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Which Gold Miners Could See Valuation Upside after 1Q18 Earnings?

Annie Gilroy
Which Gold Miners Could See Valuation Upside after 1Q18 Earnings?

Among the senior mining companies under review in this series (GDX), Agnico Eagle Mines (AEM) is trading at the highest EV-to-forward EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, of 11.5x. As you can see in the graph below, AEM’s EBITDA margin is quite high. The company offers strong production growth, which is supported by a strong project pipeline.