Is AEM's Investment in Fuerte Metals a Bet on the Next Big Find?

Agnico Eagle Mines Limited AEM recently acquired 5 million subscription receipts issued by a fully-owned subsidiary of Fuerte Metals Corporation, through a brokered private placement, for a total consideration of C$8.25 million. The move is in sync with Agnico Eagle's long-standing practice of strategic equity investments in projects with high geological potential. 

Following the private placement and completion of certain conditions, AEM is expected to own 10,171,310 common shares and 5,000,000 warrants, representing roughly 8.12% of the issued and outstanding common shares on a non-diluted basis and around 11.65% of the common shares on a partially-diluted basis. Before the private placement, AEM owned 5,171,310 common shares, representing 8.43% of Fuerte Metals shares on a non-diluted basis.

While Agnico Eagle remains focused on executing its portfolio of high-quality internal growth projects, it is pursuing a strategy of acquiring strategic positions in prospective opportunities with high geological potential. It is advancing its key value drivers and pipeline projects, including the Odyssey project in the Canadian Malartic Complex, Detour Lake, Hope Bay, Upper Beaver and San Nicolas.  

Last month, Fuerte Metals agreed to buy the Coffee Gold Project in Yukon, Canada, from Newmont Corporation NEM for a total consideration of up to $150 million. The project, hosting 3 million ounces of open-pit heap-leach measured and indicated resource and an inferred resource of 0.8 million ounces, is expected to be significantly transformational for Fuerte Metals. Fuerte is targeting to complete a preliminary economic assessment in the first half of 2026 and a feasibility study in second-half 2026. 

Among AEM’s peers, Barrick Mining Corporation B remains on track with its slate of high-return growth projects. Barrick’s major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are being executed. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production for Barrick. 

Kinross Gold Corporation KGC also has a strong production profile and boasts a promising pipeline of exploration and development projects. Kinross’ key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. The successful execution of these projects will position Kinross for a new wave of low-cost, long-life production.  

The Zacks Rundown for AEM

Agnico Eagle’s shares have rallied 118.9% year to date against the Zacks Mining – Gold industry’s rise of 124.7%, driven by the record-setting upside in gold prices.

From a valuation standpoint, AEM is currently trading at a forward 12-month earnings multiple of 23.12, a roughly 39.6% premium to the industry average of 16.56X. It carries a Value Score of C.

The Zacks Consensus Estimate for AEM’s 2025 and 2026 earnings implies a year-over-year rise of 69.3% and 6.4%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

AEM stock currently carries a Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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