Cramer Says Agnico-Eagle Mines (AEM) Could Shine Like Gold for Investors (EGO)

Shares of Agnico-Eagle Mines (NYSE: AEM) are trading higher today as Jim Cramer spoke with CEO and vice-chair Sean Boyd recently. Shares of the gold miner are up 1.83% to $64.91.

Though the stock has been rather tepid lately, they noted that they have opened up five new mines in order to grow their position. Boyd commented that they are in a 'ramp-up' period, leading the company to report earnings that are only even with Street estimates.

Boyd continued that they are in-line to produce about 1 million ounces of gold for FY10, about double that produced in FY09. Combined with their initiatives to cut costs, the production will provide a benefit to shareholders.

One of Cramer's concerns with Angico is that the company may be growing too fast. In response, Boyd noted that with the five new mines online, costs to expand will drop, risk will be lowered, and rates of return will be higher.

Boyd notes that the ultimate goal is to fund growth primarily from operational cash.

Along with El Dorado Gold (NYSE: EGO), Agnico-Eagle continues to be one of Cramer's two top gold stock picks.

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