Goldcorp Inc. (GG), the world’s second-largest gold producer, yielded over 2.4 million ounces of gold in 2009, exceeding the previously announced guidance of 2.3 million ounces. The results were driven by the surge in gold prices in the latter half of 2009.
Fourth quarter 2009 gold production totaled 601,000 ounces. Total cash costs are expected to be about $295 per ounce of gold. The company ended the year with $865 million in cash.
Goldcorp has also provided production and cash cost guidance for 2010. The company expects to produce about 2.6 million ounces of gold at a cash cost of approximately $350 per ounce. Goldcorp expects capital expenditures of $1 billion in 2010, of which about $485 million has been budgeted for Pueblo Viejo in the Dominican Republic for an expansion in output to 24,000 tons per day.
Company-wide exploration expenditures in 2010 are expected to amount to approximately $130 million, half of which will be expensed, with efforts focused on replacing reserves mined throughout the year. General and administrative expense is forecasted at $95 million.
Goldcorp’s Penasquito mine in Mexico remains the primary driver of the company’s gold production growth of approximately 50% expected in the next five years. At the Penasquito mine, ore processing output rates for the first sulphide processing line have reached operational production levels, while the company is making good progress towards the completion and ramp-up of the second sulphide processing line by the third quarter of 2010. Production of both lead and zinc concentrates have ramped up consistently, while expectations of commercial production remain on track for the third quarter.
Goldcorp is also making consistent progress at projects including Cochenour in Red Lake, exploration shaft construction at Eleonore in Quebec, the Hoyle Pond winze project at Porcupine in Ontario and further regional opportunities at Penasquito. In addition, in 2010, the company expects to fund nearly half of its overall capital commitment at the 40%-owned Pueblo Viejo project in the Dominican Republic, which is scheduled for start-up in late 2011.
Goldcorp also expects to close its recently announced transactions with New Gold Inc. (NGD) regarding the El Morro copper-gold project in Chile, besides the Canplats Resource Corporation and the Camino Rojo project, both in Mexico.
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