Jim Cramer Returns to His Favorite Gold Miner as the Outlook Shifts Syeda Seirut Javed Sun, October 11, 2026 at 4:01 PM EDT 4 min read GC=F AEM Trade AEM on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
During the October 8 episode of Mad Money, Jim Cramer talked about Agnico Eagle Mines Limited (NYSE:AEM) after discussing a more bullish technical outlook for gold earlier in the week. He said:
On Monday, we ran off the charts segment featuring work from Carley Garner, who, for the first time in a long time, had turned bullish on gold, very bullish. So tonight, I want to dig deep with my favorite gold miner. That's Agnico Eagle Mines. For most of the past few years, gold prices have levitated some of the worst inflation in decades. Precious metal's been pulling back recently. Agnico Eagle remains one of the lowest-cost producers, meaning if we had a rebound in the precious metal, this one's going to roar.
Cramer's admiration for Agnico Eagle has not always translated into a recommendation. During his discussion of the summer market rotation, he drew a distinction between liking the miner and buying its shares.
Agnico Eagle Mines Limited (NYSE:AEM) produced 855,816 ounces of gold in the second quarter, with all-in sustaining costs of $1,459 per ounce. The company generated approximately $1.335 billion in free cash flow and finished June with a $3.27 billion net cash position. It also returned $625 million to shareholders through dividends and share repurchases during the quarter.
Those figures show why the investment case extends beyond anticipating the next move in gold. The company has money available for development spending and shareholder returns, giving it financial flexibility if bullion prices become less favorable. Its longer-term plans also include the Rupert Resources acquisition, featured in a list of analysts' promising long-term stocks. The deal includes an unusual payment structure tied to what happens over the next decade.
Operating risks remain. Agnico Eagle expects 2026 production near the lower end of its 3.3 million - 3.5 million-ounce guidance range following a rock-mass movement at the Barnat open pit. It also raised its capital-expenditure forecast, excluding capitalized exploration, to $2.6 billion - $2.8 billion from $2.2 billion - $2.4 billion following approval of construction activities at Hope Bay. The Barnat disruption also featured in July's analyst-backed large-cap stock list. That coverage examined how the production impact could extend beyond this year—and which longer-term plans remained intact.
Second-quarter all-in sustaining costs increased from $1,281 per ounce a year earlier. A favorable gold price can absorb higher costs, but a reversal would make cost control and production reliability more consequential for earnings.
Agnico Eagle Mines Limited (NYSE:AEM) also trades above several major gold-producing peers. At the time of writing, the company trades at a forward P/E of approximately 14.8x, compared with 13x for Newmont and 8.6x for Kinross Gold. Differences in mines, geography and growth prospects complicate the comparison, but Agnico Eagle is clearly not the cheapest way to gain exposure to gold on this measure. That premium makes execution important. Investors buying on the expectation of a gold rebound also need the company to deliver enough production and cash flow to justify paying more than they would for other miners.
Insider Monkey database tracking over 1000 hedge funds recorded 53 hedge fund holders of Agnico Eagle in the second quarter, up from 46 in the first. First Eagle Investment Management was the most prominent hedge fund holder of the stock in Q2 with nearly 5.2 million shares. Short interest was 1.36% of the public float. The increase shows broader participation among the funds tracked, while the low short percentage points to relatively limited bearish positioning.
Agnico Eagle Mines Limited (NYSE:AEM) offers Cramer the gold exposure he wants along with substantial cash generation. The catch is that investors already assign the company a higher earnings multiple than several peers. A stronger gold price would help, but keeping development spending productive and avoiding further production setbacks will matter just as much to the longer-term return.
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