Agnico Eagle Mines (TSX:AEM) might have reported a fourth quarter loss, but shares rose larger this week as the corporate expanded its gold reserves. The mining firm now appears to be like primed to see a rise in share worth, with shares rising 3% after the earnings report. So is AEM inventory a purchase? Or ought to traders wait within the wings? Let’s drill into earnings.

What occurred

AEM inventory reported a lack of US$381 million within the fourth quarter, down from a revenue reported the identical time the yr earlier than. This amounted to a lack of US$0.77 per share, but earnings, adjusted for non-recurring prices, got here to $0.57 per share.

Even so, the outcomes had been higher than analysts on Wall Avenue anticipated, believing the corporate would hit US$0.48 per share through the quarter. Moreover, AEM inventory reported US$1.8 billion in income, and US$1.9 billion in revenue for the yr at US$3.95 per share. Income, in the meantime, hit US$6.6 billion for the yr.

The corporate noticed its share worth fall because the starting of 2024, with AEM inventory down 11% yr to this point. Nevertheless, even that is an enchancment, with the inventory falling by 15% earlier than earnings hit the headlines. However it appears to be like like there’s much more coming for shareholders in 2024.

Main enhance in reserves

AEM inventory secured its future in gold as the corporate introduced a ten.5% enhance in its confirmed and possible gold reserves. It now has a whopping 53.8 million ounces of gold available. The leap got here from the invention of a brand new mineral reserve, which held 5.2 million ounces of gold.

Moreover, AEM inventory managed to additionally make strategic acquisitions through the yr. This included the remaining 50% curiosity in its Canadian Malartic complicated. This alone helped add 1.5 million ounces to reserves as effectively.

Discoveries of much more minerals helped AEM inventory increase even additional, and this could possibly be fairly thrilling for traders within the coming yr. In any case, the discoveries had been solely made in 2023. Due to this fact, there could possibly be much more to find within the subsequent yr.

Be aggressive

The aggressive angle in direction of exploration is more likely to proceed into 2024. So don’t be shocked for those who hear about much more new areas developing within the yr to come back. The truth is, the corporate introduced exploration continues to be a big a part of its funds for 2024.

And it couldn’t come at a greater time. Economists nonetheless consider that rates of interest will likely be lower throughout the subsequent yr. As soon as that occurs, there will likely be a number of advantages for AEM inventory. First off, decrease rates of interest imply taking up more money at decrease charges to additional increase the corporate. Second, decrease inflation charges would additionally imply extra spending on gold and different minerals. Due to this fact, AEM inventory will doubtless begin consuming away at these reserves very quickly.

So with shares nonetheless down 11% yr to this point as of writing, a stable future wanting forward, and buying and selling at 9.2 instances earnings as of writing, AEM inventory appears to be like like a powerful possibility. Add within the dividend yield at 3.42%, and also you’ve acquired your self a deal.