Agnico Eagle Mines Limited
AEM
has agreed to subscribe for 13,333,333 units of Candelaria Mining Corp. in a non-brokered private placement at a price of 45 Canadian cents per unit for total consideration of roughly C$6 million.
Each unit consists of one common share of Candelaria and one-half of one common share purchase warrant of Candelaria. Each warrant entitles the holder to purchase one common stock at a price of 65 Canadian cents for a period of 36 months after the closing date of the private placement. The closing is projected to take place on Sep 30, 2021 and is subject to certain conditions. The company noted that it is acquiring the common shares and the warrants for investment purposes.
Agnico Eagle presently owns 10,120,000 common shares, reflecting roughly 7.8% of the issued and outstanding common shares on a non-diluted basis. After the completion of the private placement, Agnico Eagle will own 23,453,333 common shares and 6,666,667 warrants, reflecting roughly 15.94% of the issued and outstanding common shares on a non-diluted basis as well as 19.59% of the issued and outstanding common shares on a partly-diluted basis.
Agnico Eagle and Candelaria entered into an investor rights agreement on Jun 9, 2017, which was amended on Sep 1, 2021 related to the private placement. Per this deal, Agnico Eagle is entitled to certain rights if it maintains specific ownership thresholds in Candelaria, including the right to participate in equity financings in order to maintain its pro rata ownership in Candelaria at the time of such financing or acquire up to a 19.99% ownership interest in Candelaria. It also includes the right (which Agnico Eagle has no present plan of exercising) to nominate one person (and in the case of an increase in the size of the board of Candelaria to 10 or more directors, two persons) to the board of Candelaria.
Shares of Agnico Eagle have declined 28.9% in the past year compared with 26.4% fall of the
industry
.
Image Source: Zacks Investment Research
The company, in its last earnings call, stated that it expects gold production for 2021 to be 2,047,500 ounces. It also expects total cash costs per ounce of $700-$750 and all-in sustaining costs (AISC) of $950-$1,000 per ounce for 2021.
The quarterly production guidance for Hope Bay is 18,000-20,000 ounces of gold at total cash costs per ounce of $950-$975 and AISC per ounce of $1,525-$1,575.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited price-consensus-chart
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Agnico Eagle Mines Limited Quote
Zacks Rank & Key Picks
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Nucor Corporation
NUE
,
Dow Inc.
DOW
and
Cabot Corporation
CBT
.
Nucor has a projected earnings growth rate of around 494% for the current year. The company’s shares have soared 149.4% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 29.3% in the past year. It currently holds a Zacks Rank #2 (Buy).
Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 42% in the past year. It currently carries a Zacks Rank #2.
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