2019.09.13 – AEM Long-Term Models Updated For Gold Prices Or Output Changes

$ 499 + HST

EXECUTIVE SUMMARY

  • We raised our price target to $57 up from $52/oz due to higher gold prices, higher estimated Malartic u/g and Santa Gertrudis outputs and partly offset by six year shorter estimated Malartic open pit and one-third lower Amarug u/g outputs.
  • We raised our earnings estimates for 2019 to $1.06 and 2020 to $1.26 per share due to higher gold prices and for 2022 to $2.03 and 2023 to $2.43 per share due to higher estimated outputs.
  • Several important economic variables “break right” to form a “virtuous economic outlook” especially for the Meliadine gold mine whose early economic studies were marginal. These include (1) May14th commerciality completed $70 mm under the $900 mm budget, (2) the C$ at $0.752, (3) moderate energy prices with crude near US $57/bbl as Nunavut has high transport costs and (4) gold near $1,500 today. The new mines now offer excellent returns.