Is it fully valued or has room to move higher?
Thanks,
Georfge
AEM has been trending up over the last month due to rising gold prices. As long as gold continues to run, AEM should continue this positive trend. AEM is trading around the mid point, of it's three year forward P/E valuation so there is still some room for it to move higher. We are fine trimming the position in AEM once it rises above an investors' target weighting, but we still like it overall, while the outlook for gold in the near term is pretty solid with rising inflation and geopolitical tension. There is some room for it to run higher still as long as gold keeps trending up. Here are comments on the quarter just released:
EPS of 76c beat estimates of 61c; Revenue of $1.83B was 2.4% higher than estimates. EBITDA of $929M was 3.8% better than expected. Strong production and good cost metrics helped the quarter. Guidance for 2024 was re-iterated. Production was 878,652 ounces at an all-in cost of $1.190. The stock continues to do well, and remains one of our favourites in the sector with this quarter.