Pair Trade: Gold Long/Gold Miners Short

Agnico Eagle Mines Ltd

Industrial/Transportation, Macro


Presented:04/06/2018
Price:$42.55
Cap:$9.96B
Current Price:$82.08
Cap:$40.89B

Presented

Date04/06/2018
Price$42.55
Market Cap$9.96B
Ent Value$11.44B
P/E Ratio40.14x
Book Value$21.35
Div Yield1.03%
Shares O/S234.07M
Ave Daily Vol1,475,936
Short Int3.30%

Current

Price$82.08
Market Cap$40.89B
Agnico Eagle Mines Ltd. engages in the exploration, development, sale, and production of gold mineral properties. The company was founded by Paul Penna on June 1, 1972 and is headquartered in Toronto, Canada.

Pair Trade

Long: Gold

Short: Gold Miners, e.g. Agnico Eagle Mines Ltd (AEM), Franco-Nevada Corp (FNV CN)

Publicly traded companies mentioned herein: Agnico Eagle Mines Ltd (AEM),First Quantum Minerals Ltd (FM CN), Franco-Nevada Corp (FNV CN), Wheaton Precious Metals Corp (WPM)

Highlights

The presenter has a pair trade position, being long gold and short shares of miners, such as Agnico Eagle Mines (AEM) and Franco-Nevada Corp (FNV CN). He feels that these sorts of premium miners have been insulated in recent years from various headwinds, but a confluence of events and an overarching inflationary macro climate could finally “break” these stocks.

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Idea Discussion

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