His company wants nothing to do with the merger mania suddenly sweeping the gold mining sector
Speaking to a packed house on Sunday at the Prospectors and Developers Association Conference in downtown Toronto, Sean Boyd, chief executive of Agnico Eagle Mines Ltd., delivered a simple message: His company wants nothing to do with the merger mania suddenly sweeping the gold mining sector.
“The recent M&A is just competitive positioning among the biggest players in this business — not wanting to be left behind,” Boyd told a room of several hundred people.
The comments came as tens of thousands of mining investors and executives flock to Toronto for a conference that runs through Wednesday and has historically provided an opportunity for dealmaking, and for reflection on industry trends.
This year, consolidation in the gold mining space has been a dominant topic of conversation as the two largest gold mining companies in the world square off: Barrick Gold Corp. last week made a hostile, $17.8 billion bid for its rival Colorado-based Newmont Mining Corp., a deal that could create a company of unparalleled size, capable of producing 12 million ounces of gold per year.
That proposal follows close on the heels of Barrick’s own US$6 billion merger with Randgold Resources Ltd. late last year; and it threatens to derail Newmont’s $10 billion bid for Goldcorp Inc., made in January.
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