Goldcorp achieves 2012 gold production and cash cost forecast five-year gold production growth profile forecast at 70%
Tuesday, Jan 08, 2013
VANCOUVER, Jan. 7, 2013 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) today announced gold production and cash costs for 2012 and provided production and cash cost guidance for 2013 and the five-year period ending 2017.
Goldcorp's year-end financial statements are scheduled to be released on February 14, 2013. The final calculation of operating costs has not yet been completed, but total cash costs for all of 2012 are expected to be approximately $315 per ounce of gold on a by-product basis and approximately $645 per ounce of gold on a co-product basis.
"Delivering a strong fourth quarter and achieving our revised forecast gold production and cash cost guidance is a very positive conclusion to what was a challenging year," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. After earlier production delays at Red Lake, this cornerstone mine ended the year with operational stability, High Grade Zone gold reserves intact, and newly-discovered mineralized zones that hold the potential to contribute to the production profile over the longer term. At Peñasquito, water availability issues limited throughput rates and affected economic efficiency, masking the emerging strength of the operation as a key engine of cash flow growth in just its second full year in commercial production. The rest of our mine portfolio performed according to expectations in 2012.
"Looking forward, we expect to deliver meaningful production growth in 2013, driven by solid performance expected throughout the portfolio as well as the ramp-up in production at the Pueblo Viejo joint venture in the Dominican Republic. Pueblo Viejo represents the first leg of new gold growth as a result of our multi-year investment in new growth projects.
Cerro Negro in Argentina remains positioned to be the next, adding substantial new gold production in 2014, with Éléonore expected to make a significant contribution in 2015. Our five-year gold production profile builds steadily over the next several years, culminating in forecast gold production growth of approximately 70% by 2017.
"Just as important as the number of gold ounces we expect to add is the quality of those gold ounces, which we believe is critical to growing shareholder value over time. Goldcorp's emphasis has always been on growth in cash flow as opposed to growth in new ounces. We will remain disciplined stewards of shareholder capital by focusing on high quality, high return projects and returning capital to shareholders in the form of increased dividends, and we were pleased to announce today an 11% dividend increase to $0.60 per share annually. We remain committed to continuous improvements in the way in which we assess and account for the risks inherent in our business. We believe this has
resulted in a carefully considered, high quality and realistic five-year growth plan that demonstrates the unique investment proposition that Goldcorp shares continue to represent."
SOURCE Goldcorp Inc.