May 17, 2020

Agnico Eagle and Yamana Gold Finalize Acquisition of Osisko Mining

Agnico Eagle
Yamana Gold
Acquisition
Canada
Admin
2 min
Agnico Eagle and Yamana Gold Finalize Acquisition of Osisko Mining
Mining companies Agnico Eagle and Yamana Gold have announced the completion of the Osisko Mining Corporation acquisition, jointly acquiring 100 percent...

Mining companies Agnico Eagle and Yamana Gold have announced the completion of the Osisko Mining Corporation acquisition, jointly acquiring 100 percent of the company. Both companies now each own 50 percent of Osisko and have formed a joint committee to operate the company’s Canadian Malartic mine in Quebec, Canada.

"With the acquisition of Osisko now completed, Agnico Eagle looks forward to working with Yamana to further optimize the Canadian Malartic mine and build on the solid operational performance achieved in May 2014," said Sean Boyd, President and Chief Executive Officer of Agnico Eagle. 

The deal for Osisko Mining was finalized after the offer was subsequently approved by the company’s shareholders and by the courts. Osisko’s common shares will be de-listed from the Toronto Stock Exchange (TSX) at the close of business today. Each outstanding share of Osisko will be exchanged for: C$2.09 in cash; 0.07264 of an Agnico Eagle common share; 0.26471 of a Yamana common share; and 0.1 of one common share of Osisko Gold Royalties Ltd.

According to Boyd, Agnico Eagle and Yamana will now work together to explore and possibly develop the Kirkland Lake assets and continue exploration at the Hammond Reef, Pandora, and Wood-Pandora properties."In addition, we are jointly reviewing the Kirkland Lake portfolio with the intent of designing an exploration program to expand and upgrade the current resource base to further enhance shareholder value.”

The acquisition of Osisko will allow Canadian-based Yamana Gold to continue building its gold production through existing operating mine expansions, including the Malartic mine.

"The completion of our joint acquisition of Osisko and the Canadian Malartic mine adds another cornerstone asset to our portfolio that will contribute significantly to increased production and cash flow levels as we continue to balance top and bottom line growth," said Peter Marrone, Chairman and Chief Executive Officer of Yamana. "We look forward to establishing our presence in Canada as we work with Agnico to unlock additional value at Canadian Malartic and develop an exploration program for the Kirkland Lake assets," added Mr. Marrone.

Agnico Eagle produces precious metals and has eight mines in Canada, Finland and Mexico. The gold mining company has declared a cash dividend every year since 1983.

Yamana Gold is a major gold producer with considerable gold production, gold development stage properties, exploration properties, and land positions through the Americas. 

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May 7, 2021

Lithium producers bullish as EV revolution ramps demand

Lithium
Electric Vehicles
Albemarle
SQM
3 min
Lithium producers are drawing optimism from rising prices for the electric vehicle battery metal

Rising demand for lithium is stoking prices for the electric vehicle battery metal, fueling long-delayed expansions that still may not produce adequate supplies that automakers need to meet aggressive production plans.

Lithium

Growing industry optimism from higher lithium prices is a change from last year when funding for mines and processing plants dried up during the pandemic.

Albemarle Corp, Livent Corp and other producers are scrambling to make more lithium, but some analysts worry the recent price jump will not spur a big enough expansion to meet a planned wave of new EV models by mid-decade.

Since January, General Motors Co, Ford Motor Co LG Energy Solution and SK Innovation Co, along with other automakers and battery parts manufacturers, have said they will spend billions of dollars on EV plants.

U.S. President Joe Biden has proposed spending $174bn to boost EV sales and infrastructure. The European Union has similar plans, part of a rush to catch up with global EV leader China.

Those moves have helped an index of lithium prices jump 59 percent since April 2020, according to data from Benchmark Mineral Intelligence, a commodity pricing provider.

The rising demand “reflects what feels like a real and fundamental turning point in our industry,” said Paul Graves, chief executive of Livent Corp, which supplies Tesla Inc. On Monday, it said it would more than double its annual lithium production to 115,000 tonnes.

Graves warned, though, that “it will be a challenge for the lithium industry to produce sufficient qualified material in the near and medium term.”

Albermarle

Albemarle, the world’s largest lithium producer, aims to double its production capacity to 175,000 tonnes by the end of the year when two construction projects are complete. Albemarle's Q1 profit beat expectations thanks to rising lithium prices. Chile’s SQM, the No. 2 producer, said its goal to expand production of lithium carbonate by 71 percent to 120,000 tonnes should be complete by December.

Australia’s Orocobre is paying $1.4 billion for smaller rival Galaxy Resources, a strategy designed to boost scale and help it grow faster in regions closer to customers.

“The next few years are going to be critical in terms of whether there’s enough available lithium supply, and that’s why you’re starting to see commodity prices start to ramp,” said Chris Berry, an independent lithium industry consultant.

The price gains helped Albemarle and other major producers, including China’s Ganfeng Lithium Co and SQM, post big gains in first-quarter profit and boost forecasts for the year.

Even China’s Tianqi Lithium Corp, saddled with debt due to years of low lithium prices, signaled that recovering demand should help it swing to a profit this year.

Electric Vehicles

Forecasts call for demand for the white metals to surge from about 320,000 tonnes annually last year to more than 1 million tonnes annually by 2025, when many automakers plan to launch new EV fleets, according to Benchmark.

Still, demand is expected to outstrip supply in 2025 by more than 200,000 tonnes, so lithium prices may need to rise to encourage producers to build more mines. That could boost the prices consumers pay for EVs. “Companies across the lithium-ion supply chain are in the best position they’ve been in for the last 5 years,” said Pedro Palandrani of the Global X Lithium & Battery Technology ETF , which has doubled in value in the past year.

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