Goldcorp beats output forecast in '09, expects 3,8Moz by 2014
TORONTO (miningweekly.com) – Goldcorp, the world's second-biggest gold-miner by market value, topped its own production guidance last year, and expects to increase output by around 50% over the next five years, to about 3,8-million ounces by 2014.
The company, which will release year-end financial statements on March 11, produced 2,42-million ounces in 2009.
Goldcorp said in January last year it expected to produce 2,3-million ounces, and increased the guidance to about 2,4-million in November.
Fourth quarter gold production was 601 000 oz, Goldcorp said in a statement on Monday.
The company still needs to finalise the 2009 numbers, but expects to report total cash costs of around $295/oz on a byproduct basis and about $390/oz on a coproduct basis.
“Executing to our plan remained our top priority throughout 2009,” said CEO Chuck Jeannes.
“Our mines all performed at or ahead of expectations, we advanced projects throughout our growth pipeline, including the commencement of regular production and concentrate sales from Penasquito, and we funded all of this progress from existing sources of liquidity without dilution of shareholders' equity.”
Goldcorp is nearing completion at the Penasquito mine, which shipped its first lead and zinc concentrates in November.
Ore processing throughput rates for the first sulphide processing line are now at operational production levels, and the company is making good progress toward completion and ramp-up of the second sulphide processing line in the third quarter of 2010, Jeannes said.
"Production of both lead and zinc concentrates have ramped up consistent with expectations and commercial production remains on track for the third quarter."
Goldcorp has mines in Canada, Argentina, the US, Mexico, Honduras and Guatemala. The company is in the process of acquiring Canplats Resources, which has a project in Mexico, and announced last week it will buy 70% of the El Morro project, in Chile.
The miner said it ended the year with about $865-million in cash at year-end, an undrawn $1,5-billion credit facility expects to generate about $1-billion in cash flows in 2010.
STEADY GAINS IN 2010
This year, the group confirmed that it expects to produce about 2,6-million ounces of gold, at a total cash cost of around $350/oz on a by-product basis and $450/oz on a coproduct basis.
Gold production levels on a quarterly basis are expected to ramp up steadily throughout 2010, and output gains will be spread across the company's operations, Goldcorp said.
The company also published its gold production forecasts for the next five years, repeating a promise made this time last year to increase output by around 50% over the next half-decade.
The new Penasquito mine, in Mexico, is the main driver of production growth over the period, but the Pueblo Viejo mine, which Goldcorp is developing with larger rival Barrick, will also make a significant contribution, the company said.
There will also be “incremental increases” at a number of the group's other large, long-life assets.
Goldcorp expects to produce 2,8-million ounces of gold in 2011, 3,1-million ounces in 2012, 3,4-million ounces in 2013 and 3,8-million ounces in 2014.
The Pueblo Viejo project, which is in the Dominican Republic, is scheduled to start production by the fourth quarter of 2011.
Goldcorp owns 40% and Barrick owns 60%.
