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Agnico Eagle Mines Announces Investment in Collective Mining
AEMAgnico Eagle(AEM) ZACKS·2025-03-18 12:40

Core Viewpoint - Agnico Eagle Mines Limited (AEM) has agreed to invest approximately C52.16millioninCollectiveMiningLtd.throughaprivateplacement,acquiring4,741,984commonsharesatC52.16 million in Collective Mining Ltd. through a private placement, acquiring 4,741,984 common shares at C11.00 each, and will also exercise warrants to acquire an additional 2,250,000 shares at C5.01each,increasingitsstakeinthecompanysignificantly[1][2][3].Group1:InvestmentDetails−TheprivateplacementwillclosearoundMarch20,2025,subjecttocertainconditions[1].−AEMwillcontrolatotalof12,718,219commonsharespost−transaction,representingapproximately14.995.01 each, increasing its stake in the company significantly [1][2][3]. Group 1: Investment Details - The private placement will close around March 20, 2025, subject to certain conditions [1]. - AEM will control a total of 12,718,219 common shares post-transaction, representing approximately 14.99% of the issued and outstanding shares on a non-diluted basis [3]. Group 2: Strategic Focus - AEM is focused on high-quality internal growth prospects while also acquiring strategic positions in projects with high geological potential [2]. - The investment in Collective Mining provides exposure to an early-stage gold exploration property in Colombia, which is led by an experienced team in a mining-rich region [2]. Group 3: Production and Financial Forecast - AEM anticipates producing between 3.3 to 3.5 million ounces of gold in 2025 [4]. - The company forecasts total cash costs per ounce to be between 915 and 965,withall−insustainingcosts(AISC)projectedbetween965, with all-in sustaining costs (AISC) projected between 1,250 and 1,300[4].−Projectedcapitalexpendituresfor2025,excludingcapitalizedexploration,areestimatedtobebetween1,300 [4]. - Projected capital expenditures for 2025, excluding capitalized exploration, are estimated to be between 1.75 billion and $1.95 billion [4]. Group 4: Stock Performance - AEM's shares have increased by 90.3% over the past year, outperforming the industry average rise of 44.5% [3].