Q: AEM: notice down a fair bit. TPE approx. 9 & FPE approx. 24? I was thinking of buying as hedge against disaster. Owned Placer Dome way back when. Odd the FPE going up - due to increased costs?
Thanks,
Jim
Thanks,
Jim
5i Research Answer:
Most golds have been disappointing, but we do think their time will come. AEM remains one of our 'safer' favourites, with its large size and nice dividend and strong balance sheet. We have 22X foward earnings and consider it one of the better sector names. Golds have been hurt by higher costs and the high US dollar. But both look to be peaking, and the sector outlook we think is decent, even without a 'disaster' elsewhere.