Morningstar Rating

Stock Research and Analysis

by Elizabeth Collins, CFA

Bulls Say

The company has achieved rapid growth during the past few years, increasing its gold output from roughly 230,000 ounces in 2007 to just under 1.1 million ounces in 2013.
All of Agnico's producing assets are in the relatively stable and mining-friendly countries of Canada, Finland, and Mexico.
Gold companies tend to be countercyclical. They also provide an excellent hedge to inflation risk. Read more 

Bears Say

Agnico's newer mines on average exhibit higher production costs than original flagship mine LaRonde. As a result, bringing the newer mines on line has deteriorated the firm's cost position (on a byproduct basis) closer to the industry average.
The challenges of operating in the extreme remoteness and cold of the Canadian Arctic are leading to lower-than-expected gold production and significant cost inflation at the firm's Meadowbank mine.
Investors looking for gold exposure can skirt company-specific risk by investing in gold-backed exchange-traded funds. Read more 

Management

We believe management has done a good job for the most part in operating the company and taking care of shareholders. Sean Boyd has been with the firm since 1985 and has served as CEO since 1998. Under his leadership, Agnico has transformed from a one-mine   Read more 

Profile

Agnico Eagle Mines is a midtier gold miner operating six mines in Canada, Mexico, and Finland. The company operated just one mine, LaRonde, as recently as 2008 before bringing   Read more 

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