Agnico Eagle Mines Ltd (AEM)

[Sam Dan]

I usually worry when socalled "experts" make calls on stocks I own but hope they are right -for a change
"
Gold miners count oil among their key input costs, so the slide in crude has offered some relief at a time when the price of the shiny metal has hovered below $1,200 (U.S.) per ounce.

But while Barrick Gold Corp. has hedged roughly half of its exposure to oil for 2015 at a price 30 per cent above current levels, other firms are poised to reap considerably larger rewards.

Agnico Eagle is Credit Suisse’s top pick in the space, as it stands to benefit more than its competitors from the decline in the price of crude oil as well as the depreciation of the loonie and the euro relative to the greenback.

“We estimate that 10 per cent of AEM’s operating expenses are oil related,” said Credit Suisse analyst Anita Soni, referring to Agnico’s ticker symbol. “We do not see these relative benefits being factored in as AEM has underperformed peers by 5 per cent since the beginning of September.”