We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Agnico Eagle (AEM) to Acquire the Exploration Assets of CMC
Read MoreHide Full Article
Agnico Eagle Mines Limited (AEM - Free Report) has agreed to acquire all of the Canadian exploration assets of Canadian Malartic Corp. (“CMC”), including the Hammond Reef Gold and Kirkland Lake projects.
CMC is 50-50 owned and operated by Yamana Gold Inc. and Agnico Eagle. According to Agnico Eagle, the transaction is being structured as an asset deal under which all of Yamana's indirect 50% interest in the Canadian exploration assets of CMC will be acquired by Agnico Eagle. This will enable Agnico Eagle to acquire full ownership of CMC’s interest in the assets.
The effective purchase price post the distribution of the sale proceeds by CMC to its shareholders will be $162.5 million in cash. Notably, the deal will not impact the Canadian Malartic mine and related assets such as East Malartic, Odyssey, East Amphi and Midway, which will continue to be jointly owned and operated Yamana Gold and Agnico Eagle through the Canadian Malartic General Partnership and CMC.
The buyout of CMC asset portfolio enhances Agnico Eagle's long-term development pipeline and provides it with potential production growth post buildout of current mine in Nunavut. The Hammond Reef project provides the company a good option to a potential rise in the gold price while the Kirkland Lake property package enhances its current mineral reserves and offers near-term exploration upside.
Additionally, Agnico Eagle, Yamana Gold and CMC have inked an asset purchase agreement under which the parties have agreed to work expeditiously towards closing the deal, which is expected to occur by Mar 31, 2018, subject to notification under the Competition Act and the receipt of government, First Nations and other third party consents.
Per the deal, if Agnico Eagle sells any of the Hammond Reef and Kirkland Lake properties during the two-year period from the date of the agreement, Yamana will participate in any increase in net proceeds received by Agnico Eagle in the sale.
Shares of Agnico Eagle have declined 1.4% in the last three months, outperforming the industry’s 3.2% dip.
Agnico Eagle, during third-quarter earnings call, revised its total cash costs expectations for the full year to $570-$600, down from the previous guidance of $580-$610 per ounce. The company now expects all-in sustaining cost (AISC) in the range of $820-$870 in 2017, narrower than previous guidance of $830-$880 per ounce.
Given the robust operational performance during the first nine months, the company increased production guidance and it now anticipates production to exceed 1.68 million ounces of gold in 2017, compared with the previous guidance of 1.62 million ounces.
Westlake Chemical has an expected long-term earnings growth rate of 10.6%. Its shares have soared 86.9% year to date.
Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied a whopping 179.8% year to date.
Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged 117.7% year to date.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Image: Bigstock
Agnico Eagle (AEM) to Acquire the Exploration Assets of CMC
Agnico Eagle Mines Limited (AEM - Free Report) has agreed to acquire all of the Canadian exploration assets of Canadian Malartic Corp. (“CMC”), including the Hammond Reef Gold and Kirkland Lake projects.
CMC is 50-50 owned and operated by Yamana Gold Inc. and Agnico Eagle. According to Agnico Eagle, the transaction is being structured as an asset deal under which all of Yamana's indirect 50% interest in the Canadian exploration assets of CMC will be acquired by Agnico Eagle. This will enable Agnico Eagle to acquire full ownership of CMC’s interest in the assets.
The effective purchase price post the distribution of the sale proceeds by CMC to its shareholders will be $162.5 million in cash. Notably, the deal will not impact the Canadian Malartic mine and related assets such as East Malartic, Odyssey, East Amphi and Midway, which will continue to be jointly owned and operated Yamana Gold and Agnico Eagle through the Canadian Malartic General Partnership and CMC.
The buyout of CMC asset portfolio enhances Agnico Eagle's long-term development pipeline and provides it with potential production growth post buildout of current mine in Nunavut. The Hammond Reef project provides the company a good option to a potential rise in the gold price while the Kirkland Lake property package enhances its current mineral reserves and offers near-term exploration upside.
Additionally, Agnico Eagle, Yamana Gold and CMC have inked an asset purchase agreement under which the parties have agreed to work expeditiously towards closing the deal, which is expected to occur by Mar 31, 2018, subject to notification under the Competition Act and the receipt of government, First Nations and other third party consents.
Per the deal, if Agnico Eagle sells any of the Hammond Reef and Kirkland Lake properties during the two-year period from the date of the agreement, Yamana will participate in any increase in net proceeds received by Agnico Eagle in the sale.
Shares of Agnico Eagle have declined 1.4% in the last three months, outperforming the industry’s 3.2% dip.
Agnico Eagle, during third-quarter earnings call, revised its total cash costs expectations for the full year to $570-$600, down from the previous guidance of $580-$610 per ounce. The company now expects all-in sustaining cost (AISC) in the range of $820-$870 in 2017, narrower than previous guidance of $830-$880 per ounce.
Given the robust operational performance during the first nine months, the company increased production guidance and it now anticipates production to exceed 1.68 million ounces of gold in 2017, compared with the previous guidance of 1.62 million ounces.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited Price and Consensus | 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 Westlake Chemical Corporation (WLK - Free Report) , Daqo New Energy Corp. (DQ - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical has an expected long-term earnings growth rate of 10.6%. Its shares have soared 86.9% year to date.
Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied a whopping 179.8% year to date.
Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged 117.7% year to date.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>