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Agnico Eagle Mines Limited AEM and O3 Mining Inc. jointly announced that Agnico Eagle, through a fully-owned subsidiary, has begun its offer to acquire all of O3 Mining's issued and outstanding common shares that it does not already own, directly or indirectly, for $1.67 in cash per common share, under a friendly, board-supported offer by delivering the offer and take-over bid circular to O3 Mining shareholders. The directors' circular of O3 Mining is being distributed to O3 Mining shareholders concurrently with Agnico Eagle's takeover bid circular.
O3 Mining's principal asset is the 100%-owned Marban Alliance property. The Marban Alliance property includes the Marban deposit, which is an advanced exploration project with the potential to sustain an open pit mining operation akin to Agnico Eagle's Barnat open pit operations at the Canadian Malartic complex.
The board of O3 Mining unanimously recommends that its shareholders deposit their common shares in the offer. The company’s directors and officers, as well as Gold Fields Limited (via its fully-owned subsidiary), its largest shareholder, Extract Advisors LLC, and certain Franklin Templeton managed funds, representing roughly 39% of the issued and outstanding common shares, have entered into lock-up deals with AEM, under which they have agreed to, among other things, tender all of their common shares to the offer.
Shares of Agnico Eagle have gained 41.3% in the past year compared with the industry’s 10.6% growth.
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The company expects its 2024 gold production to be in the range of 3.35-3.55 million ounces and is on track to meet the mid-point of the range. AEM anticipates meeting its 2024 total cash costs per ounce guided range of $875-$925 and ASIC per ounce projection of $1,200-$1,250. Excluding capitalized exploration, it expects total capital expenditures for 2024 to be in the range of $1.6 -$1.7 million.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited price-consensus-chart | Agnico Eagle Mines Limited Quote
AEM’s Zacks Rank & Key Picks
AEM currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, New Gold Inc. NGD and CF Industries Inc. CF.
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 14.1%. The company's shares have soared 138.9% in the past year.
New Gold, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in three of the trailing four quarters, while missing once. In this time frame, it delivered an earnings surprise of roughly 37.5%, on average. NGD’s shares have gained 65.8% over the past year.
The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.35 per share. CF, which currently sports a Zacks Rank of 1, beat the consensus estimate in two of the last four quarters and missed twice, the average earnings surprise being 10.3%. CF has gained around 7.8% in the past year.