Agnico Eagle Mines Limited (AEM Quick QuoteAEM - Free Report) recently stated that it has entered into a deal with First Nordic Metals Corp. (“FNM”), under which AEM would acquire 27,954,872 common shares of FNM.

Agnico Eagle has agreed to swap the remaining amounts under the asset acquisition agreement dated Mar 19, 2021, as modified on May 1, 2023, between certain Agnico Eagle subsidiaries, certain FNM subsidiaries and EMX Royalty Corporation for 27,954,872 common shares. The transaction is effected by a subscription agreement between FNM and Agnico Eagle, whereby Agnico Eagle has agreed to subscribe for 27,954,872 common shares at $0.2925 per common share for a total consideration of approximately $8,176,800 in a non-brokered-private placement, which is expected to close on or about Jul 22, 2024.

Following the completion of the transaction, FNM will immediately direct the consideration to its wholly-owned subsidiary Gold Line Resources Ltd. Gold Line will also direct the consideration to Agnico Eagle Finland Oy and Agnico Eagle Sweden AB, both wholly-owned subsidiaries of Agnico Eagle, in satisfaction of payments owed by Gold Line under the Purchase Agreement.

Agnico Eagle presently owns 1,458,294 common shares, around 0.75% of all issued and outstanding common shares on a non-diluted basis. The company will own 29,413,166 common shares when the transaction closes, representing approximately 13.25% of the issued and outstanding common shares on a non-diluted basis.

Agnico Eagle is purchasing the common shares to settle the remaining amounts under the Purchase Agreement. Depending on market conditions and other considerations, the company may, from time to time, purchase additional common shares or other FNM securities or sell some or all of the common shares or other FNM securities that it possesses.

Shares of AEM have gained 42.1% over the past year compared with the industry’s 18.9% growth.

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In 2024, the company anticipates producing 3.35-3.55 million ounces of gold. AEM forecasts total cash costs per ounce to range from $875 to $925 and AISC per ounce to be between $1,200 and $1,250. Excluding capitalized exploration, capital expenditures for 2024 are projected to be between $1.6 billion and $1.7 billion.

Zacks Rank & Other Key Picks

AEM currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS Quick QuoteCRS - Free Report) , Eldorado Gold Corporation (EGO Quick QuoteEGO - Free Report) and Kronos Worldwide, Inc. (KRO Quick QuoteKRO - Free Report) . 

Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 118.6% in the past year. 

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.09 per share, indicating a year-over-year rise of 91.2%. The Zacks Consensus Estimate for EGO's current-year earnings has gone up in the past 30 days. EGO, which currently sports a Zacks Rank of 1, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.7%. The company's shares have gained roughly 53.1% in the past year.

Kronos Worldwide currently sports a Zacks Rank of 1. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have gained around 44.1% in the past year.