The TSX Composite Index has had a superb 2026 up to now – rallying a formidable 6%. It is a very robust efficiency, however one which doesn’t even come near a specific TSX inventory that has already rallied 41% in 2026. Agnico-Eagle Mines Ltd. (TSX:AEM) is a number one Canadian gold inventory that’s been firing on all cylinders. This has been pushed by macro and company-specific fundamentals which have been completely aligned in latest instances.
Can Agnico Eagle’s inventory value maintain rising? Or ought to we take our earnings and head for the hills? Gold is, in spite of everything, a commodity, and commodities are notoriously cyclical. Let’s discover.
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Gold costs at the moment
Let’s begin by reviewing the value of gold, as that is the largest single determinant of a gold inventory like Agnico-Eagle’s efficiency.
Gold shares usually are inclined to outperform in intervals of excessive inflation, excessive financial danger and excessive geopolitical danger. Merely put, gold is a secure haven. Because of this gold holds its worth higher than most monetary devices. It follows then that the value of gold will rally when the perceived and actual dangers on the earth are excessive. Like latest instances.
Tariffs, geopolitical tensions, and a rising malaise within the world financial setting have all contributed to rising gold costs in latest months and years. In reality, gold costs at the moment are 370% larger than 10 years in the past, 200% larger than 5 years in the past, and 77% larger than one 12 months in the past. It is a reflection of the tough and unsure financial setting, the geopolitical troubles, and different elements which have triggered traders to flock to gold, the secure haven.
Agnico-Eagle – the gold inventory to personal for gold publicity
Towards this backdrop, we’ve got Agnico Eagle Mines – a gold firm that has perfected the artwork of danger mitigation. This exhibits up in Agnico’s number of properties, with particular consideration being paid to the standard of its mines, but additionally the situation of its mines.
We are able to discover Agnico-Eagle’s low-cost, cash-gushing mines in areas resembling Canada, Europe, and sure components of Latin America. These are all politically secure, pro-mining jurisdictions. These mines have been a steady base that has allowed Agnico to learn from the report run in gold costs.
This has led to robust long-term monetary efficiency for Agnico, and loads of monetary rewards for its shareholders. And the momentum continues. Since 2021, Agnico’s working money circulate has elevated greater than 400% to $1.3 billion. Additionally, its earnings per share (EPS) elevated 361% to $8.31.
What’s in retailer for Agnico Eagle Mines?
Agnico’s robust efficiency in recent times has enabled the corporate to extend its dividend quite a few instances. Its newest dividend improve within the fourth quarter of 2025 was a 12% improve. The corporate’s robust efficiency has additionally constructed up its money steadiness, offering ammunition for its subsequent part of development. With report gold mineral reserves, Agnico has a robust development pipeline and the potential for mine life extensions. In line with administration, annual gold manufacturing has the potential to extend by 20% to 30% over the subsequent decade.
The underside line
In previous articles, I’ve written that Agnico-Eagle is my favorite gold inventory. It stays so, as its diversification, robust asset base, and decrease danger profile make it a no brainer, in my opinion. However in fact, the corporate’s fortunes are tied to gold costs. In consequence, your outlook for Agnico Eagle’s inventory value will rely in your outlook for gold costs. So if you happen to assume that gold costs will stay robust, I believe that AEM inventory is the TSX gold inventory to personal. Simply watch out as a result of though issues look good for Agnico proper now, the corporate is closely reliant on gold costs, that are tough to foretell. Keep diversified.