The chief executive of Agnico Eagle Mines Ltd. said the world’s second-largest gold producer is ready to pursue mergers and acquisitions if the right opportunities arise, a shift that could reshape consolidation trends in the mining industry.
Ammar Al-Joundi, CEO of Agnico Eagle, told investors on a recent earnings call that the company is “very well-positioned” to move on external deals when they create long-term value, signaling a more proactive approach after years of prioritizing organic growth.
“We are willing to move – and we have moved – when we see an opportunity on the M&A side that actually creates value per share,” Al-Joundi said, highlighting that Agnico Eagle has a strong understanding of assets on the market and would consider transactions that bolster exploration potential or strategic depth.
Historically, the company has been cautious about acquisitions, focusing instead on expanding output from existing mines and maintaining discipline amid record gold prices and high valuations. But with robust cash flows and elevated bullion prices supporting balance sheets across the sector, mining executives are increasingly revisiting deal-making as a growth lever.
Agnico Eagle’s production gains last year helped it surpass Barrick Mining Corp. to become the No. 2 global gold producer, and now the company appears more willing to consider both acquisitions of strategic assets and divestitures of non-core holdings that may not fit its long-term plan.
The broader mining industry has seen heightened M&A interest recently, with gold assets dominating deal activity and companies seeking to scale operations or improve portfolio quality amid strong commodity markets.