8 Best TSX Stocks To Invest In Now

4. Agnico Eagle Mines (NYSE:AEM)  

Number of Hedge Fund Investors: 50

Agnico Eagle Mines (NYSE:AEM) is the largest gold miner in Canada and the third-largest globally, with a portfolio of 11 mines spanning across Canada, Australia, Finland, and Mexico. Agnico Eagle Mines (NYSE:AEM) boasts a proven track record of expanding production and reserves, with a pipeline of near to mid-term opportunities to drive further growth.

In Q2 2024, Agnico Eagle Mines’ (NYSE:AEM) gold production reached 0.9 million ounces, bringing the total for the first half of 2024 to 1.77 million ounces. This puts the company on track to meet the upper end of its production guidance for the year. With strong production and rising gold prices, Agnico Eagle Mines (NYSE:AEM) revenue has increased by 20.9% year-over-year in Q2, and by 21% year-over-year for the first half of 2024.

The company’s margins have also remained strong, with an adjusted net margin of 23.4% in H1, up from 16.5% in 2023. These numbers have led to an upgrade in projections, with revenue expected to increase by 19.5% in 2024, and adjusted earnings per share (EPS) expected to reach $3.45, a 10% increase from previous forecasts. Alluvium Asset Management said the following regarding Agnico Eagle Mines (NYSE:AEM) in their second-quarter 2024 investor letter:

“Our gold miners had quite divergent performance, Agnico Eagle Mines Limited (NYSE:AEM) was up 11.4%, but Regis Resources was down 12.9%. They both provided quarterly updates. Regis reported business disruptions due to poor weather, but management maintained its output and cost guidance. It also announced the approval of two underground projects that will add around 25% to production levels from 2027, but they will cost circa AUD 150m. Agnico reported more positive results and reiterated guidance. We have revised our long-term gold price and exchange rate assumptions (which remain conservative). On our earnings based models we still view Regis as cheap and Agnico as expensive. But that ignores management, and, to a large extent, growth prospects. And when we consider those factors the equation looks decidedly more balanced. So despite Regis trading at an even larger discount to our valuation we have not bought more, and despite Agnico trading at an even larger premium to our valuation, we have not recently sold any. The Fund’s combined position in these gold miners is 6.6%.”

Gold prices reached an all-time high of $2,670 per ounce on September 25. According to J.P. Morgan Research, gold prices are expected to remain stable at $2,500 per ounce by the end of 2024 and rise to $2,600 per ounce in the first half of 2025. Agnico Eagle Mines (NYSE:AEM) is well-positioned to capitalise on this upward trend in gold prices. In the second quarter, Agnico Eagle Mines’ (NYSE:AEM) stock was held by 50 hedge funds with stakes worth $767.39 million