KL - Agnico Eagle upgraded at RBC on benefits from Kirkland Lake merger
Agnico Eagle Mines (AEM +0.7%) edges higher after RBC upgrades shares to Outperform from Sector Perform with a $63 price target, citing "clear benefits" from the merger with Kirkland Lake Gold (KL +0.6%), including "an improvement in asset quality, balance sheet positioning, and AEM gaining near-term catalysts with meaningful upside." RBC analyst Josh Wolfson also says while Agnico Eagle continues to emphasize its Canadian assets and focus on ESG considerations, it now benefits from reduced costs, an improved balance sheet and upcoming milestones that include the Detour Lake mine plan update that will feature an optimization along with the potential for Fosterville continued grade upside. Also, Haywood Securities analyst Kerry Smith tells Mining.com that the merger "makes a lot of strategic sense" but likely will be the last blockbuster M&A deal by a major in the Canadian mining sector. Assets in safe and familiar jurisdictions was a key driver behind
For further details see:
Agnico Eagle upgraded at RBC on benefits from Kirkland Lake merger