The merger between Anglo America Plc and Teck Resources Ltd may have set the scene for more major deals, but Agnico Eagle Mines Ltd. is focusing on growing from within.
“We’ve never had a better internal profile. We’re focused on that,” said chief executive officer Ammar Al-Joundi on the sidelines of Mining Forum Americas in Colorado Springs.
While the industry will see more consolidation following the Anglo-Teck deal, according to Al-Joundi, “what we don’t want to see is irresponsible M&A just because the gold price is high. That’s not good for anybody.”
Miners including gold producers have stayed financially disciplined for the past decade after aggressive deal-making at the peak of the China-led commodity super-cycle led to billions of dollars in write-downs and infuriated investors.
Gold mergers and acquisitions could generate a better internal rate of return for miners if…
