Goldcorp eyes 1m gold ounces in Mexico in 2014
The Canadian gold miner has invested around $200 million in the country this year.
Posted: Thursday , 02 Oct 2014
MEXICO CITY (Reuters) -
Goldcorp said on Wednesday, 1 October 2014, it expects to produce around 1 million ounces of gold in the Mexican region this year, or around a third of the gold giant's total estimated output for 2014.
Canada's Goldcorp Inc, the world's most valuable gold miner by market capitalization, has said it expects to produce between 2.95 million and 3.10 million ounces of gold this year, up on 2.67 million ounces last year.
Tomas Iturriaga, vice-president of Goldcorp in Mexico, told reporters on the sidelines of BNamericas mining summit in Mexico City that the company had invested around $200 million in the country this year.
(Reporting by Tomas Sarmiento)
Cash-flush Goldcorp sees 'significant opportunities' for growth
By: Liezel Hill (Mining Weekly)
Published: 5th May 2008
Canada's second-biggest gold-miner, Goldcorp, sees “significant opportunities” for growth initiatives at its existing assets, CEO Kevin McArthur said on Monday.
These included an openpit mine at the company's Red Lake mine, in Canada, underground mining opportunities at the Penasquito mine, in Mexico, and possibly even generating its own power at Penasquito.
However, the potential projects were “too fuzzy right now to talk about in any detail”, McArthur said.
The company is in a comfortable financial position, as it is debt free and has about $1,2-billion on its balance sheet, after selling its 48% holding in silver reseller Silver Wheaton, plus annual cash flow of about $1-billion, CFO Lindsay Hall pointed out.
While Goldcorp also continued to keep an eye on acquisition prospects in the areas surrounding its mines, it was more focused on exploiting the potential upsides at the assets it already owns, McArthur said.
Goldcorp has operations in Canada, the US, Mexico, Guatamala, Honduras, the Dominican Republic, Argentina and Chile.
In the last three years, the company has transformed itself from a single-mine producer to the second-biggest Canadian gold-miner, first acquiring a number of assets inherited by Barrick Gold when it bought Placer Dome in 2005, and then by merging with rival Glamis Gold in 2006.
Goldcorp, which, like its peers around the world, is scrambling to boost production to take advantage of record bullion prices, expects capital expenditure to reach $1,2-billion this year, not including spending on the co-owned Pueblo Viejo project, which McArthur indicated could be about $300-million in 2008.
The group is targeting production of 4-million ounces a year by 2012.
It has several green- and brownfields projects under way, including the $1,5-billion Penasquito project, in Mexico, where it has started heap leaching and expects to pour the first gold from oxide ore before the end of the year.
The company announced in December last year that it had increased the planned output of its Penasquito project by 30 000 t/d of ore, or 30%, but that the expected capital outlay for the mine's construction had leapt by 69%.
Goldcorp and partner Barrick Gold also announced in February that they had submitted a feasibility study for their $2,7-billion Pueblo Viejo project to the government of the Dominican Republic.
A feasibility study is currently under way for the Élóonore project, in Quebec, Canada, but McArthur said on Monday that the study would take longer than expected, as more time was needed to study the deposit.
"We feel that making an investment in additional time to get this right is the prudent course," he said.
In the meantime, the company was going ahead with permitting applications for infrastructure, including a permanent airstrip and access road.
Once in production, Goldcorp hopes the Élóonore mine will produce between 250 000 oz and 350 000 oz, "with a long mine life".
Goldcorp reported an 84% increase in net earnings year-on-year, to $229,5-million, after higher gold prices and the Silver Wheaton disposal buoyed profit.
Goldcorp realised its highest-ever average gold price, of $932/oz, during the quarter, which boosted revenue 32%, to $626,7-million, offsetting lower production numbers.
Gold sales declined to 517 800 oz, from 527 000 in the first three months of 2007, after production declined at the group's Canadian mines.
The firm's Red Lake mine produced 128 500 oz of gold in the first quarter, compared with 179 400 oz a year ago. The decline was primarily a result of "mine sequencing issues", Goldcorp said, which the company hoped would be resolved over the rest of the year.
However, on the other side of the coin, the new Los Filos mine, in Mexico, which had its first full quarter of commercial production, had more than met expectations, and was on track to be the largest gold producer in Mexico this year.
"Goldcorp's Latin American assets were our strongest performers against a backdrop of record-high realised gold prices in the first quarter," McArthur said.
Group cash costs also increased by 32% to $240/oz, as a result of a strengthening Canadian dollar, and rising costs for labor and consumables.
However, McArthur was confident that production and costs would improve across the board quarter on quarter, throughout the remainder of the year.
Toronto-based Barrick, the world's biggest producer of the yellow metal, is scheduled to report its first quarter results on Tuesday.
Goldcorp production in '07 increased 35 per cent, '08 forecast 14 per cent
Published: Tuesday, January 8, 2008 | 8:56 AM ET
Canadian Press: THE CANADIAN PRESS
Production is expected to rise by 14 per cent this year, Vancouver-based Goldcorp said Tuesday.
And the capital spending budget for 2008 will be US$1.2 billion this year, dipping to US$1.1 billion in 2009.
Total cash costs for 2007 have not yet been compiled, but are expected to be slightly higher than the guidance of $150 per gold ounce, due primarily to lower copper prices during the fourth quarter.
"Goldcorp ended the year with its highest quarterly gold production ever," CEO Kevin McArthur said in a release.
"We believe 2008 will extend our peer-leading growth profile, with gold production expected to increase 14 per cent over 2007. This growth comes from high quality, long-lived assets with intriguing exploration potential and strong cash flows."
McArthur said Goldcorp's business continues to expand with big mines in "safe countries," with over 80 per cent of its gold production expected from NAFTA countries in 2008.
In 2008, the company expects to produce about 2.6 million ounces of gold at a total cash cost of about $250 per ounce.
Production is expected to rise throughout the year as cash costs decrease due to a sequential ramp-up in production at Los Filos in Mexico and increased second-half production at Red Lake after a mine expansion project.
Red Lake, in northern Ontario, is Canada"s largest gold mine.
Goldcorp's Canadian mines will represent over half of the company's 2008 gold production. Forecast gold production at Red Lake of 740,000 ounces is expected to increase in the second half as the company concludes its expansion project.
Opportunities to grow production at the company's two other large Ontario mines, Musselwhite and Porcupine, are currently being evaluated. The Eleonore project in Quebec is expected to be Goldcorp's next gold mine in Canada, with completion of a feasibility study at year end.
Los Filos reached commercial production on Jan. 1 and gold production is expected to ramp up throughout the year.