https://www.miningweekly.com

Agnico CEO expects gold rallying to record $2 000 in 2-3 years

25th October 2019

By: Bloomberg

  

Font size: - +

NEW YORK – Agnico Eagle Mines CEO Sean Boyd expects gold prices to continue to strengthen amid global economic uncertainty and deficit spending, and the metal may hit a record $2 000/oz in the next two to three years.

“Governments focus on running a deficit budget and spending; that loose money approach is good for gold,” Boyd said Thursday in a telephone interview. “You continue to get good buyer demand from China, India and the biggest buying coming from the central banks since the early 1970s.”

The Toronto-based miner plans to increase dividends and strengthen its balance sheet with the extra cash flow generated from higher gold prices, while share buybacks aren’t something the company is considering at the moment.

Bullion futures have risen 17% this year as trade tensions and faltering global growth increased demand for the metal as a haven. They settled at $1 495.70 on Wednesday. Prices hit a record $1 923.70 intraday in New York in September 2011 as the dollar fell amid massive US quantitative easing programs to stimulate the economy.

On Wednesday, the Canadian gold producer reported third-quarter earnings and revenue that beat analysts’ estimates as gold production climbed to a quarterly record of 476 937 oz. Agnico increased its 2019 forecast to a range of 1.77-million to 1.78-million ounces, from previous guidance of 1.75 million. For 2020, Agnico expects annual gold output to reach 1.9-million to 2-million ounces.

Meanwhile, Agnico raised its 2019 capital costs estimate to $790-million from previous guidance of $750-million.

Agnico rose 5% to C$74.13 at 10:43 a.m. in Toronto on Thursday, boosting its year-to-date increase to 34%.

Edited by Bloomberg

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ASTPM
ASTPM

Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...

VISIT SHOWROOM 
CSIR International Convention Centre (CSIR ICC)
CSIR International Convention Centre (CSIR ICC)

CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.07 0.103s - 110pq - 2rq
Subscribe Now