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 Buy Common Shares of GoldQuest
Read MoreHide Full Article
Agnico Eagle (AEM - Free Report) has agreed to buy 38.1 million common shares of GoldQuest Mining Corp. through a non-brokered private placement at a price of 60 Canadian cents per share for total consideration of roughly C$22.9 million.
The completion of the transaction, which is subject to specific conditions, is expected on or about Mar 8, 2017. On transaction closure, Agnico Eagle will own around 15% of the issued and outstanding common shares of GoldQuest on a non-diluted basis.
The companies will also enter into an investor rights agreement in connection with the completion of the transaction. Pursuant to this deal, Agnico Eagle (provided it owns at least a 10% stake in GoldQuest) will have the right to participate in equity financings by GoldQuest to maintain its pro rata ownership in GoldQuest at the time of any such financing or buy up to a 15% ownership stake in GoldQuest after giving effect to any such financing.
The agreement also provides Agnico Eagle with the rights to nominate one person (two persons in the case of an increase in the size of the board of directors of GoldQuest to 10 or more) to the board of GoldQuest.
Agnico Eagle said that the investment in GoldQuest is in sync with its strategy to position itself in early-staged opportunities in districts with long term geological potential. The company will look forward to work with GoldQuest as the latter advances the Romero Project and tests key regional exploration targets along the Tireo property.
Agnico Eagle has underperformed the Mining-Gold industry in the past three months, partly attributable to its lower-than-expected fourth-quarter 2016 results. The company's shares have declined 0.8% over this period compared with the industry's gain of 6.1%.
Agnico Eagle’s adjusted earnings and sales for the fourth quarter of 2016 missed the respective Zacks Consensus Estimate. The company witnessed a modest increase in gold production and slightly higher cash costs in the quarter.
Agnico Eagle expects its gold production for 2017 to be around 1.55 million ounces. The projected figure reflects a decline from around 1.66 million ounces the company recorded in 2016. The company sees all-in sustaining costs (AISC) to be between $850 and $900 per ounce in 2017. The guidance reflects an increase from an AISC of $824 per ounce in 2016.
Agnico Eagle currently carries a Zacks Rank #5 (Strong Sell).
BHP Billiton has an expected long-term growth of 5.6%.
Rio Tinto has an expected earnings growth of 75.4% for the current year.
Ternium has an expected long-term growth of 18.4%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Agnico Eagle (AEM) to Buy Common Shares of GoldQuest
Agnico Eagle (AEM - Free Report) has agreed to buy 38.1 million common shares of GoldQuest Mining Corp. through a non-brokered private placement at a price of 60 Canadian cents per share for total consideration of roughly C$22.9 million.
The completion of the transaction, which is subject to specific conditions, is expected on or about Mar 8, 2017. On transaction closure, Agnico Eagle will own around 15% of the issued and outstanding common shares of GoldQuest on a non-diluted basis.
The companies will also enter into an investor rights agreement in connection with the completion of the transaction. Pursuant to this deal, Agnico Eagle (provided it owns at least a 10% stake in GoldQuest) will have the right to participate in equity financings by GoldQuest to maintain its pro rata ownership in GoldQuest at the time of any such financing or buy up to a 15% ownership stake in GoldQuest after giving effect to any such financing.
The agreement also provides Agnico Eagle with the rights to nominate one person (two persons in the case of an increase in the size of the board of directors of GoldQuest to 10 or more) to the board of GoldQuest.
Agnico Eagle said that the investment in GoldQuest is in sync with its strategy to position itself in early-staged opportunities in districts with long term geological potential. The company will look forward to work with GoldQuest as the latter advances the Romero Project and tests key regional exploration targets along the Tireo property.
Agnico Eagle has underperformed the Mining-Gold industry in the past three months, partly attributable to its lower-than-expected fourth-quarter 2016 results. The company's shares have declined 0.8% over this period compared with the industry's gain of 6.1%.
Agnico Eagle’s adjusted earnings and sales for the fourth quarter of 2016 missed the respective Zacks Consensus Estimate. The company witnessed a modest increase in gold production and slightly higher cash costs in the quarter.
Agnico Eagle expects its gold production for 2017 to be around 1.55 million ounces. The projected figure reflects a decline from around 1.66 million ounces the company recorded in 2016. The company sees all-in sustaining costs (AISC) to be between $850 and $900 per ounce in 2017. The guidance reflects an increase from an AISC of $824 per ounce in 2016.
Agnico Eagle currently carries a Zacks Rank #5 (Strong Sell).
Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited Price and EPS Surprise | Agnico Eagle Mines Limited Quote
Stocks to Consider
Better-placed companies in the basic materials space include BHP Billiton Limited (BHP - Free Report) , Rio Tinto plc (RIO - Free Report) and Ternium S.A. (TX - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP Billiton has an expected long-term growth of 5.6%.
Rio Tinto has an expected earnings growth of 75.4% for the current year.
Ternium has an expected long-term growth of 18.4%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>