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  5. AEM: Can you offer some input on the recent merger news? [Agnico Eagle Mines Limited]
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Q: Can you offer some input on the recent merger news?

Asked by Andrew on September 28, 2021
5i Research Answer:

We are comfortable with the deal as essentially a merger with no premium. The CEO of KL becomes the CEO of the merged company. With a larger company operating in safe jurisdictions, we think it will become more attractive to global gold investors. This may take some time, and due to the share exchange both shares will likely see more volatility until the deal closes. There are lots of synergies and the company will have low production costs and a strong balance sheet. It looks good overall.