Agnico Eagle, like Kirkland Lake, is one of Canada’s leading gold mining companies. Rumors of a merger between the two companies had been circulating for some time.
Now both gold producers announced that the merger has been successfully completed. The new company will operate under the name Agnico Eagle Mines Ltd. in the future and will play an even more significant role among the world’s largest gold producers.
Agnico Eagle – a traditional mining company with many years of experience
For years, Agnico Eagle Mines Limited has been one of the largest gold producers in the world. The company was founded as early as 1957 and thus already has many years of experience in mining precious metals.
Agnico Eagle’s business activities can be broadly divided into three divisions: Exploration, Northern Business and Southern Business. Currently, Agnico Eagle oversees a total of 5 exploration projects, Barsele, El Barqueno, Hammond Reef, Kirkland Lake and Santa Gertrudis.
The Barsele project is located in northern Sweden and is 55 percent owned. Wholly owned by Agnico Eagle are the El Barqueno project in west-central Mexico and the Canadian projects Hammond Reef and Kirkland Lake. The Santa Gertrudis gold project is also located in Mexico and is also wholly owned by Agnico Eagle.
The ongoing operations are located in Canada and in Mexico, as well as in Europe and in the United States.
Kirkland Lake Gold Ltd. is also a leading Canadian gold producer with high-grade operations. The company operates mainly in Canada and Australia.
Kirkland Lake’s key assets include the Macassa Mine and the Detour Lake Mine, both located in the Canadian state of Ontario. Also of great importance is the Fosterville mine in the Australian state of Victoria.
Similar to Agnico Eagle, Kirkland Lake also places great emphasis on its exploration projects.
Ascent in the world rankings due to merger
Both companies were already among the largest gold producers in the world before the merger that has now taken place. In 2021, for example, Agnico Eagle was able to secure fourth place in the world rankings behind Newcrest Mining, Barrick Gold and Newmont Mining with a market capitalization of €12.3 billion.
Kirkland Lake ranked 7th among the world’s largest gold producers with a market capitalization of €7.7 billion. As a result of the merger, the new combined company Agnico Eagle Mines Ltd. reaches a market capitalization of about 22.4 billion US dollars (equivalent to about 19.81 billion euros) and could thus displace Newcrest Mining from its third place in the ranking in the future.
The shares of the new company will remain listed on the Toronto Stock Exchange as well as the New York Stock Exchange.