10 Best Gold Mining Stocks to Buy Now

3. Agnico Eagle Mines Ltd (NYSE:AEM)

Number of Hedge Fund Investors: 46

Another Canadian-based dividend-paying gold mining company in our list, Agnico Eagle Mines Ltd (Ontario) (NYSE:AEM) has a dividend yield of over 2.3%. Last month Agnico Eagle Mines Ltd (Ontario) (NYSE:AEM) reported Q1 results, beating past estimates for both EPS and revenue, which jumped 21.2% on a YoY basis.

Analysts believe Agnico Eagle Mines Ltd’s (Ontario) (NYSE:AEM) All-In Sustaining Costs (AISC) is lower than its competitors like Newmont and Barrick Gold. Last year Agnico Eagle Mines Ltd’s (Ontario) (NYSE:AEM) AISC came in at $1,117/oz in 2023, and Agnico Eagle Mines Ltd (Ontario) (NYSE:AEM) expects the metric to be about $1,225/oz in 2024.

However, Agnico Eagle Mines Ltd (Ontario) (NYSE:AEM) valuation has raised some alarms recently. The stock’s P/E has reached 72 after the stock’s 37% jump over the past one year. Assuming 2024 revenue at $8 billion and an EBIT margin of 30%, net income for the year comes out to be $2.4 billion. Excluding financing costs and tax rates the net income figure totals around $1.35 billion. Based on the current stock price, Agnico Eagle Mines Ltd’s (Ontario) (NYSE:AEM) forward P/E ratio is around 26, which is still high when compared to the gold mining industry peers.