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Agnico Eagle Mines Merger Announcement: 1+1 = 3

Oct. 01, 2021 3:36 PM ETAgnico Eagle Mines Limited (AEM), AEM:CA248 Comments
Taylor Dart profile picture
Taylor Dart


  • Agnico Eagle Mines and Kirkland Lake have announced plans to combine in a merger of equals, making the company arguably the most attractive gold producer in the sector.
  • Not only would the combined entity have the largest reserve base in Tier-1 jurisdictions, but it would have industry-leading margins, and an impressive growth profile.
  • Notably, there would be significant operational synergies in the Kirkland Lake camp, and Kirkland Lake Gold would benefit from Agnico's multiple decades of underground mining expertise.
  • Assuming the deal goes through, Agnico Eagle 2.0 will become a must-own name in the gold sector, and I would expect the combined entity to command a premium valuation relative to peers.

Fosterville Gold Mine

tracielouise/E+ via Getty Images

After a relatively quiet few months from an M&A standpoint, a massive transaction was announced this week with Agnico Eagle Mines (NYSE:AEM) and Kirkland Lake Gold (KL). The plan is to combine in

Detour Lake Mine

Gold Reserves By Jurisdiction

Agnico Eagle Potential Future Production

Agnico Eagle Production

Agnico Eagle Metrics

Agnico Kirkland Mines

Holt Royalties

Kirkland Lake Gold Camp

Alamgamated Kirkland Property

Kirkland Lake Gold Camp

Detour Lake Life Of Mine Plan

Agnico Eagle Returns

Agnico Eagle Metrics

Canadian Malartic

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AEM, KL, NEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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