(Kitco News) - A surge in mergers and acquisitions has rocked the mining sector this week, as Agnico Eagle Mines continues to outperform Newmont, Barrick divests a major gold project, and U.S. President Donald Trump proposes dramatic permitting reforms.
Joe Mazumdar, Editor of Exploration Insights, told Kitco Mining that Agnico’s consistency has set it apart. “Agnico easily outperformed among the majors,” said Mazumdar, noting the company’s strong margins, dividend payouts, and steady operational execution. “Investors reward execution, and Agnico consistently meets its guidance.”
Meanwhile, Newmont posted weaker first-quarter results, with production down 21% and costs rising nearly 13% following major asset divestments. “Newmont’s larger share count after acquiring Newcrest means their dividends are spread thinner,” Mazumdar explained. “It’s much harder to maintain the same payout ratio.”
On the policy front, the U.S. Interior Department announced a plan for new emergency permitting procedures to fast-track domestic critical mineral projects’ permitting to just 28 days. Mazumdar was skeptical, saying, “Going from a five-year permitting process to 28 days is a leap of faith. Execution will be the real challenge.”
Barrick Gold also made headlines by selling its 50% stake in Alaska’s Donlin gold project for $1 billion. Despite the project’s size and grade, Mazumdar said Barrick opted to prioritize copper growth projects requiring equally massive capital. “Donlin’s remote location and huge upfront costs were too much. It needs $7-10 billion to build, plus a perpetual water treatment facility,” he added.
Separately, Triple Flag Precious Metals agreed to acquire Orogen Royalties for C$421 million, securing a 1% NSR royalty on AngloGold Ashanti’s massive Silicon-Merlin project in Nevada. Mazumdar praised the timing, calling it “a smart sale at the peak of valuation.”
Finally, China Molybdenum’s Singapore unit agreed to buy Lumina Gold for C$581 million. Mazumdar said the deal’s low valuation reflected Lumina’s marginal grades and billion-dollar upfront capex.
Despite record-high gold prices, Mazumdar noted that developers remain stuck in an “orphan period” until market confidence returns. However, he said fast-track permitting, if realized, could ignite renewed interest in U.S. mining projects.
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