10 Best Gold Stocks to Invest in for Portfolio Diversification

2. Agnico Eagle Mines Limited (NYSE:AEM)

Number of Hedge Fund Holders: 54

Agnico Eagle Mines Limited (NYSE:AEM) is a basic materials company that produces gold through its flagship assets in the US, Canada, Mexico, and Australia. The company also explores copper, silver, zinc, and lead. The stock more than doubled in value last year as it rallied by 109% in response to gold prices gaining more than 30%. Similarly, the stock is trading at all-time highs in response to investors reacting to strong operational results and strategic initiatives that have strengthened its growth metrics.

Agnico Eagle Mines Limited (NYSE:AEM) delivered record-breaking financial and operating results for its third quarter, affirming its operational efficiency amid rising gold prices. With a trailing twelve-month cash flow of $1.88 billion, the company’s ability to sustain high production levels and boost gold sales has led to robust free cash flow generation. Agnico Eagle reported $563 million in free cash flow in the third quarter.

The development of Agnico Eagle’s Detour Lake mine is a key factor in the company’s prospects for future growth. In order to prolong the mine’s life until 2054, the company has revealed plans to boost gold production at this location to 1 million ounces annually by 2030. Because of its advantageous location, pre-existing infrastructure, and the operational team’s experience, Agnico Eagle’s expansion project is considered low-risk and expected to generate significant long-term value.

Additionally, Agnico Eagle Mines Limited (NYSE:AEM) has moved to strengthen its long-term prospects by acquiring O3 Mining. With the acquisition, the company gains access to a key gold asset in the Marban Alliance property. The property is believed to have about 1.7 million ounces of gold.