Canadian gold mine CEO: 'Gold blossoms' in a low-interest rate economy

Gold is trading at levels it has not seen in years and could be on its way to reaching all-time highs in the near future, the CEO of a Canadian miner told CNBC Monday.

Sean Boyd, the vice chairman and CEO of Agnico Eagle Mines, said the current state of interest and inflation rates creates a perfect environment for the industry. The price of gold broke above the $1,400 level last month for the first time since 2013 and is currently hovering in the $1,420 range.

"We're in a period now where gold blossoms when you have low real interest rates ... gold does well," Boyd said in an interview with "Mad Money's" Jim Cramer. "And then the inability of the industry to respond to a higher gold price is, I think, the key to get it going forward."

Agnico Eagle's share price, too, has reached its highest level in recent years. The stock, which bottomed out at about $32 in September, rose more than 1% to $71.54 on Monday. Gold traded below $1,200 in September, while the market was reaching record highs before a brutal sell-off kicked in.

"[Gold] will hit the all time highs of $1,900 to $2,000 because we're starting from a higher base than we did back in the late '90s," Boyd said.

During gold's years-long slump, Agnico made necessary investments to expand its operations, he said. The company launched commercial production at its new Meliadine mine in northern Canada in May and is gearing up to open its Amaruq facility in August.

Agnico is also investing in autonomous mining to improve production and safety at its sites, Boyd added. The move towards self-driving vehicles and equipment will make mining more efficient and keep costs down, he said.

Agnico expects to produce a total of 1.75 million ounces of gold in 2019.

"This year we'll set record gold production, but then we can continue to grow, but grow at a steady pace," Boyd said. "It's all about managing risk in this business 'cause you're dealing with nature."

Last week, Agnico said higher gold prices helped the company to top profit expectations in its second quarter report. The company recorded $526.6 million of revenue and 10 cents earnings per share, up from 1 cent the year prior.

WATCH: Cramer interviews Agnico Eagle Mines CEO Sean Boyd

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