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  5. AEM: Hello Gentlemen I am quite bullish on gold over the next while. [Agnico Eagle Mines Limited]
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Investment Q&A

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Q: Hello Gentlemen

I am quite bullish on gold over the next while. I own AEM which is up 23 % KRR which is up 38% and KNT which, believe it or not is down 5%.

My question is should I continue to hold KNT which has proven to be a real laggard in the space and whose price is down over the past year despite the metal surging.

If you think I should hold on to it please tell me why. If you think there are better options with better upside please let me know in priority of how strong you feel.

Thanks


Sheldon
Asked by Sheldon on April 13, 2023
5i Research Answer:

We have nothing against KNT except its high valuation. EPS is expected to grow fast over the next two years, and it has a strong balance sheet. However, if it 'misses' then its premium valuation will be at risk. We can still see it as a hold for growth, to offset more mature companies held. Much depends on goals. BTO is bigger, has a strong balance sheet as well, and pays a 3.8% dividend. It is just not growing as fast. In a gold rally, we would expect KNT to pick up its performance, again, assuming growth targets are met.