The head of one of the world’s most valuable gold miners believes there’s only one reason to buy a gold mining stock — and too few companies in the industry are offering it to investors.
“The only reason you want to buy an equity is if it gives you a better return than just buying gold,” Agnico Eagle Mines Ltd. chief executive officer Ammar Al-Joundi said in an interview with Bloomberg.
Toronto-based Agnico Eagle is one of the few large-cap gold mining stocks to outperform bullion in the last year, rising 84% while gold has added 44%. Agnico has also more than doubled the performance of rivals Barrick Mining Corp. and Newmont Corp. – surpassing both on a market capitalization and a price-to-earnings basis in the process.
Meanwhile, a quarter of the stocks in the 56-member VanEck Gold Miners ETF have underperformed the commodity…
