August 4th, 2026 | 07:15 CEST
Commodity Stocks with Potential: Endeavour Silver, Almonty Industries, and Agnico Eagle in the Spotlight
Interest rates, bond yields, and oil prices continue to shape market sentiment. Although the Federal Reserve left interest rates unchanged last week, market pressure remains high. The new trading week began with another rise in bond yields, further increasing the cost of refinancing US government debt, which has now surpassed USD 40 trillion. Against this backdrop, the US can ill afford a sustained period of higher interest rates. For commodity markets, however, the environment could prove supportive. Many mining and resource stocks have retreated significantly following the correction earlier this year, potentially creating attractive entry opportunities. We therefore take a closer look at Agnico Eagle, Almonty Industries, and Endeavour Silver and examine where investors may find value.
time to read: 5 minutes
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Author:
Tarik Dede
ISIN:
ALMONTY INDUSTRIES INC. | CA0203987072 | TSX: AII , NASDAQ: ALM , ASX: AII , AGNICO EAGLE MINES LTD. | CA0084741085 , ENDEAVOUR SILVER CORP. | CA29258Y1034
Table of contents:
Author
Tarik Dede
Even as a high school student in northern Germany, he developed a strong interest in the “Neuer Markt” and the dynamics of the equity markets. Small- and mid-cap companies were at the center of his focus from the very beginning. After completing his training as a certified bank clerk, he deepened his economic expertise through formal studies in economics as well as through various positions within Frankfurt’s financial sector. Today, he has been actively involved in the capital markets for more than 25 years, both professionally and as a private investor.
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Agnico Eagle: Strong Quarter and Plenty of Cash Flow
Agnico Eagle is considered the best-managed company in the gold industry. Nevertheless, its stock also took a significant hit in the wake of the correction in the gold price. From a high of nearly CAD 350, the stock fell in several stages to CAD 191. It is currently hovering above the CAD 200 mark, representing a loss of more than 40%. The second-quarter figures show that this decline is not justified. Despite lower gold selling prices, the company achieved earnings of USD 3.07 per share. This beat the analyst consensus by 16 cents. In total, the company produced 855,816 ounces of gold over the three-month period. With AISC costs of USD 1,459 per ounce, Agnico is in an excellent position and also below the industry average.
Free cash flow reached a new record high for a second quarter at USD 1.33 billion. A significant portion of this cash is being returned to shareholders. The Canadian company paid a dividend of USD 0.45 per share and repurchased 2.23 million shares. For the full year, management expects production of 3.3 million ounces of gold. This figure is at the lower end of the company's own guidance, due to the landslide at its flagship Canadian-Malartic mine.
From a technical analysis perspective, things do not look too bad for Agnico shares. The share price is currently trading just below the short- to medium-term moving averages of CAD 210 to 215. A sustained breakout above the CAD 215 mark would generate a Buy signal. After that, the next resistance level would not appear until CAD 250. On the downside, support must hold at around CAD 198. A drop below that level would trigger a clear Sell signal. Long-term investors can use such a correction as an entry point. However, the next support level is not until the 52-week low, around CAD 171 to 175.
Almonty Industries: Strong Q2 Results Ahead?
Tungsten has been one of the best-performing strategic metals in recent years. Since the beginning of the year alone, its price has climbed from below USD 1,000 to around USD 3,000 per metric ton unit (MTU, 10 kg) in Rotterdam. Few commodities command a price of roughly USD 300 per kilogram, and for good reason. Tungsten is virtually irreplaceable in applications ranging from defence systems to space rockets. With a melting point of 3,422 °C, it has the highest melting point of any metal. Its exceptional density makes it extremely hard and scratch-resistant, while remaining relatively brittle—properties that make tungsten highly valuable.
The metal's elevated price also reflects geopolitical realities. As with many critical minerals, China dominates the global tungsten market, accounting for around 80% of worldwide production. Beijing has sharply restricted exports to Western countries, with some market participants claiming that exports have effectively come to a standstill**.
Almonty Industries' stock is benefiting from the enormous price increases and dependence on imports from China. Since this spring, the company has been ramping up operations at the Sangdong mine in South Korea. It hosts one of the highest-grade tungsten deposits in the world and is considered the only major Western supplier. Due to the high grades, production costs are extremely low, according to the company. Almonty expects costs of USD 100 to USD 127 per MTU. This promises enormously high margins.
Second-quarter results are expected in the second week of August. If everything goes according to plan, investors should get a taste of the high profits the company can generate. Analysts at Bank of America are extremely optimistic. They expect revenue of CAD 670 million for this year. In the first quarter, revenue was just CAD 33 million. EBITDA is projected to rise to CAD 1.21 billion as early as next year. In addition, Almonty has acquired several historic mines in the US and plans to bring them into production quickly. This could cement the company's quasi-monopoly position in the Western world.
Almonty Industries has now completed its corporate relocation, discontinuing its previous primary listings as part of the move. After the headquarters was relocated to the United States, the New York Stock Exchange has become the primary trading venue. The shares are also actively traded in Frankfurt.
Since its April high, the stock has nearly halved in value on the Nasdaq. In our view, the second-quarter earnings report could mark the end of this downward trend. The market underestimates how important tungsten is to the military industry and what a strong position Almonty Industries holds.
Endeavour Silver: Costs Expected to Fall Again
The plunge in the silver price has also hit Endeavour Silver's stock hard. From its peak of USD 14 at the beginning of the year, the share price has nearly halved. The Canadian company, which operates two mines in Mexico (Guanaceví & Terronera) and one in Peru (Kolpa), has now released its second-quarter results. The company delivered a positive surprise in terms of earnings per share. At USD 0.15 per share, the figure is two cents above the analyst consensus. In total, Endeavour Silver produced 1.94 million ounces of silver and 10,474 ounces of gold between April and June. Combined, this amounts to 3.44 million ounces of silver equivalent, representing a 36% increase compared to the same quarter last year. With a cash cushion of USD 236.6 million, the company is in a strong financial position.
However, significantly higher costs have weighed on investor sentiment. All-in sustaining costs (AISC) rose to USD 36.89 per payable ounce, up from the prior-year period, primarily due to higher royalty payments and rising costs for purchased materials. There were also positive developments. Operations at Kolpa are ramping up, and throughput has increased compared to the first quarter. The operation primarily produces lead, zinc, and copper, supporting the company's broader production profile.
Endeavour Silver's stock has been fluctuating between USD 7 and USD 8 for several weeks. According to management, costs are expected to decline over the course of the year, which could support the stock. Should the silver price start to cooperate again, a breakout could occur from a technical analysis perspective. However, this is highly speculative at the moment.
The markets could now be heading into a phase of dollar weakness. Gold and silver should benefit from this. Agnico Eagle, as a top-quality company, and Endeavour Silver, which has high leverage to the silver price, would be two potential investments during such a phase. In the case of Almonty Industries, the market still underestimates the opportunities in tungsten and the West's dependence on Chinese supplies. The stock could break out following the release of its quarterly results.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
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