Sean Boyd, CEO, Agnico EagleScott Mlyn | CNBCWhereas demand for gold stays robust, the act of constructing mines has grown harder over the past dec
Sean Boyd, CEO, Agnico Eagle
Scott Mlyn | CNBC
Whereas demand for gold stays robust, the act of constructing mines has grown harder over the past decade, the CEO of a Canadian miner informed CNBC’s Jim Cramer on Tuesday.
“It is so much harder now than it was 10 or 15 years in the past,” ‘ Sean Boyd mentioned on “Mad Money.”
A number of elements contribute to the growing issue, together with the geographic realities of opportune places, Boyd mentioned.
“The deposits which are being discovered now … are present in elements of the world which lack infrastructure, are in elements of the world which international locations might not need you there,” Boyd mentioned. “That is why it is also getting more difficult to search out deposits.”
Even when these challenges are met, there are extra hurdles on the opposite aspect, Boyd defined, pointing to “principally allowing” related to harder environmental rules.
“That is one other factor which limits provide. The lead time to construct these property [is] so much longer, the capital required to construct them so much bigger,” he mentioned. “That simply makes it harder.”
Shares of Agnico Eagle, which celebrated its 25th anniversary of being a public firm Tuesday on the New York Inventory Change, had been buying and selling barely down Wednesday, round $58.
However for the yr, the Toronto-based firm is up about 44%.
The value of gold fell Wednesday as amid renewed optimism round a…