Agnico-Eagle seeking acquisitions
Post/wire say Agnico-Eagle seeking acquisitions
2008-03-10 08:33 ET - In the News
The Financial Post reports in a Bloomberg dispatch Saturday that Agnico-Eagle Mines, which is planning a fivefold increase in gold output in the next three years, said it is scouting for as much as $1.6-billion (U.S.) in acquisitions as bullion trades at record prices. The unbylined item says Agnico favours buying gold deposits valued at as much as 15 per cent of its market capitalization, said Sean Boyd, chief executive officer, on Friday. The bids are likely to be friendly, he said. "Those would be what we consider as the right size, bolton transactions," Mr. Boyd told the Post at the company's Toronto headquarters. "Hostile transactions aren't consistent with our strategy, which involves being not only familiar with the risks of a mine-development project but also the opportunities." Agnico's three largest buy, all made in the past two years, total about $730-million (U.S.) and added nine million ounces of gold reserves.