Dovish Fed Drives Gold To New All-Time Highs And Agnico Eagle Picks Best Day Ever For Quarterly Report
Fed Chairman Powell turned dovish in his press conference earlier. This put pressure on the USD and drove gold to new all-time highs.
Gold is in a powerful bull market with an overwhelming list of bullish arguments, even without the Fed getting dovish.
A few hours after the Fed press conference, Agnico Eagle reported their best quarter ever. They couldn’t have picked a better day to report their latest quarter.
We have featured them in several reports as the top major gold miner and they certainly didn’t disappoint with their quarterly report. Three quarters in a row of record free cash flow and an all-in sustaining cost of producing gold much lower than the average of their peers.
The headline from their news release and quote from their CEO perfectly explain how well they are delivering.
AGNICO EAGLE REPORTS SECOND QUARTER 2024 RESULTS - THIRD CONSECUTIVE QUARTER OF RECORD FREE CASH FLOW UNDERPINNED BY CONSISTENT, STRONG OPERATIONAL AND COST PERFORMANCE; UPPER BEAVER PROJECT STUDY SHOWS SOLID RISK-ADJUSTED RETURNS
"We continue to deliver strong and reliable operational results which, combined with higher gold prices, drove record operating margin and free cash flow for the third consecutive quarter. As a result of the excellent performance of our operations through the first half of 2024, we are highly confident we will achieve our full year production and cost guidance," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "We generated over half of a billion dollars of free cash flow in the second quarter, supporting a significant strengthening of our balance sheet and increased returns to shareholders. We continue to take a measured approach advancing key pipeline projects that show strong risk-adjusted returns, such as the Detour Lake underground and Upper Beaver projects. Our focus remains on capital discipline and cost control to ensure that the benefits of higher gold prices accrue to our shareholders through strengthening our financial position and increasing shareholder returns," added Mr. Al-Joundi.
Excerpts from their news release are in italics above. Here is a link to their entire news release. If you like major gold miners firing on all cylinders, it is well worth the read.
In Closing
The news speaks for itself and the timing of it couldn’t have been better. It is kind of a mic drop moment.
All the best,
Allan Barry Laboucan
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