Goldcorp: Record gold output, record net earnings and new gold mines go-ahead
Goldcorp has reported record gold production of 2,520,300 ounces in 2010 and says it expects to mine between 2.65m and 2.75m ounces of gold next year
Author: Dorothy Kosich
Friday , 25 Feb 2011
RENO, NV –
Goldcorp announced Thursday that it expects to mine between 2.65 million and 2.75 million ounces of gold.
The company’s board has approved full-scale development of Goldcorp’s two major Canadian gold projects, Éléonore in Quebec and Cochenour in Red Lake Ontario.
The Éléonore Project is expected to mine an average of 600,000 ounces of gold annually over a 15-year mine life. The $1.4 billion project is expected to begin mining gold in the fourth quarter of 2014.
Located near Goldcorp’s flagship Red Lake mine, the $420 million Cochenour Gold Project is expected to average annual gold production of between 250,000 to 275,000 ounces over a 20-year mine life. Initial gold production is planned for the fourth quarter of 2014.
In a news release, Goldcorp said Éléonore has achieved several important milestones this year, including the declaration of a proven and probable gold reserve in excess of 3 million ounces and a signed Collaboration Agreement with the Cree Nation of Wemindji, the Grand Council of the Crees, and the Cree Regional Authority.
Meanwhile, Goldcorp reported record gold production of 2,520,300 ounces for 2010, up from 2,421,300 ounces mined in 2009. Gold production for the fourth-quarter 2010 was 689,600 ounces, up from 601,300 ounces for the same period of 2009. Gold production was higher during the fourth-quarter 2010, mainly due to record production at Marlin and Los Filos.
Goldcorp noted that operations at its controversial Marlin Mine in Guatemala continue normally “while the administrative process by the Guatemalan Government is underway.”
The process is in response to a declaration by the Inter-American Commission on Human Rights (IACHR) that operations should be suspended at Marlin by the Guatemalan Government. “Goldcorp strongly believes that the IACHR’s action is based on environmental allegations that are demonstrable without merit,” the company declared.
Adjusted net earnings of $1 billion or $1.37 per share were reported in 2010, up from net earnings of $588.2 million or 80-cents per share reported for 2009. Net earnings for 2010 were a record $1.6 billion or $2.14 per share, compared to net earnings of $240.2 million or 33-cents/sh reported for 2009.
Goldcorp reported adjusted net earnings of $417.1 million or 57-cents per share in the fourth-quarter 2010, up from $182.7 million or 25-cents/sh reported in the fourth-quarter 2009. Net earnings in the fourth quarter of 2010 were $331.8 million, compared to $66.7 million in the fourth-quarter 2009.
Excluding the Pueblo Viejo operation, capital expenditures for 2011 are forecast to be $1.5 billion including $300 million each for Éléonore and El Morro, $200 million for Red Lake and $200 million for Cerro Negro.
Exploration expenditures are expected to be $170 million this year, of which one-half will be expensed, with efforts focused on replacing reserves mined throughout the year and on extending existing told zones at all of Goldcorp’s prospective mines and projects.