KL - Agnico Eagle Mines Merger Announcement: 1+1 = 3

• Agnico Eagle Mines and Kirkland Lake have announced plans to combine in a merger of equals, making the company arguably the most attractive gold producer in the sector.
• Not only would the combined entity have the largest reserve base in Tier-1 jurisdictions, but it would have industry-leading margins, and an impressive growth profile.
• Notably, there would be significant operational synergies in the Kirkland Lake camp, and Kirkland Lake Gold would benefit from Agnico's multiple decades of underground mining expertise.
• Assuming the deal goes through, Agnico Eagle 2.0 will become a must-own name in the gold sector, and I would expect the combined entity to command a premium valuation relative to peers.

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