Agnico Eagle is now considered to be Canada’s largest mining company by market capitalisation. Credit: Piotr Swat/Shutterstock.

Agnico Eagle Mines is reportedly on track to become the world’s second-largest gold producer, challenging Barrick Gold’s position.

The Canadian mining company is targeting output of 3.3–3.5 million ounces (moz) of gold this year, aligning with Barrick’s production, reported Bloomberg.

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Barrick, currently the second-largest producer, forecasts a decline in output due to the shutdown of its mining complex in Mali.

Agnico CEO and former Barrick executive Ammar Al-Joundi emphasised that the company’s strategy is not focused on size.

Al-Joundi said: “We have never cared about whether we are bigger than these guys or those guys. We only care about whether we are growing our value per share. If I had less production at double the margins, I would probably do it.”

Both Agnico and Barrick, headquartered in Toronto, have competed for market share in recent years.

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Agnico has rapidly ascended the industry ranks through strategic acquisitions, while Barrick pursues gold and copper projects in South Asia and Africa.

The gold industry has seen consolidation as producers seek to replace ageing assets with newer mines.

Agnico Eagle, once a small producer in Quebec, is now considered to be Canada’s largest mining company by market capitalisation, operating 11 mines across three continents.

Recently, Agnico acquired 110,424,431 common shares of O3 Mining, representing approximately 94.1% of the outstanding shares. This acquisition is part of a board-supported takeover bid at $1.67 per share.

The company also made an investment of C$55m ($40m) in ATEX Resources, aligning with its strategy to invest in projects with high geological potential.