Agnico Eagle Mines is eyeing small acquisitions in
Post# of 9903
Posted On: 07/02/2014 12:30:39 PM
Agnico Eagle Mines is eyeing small acquisitions in Latin America despite having just closed its biggest ever deal with the Cdn$3.9bn (US$3.64bn) Osisko Mining takeover.
The Toronto-based company could acquire two or three mines or projects in the next few years without overextending itself, CEO Sean Boyd was quoted as saying by Bloomberg.
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"We have a couple of dozen things that we're constantly looking at," Boyd said. "For us it's always been about manageability. It's OK to grow but if you can't manage the growth, as we've seen from some of our bigger competitors, then you're not going to get paid for it."
Agnico favors small deals where it can increase the value of a project and lower the company's overall costs, Boyd said. As well as possible M&A in Mexico, the company will also consider entering a new country.
The company is keen to expand its Mexican business through M&A and organic growth from its Pinos Altos, Crestón Mascota and La India mines, Boyd said in May.
Despite new mining taxes – comprising a 7.5% tax on mining income minus certain deductions and a 0.5% gross revenue royalty on gold, silver and platinum mines – Mexico offers much quicker permitting and lower costs than many jurisdictions, he said.
The country remains a top jurisdiction for M&A in the precious metals sector, despite a global paucity of attractive targets, Trevor Turnbull, Scotiabank director of gold and precious metals, told BNamericas earlier in June.
Under the Osisko deal which closed earlier in June, Agnico and fellow Canadian miner Yamana Gold each gained a 50% stake in the Malartic gold mine in Canada and other exploration and development projects in the country.
Agnico Eagle was the fourth biggest gold producer in Mexico last year, and also has assets in Canada, the US and Finland.
http://www.bnamericas.com/news/mining/agnico-...sisko-deal
The Toronto-based company could acquire two or three mines or projects in the next few years without overextending itself, CEO Sean Boyd was quoted as saying by Bloomberg.
logo-bna E-mail Start a Free Trial
"We have a couple of dozen things that we're constantly looking at," Boyd said. "For us it's always been about manageability. It's OK to grow but if you can't manage the growth, as we've seen from some of our bigger competitors, then you're not going to get paid for it."
Agnico favors small deals where it can increase the value of a project and lower the company's overall costs, Boyd said. As well as possible M&A in Mexico, the company will also consider entering a new country.
The company is keen to expand its Mexican business through M&A and organic growth from its Pinos Altos, Crestón Mascota and La India mines, Boyd said in May.
Despite new mining taxes – comprising a 7.5% tax on mining income minus certain deductions and a 0.5% gross revenue royalty on gold, silver and platinum mines – Mexico offers much quicker permitting and lower costs than many jurisdictions, he said.
The country remains a top jurisdiction for M&A in the precious metals sector, despite a global paucity of attractive targets, Trevor Turnbull, Scotiabank director of gold and precious metals, told BNamericas earlier in June.
Under the Osisko deal which closed earlier in June, Agnico and fellow Canadian miner Yamana Gold each gained a 50% stake in the Malartic gold mine in Canada and other exploration and development projects in the country.
Agnico Eagle was the fourth biggest gold producer in Mexico last year, and also has assets in Canada, the US and Finland.
http://www.bnamericas.com/news/mining/agnico-...sisko-deal
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