far in 2020. So far in the 21st Century, investors might be surprised to discover that gold has vastly out-performed both the S&P500 and the Barclays Index of...
Michael Fitzsimmons on Seeking Alpha | October 1, 2020
Mr. Sean Boyd, you may begin your conference. What I'd like to do is talk a little bit about Q2 and how we've managed through the pandemic, but focus more on how we're positioned going forward, what the emphasis will be on our business in terms of driving free cash flow, and using that to reinvest in the business and increase our dividend as we move forward.
Sean Boyd, CEO of Agnico Eagle Mines, expects the price of gold to continue to climb higher. He explains why gold could reach US$2,500 an ounce within the next two years. Boyd also discusses how the company has recovered from Q2 COVID-19 shutdowns and is positioned for what be believes will be a strong second-half of 2020.