Glass, Lewis & Co recommends that Agnico-Eagle shareholders vote for the issuance of shares to Kirkland Lake Gold shareholders as a part of the merger.
“The association will mix two massive, environment friendly gold operators primarily uncovered to a number of low-risk mining jurisdictions, with the association finally anticipated to create the biggest gold producer in Canada,” Agnico quoted proxy advisory firm Glass Lewis.
According to Kirkland Lake, the merger will set up the brand new Agnico Eagle because the gold trade’s highest-quality senior producer, with low unit prices, excessive margins, a beneficial threat profile and greatest practices in vital areas of environmental, social and governance.
Glass Lewis believes the tie-up will unlock substantial synergy alternatives, each by way of geographic compatibility and customary scale and procurement structure. “This enhanced operational effectivity is predicted to be utilized to advance a mixed pipeline of growth alternatives inside the present properties of [Agnico Eagle] and [Kirkland Lake Gold], prospectively unlocking extra worth over the long run. Briefly, we consider this framework may be very compelling and pretty easy,” stated Glass Lewis.
Upon closing, the corporate is predicted to have $2.3 billion of obtainable liquidity and a mineral reserve base of 48 million ounces of gold (969 million tonnes at 1.53 grams per tonne), which has doubled over the past 10 years. The corporate can even have an in depth pipeline of growth and exploration initiatives to drive sustainable, low-risk progress.
Glass Lewis joins Institutional Shareholder Companies in its opinion, which final week additionally concluded that the proposed association is a strategically compelling merger.
Kirkland Lake shareholders of report, as of October 13, will vote on the proposed merger on November 26.
(This text first appeared in The Northern Miner)