Goldcorp predicts 50% increase in gold output in 2014-2015

Goldcorp forecast the company’s gold production will grow 13-18% this year to between 3 million and 3.5 million ounces. In a press release issued Wednesday, Goldcorp predicted gold production would increase by 50% over the next two years, along with a reduction in all-in sustaining costs of 15-20% during that period.
For 2014, the company estimates that all-in sustaining costs will decrease to between $950 and $1,000 per ounce, compared to $1,065 per ounce in 2013. “Decreasing costs are expected to be driven by increasing grades and by-product production at Peñasquito, lower costs at Pueblo Viejo, lower-cost production from Cerro Negro and Goldcorp’s continued overall focus on cost efficiencies through the Operating for Excellence program,” said Goldcorp.
The company reported 2013 gold production of 2.67 million ounces, an 11% increase over 2012. “Every Goldcorp-operated mine either met or exceeded 2013 production guidance with the exception of Los Filos, where record floods last summer temporarily halted production,” said Goldcorp CEO Chuck Jeannes. “Just as importantly, our successful cost reduction efforts in the face of lower gold prices resulted in key efficiency and productivity gains while keeping our growth profile intact.”
“We successfully achieved our cost guidance despite significantly lower realized metals prices,” Jeannes observed. Silver production is “expected to show very strong growth with 2014 production forecast between 34 million and 36 million ounces (including approximately 22 to 25 million ounces at Peñasquito),” the company said.
Zinc production is expected to be between 315 million and 325 million pounds, while lead production is expected to be between 135 million and 145 million pounds. Copper output is expected to be between 88 million and 93 million pounds. On a gold equivalent basis, company-wide 2014 production is expected to be between 4.05 million and 4.25 million ounces.
At Peñasquito, mining in the higher grade portion of the pit will continue through this year and, combined with an average throughout of 110,000 tons per day, production is expected to increase significantly to between 530,000 and 560,000 gold ounces, according to Goldcorp. Production at the operation is expected to be 1.2 million to 1.25 million gold equivalent ounces.
Modifications to all four autoclaves at Pueblo Viejo have been completed and ramp-up to full capacity is on track for the first half of this year. This is expected to drive production to between 405,000-420,000 gold ounces in 2014. Work will continue this year on the enhancement of copper and silver recoveries and achieving additional increases in autoclave ability. The Cerro Negro project in Santa Cruz, Argentina is on track to yield first gold at mid-year with 2014 gold production between 130,000 and 180,000 ounces.
Goldcorp’s 2014 capital expenditures are forecast to be between $2.3 billion and $2.5 billion, of which 60% will be allocated to projects and 40% to operations. The company anticipates that new projects “will make significant contributions to forecast five-year gold production growth with first gold production expected from new projects as follows: Cerro Negro, mid-year 2014; Éléonore, fourth quarter 2014 and Cochenour, fourth quarter of 2014.”
“…Our portfolio of low-cost mines will provide the operating cash flows to finance the completion of construction and start-up of our two newest mines, Cerro Negro and Éléonore,” said Jeannes.
Source:Bullion Bulletin

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