- Agnico Eagle Mines is down nearly 50% from highs, despite the company transitioning from a great producer to an unrivaled producer, with strong organic growth and high margins.
- Historically, the stock has traded at ~12x cash flow, and currently trades at less than 8x FY2022 cash flow estimates.
- Given that the company only looks better post-merger with more diversification, better margins, and clear synergies, I would argue that it could trade at a premium to this multiple.
- Given the company's attractive attributes, I see the stock as a steal at current levels below $48.00, and I plan to continue to accumulate on weakness.
For further details see:
Agnico Eagle Mines: Where Growth Meets Value