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Agnico Eagle Mines (AEM) reported record quarterly gold production of 873koz in Q223 at a US$840/oz total cash cost and a US$1,150/oz all-in sustaining cost (AISC) that drove strong financial results of adjusted EPS of US$0.65/share and operating cash flow of US$1.46/share. Record-breaking production reflects 100% ownership for the full quarter of Canadian Malartic, which will add c 80–90koz in attributable production per quarter. Additionally, AEM recorded the safest half-year performance in it
Companies: Agnico Eagle Mines Limited
What you need to know:
• The precious metals markets were down slightly in the month of June, however, we view this as a healthy consolidation period following significant price increases since November 2022.
• M&A slowed in June primarily due to the new uncertainty regarding interest rates following strong economic data and the BoC raising 25bps.
• Safe-haven assets like gold and silver continue to look highly attractive with inflation remaining sticky and rates likely to decline by 2024.
Companies: NEM ETU OMG ARTG ABX EDG ERO MOZ OIII OSK SKE TM NEM AEM MAG SSRM FM
Agnico Eagle Mines (AEM) started the year with strong quarterly production of 813koz at an US$832/oz total cash cost and a US$1,125/oz all-in sustaining cost (AISC). A number of records were achieved, including in cash flow and safety. This marks the final quarter incorporating 50% of production from Canadian Malartic. From 30 March, this will increase to 100%, following AEM’s acquisition of Yamana’s Canadian assets, which will add c 80–90koz in attributable production per quarter. Guidance for
What you need to know:
• The precious metals and mining market significantly outperformed broader indices in the month of March with the GDX rising 15% versus the TSX being down slightly
• Gold rallied heavily following the collapse of several major banks and the U.S. Fed guiding for a pause on rates in the near term
• This month only strengthens our confidence that 2023 will be a standout year for both precious metals and base metals and encourage investors to position themselves accordingly
Companies: RIO ETU OMG CMMC EDG EQX ITR TUD AEM RIO AGI CG VALE FNV GFI FM
FY22 marked a record-breaking year for Agnico Eagle Mines (AEM) after its Kirkland Lake acquisition, achieving annual gold production of 3,281koz at a US$780/oz total cash cost and a US$1,090/oz all-in sustaining cost (AISC). In Q422, AEM delivered strong gold production of 799koz at a US$863/oz cash cost, despite inflationary pressure and reduced production at LaRonde, Kittila and Pinos Altos. AEM’s quarterly dividend was maintained at US$0.40/share and it expects its recently announced acquisi
What you need to know:
• Producers, developers, and explorers continue to trade at low multiples. These low multiples make for great buying opportunities; there are plenty of standout winners despite the weak performance
• We anticipate the number of bankruptcies to rise as companies struggle to raise funds and treasuries dwindle
• Positive month: Precious metals and commodities shared in a strong month posting the highest monthly gain since 2020 – equities took part as well
Companies: NST AUY EQX FIL GRSL GGD YRI AEM AEM PAAS PAAS
● Western Atlas Resources (TSXV: WA (“WA”) is a junior exploration company with its flagship project Meadowbanks Project Area focused on gold exploration in Nunavut, Canada. The Company controls 57,844 ha in the district of Kivalliq, near Baker Lake.
● Highly prospective and unexplored ground with many similarities to existing nearby mining operations: The geology encountered on the property bears strong resemblances to gold deposits mined in the vicinity by Agnico Eagle Meadowbank Complex (c
Companies: ARIS ARIS WA AEM
Agnico Eagle Mines (AEM) reported a strong set of Q3 results, delivering gold production of 816,795oz at competitive cash and all-in sustaining costs (AISC) of US$779/oz and US$1,106/oz, respectively, notwithstanding cost pressures, constraints regarding workforce availability and the lingering aftermath of COVID-19. Material mark-to-market losses on foreign exchange and oil hedges of US$134.5m distorted headline earnings. However, excluding these non-cash, exceptional items, adjusted net income
On an underlying basis, Agnico Eagle Mines’ (AEM’s) Q122 revenue of US$1,325.7m, EBITDA of US$583.8m, pre-tax profits of US$300.4m and adjusted net EPS of US$0.612/share were either at or above the top end of analysts’ expectations. Production (with Kirkland Lake included from 8 February) was 660,604oz at a total cash cost of US$811/oz (on a by-product basis) and an all-in sustaining cost (AISC) of US$1,079/oz. Including a full quarter’s contribution from Kirkland Lake’s mines, pro forma payable
On 28 September, Agnico Eagle Mines (AEM) announced that it is to combine with Kirkland Lake Gold (KL) in a merger of equals. Under the terms of the agreement, KL shareholders will receive 0.7935 AEM shares per KL share, which represents a c 1% price premium to KL’s 10-day volume weighted average price on the TSX. Upon closing, existing AEM and KL shareholders will own c 54% and 46%, respectively, of a combined company (called Agnico Eagle Mines Ltd) with a market capitalisation of c C$29.0bn (U
Agnico’s (AEM’s) Q221 adjusted EPS of US$0.69/share was ahead of both the consensus average (US$0.59/share) and range of expectations (US$0.54–0.63/share). Relative to the prior-year period (which was adversely affected by the onset of the COVID-19 pandemic), the increase in adjusted EPS was a very material 275.1%. Relative to Q121, the increase was a more modest 2.7%, driven by a 3.4% increase in revenue, a 3.6% increase in costs (such that gross margins were steady at 55.8% vs 55.9%) and a 7.9
• Maple Gold Mines Ltd. (TSX-V: MGM) (“MGM”, or “Company”) is a junior mining company with a focus on precious metals, specifically gold. The Company owns a large-scale property package comprising two gold-prospective projects located in Quebec, Canada.
