Agnico Eagle Divests Stake in Royal Road Minerals for C$5.51M

Agnico Eagle Mines Limited AEM recently announced the sale of its stake in Royal Road Minerals Limited through 47,944,981 ordinary shares. The transaction took place through the Toronto Stock Exchange at a price of C$0.115 per share, generating total proceeds of approximately C$5.51 million. Prior to the transaction, Agnico Eagle held around 18% of Royal Road’s outstanding shares on a non-diluted basis, which it fully divested.

Agnico Eagle’s decision is aligned with its focus on high-quality internal growth projects, while maintaining financial strength to acquire strategic positions in prospective opportunities with high geological potential. The company periodically evaluates its portfolio to ensure alignment with strategic priorities. Therefore, it might result in divestiture of certain holdings from time to time.

Agnico Eagle emphasized that the sale of its Royal Road stake was undertaken to monetize investment and streamline portfolio. The company has no current plans to acquire shares or other securities of Royal Road Minerals. Agnico Eagle’s disciplined approach to managing its portfolio and focus on core mining operations is underlined by this move.

AEM’s shares have gained 121.2% over the past year compared with the industry’s 96.5% rise.

AEM’s Zacks Rank & Other Key Picks

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

Other top-ranked stocks in the Basic Materials space are Contango Ore, Inc. CTGO, Methanex Corporation MEOH and The Mosaic Company MOS. CTGO sports a Zacks Rank #1, while MEOH and MOS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CTGO’s current-year earnings is pegged at 67 cents per share, indicating a rise of 119.20%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3409.95%. CTGO’s shares have gone up 35.3% in the past year.

The Zacks Consensus Estimate for MEOH’s current fiscal-year earnings is pegged at $3.7 per share.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.

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. MOS’ shares have gained 41.1% in the past year.

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

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