The Meliadine mine in Nunavut Territory, northern Canada. Credit: Agnico Eagle Mines via Flickr
Agnico Eagle Mines Ltd. is threatening to snag the title of world’s second-largest gold producer from one of its top rivals.
The Canadian mining company aims to churn out 3.3 million to 3.5 million bullion ounces this year, according to full-year earnings posted Thursday. That’s on par with Barrick Gold Corp., which is currently the No. 2 gold miner. Barrick expects output to decline while its giant mining complex in Mali remains shut. Newmont Corp., by far the world’s top producer, expects to produce 6.4 million ounces in 2025.
Agnico chief executive officer Ammar Al-Joundi shrugged off the potential change in rank, insisting size doesn’t factor into the company’s strategy. “We’ve never cared about whether we’re bigger than these guys or those guys,” said Al-Joundi, a former Barrick executive, in an interview Friday. “We only care about whether we’re growing our value per share. If I had less production at double the margins, I’d probably do it.”
Both based in Toronto, the crosstown rivals have jockeyed for market share in recent years as Agnico rapidly climbed the industry’s ranks through a flurry of deals. The companies inhabit opposing strategies, with Agnico consolidating gold assets in mineral-rich Canada while Barrick embarks on gold and copper projects in regions including South Asia and Africa.
The gold industry has seen a wave of consolidation in recent years as producers seek to acquire newer mines from rivals to supplant aging and costly assets. Once a tiny producer with roots in Quebec’s mineral-rich north, Agnico Eagle is now Canada’s largest mining company by market capitalization, with 11 mines across three continents.
(By Jacob Lorinc)
