Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Agnico Eagle Mines Limited (NYSE: AEM) is a Canada-based gold mining company, which is engaged in producing precious metals from operations in Canada, Australia, Finland and Mexico. The Company's exploration site includes Anza, Barsele, Delta, Douay/Joutel, Kirkland Lake Regional, Kuotko, Monument Bay and others. Its operations include Canadian Malartic Complex, Detour Lake, Fosterville, Goldex, Kittila, La India, and others.

Kalkine’s Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 6.74% in the last three months as well as by 4.05% in the past six months.
• The stock is leaning towards the lower band of its 52-week range of USD 61.15 and 52-week low price of USD 43.22, with the current price near a decent support range of USD 40.00-USD 44.00, from where the price has taken a support in the past.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current oversold RSI of 29.72, with expectations of a support from current levels.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~25.02% of the total shareholding, signifying diverse shareholding. Van Eck Associates Corporation and The Vanguard Group, Inc. are the biggest shareholders, holding the maximum stake in the company at ~4.64% and ~3.43%, respectively.

1.4 Consistent dividend payments with impressive dividend yield:

The Board of Directors at Agnico Eagle has announced a quarterly cash dividend of USD0.40 per common share, scheduled for payment on December 15, 2023, to shareholders recorded as of December 1, 2023. Demonstrating a longstanding commitment to shareholders, Agnico Eagle has consistently declared a cash dividend each year since 1983.

1.5 Key Metrics

AEM has experienced a positive trajectory in its top-line revenue and profitability figures over the past five years. Additionally, the company has demonstrated effective cost management across various operational levels can be seen through the higher profitability metrics.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q3FY23:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 6.74% in the last three months as well as by 4.05% in the past six months.
• The stock is leaning towards the lower band of its 52-week range of USD 61.15 and 52-week low price of USD 43.22, with the current price near a decent support range of USD 40.00-USD 44.00, from where the price has taken a support in the past.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current oversold RSI of 29.72, with expectations of a support from current levels.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 13, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.