First Eagle Gold Fund on Agnico Eagle Mines Limited
Thesis
Agnico Eagle is the world's second-largest gold producer and remained a favored holding despite share-price weakness during the quarter. First Eagle emphasized the company's strong balance sheet and healthy project pipeline. The fund also likes Agnico's cost-efficient operations and focus on returning cash to shareholders. Record operating results reinforced the operating case even though lower gold prices pressured the stock.
“We continue to like the company's strong balance sheet, healthy pipeline of projects, cost-efficient operations and focus on returning cash to shareholders.”
Key risks
- Lower gold bullion prices can pressure the shares even when operating results are strong.