Is it time to buy Agnico Eagle Mines shares?

Considered to be one of the largest gold and silver producers on the face of the earth, Agnico Eagle Mines and Agnico Eagle Mines shares are often the name on many investors’ lips. However, given the recent Q2 earning reports released, the name is no longer being spoken about in the same fashion as it once was. Stock prices fell by 3% off of the back of recent news with many questioning whether or not now is the right time to buy Agnico Eagle Mines shares.

agnico-eagle-mines-sharesLooking at Agnico Eagle Mines shares issues in more detail, you first need to analyse the numbers. Per share earnings have seen a 25% fall, while its revenue actually increased by 16.3%, which has given the stock and ‘dichotomy like’ feel. What the earnings per share decline has been attributed to is the company’s adjusted net income, which has triggered a 16.7% decrease to $18.5 million. Operating expenses have risen which have by all accounts damped the positive feeling surrounding Agnico Eagle Mines shares. However, figures also show that operating costs have grown by 17.5% to almost $500 million.

What stands the company in good favour from an investment perspective is that their sales are on the up. The company is showing strong signs of revenue growth, with gold sales from the company increasing by over 25% to 405,972 ounces and silver sales booming by 31% to more than 1.1 million ounces. Breaking down the company’s performance shows that gold production has increased by 23.8%, silver production has increased by 17.9%, and copper sales are up by 5.3% as well. With such positive performance in mind and in spite of the stock stumble, Agnico Eagle Mines has announced that will stick by their quarterly dividend of 8c per share. Another thing that must be noted is the fact that Agnico Eagle Mines have paid dividends on shares every year since 1983.

Given all that has unfolded during summer 2015, many as asking whether or not Agnico Eagle Mines shares are to be embraced or avoided. Looking at the situation it seems hard to pinpoint the reasoning behind the post-earnings drop, with many analysis feeling that Agnico Eagle Mines shares have been somewhat hard done by. What Agnico Eagle Mines shares seem to represent moving forward is a long-term investment opportunity. They offer an attractive evaluation, that includes trading at 48x the fiscal earnings predicted for 2015, with that set to drop to 38x in 2016 should things progress as expected.

Looking closely at Agnico Eagle Mines shares it is obvious that the current dip will not define the company. While they may suffer a few more knocks during the course of 2015, what stands behind the company has all the makings for success. In conclusion, Agnico Eagle Mines shares isn’t a mining stock that is going to make a day traders ‘day’ anytime soon, but those who have eyes on the long term could see it become a wise investment.

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

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