Published on 6 Apr 2023 on Zacks via Yahoo Finance
Agnico Eagle (AEM) Wraps Up Buyout of Yamana's Canadian Assets
Agnico Eagle Mines Limited AEM recently announced the completion of the earlier announced plan of arrangement under which it acquired certain subsidiaries and partnerships holding Yamana Gold Inc.'s interests in its Canadian assets, including the Canadian Malartic mine. Pan American Silver Corp. acquired all of Yamana's issued and outstanding common shares as part of the arrangement.Agnico Eagle gained full ownership of the Canadian Malartic mine, the Wasamac project in Quebec's Abitibi region and a number of other exploratory sites in Ontario and Manitoba. The company has strengthened its position in the Abitibi gold belt over the past 18 months. The region has a low political risk and high geological potential, and it has a significant competitive advantage because it has been involved there for more than 50 years.The company projects production of between 1.9 million and 2.1 million ounces of gold annually through 2025 in the Abitibi gold belt. Given its vast operations and strategic geographical position in the area, AEM also has the unique ability to monetize from future expansions of the mill capacity at the Canadian Malartic mine.Agnico Eagle also noted that its production and costs guidance for 2023, which assumed 50% ownership of Canadian Malartic for the first three months of 2023 and full ownership for the last nine months of the year, is in sync with the actual completion date of the arrangement.Shares of AEM have lost 10.9% over the past year compared with a 1.6% decline of its industry.
Image Source: Zacks Investment Research