Q: Is it a good opportunity to add Agnico Eagle shares, after 9% drop, Tuesday ?
Thank You
Thank You
5i Research Answer:
We have no issues with AEM and the move was largely due to volatility in commodity prices, versus anything related to the company specifically. We might give the metals a week for things to settle down in case thre is further material weakenss in gold but overall these names should do well with metal prices seeing such a material rise over the last year. But we think one can start buying into any more declines. A correction is healthy, and the underlying trends (low rates, central banks, currency weakness) have not changed here.