#Canada #Toronto #share buyback #Normal Course Issuer Bid #Agnico Eagle

Agnico Eagle Mines Limited Announces Renewal of NCIB

Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM), a leading Canadian gold producer, has declared its intention to renew its Normal Course Issuer Bid (NCIB). The renewal comes following a recent announcement made on April 24, 2025, where the company specified its plan to buy back shares through the Toronto Stock Exchange (TSX).

Key Details of the Renewal

Under this NCIB, Agnico Eagle is authorized to repurchase shares starting from May 4, 2025, until the earlier of either May 3, 2026, or until the buyback amounts are exhausted. The maximum number of shares that can be acquired is capped at 25,174,240 common shares, equating to 5% of the actively traded common shares. Additionally, the total repurchase limit is set at a maximum cost of $1 billion.

As of April 28, 2025, when the stock was priced at $119.02, approximately 8.4 million shares may be eligible for repurchase under the NCIB, representing around 1.67% of Agnico Eagle's outstanding shares. Daily purchases are limited to 248,879 common shares, comprising 25% of the average daily trading volume recorded over a six-month period ending March 31, 2025.

The primary aim behind this NCIB is to enhance shareholder value while ensuring Agnico Eagle maintains its robust financial standing. The company intends to fund these purchases using its existing cash reserves, with any repurchased shares being canceled post-acquisition.

Management's Outlook

Agnico Eagle's management believes that the NCIB serves as a valuable tool, complementing its ongoing dividend payments as part of a broader capital allocation strategy. The decisions regarding any future share buybacks, including volumes and timing, will be influenced by market conditions and share price movements. Moreover, the company retains the option to suspend or cease repurchases whenever deemed necessary.

To facilitate purchases during regulated blackout periods, Agnico Eagle will implement an automatic share purchase plan which has already received TSX clearance and will be effective from May 7, 2025. This approach allows the company to continue buying shares even during times when they typically cannot.

Previous NCIB Overview

In its previous NCIB, which ran from May 4, 2024, to May 3, 2025, Agnico Eagle was authorized to acquire up to 24,961,914 common shares. This resulted in the repurchase of 1,862,133 shares at an average price of about $80.56 per share, providing evidence of the company's commitment to enhancing shareholder value in a disciplined manner.

As a major player in the gold mining sector with operations in Canada, Australia, Finland, and Mexico, Agnico Eagle continues to uphold a reputation for implementing industry-leading sustainability practices. The company has consistently paid dividends since 1983, showcasing its commitment to rewarding investors and ensuring long-term growth.

Conclusion

In summary, Agnico Eagle Mines’ decision to renew its NCIB reflects its ongoing commitment to delivering value to shareholders while navigating the complexities of the global mining sector. This strategic move aligns with the company’s historical dedication to operational excellence and sound financial management. As the renewal takes effect, market participants will be watching closely for the company's execution of this buyback plan, which is expected to influence its stock performance in the near future.