Friday, June 15, 2007

More on Agnico-Eagle Mines

Since Agnico-Eagle Mines may not be well known in the US, I went looking for some analysis that might provide support for the TradeRadar BUY signal. The following is an excerpt from a Business Week article from June 7 titled "Canada's Resource Boom: Five Great Plays" where AEMLW is one of the five:


The weaker U.S. dollar, inflation concerns, and rising demand from the jewelry market out of India, China, and the Middle East with their growing economies have made gold a hot commodity lately. With mining production slipping from a peak in 2001 and more physical bullion being socked away in bank vaults as collateral for gold exchange-traded funds, the supply-demand imbalance has also favored higher prices.

Toronto-based Agnico-Eagle Mines Limited (AEMLW) has only one mine, in Quebec, currently producing gold. But it's poised to grow rapidly as it brings three additional mines in Quebec and projects in Mexico and Finland onstream in the next couple of years. The company has a "tremendous growth profile, and all the growth is coming in politically stable and mining-friendly jurisdictions," says Joe Foster, manager of the Van Eck International Investors Gold Fund. In his view, the stock is undervalued relative to its peers. In addition to trading in Toronto, the American Depositary Receipts trade on the New York Stock Exchange.




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