REIMAGINE MINING SYMPOSIUM
> By Canadian Mining Journal Staff
Tony Makuch wants to change the popular perception of gold mining:
TONY MAKUCH
‘We’re the good guys’
K
irkland Lake Gold is in the midst of one of the Canadian gold sector’s most important mergers in recent memory with Agnico Eagle Mines. And on Oct. 13, Kirkland Lake CEO Tony Makuch – and soon-to-be CEO of the new Agnico Eagle – joined Canadian Mining Journal s first eimagine ining ymposium as a keynote speaker to talk about the mega-merger. “It’s a strength-on-strength transaction,” putting together two leaders in the gold space that have a demonstrated track record of growing per share value, he told moderator Henry Lazenby, multimedia content producer with CMJ’s sister publication, The Northern Miner. The deal, announced on Sept. 28, will create a high quality, senior producer with 48 million oz. of gold in reserves. The boards of both companies have approved the arrangement, which is expected to close late this year or in early 2022, and current Agnico CEO Sean Boyd will become chair of the board. The merged company will be the world’s third largest gold producing company with about 3.5 million oz. per year at all-in sustaining costs of around US$810-820 per oz. Makuch believes that can be further reduced to below US$800 per oz. through synergies and other
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Henry Lazenby (left), multimedia content producer with The Northern Miner, interviews Tony Makuch, CEO of Kirkland Lake Gold, at CMJ’s Reimagine Mining Symposium.
CREDIT: CMJ
opportunities. The companies have touted US$2 billion worth of savings through synergies including sharing exploration knowledge, technology, processing opportunities, infrastructure, and the support of local communities and regulators both Agnico Eagle and Kirkland Lake have earned. “Unlocking technology will play a big part in reducing costs,” Makuch said. “We rely on exploration technology to drive value in our industry. . . If we can find an ounce of gold for or , then upgrade the resources for US$150 an ounce, you have created value.”
rofitable and responsible
Makuch also noted that the two companies have similar cultures and are motivated to demonstrate leadership in best
practices, people management, environmental stewardship and corporate governance which result in industry-leading returns for shareholders. In addition to creating value through synergies, Makuch said the combined company could rehabilitate the gold mining industry’s reputation for sustainability in the minds of investors. “When it comes to ESG or the perception of gold mining in the global investment market, we think we’ve got a unique opportunity to enhance or change the perception of what gold mining is,” Makuch said. These can be profitable businesses that are responsibly run.” Makuch added that “we are actually the good guys – and good girls too.” a uch also fielded uestions from the audience, including those about why
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