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Agnico Eagle Mines Announces Investment in Collective Mining

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Agnico Eagle Mines Limited (AEM - Free Report) recently announced that it has agreed to subscribe for 4,741,984 common shares of Collective Mining Ltd. in a non-brokered private placement at a price of C$11.00 per common share for a total of roughly C$52.16 million. Concurrent with the conclusion of the Private Placement, AEM will exercise all of Collective's current common share purchase warrants to acquire an additional 2,250,000 common shares at a price of C$5.01 per common share for a total value of around C$11.27 million. The closing of the Private Placement is slated to occur on or around March 20, 2025, subject to certain conditions.

Agnico Eagle remains focused on its portfolio of high-quality internal growth prospects while supplementing its project pipeline with a strategy of acquiring strategic toehold positions in projects with high geological potential. Agnico Eagle's investment in Collective provides exposure to an early-stage gold exploration property in Colombia, headed by an experienced team in a mining-rich region. With this investment, Agnico Eagle is evaluating the project's high geological potential and jurisdiction.

Agnico Eagle presently holds 5,726,235 common shares and 2,250,000 warrants. Following the closure of the Private Placement and the exercise of the Warrants held by Agnico Eagle, the company would control 12,718,219 common shares and zero Warrants, representing approximately 14.99% of the issued and outstanding Common Shares on a non-diluted basis.

Shares of Agnico Eagle have gained 90.3% in the past year compared with a 44.5% rise of the industry.

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In 2025, the company anticipates producing 3.3-3.5 million ounces of gold. AEM forecasts total cash costs per ounce to range from $915 to $965 and AISC per ounce to be between $1,250 and $1,300. Excluding capitalized exploration, the projected capital expenditures for 2025 are between $1.75 billion and $1.95 billion.

AEM’s Rank & Key Picks

AEM currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , ArcelorMittal (MT - Free Report) and Axalta Coating Systems Ltd. (AXTA - Free Report)

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 178.9% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for ArcelorMittal’s current-year earnings is pegged at $3.72 per share. MT, which carries a Zacks Rank #2, surpassed the Zacks Consensus Estimate in three of the trailing four quarters but missed it in one, with an average earnings surprise of 4.11%. The company's shares have rallied 21.8% in the past year.

Axalta Coating Systems, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 16.3%, on average. AXTA’s shares have gained 3.4% over the past year. 

 

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