A Canadian Gold Miner with Upside


Tom Slee Image Tom Slee Retired- Financial Advisor, Money Manager, Gordon Pape Enterprises LTD

Miners have had a hard time keeping up with the price of the metal they mine, but this company is coming back from a unique year and has legs where others are stuck in the mines, notes Tom Slee in The Canada Report.

Here is our top pick for this issue. Prices are as of the close of trading on Friday, Dec. 14.

Agnico-Eagle (AEM)
Type: Common stock
Trading symbol: AEM
Exchange: NYSE
Current price: $53.45
Entry level: Current price
Risk Rating: Higher risk
Recommended by: Gavin Graham
Website: www.agnico-eagle.com

Background: Gold mining stocks have been lagging the price of the precious metal badly over the last 18 months. Goldcorp (GG), which has recently overtaken Barrick Gold (ABX) as the most valuable gold miner in terms of market capitalization, was down more than 20% over the last 12 months, while the iShares S&P/TSX Global Gold Mining ETF (XGD) is down 22% over the same period.

Gold bullion, by contrast, has been flat over the last year but has risen by 50% over the last three years while the gold mining ETF has fallen by the almost the same percentage!

Obviously, anyone considering buying companies that have lagged far behind the metal they produce needs to believe that the bull market in gold will continue.