after doing a rough calculation as a layman,I see the only thing that will save AEM from further deteriation of their stock price is the merger with KL.
AEM have Capex of $420 Mill,plus the dividends of $171 Mill to be spent in 2nd half, and their Cash end of June was $280 Mill.
AISC $1022 in their first half with average Goldprice of $1814 , which most likely will be $50-100 less in 2nd half.
and inflation will be a headwind with high diesel costs only partially hedged
KL had cash of $848 Mill end of June and AISC $780 , and NO debt!
the Charts tell the tale, KL with a golden cross on Aug 20 and consolidating. AEM have been in free fall since Sept 2020 and without the merger announcement would probably be trading at less than $60, note the first uptick after merger announcement
https://stockcharts.com/freecharts/gallery.html?AEM.TO
https://stockcharts.com/freecharts/gallery.html?KL.TO
0:47 AM EDT, 09/29/2021 (MT Newswires) -- Moody's said Wednesday that Agnico Eagle Mines Ltd.'s (AEM.TO) deal to merge with Kirkland Lake Gold Ltd. (KL.TO) through a share-for-share merger is credit positive.
On last look on Wednesday, Agnico Eagle's shares edged up nearly 0.9%, while Kirkland's shares edged up 1.8%.
The merger will benefit Agnico by offering greater diversity by bringing in low-cost mines, incremental production, and a strengthened ability to generate free cash flow, which the company can use to fund growth projects, the rating agency said.
The merger also maintains Agnico's "strong geopolitical profile, adding KLG's assets in Canada and Australia to its existing operating mines in Canada, Mexico, and Finland," Moody's added.
would like to see if Moody would claim that KL need a credit positive!