I wonder if Detour's door is open?Agnico-Eagle Mines (AEM.TO: Quote, Profile, Research, Stock Buzz) is in the market for small-scale acquisitions, but the gold producer's chief executive on Tuesday said would-be targets need to make it easier for large players to check them out.
Speaking at the Denver Gold Forum, Agnico CEO Sean Boyd said many small mining companies -- who as a group have been hit hard by the credit crunch and sagging economy -- are not allowing bigger players to get a look at their operations.
He said investors in junior companies should make sure the companies have an open door policy for possible buyers.
"We're not going to go hostile ... If we like it we're going to go in and look at it. We won't waste your time," he said.
Share prices of small players with development-stage projects have been hammered in recent months, forcing many to seek out potential buyers or investors from among large miners with established production and cash flows.
Boyd said acquisitions are key to the expansion of Agnico's output beyond 2010, when it expects to produce 1.3 million ounces of gold.
Agnico also plans expansion at some of its mines, which could raise that production to 1.6 million ounces, he said.
The Toronto-based company expects to produce between 300,000 and 320,000 ounces this year.
Boyd said the company wouldn't rush into any takeovers, despite the recent stock slide among small miners
He also said Agnico would avoid multibillion dollar transactions and instead focus on small ones.
"We know things are cheaper, but we can't work any faster in terms of evaluating, and we have to be very careful in this day and age. Although they're cheaper, it doesn't mean they're all going to work," he said.