Everything You Need to Know on Thursday: Agnico Eagle to Acquire O3 Mining in $204 Million Cash Deal

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,534.80, down 0.33% from previous close

● Canadian premiers consider retaliation in response to potential Trump tariffs

● Agnico Eagle to acquire O3 Mining in a $204 million cash deal

● Empire Co. Ltd. reports a $173.4 million profit in Q2, with a slight increase in sales

● Imperial has set its 2025 guidance with a focus on growth and efficiency

● Cenovus Energy projects increased production and investment for 2025

Today, the Canadian dollar is trading at 70.6 US cents, a decrease from the previous close.

Canada's provincial premiers are strategizing potential retaliatory measures in response to President-elect Donald Trump's threat to impose 25% tariffs on Canadian imports. Ontario Premier Doug Ford highlighted the possibility of cutting off energy exports to U.S. states such as Michigan, New York, and Wisconsin, given Canada's significant role as an energy supplier to the U.S.

Ford emphasized Canada's unwillingness to "sit back and roll over," reflecting the sentiment across provincial leadership. Deputy Prime Minister Chrystia Freeland noted strong support for a forceful Canadian response, with discussions including leveraging critical minerals and metals exported to the U.S.

Trump's tariff threat is linked to demands for Canada and Mexico to curb the flow of migrants and fentanyl into the U.S., though data shows these issues are more prevalent in Mexico. In light of this, Canadian Public Safety Minister Dominic LeBlanc plans to enhance border protection measures, addressing U.S. concerns while preparing for potential economic repercussions.

Agnico Eagle has offered $1.67 per share in cash for O3 Mining, a substantial premium over O3 Mining's closing share price of $1.06 on the TSX Venture Exchange on Wednesday. The deal has received unanimous support from O3 Mining's board and special committee, as well as backing from shareholders holding 22% of the company's outstanding shares.

For the transaction to proceed, at least two-thirds of O3 Mining's shares must be tendered to the offer, excluding those already owned or controlled by Agnico Eagle. This acquisition represents a strategic move for Agnico Eagle to expand its presence in a key mining region.

Sales for the quarter totaled $7.78 billion, a slight increase from $7.75 billion a year ago. This growth was supported by a 1.1% rise in same-store sales, or 1.8% when excluding fuel sales.

On an adjusted basis, Empire earned 73 cents per diluted share, up from 71 cents in the same quarter last year, exceeding the average analyst estimate of 66 cents per share as provided by LSEG Data & Analytics.

Capital and exploration spending is projected between $1.9 and $2.1 billion. Upstream production is expected to grow to 433,000-456,000 barrels per day, driven by advancements at Kearl and Cold Lake. Downstream throughput is forecasted at 405,000-415,000 barrels per day, with strategic refinery turnarounds planned.

Capital investment for 2025 is expected to range from $4.6 billion to $5 billion, signaling continued growth and expansion efforts.