Agnico Eagle (AEM) Inks Financing Agreement With Firefox Gold
Agnico Eagle Mines Limited AEM announced the acquisition of 19,010,000 units of FireFox Gold Corp. in a non-brokered private placement for a total consideration of approximately $1,425,750.
Each unit contained one FireFox common share and one FireFox common share purchase warrant. Each warrant authorizes the bearer to purchase one common share for $0.10 at any time before Dec 20, 2028, subject to the expiration date being accelerated if certain events occur.
Agnico Eagle had no common shares prior to the private placement. It now owns 19,010,000 common shares and 19,010,000 warrants, representing approximately 10.9% of the issued and outstanding common shares on a non-diluted basis and 19.6% on a partially-diluted basis.
Agnico Eagle and FireFox entered into an investor rights agreement in connection with the private placement, under which Agnico Eagle was granted certain rights in exchange for maintaining certain ownership thresholds in FireFox, including the right to participate in equity financings and top-up its holdings in relation to dilutive issuances and the right to nominate one person.
Agnico Eagle may occasionally buy more common shares, common share purchase warrants, or other securities of FireFox, or it may sell some or all of the common shares, common share purchase warrants, or other securities of FireFox that it currently owns, contingent on market conditions and other factors.
Shares of Agnico Eagle have gained 3.2% over the past year compared with 6.5% rise of its industry.
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The company expects its 2023 gold production to be above the midpoint of its guidance of 3.24-3.44 million ounces. Additionally, AEM estimates it is on pace to meet its 2023 projection of between $840 and $890 for total cash costs per ounce and between $1,140 and $1,190 for AISC per ounce. With capitalized exploration excluded, the total anticipated capital expenditures for 2023 are still projected at $1.42 billion.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited price-consensus-chart | Agnico Eagle Mines Limited Quote
Zacks Rank & Key Picks
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently sports a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock has gained 49.2% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently sports a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock has gained 33% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares have gained 81.9% in a year.
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