A major deal was announced on September 28 that, once approved by shareholders, will combine Kirkland Lake with Agnico Eagle Mines to create the world’s third largest gold company. Barrick and Newmont are already recognized as super-majors and industry leaders.
At 3.5 million ounces per year, the new Agnico does not rise to the level of a super-major producing five to six million ounces per year. However, other attributes enable Agnico to enter the big league. The merger sets it apart from other majors in terms of production: its costs are expected to be lower than the super-majors’ and it has the lowest geopolitical risk, with 75% of production coming from Canada and the remainder from Finland, Australia and Mexico.
MVIS Global Junior Gold Miners Index
31/10/2020-31/10/2021
Source: MV Index Solutions. All values are rebased to 1,000. Data as of 31 October 2021.
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