Agnico Eagle Sells 11.3% Orla Mining Stake, Plans to Redeploy Capital

Agnico Eagle Mines Limited AEM has announced the sale of 38,002,589 common shares of Orla Mining Ltd. to buyers in Canada, the United States and elsewhere. The sale was carried out through the facilities of the Toronto Stock Exchange at a price of C$14.75.

Agnico Eagle had beneficial ownership of, or control or direction over, 38,002,589 common shares, representing roughly 11.3% of the issued and outstanding common shares on a non-diluted basis. The sale of ownership generated proceeds of C$560,538,188, after which the company no longer has beneficial ownership of, or control or direction over, any common shares.

Orla Mining began as a junior exploration company in 2017. Agnico Eagle provided its technical expertise and financial support to help it grow into a mid-tier gold producer. The mutually beneficial relation between the companies came to an end as Orla’s established position makes it the right time for Agnico Eagle to monetize its investment.

Agnico Eagle is poised to focus more on its high-quality internal growth projects and redeploy its capital in prospective strategic toehold positions with high geological potential. The company will periodically review its toehold investments and may choose to divest certain holdings from time to time.

AEM stock has surged 96% over the past year compared with the industry’s 74.5% rise.

AEM’s Zacks Rank & Other Key Picks

AEM currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are The Mosaic Company MOS, Carpenter Technology Corporation CRS and Avino Silver & Gold Mines Ltd. ASM. While MOS and CRS sport a Zacks Rank #1 each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 33.1% in the past year.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 82% in the past year.

The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM shares have jumped 316.8% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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