Hummingbird shares plummet on Kouroussa missed targets
The mine’s four-week trailing average production reached almost 1,900 ounces, below the 2,000 to 2,500 ounces range Hummingbird expected.
Agnico Eagle Mines (TSX:AEM) is seeking to enhance its presence in Latin America after teaming up with fellow Canadian gold miner Yamana Gold (TSX:YRI) to buy Osisko Mining Corp. (TSX:OSK) in a friendly $3.4 billion deal.
Agnico now wants to add assets in Mexico or another country through smaller deals that would possibly lower the company’s average costs while increasing a project’s value, Chief Executive Officer Sean Boyd told Bloomberg.
The cash-and-stock bid for Osisko beat an earlier hostile offer by Goldcorp Inc. (TSX:G) (NYSE:GG) and gave each of the acquirers a 50% stake in the Montreal-based company, which operates the low-cost Malartic gold mine in Quebec.
The deal is the largest in Toronto-based Agnico’s 57-year history and the biggest in the industry since 2010.
Agnico stock has advanced 41% in Toronto this year, according to Bloomberg, which says the miner’s first-quarter earnings, less one-time items, have more than doubled analyst estimates.
Merger and acquisition activity in the sector declined in 2013 to its worst total deal value in a decade as the price of gold plunged.
Such activity has rebounded this year with the gold price recovering.
