Agnico-Eagle Mines’ CEO and Vice Chairman, Sean Boyd, presented his outlook on the gold market on Thursday following his company’s latest earnings release.
The Canadian-based gold miner reported earnings per share of $0.47, which beat the consensus estimate among research analysts. Boyd attributed a considerable portion of the company’s earnings growth to the rising price of gold, which has been driven higher by a myriad of factors.
In addition to the ongoing U.S. debt ceiling discussions and sovereign debt crisis in Europe, Boyd highlighted the fact that central banks have become net buyers of gold.
In an interview with Business News Network, Boyd contended that “One of the game-changers here is, for the first time in decades, central banks having an interest in buying, rather than selling [gold]. And that is a huge component of the increase in demand.”
Boyd also discussed the growing trend among gold companies of paying dividends to shareholders. ”I think the gold space is going to start paying more dividends and people are going to start looking at the space and say ‘hey, it is gold but it’s actually a quality business at these levels.’”
Premier Gold Mines Provides Mid-Year Update
- Premier Gold Mines recently announced its intention to acquire Goldstone Resources.
- New discoveries have been made at Hardrock including the recently identified Tenacity South horizon where drilling has confirmed high-grade mineralization up to 10.89 grams per tonne (g/t) gold across 10.0 meters including 45.40 g/t across 2.0m and 37.49 g/t across 2.1m.
- Drilling at the Rahill-Bonanza joint venture project in Red Lake continues to define high-grade gold mineralization within the "2E Horizon" with visible gold seen in recent down-plunge drilling.
- Drilling at the PQ North Project has intersected numerous gold-bearing shear zones in addition to mineralized iron formation units with alteration and mineralization similar to the nearby Musselwhite Gold Mine.
- The company has three drill rigs active at the Saddle Project in the Carlin Trend. Several holes have intersected significant mineralization and a results update will be provided in the coming weeks.
