Gold Stock Doctor Is Ordering A Gold Futures Close Above $2800 And A Significant Free Cash Flow Beat By Agnico Eagle In Their Quarterly Report
Agnico Eagle is trading like they will disappoint in a similar way as when Newmont reported their third quarter. Estimates for earnings are that they will come in less than in the second quarter. That doesn't add up because gold was significantly higher in the third quarter than in the second quarter which was a record quarter for the average price of gold over a quarter, ever.
Plus, they are an exceptionally good operator, much better than Newmont and Barrick, that does a fantastic job at keeping their costs under control. I'm expecting them to have a stronger quarter in the third quarter than the second quarter which was their best ever. They generated a half billion of free cash flow in the second quarter.
Even if costs are up slightly, due to the higher price of gold in the third quarter over the second quarter, they should see significant growth in free cash flow to be their fourth quarter of record free cash flow.
A close of gold above $2800 in the futures market, and a blowout quarter in record free cash flow is just what the gold stock doctor has ordered.
We will know after the close if this one-two punch combination happens.
All the best,
Allan Barry Laboucan
