Recently, Goldcorp Inc. (GG) met its 2011 gold production estimation and also expects to meet success in 2012 and beyond.
With a record gold production of 2.51 million ounces, Goldcorps 2011 production costs are estimated to total approximately $220 per ounce.
Peñasquito mine met its production target and continued to emerge as an essential asset base in 2011, with strong operating cash flow in its first year of production. The company expects production at its Peñasquito mine in Mexico to rise from the 162,800 ounces in 2010 to 350,000 gold ounces in 2011. The Marlin mine in Guatemala achieved production of 296,100 ounces of gold last year and is expected to mine 400,000 ounces this year.
Production at the Los Filos mine in Guerrero state in Mexico is expected to increase 10% from 306,100 ounces in 2010 to 335,000 ounces.
Gold production from the Pueblo Viejo joint venture gold project with Barrick in the Dominican Republic is expected to contribute slightly to Goldcorp’s overall production profile this year with a subsequent ramp up to an average of 415,000 to 450,000 ounces of gold expected annually in the first five years of full production.
Goldcorp believes that its forecast gold production of 2.6 million ounces in 2012 will be driven by another strong year throughout the portfolio, while increased production at Peñasquito will be offset by lower production at Marlin as the mine transitions to 100% underground mining. Besides, year-over-year growth in the overall production target comes from new gold production from the Pueblo Viejo joint venture in the Dominican Republic, but at a significantly reduced level due to previously reported project delays. Consistent production levels at other mines throughout the portfolio will create a stable foundation for the coming years.
Goldcorp has projected a 2011 capital expenditure of $1.8 billion, of which half is allocated to operations and half is allocated to projects. Of the project capital expenditure, approximately 30% is budgeted for the completion of Pueblo Viejo.
Exploration expenditures are expected to increase to $170 million with the primary focus on the replacement of mined reserves and on extending existing gold zones at all of Goldcorp’s prospective mines and projects.
Goldcorp has six new mines in the project pipeline over the next five years and is aiming to increase gold production by 60% to achieve five million ounces annually during the period.
Gold production is forecast to grow approximately 70% over the next five years to 4.2 million ounces in 2016.
The company did not yet disclose the quantity of silver, copper, lead and zinc byproduct production for 2010. However, Goldcorp projected a gold equivalent production of 3.8 million ounces in 2011.
Goldcorp will release its fourth-quarter 2011 and fiscal year 2011 results on 15th February 2012.
