Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Agnico Eagle (NYSE:AEM), Canada’s fifth-largest gold producer, soared on Thursday, trading at $31.59 per share – a 17% jump.
The boost comes the day after the company beat analyst expectations in its Q3 results, posting net income of $47.3 million and record gold production. But the Canadian miner also showed a 56% profit drop from Q3 2012.
Thursdays’ rally is the company’s biggest intraday gain since November 2008, Bloomberg reports.
“We had expected AEM to beat street estimates going into Q3 but this surpassed even our expectations,” Anita Soni, an analyst at Credit Suisse Group AG said, as reported by Bloomberg.
The company’s Meadowbank mine in Nunvaut – the main force behind record production – was the ‘surprise’, analysts said.
See also: Agnico Eagle hits record production, 56% profit drop
