Sticking with this morning's Canada theme:
One more (Boaty and I have been going through RJO's premise for actionable trades - this is the last one for now):
🚢 Top Trade Alert: Agnico Eagle Mines (AEM)
The best-run senior gold miner, at a valuation that hasn't caught up to the gold cycle yet
Why This Instead Of GDXJ
Junior gold miner ETFs are a diversification trap dressed up as a sector play — you get real winners diluted by marginal, high-cost operators that only work when gold is screaming higher and fall apart the moment the metal pauses. Agnico Eagle solves that problem by being the thing you'd actually want to concentrate in: the largest, lowest-risk-per-ounce senior producer in the space, trading at a multiple that still hasn't fully priced in what gold near $4,700/oz means for its cash generation.
The Numbers
Q2 2026 was a genuinely strong quarter operationally. Revenue came in at $3.8 billion, up 35% year-over-year, with adjusted net income of $1.54 billion — $3.05 per share, up 57.2% from $1.94 a year ago[web:506][web:519]. Gold production hit 855,816 ounces, above budget for the second consecutive quarter, at a realized gold price of $4,483/oz[web:508][web:519]. Free cash flow hit a record quarterly high, and shareholder returns also set a quarterly record[web:512] — this is a company generating real, growing cash on top of the gold-price tailwind, not just riding the metal passively.
Valuation: trailing P/E of just 12.9x, forward P/E of 11.6x[web:499] — remarkably cheap for a company growing revenue 43.7% and with 22 analysts carrying a Buy consensus and an average price target implying roughly 43% upside from current levels[web:499][web:505]. ROE of 18.09% is meaningfully better than Barrick's 12.1%[web:505], and consensus projects 2026 sales growth of 38% with EPS growth of 60.4%[web:505]. Cost discipline remains intact: total cash costs of $1,054/oz and all-in sustaining costs of $1,459/oz against a $4,483/oz realized price[web:520] — that's an enormous, durable margin cushion even if gold gives back some of its recent gains.
