Agnico Consolidates Finland, For New Base
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Agnico Eagle Mines Ltd.,, B2 Gold Corp., Fortuna Mining Corp., Altius Minerals Corp., Aurion Resources Ltd., Franco-Nevada Corp., Midland Exploration Inc., Lara Exploration Ltd., and Metalla Royalty & Streaming Ltd.
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Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) is consolidating its position in the Central Lapland region of Finland with three related transactions. It acquired Rupert, whose Ikkari gold deposit is at the pre-feasibility stage and likely the next major mine in Finland. It also acquired Aurion Resources Ltd. (AU:TSX.V) and B2Gold Corp.'s (BTG:NYSE; BTO:TSX; B2G:NSX) interest in a joint venture with Aurion. The total purchase price is about CA$3.7 billion, with high premiums.

B2Gold, for example, had agreed to sell its share in a joint venture with Aurion for $100 million two years ago. This past week, Agnico offered $325 million. (Given Agnico needed all three and all parties knew that, the negotiations were a little like the prisoner's dilemma in reverse.) The acquisition of the B2Gold/Aurion joint-venture provides ground essential to optimize the Ikkari mine plan, while the Aurion acquisition also adds significant exploration ground, which has demonstrated its potential. Agnico said it would spend between CA$60 million and X$100 million on a three-year regional exploration program. Outside of this newsletter, we own both B2Gold and Aurion and believe these are good transactions for both companies. Aurion has done an excellent job at continuing their exploration while keeping dilution to the minimum over the past few years.

This Is a New Base in a Low-Risk Country, With Long-Life Upside

The acquisitions are in line with Agnico's oft-stated strategy to be a dominant, long-term player in a small number of low-risk jurisdictions. Agnico operates the near-by Kittila mine. We see this as a positive for the company.

We expect Agnico to conduct an optimized mine plan incorporating the B2/Aurion jv ground, which Rupert had stubbornly refused to acquire on reasonable terms. First gold pour could be early 2031, which fits in well with Agnico's other development pipelines. As we have oft-stated, Agnico is the gold standard of gold mining companies, with top management, a straightforward strategy well executed, and a deep pipeline.

If you do not own it, buy now.

Fortuna Increases Reserves and Stakes New Territory

Fortuna Mining Corp. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) reported a 15% year-on-year increase in P&P reserves to 3 million ounces of gold equivalent, driven primarily by resource conversion at Séguéla. Reserves and resources at the Sunbird underground deposit at Séguéla in particular saw large increases in both reserves and resources. The plant expansion study at the mine is expected next month, while the feasibility study on another mine, Diamba Sud, is on track, with a construction decision expected by the end of the quarter.

Two Latin American mines, Lindero and Caylloma, saw declines due to depletion, but it continues brownfields exploration at both mines, as well as mines in West Africa. Separately, it announced an earn-in option with Qstone to earn up to 70% of a gold project in Guyana, with an initial exploration budget of $5.5 million. The project is close to G Mining and G2's land. Fortuna is one of our favorite intermediate producers, with production from three mines on two continents, a solid pipeline of projects and exploration programs, a strong balance sheet, and above all, top, conservative management with an excellent track record.

Fortuna is a Buy.

Strong Results From Altius, as New Lithium Acquisition Beats Estimates

Altius Minerals Corp. (ALS:TSX) reported first-quarter royalty revenue of CA$26.4 million, up from the prior quarter of $20.9 million after the inclusion of royalty revenue from the Lithium Royalty Corp acquisition. The figure was higher than most analyst forecasts. Base metals revenue was significantly higher, than the prior quarter and expectations, and the new lithium segment also generated higher revenue than expected; other segments were mostly in line. T

he junior equity portfolio increased in value over the quarter from $49 million to $70 million; net investment during the quarter was about $600,000, which included financings in existing holdings as well as a $4.2 million placement in TNR, giving it 9.9% of the shares outstanding, and giving it the right of first refusal on two royalties the company owns. It did not disclose what it had sold. Altius is a core holding, with top management, broad diversification to the resource sector, and long-life asset base. Though on a cash flow basis, the stock does not appear inexpensive, on an asset basis it is.

We are waiting for better opportunities to add to positions, but if you don't own, you take at least a starter position.

Or Makes Small, but Worthwhile Acquisition

OR Royalties (OR:TSX; OR:NYSE) made a CA$32 million investment in Canadian Copper for gold and silver streams on their projects in eastern Canada, which, while small, provides good returns in a strong jurisdiction.

We are looking for better opportunities to add to positions, but if you are new to the gold space or meaningfully underinvested, this is one to buy.

Nestlé Has Strong Results as Implements Revised Strategy

Nestle SA (NESN:VX; NSRGY:OTC) reported strong "real internal growth" in the firstquarter results, with growth across most segments and geographies, led by coffee and snacks, and emerging markets. Overall, however, there was a decline in sales from the year-ago sales, partly due to business disposals; overall, results were above analyst expectations. The company demonstrated pricing power with prices up 2.3% across all products.

The company reiterated full-year guidance as its new strategic direction is implemented. Previously announced job cuts, of 16,000 across the company, have started in France and Britain, with more ahead in other European countries shortly.

Hold.

Future of Cobre Panama Not Clear, but Support Turns

Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) can take comfort in a Gallup poll conducted in Panama, which showed that 42% of respondents want the Cobre Panama mine re-opened under First Quantum's control. Such an outcome would be the most likely to see a smooth resumption of the company's stream on the project. In the poll, 17% of respondents supported that proposal, while 37% were against the mine reopening at all, despite its strong contribution to employment and government finances.

There has been increased discussion in Panama, including comments by the government, that the mine should reopen but with the government owning and controlling it. Under proposals I have heard, the initial term of the contract would be short (a couple of years) but subject to renewal. Whether the government would contribute to capital expenditures seems unclear. The preferred operator would be First Quantum Minerals Ltd. (FM:TSX; FQM:LSE), but at what point is a limited mining contract still acceptable to the company and not still constitute a takings. Since Franco's stream agreement is with First Quantum, not on the ground itself, it is critical that First Quantum resumes as operator.

I still believe the government will try to come to an agreement with First Quantum to operate the mine, but it would have to be under a sufficiently strong contract for First Quantum. We are looking for better buying opportunities on Franco, a core holding, whose share price is discounting the possibility of the stream resuming within a year, so there is some risk on the downside.

Kingsmen Sees Profits Up, With Strong Contract for Year Ahead

Kingsmen Creatives Ltd. (KMEN:SI) reported an increase in net profit for the year 2025 over 2024, to $13.7 million, up $600,000,even though the prior year included an exceptional gain on a sale of property, this despite a small decline in revenue to S$373 million. At the beginning of the year, it has secured contracts of $151 million of which $127 million is expected to be recognized this year, its 50th anniversary, a solid foundation for growth.

The two top divisions–exhibitions and attractions; and stores and corporate interiors–-account accounted for about 46% of total revenues each.

Kingsmen is now trading at a post-covid high, but is still good value, trading at a single-digit p/e with a yield of nearly 5%. We will look for a better buying opportunity, but it is a strong, long-term holding.

TOP BUYS this week include, in addition to the above, Midland Exploration Inc. (MD:TSX.V), Lara Exploration Ltd. (LRA:TSX.V), Ares Capital Corp. (ARCC:NASDAQ), and Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American).