Agnico Eagle Mines Limited AEM has entered into an agreement to subscribe for 20,770,000 units of Cartier Resources Inc. in a non-brokered private placement at a price of C$0.13 per unit, totaling C$2,700,100. Each unit consists of one common share of Cartier and one common share purchase warrant, which gives the holder the right to acquire one common share at a price of C$0.18 for five years after the private placement closes, with the possibility of acceleration in certain cases. The closing of the transaction is anticipated to take place on or around April 10, 2025, subject to certain conditions.

Agnico Eagle currently owns, controls and directs a total of 97,022,944 common shares and 7,000,000 common share purchase warrants, which grant the right to acquire 7,000,000 common shares. This represents approximately 26.6% of the outstanding common shares on an undiluted basis and 28% on a partially-diluted basis. After the closing of the private placement, and assuming Cartier issues 39,432,000 common shares as part of its concurrent private placement offering, Agnico Eagle’s holdings will increase to 117,792,944 common shares, 20,770,000 offering warrants and 7,000,000 existing warrants. This would result in ownership of around 27.7% of the issued and outstanding common shares on an undiluted basis and roughly 32.2% of the common shares on a partially-diluted basis.

Agnico Eagle is acquiring the common shares and offering warrants for investment purposes. Based on market conditions and other factors, Agnico Eagle may, from time to time, purchase additional common shares, common share purchase warrants, or other securities of Cartier, or sell some or all of the common shares, offering warrants, existing warrants, or other securities of Cartier it currently holds.

Shares of Agnico Eagle have gained 86.3% in the past year compared with a 47.9% rise of the industry.

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For 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, CSW Industrials Inc. CSWI and Axalta Coating Systems Ltd. AXTA

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 169.6% 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 CSW Industrials’ current fiscal-year earnings is pegged at $8.50. CSWI, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 10.1%. The company's shares have rallied 28.4% 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 has delivered an earnings surprise of roughly 16.3%, on average. AXTA’s shares have gained 1.2% over the past year. 

 

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