Agnico Eagle Mines Ltd T.AEM

Alternate Symbol(s): AEM

Metals & Mining Gold

Agnico Eagle Mines Limited is a Canada-based gold mining company engaged in producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of exploration and development projects in these countries as well as in the United States. Its operations include Canadian Malartic Complex, Detour Lake, Fosterville, Goldex, Kittila, La India, LaRonde Complex, Macassa, Meadowbank Complex, Meliadine and Pinos Altos. Its exploration site includes Anza, Barsele, Delta, Douay/Joutel, Kirkland Lake Regional, Kuotko, Hope Bay/ Oro, Monument Bay and others. The Canadian Malartic Complex is located over 25 kilometers (km) west of Val-d’Or in northwestern Quebec, Canada. The Detour Lake operation is located in northeastern Ontario, over 300 km northeast of Timmins and 185 km by road northeast of Cochrane, within the northernmost Abitibi Greenstone Belt. The Fosterville mine is a high-grade, low-cost underground gold mine, located 20 km from the city of Bendigo.

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Agnico Eagle Mines Ltd

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Post by dennis_gmpon Apr 02, 2010 3:20pm

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Post# 16952481

Comaplex Minerals deal is great for AEM

Is the Agnico-Eagle Offer for Comaplex Minerals' Meliadine Project Fair?

By Dennis Boyko
Created on: April 2, 2010
Current version 0.3: April 2, 2010 -- initial version.
Metrics have been updated with closing prices available on 2010-Apr-01.

Fair Market Valuation Summary - 2010-Apr-01

Projected fair market stock price for Comaplex Minerals Corp., based on the current NI 43-101 resource disclosures for the Meliadine project, is C$16.17. The actual closing stock price was C$8.

Given the gap between the projected fair market price and the recent closing stock price and the conservative assumptions used in generating the projected fair market price, the Agnico-Eagle to acquire Comaplex's Meliadine gold property deal should be viewed as extremely attractive to Agnico-Eagle shareholders. Agnico-Eagle already has extensive investments in Nunivat with its Meadowbank mine and should be able to capitalize on its regional goodwill and potential infrastructure and workforce reuse to develop and operate Meliadine. The ore grades at Meliadine will also boost Agnico-Eagle's already industry leading average ore value per tonne. Meliadine is clearly a world class gold deposit with extensive opportunities for future growth. Meliadine average ore grade is 7.288 g/t versus Agnico-Eagle's company wide average of 3.312 g/t (Proven+Probable, Measured+Indicated and Inferred).

Comaplex Minerals shareholders may find the deal a bit on the light side, even though they will get shares in Agnico-Eagle, a very well managed company, as well as shares in a new company that holds the remainder of Comaplex's current land holdings. However, mine development in Nunavut is not easy. In the 2009 Fraiser Institute survey of mining districts, Nunivut ranks approximately the same as Burkina Faso, Zambia, New Zealand, and Columbia and is closer to the worst ranked region, Venezuela than it is to the top ranked region Quebec. Therefore, I believe Comaplex Minerals shareholders should approve the deal and hold their Agnico-Eagle shares to benefit from the long term growth story Agnico-Eagle is clearly building as a world class gold miner.

Full report is at:
https://www.goldminerpulse.com/blogs/comaplexMineralsValuation.php

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