While generating a record quarterly income of $121.5 million in their last quarter, there are some concerns over operating issues by Barclays (NYSE:BCS) for Agnico-Eagle Mines (NYSE:AEM). Once these issues are resolved, Barclays sees the overall growing pains of the company being largely over.
Barclays said, "Overall, though Agnico-Eagle's production growth does indicate improvement, operating issues at Pinos Altos and Meadowbank still remain. Looking ahead, a clean operating quarter for Pinos Altos and the successful installation of Meadowbank's second primary crusher (expected mid-2011) will be important indications that these assets' major growing pains are finally behind them."
Earnings per share estimate was raised from $1.50 to $1.55 for 2010 and for the full year 2011 from $1.90 to $1.85.
Agnico closed Monday at $77.18, dropping $0.41, or 0.53 percent. Barclays raised their price target from $40 to $45 on the gold miner. They maintain an underweight on the stock.
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