Agnico Eagle Mines to Increase Stake in Foran Mining to 13.5%

Agnico Eagle Mines Limited AEM recently announced an agreement to subscribe for 30,000,000 voting common shares of Foran Mining Corporation through a non-brokered private placement at a price of C$3.00 per share, for a total investment of C$90 million. The transaction is planned to close in two separate tranches. 

Each tranche is subject to certain conditions, including approval from the Toronto Stock Exchange. Additionally, the second tranche requires approval from Foran’s shareholders. The first tranche is expected to close on or around May 28, 2025, while the second tranche is slated to close as soon as possible after shareholder approval is obtained.

Agnico Eagle currently holds 39,125,448 common shares of Foran Mining, representing about 9.9% of the total issued and outstanding shares on an undiluted basis. After the first tranche of the private placement, Agnico Eagle is expected to own 64,454,767 common shares, which would amount to approximately 13.1% of Foran’s issued and outstanding shares, assuming 73,173,590 common shares are issued by Foran as part of concurrent private placements. 

Following the second tranche closure, Agnico Eagle’s holdings are anticipated to increase to 69,125,448 common shares, representing roughly 13.5% of the issued and outstanding shares on an undiluted basis, assuming an additional 13,493,077 shares are issued by Foran in connection with that tranche.

Shares of Agnico Eagle have gained 52.2% in the past year compared with a 26.7% rise of the industry.

The company is on track to fulfill its 2025 targets, which include gold production of approximately 3.3 million to 3.5 million ounces, total cash expenses per ounce ranging from $915 to $965, and all-in sustaining costs (AISC) per ounce ranging from $1,250 to $1,300. Capital expenditures for 2025, excluding capitalized exploration, are estimated to be between $1.75 billion and $1.95 billion.

AEM’s Rank & Other Key Picks

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

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Idaho Strategic Resources, Inc. IDR and Hawkins, Inc. HWKN

Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 112% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Idaho Strategic Resources’ current-year earnings is pegged at 21 cents. IDR, carrying a Zacks Rank #2 (Buy), surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 21.7%. The company's shares have rallied 28% in the past year.

Hawkins, which currently carries a Zacks Rank #1, beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 6.1%, on average. The company's shares have rallied 57.3% in the past year.

 

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

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