UPDATE – Rockcliffe Capital Initiates Coverage on Agnico Eagle Mines Ltd. (TSX/NYSE: AEM) with a "Strong Buy" Rating and US$155 Price Target

Core Viewpoint - Rockcliffe Capital initiates equity research coverage on Agnico Eagle Mines Ltd., assigning a "Strong Buy" rating with a 12-month price target of US$155, indicating a potential upside of approximately 25% from current market levels [2][3]. Financial Performance - Agnico Eagle reported Q1 2025 net income of US$815 million, a 134% year-over-year increase, with free cash flow reaching US$594 million and near-zero debt [3][7]. - Q1 revenue increased by 34.9% year-over-year to US$2.468 billion, while all-in sustaining costs (AISC) decreased by approximately 10% to US$1,183 per ounce, resulting in a margin of about 59% [7]. Valuation and Target - The valuation framework projects a 2026 EV/EBITDA multiple of approximately 8× and a P/E multiple of around 18×, leading to a 12-month price target of US$155, equivalent to about US$115 per share [4]. Balance Sheet Strength - Operating cash flow reached US$1.044 billion, with free cash flow of US$594 million, allowing net debt to fall to just US$5 million and cash reserves to total US$1.138 billion [7]. Strategic Initiatives - The company is investing in high-quality projects such as Detour Lake, Upper Beaver, and the O3 Mining acquisition to enhance its reserve base and future production visibility [7]. Shareholder Returns - Agnico Eagle maintains a quarterly dividend of US$0.40 per share and executed NCIB buybacks of US$50 million in the quarter, with plans for an expanded NCIB of up to US$1 billion [7]. ESG Leadership - The company released its 16th Sustainability Report, showcasing best-in-class emissions intensity of 0.38 tCO₂e/oz, a US$1 billion Indigenous economic commitment, and sector-leading safety metrics [7].