UPDATE: Jefferies Raises its PT On Agnico-Eagle Mines; Reaffirms Buy

Jefferies believes macro, micro, and technical drivers will allow gold prices to achieve higher highs and greater lows. As investors continue to discount a higher gold price, Agnico-Eagle Mines AEM should better reflect pricing and growth. Agnico remains one of the highest growth vehicles in the global metals and mining universe. Agnico-Eagle Mines reported earnings of $0.53/share vs Jefferies estimates of $0.60 and consensus of $0.62. Trends appear favorable at most mines during 2011 as AEM counteracts industry cost pressures. the $90 PT reflects expected growth into 2012. Q4 gold production and costs missed our estimates due to slower than expected ramp-up at Meadowbank and a two-week maintenance shutdown at Kittila. 2010 gold production of around one million ounces was almost four times the gold production achieved in 2008. The key catalysts for Agnico will be progress on the LaRonde Extension, studies examining production increases at Kittila and Meadowbank, development of satellite deposits on the Pinos Altos property and drilling results at Meliadine. J.P Morgan has a Buy rating and raises its PT from $85 to $90 on AEM AEM is trading higher at $73.31