Agnico Eagle (TSX, NYSE: AEM), one of the world’s three largest gold producers, has no interest in participating in Barrick Mining’s (TSX: ABX), (NYSE: B) proposed North American initial public offering (IPO), CEO Ammar Al-Joundi said.
“It would not make sense for us to buy into their North America IPO,” Al-Joundi said in an interview with Reuters.
“Strategically we have our own business and it is looking pretty good,” he said, adding that it is not a question of valuation or whether it is a good deal or not. Al-Joundi said if Agnico Eagle attempted to acquire the Nevada assets of Barrick, it would be up to Barrick’s board and management to decide what they want moving forward, Reuters reported.
Barrick is pursuing the IPO to sharpen operational focus and unlock value from its North American portfolio. Analysts have viewed the plan as a potential catalyst for Barrick’s shares after years of cost overruns and missed profit targets.
Shares in Agnico Eagle were slightly down 0.3% to C$273.73 apiece by mid-day Tuesday in Toronto, valuing the company at C$138.7 billion ($99 billion). Barrick Mining shares were up 0.28% to C$59.12 apiece, valuing the company at C$97.3 billion ($69 billion).
IPO prospects
Analysts at Jeffries said in 2025 a standalone company would appeal to major gold producers such as Newmont (NYSE, ASX: NEM) and Agnico Eagle. The company’s smaller size and lack of non-core assets in more challenging jurisdictions could make it easier to acquire than Barrick as a whole, they said.
The proposed company would centre on Barrick’s interests in Nevada Gold Mines and Pueblo Viejo, as well as its wholly owned Fourmile discovery in Nevada. The assets produced about 2 million attributable oz. of gold in 2025.
The assets will operate with standalone leadership and greater flexibility under the new structure, and separate the business from operations in more risky jurisdictions, including Mali and Pakistan, Barrick said.
The timing remains uncertain. Bloomberg reported in early September that Barrick was considering delaying its IPO plans until 2027 after previously targeting completion by the end of 2026.
(With files from Reuters and Bloomberg)
Source: https://www.mining.com/agnico-eagle-has-no-plans-to-join-barricks-ipo/
