By Danielle Bochove and Luzi-Ann Javier
The most profitable producer of one of this year’s best-performing commodities says things are about to get a whole lot better.
For investors who missed gold’s climb to a two-year high in early July, it’s not too late to jump in, according to Agnico Eagle Mines Ltd. Chief Executive Officer Sean Boyd. The Toronto-based company’s gross margin of 52 percent last quarter is the biggest among major producers, according to data compiled by Bloomberg. It’s also the only big gold miner to expand the margin over the past five years, the data show.
“I think in this cycle, they will ultimately set an all-time high,” Boyd said in a telephone interview Thursday. Spot gold prices touched a record $1,921.17 an ounce in September 2011. Agnico is laying the groundwork for expanded output through exploration, and Boyd said it’s “one of the very few companies that can see its output 30-40 percent higher in five years from now from stuff we already own.”