Sean Boyd, the chief executive of Agnico Eagle Mines Ltd., Canada’s second biggest gold company, says the industry has to stay disciplined as it benefits from swelling cash flows generated by near-record high bullion prices.
During the last great bull run in the precious metal, which ran from the early 2000s until 2012, many companies took big swings on expensive acquisitions that turned out to be disastrous.
The current bull market, which kicked off about two years ago, has seen bullion hit a new all-time high of more than US$2,000 an ounce, but miners have been much more careful, eschewing flashy deals in favour of dividend increases.
The list of companies to either bump or reinstate their payouts recently includes Kinross Gold Corp., Yamana Gold Inc., Alamos Gold Inc., Newmont Corp. and Agnico, which released its third-quarter earnings Wednesday and announced it is increasing its dividend by 75 per cent to 35 US cents a share.
“Every investor meeting we get, one of the top questions is about capital allocation,” Mr. Boyd said in an interview.
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