By Liezel Hill
Bloomberg
Agnico Eagle Mines Ltd. (AEM), one of Canada’s oldest gold producers, will consider entering joint ventures for the first time and buying mines already in operation.
Agnico may also expand into new countries as it loosens the acquisition criteria it’s stuck to for decades, Chief Executive Officer Sean Boyd said in an interview at Bloomberg’s Toronto office. What Boyd won’t change is his vow not to “bet the company” on any single deal, he said.
“We’re not changing the general strategy, we’re changing the tactics,” the CEO said. “We’re broadening our horizon.”
Agnico, based in Toronto, has the highest price-to-book ratio of seven Canadian gold producers bigger than $2 billion, according to data compiled by Bloomberg. The company trades at 1.47 times book value, compared with an average of 0.95 times for the group, indicating the market values the company’s net assets, including its LaRonde mine in Quebec, higher than any other miner in Canada. Agnico has a market capitalization of C$5.29 billion ($5.19 billion) and had 2012 sales of $1.92 billion.