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« ‘BP’ Investing: The Only Way to Go | Main | China’s First Gold Fund to Boost Demand for Gold »

Agnico-Eagle Mines Limited: Ready to Fly?

AEM Chart 03 dec 09.JPG

Although Agnico-Eagle Mines Limited (AEM) has climbed steadily since August and we still expect to see AEM to trade at a $100.00 plus, it remains a bit of a puzzle to us that the old bird isn't trading much higher than it is. A number of our peers are expecting the miners to take off as the earnings, turnover and profits, based on much higher gold prices can no longer be ignored. Well we hope that they are correct as Agnico forms a major part of our portfolio. However, this is not the 1980's and there are many other ways to get involved in this market as we all know. Still back to the chart where we can see that the volume is dropping off a tad, but the crossover on the MACD is a positive sign for AEM, so we will hold and observe for now.

Agnico-Eagle is a Canadian-based gold producer with operations in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the U.S. Our LaRonde mine is Canada’s largest operating gold mine in terms of reserves. Agnico-Eagle has full exposure to higher gold prices consistent with its policy of no-forward gold sales. It has paid a cash dividend for 28 consecutive years.

Agnico remains one of our favourite companies and forms a large part of our core holdings with the Silver Wheaton Corporation being the largest single investment that we hold.

AEM Mines Chart 03 Dec 2010.JPG

Agnico-Eagle has now developed five new mines in three years, increasing gold production by more than 300%. They appear to be well set up to continue to grow output through internal development of current projects and ongoing exploration activities, there is also the potential of acquisitions, joint ventures and partnerships to add a little spice Agnico’s progress. The target for 2010 is still 1.0 million ozs.

Agnico-Eagle Mines Limited trades on the NYSE under the ticker symbol of AEM and on the Toronto Stock Exchange under the symbol of AEM.TO.

Agnico-Eagle has a market capitalization of $13.98 billion, a 52 week trading range of $49.64 - $84.21, a rather high P/E ratio of 46.69 on volume of 1-2 million shares traded per day.

Meanwhile back at the ranch during our knockabout sessions we have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have updated the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days. We currently have a number of open positions which we are pleased to say are all in positive territory.

sk chart 19 Nov 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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