• Partnership with Agnico Eagle Mines: The company has a Joint Venture (“JV”) agreement in place with major gold miner Agnico Eagle Mines Limited (TSX: AEM). The JV agreement is structured to provide AEM ownership interest in return for should
Companies: AEM AEM MGM
Agnico Eagle Mines (AEM US) – Agnico Eagle agree to acquire TMAC Resources (TMR CN) for C$286.6m
Shandong Gold Mining (600547 SHA)
Blackstone Resources AG (BLS SWX) – Convertible loan for up to CHF20m
Rockfire Resources (ROCK LN) – Helimag survey expands target area at Copperhead project in northern Queensland
Taseko Mines (TKO LN) – Local council decides not to appeal permits at Florence
Tronox Holdings (TROX N) – Enquiry into Tronox takeover of Tizir Titanium & Iron for $300m
Companies: TKO 600547 ROCK AEM BLS TROX
Relative to the prior quarter (Q220), Agnico Eagle Mines’ (AEM) production in Q3 increased by 48.8% to 492.7oz and its adjusted net income by 111.4%. While this may seem impressive enough, adjusted net income actually increased by 327.0%, to 78.1c/share, as the company leveraged a 76.0% quarterly increase in revenues against a 47.2% increase in production costs to result in an 8.2pp uplift in gross margins. AEM also benefited from a relatively low effective tax rate of 33.1% in Q3. As a conseque
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88 Energy, Falcon Oil & Gas, Trinity Exploration & Production, Plexus Holdings, Baron Oil, Harbour Energy, EnQuest, Capricorn Energy, Arrow Exploration, Southern Energy, Serinus Energy, SDX Energy, Panoro Energy, Eco (Atlantic) Oil & Gas, OKEA ASA, Equinor Source: FactSet, weekly change 27/11/23-1/12/23 Oil extended declines, closing out a sixth straight weekly drop, as the OPEC+ output cuts announced Thursday failed to dispel the market’s gloom over swelling global supplies. West Texas Intermed
Companies: BOIL POS TRIN 88E
On 22 November, Pan African Resources (PAF) announced that operations to date in FY24 had performed in line with, or better than, expected, with gold production for H124 anticipated to be in the range 94,000–98,000oz (cf 92,307oz in H123). As a result, it increased its production guidance for FY24 to 180,000–190,000oz, which caused us to increase our production estimate in turn by 1.9% (or 3,575oz) to 189,725oz. The change made only a modest difference to our EPS forecasts for FY24 (see Exhibit
Companies: Pan African Resources PLC
Companies: HHR CLBS SND
Hartshead has secured a funding solution with partner Rockrose Energy to fund 100% of the Phase I development costs. Under the agreement, Hartshead has the option to exchange an additional 20% licence interest for an uncapped free carry, thereby covering the total cost of the Phase I development project (financing backstop). Importantly, Hartshead maintains at its election the option not to proceed with the RockRose financing solution, and introduce other financing solutions (eg project debt, pr
Companies: Hartshead Resources NL
We have been roadshowing Trident Royalties all week during which time the company released an announcement that they have entered into a commitment letter with BMO and CIBC for a new $40m revolving credit facility (RCF), with the potential to increase the facility to $60m via an accordion feature. The proceeds from the $40m are going to be used to repay the existing secured debt facility of $40m with Macquire in Q1 next year.
Companies: Trident Royalties Plc
Southern Energy delivered solid 3Q results with the focus of attention now turned towards the completion of 4 drilled uncompleted wells (“DUCs”). We see our investment thesis for Southern Energy – premised on the scale, location, quality, deliverability, low-cost nature of the company's Gwinville gas field in Mississippi, USA – very much strengthening based on our structural commodity price outlook and our growing confidence in the highly prolific Gwinville gas field, sharpening our interest in
Companies: Southern Energy Corp.
Companies: PNRL AYM RIO THR WSBN GMET TGR
Jersey Oil & Gas, Serica Energy, Trinity Exploration & Production, Longboat Energy, Ithaca Energy, Neptune Energy, Pantheon Resources, Nostrum Oil & Gas, Kufpec, ORLEN.
Companies: TRIN LBE JOG
The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.
Companies: TLOU PTAL HTG ENW ITM BLVN RKH HBR UJO GMS JOG MATD CEG GENL AXL
DEC’s Q3/23 trading update was in line with expectations as the company continued to deliver despite further commodity price headwinds. The Q3/23 Adjusted EBITDA margin of 52% (H1/23: 52%) reflects the quality of DEC’s asset base and its ability to efficiently manage every aspect of its operations. Average net daily production in Q3/23 was 134Mboepd (H1/23: 142Mboepd), with exit rate production of 134.4Mboepd. DEC has maintained its dividend at US$0.04375 per share. Since its IPO in 2017, DEC ha
Companies: Diversified Energy Company PLC
Thor today announces the final downhole gamma results for the reverse circulation drill programme undertaken at the Wedding Bell and Radium Mountain projects in the USA. Downhole gamma readings are a commonly used proxy for physical uranium assays.
Companies: Thor Energy Plc
Companies: Shanta Gold Limited
DEC reported strong Q3 results with production in line while 9m EBITDA of $423m is equal to 80% of DCe FY23 $528m; it has also announced a US listing.
Companies: Good Energy Group PLC
Last week, JOG successfully secured its second GBA farmout, locking in a path to delivering zero-capex barrels. The surprisingly muted share price response to the farm-out leaves JOG trading at an unjustifiably large discount to our valuation. With a material fully funded development project under its belt and a clean balance sheet, JOG presents a very low-cost way to access high quality development barrels for investors and potential acquirers alike. If the threat of M&A does not narrow JOG’s v
Companies: Jersey Oil & Gas PLC