Goldcorp Inc. pledges its commitment to Timmins
Goldcorp Inc. pledges its commitment to Timmins.
Goldcorp holds its first ever corporate annual meeting in Timmins.
By Len Gillis firstname.lastname@example.org
Goldcorp President and Chief Executive Officer Charles “Chuck” Jeannes told a Timmins audience Thursday that his company has made a substantial investment in both the Porcupine camp and in Porcupine Gold Mines and Goldcorp has every intention of growing that investment.
Jeannes was presiding at Goldcorp’s first ever annual general meeting held outside of Toronto or Vancouver. The meeting, with most of the board of directors in attendance, was held in Timmins in honour of the city’s 100th anniversary celebrations.
“You know we’re a dynamic business and we buy new assets and on occasion we’ve sold assets. I think the fact that we’ve continued to invest so much in Porcupine should be indicative of the commitment we have to this operation,” said Jeannes.
He said the commitment of the company made this year for the Hollinger Project, combined with the decision made in 2010 to expand the Hoyle Pond operation is a commitment of hundreds of millions of dollars and is clear evidence the company has long term plans for the city.
“We’re absolutely committed here. As the Porcupine continues to produce a significant amount of gold and produce cash flow and earnings for the company … we see this a good place to continue to try to grow. We’re committed. I hope that comes through loud and clear with the investments we’ve made,” said Jeannes.
Jeannes said exploration is also an important part of that commitment.
“I had the opportunity to talk some exploration last night and there’s opportunities for continued growth here. As Ian (Telfer) said ‘We haven’t found the last ounces in Porcupine’ and we see this as a good place,” Jeannes continued. (Ian Telfer is chairman of the Goldcorp board of directors.)
“I hope that comes through loud and clear with the investments we’ve made and you know we want you to keep having the kind of success that you’ve had and find more,” he said.
After the meeting, Jeannes repeated the sentiment for local reporters.
“Absolutely, this is an important part of our company,” he said, adding that the company continues to produce between 250-thousand to 300-thousand ounces of gold each year and continues to be profitable.
Jeannes said he is well aware of the cyclical nature of precious metals, but said he is still bullish on gold. He said he is confident that despite the concerns about price cycles, the strong price of gold will continue
“I believe all the macro-economic factors that around the world that have supported the gold price over the last ten years remain fully in place,” said Jeannes. He said such factors as growing industrial demands in the Far East, the financial uncertainties in Europe and the move away from the U.S. Dollar by many central banks continues to make gold a good bet for many investors.
Timmins Mayor Tom Laughren, the guest speaker at the meeting, said Timmins has enjoyed a long relationship with Goldcorp, through its predecessor company Dome Mines, which has been in operation for 102 years.
“This relationship has been extremely important to the community and one that is extremely valuable,” Laughren told the shareholders. Laughren also praised the company as being an asset to the city and a responsible steward of the environment.
“They’re an example for all major mining and industrial companies to follow,” said the mayor.
Laughren also took a few minutes to boast about this city’s gold mining heritage, reminding the group that while the world famous Klondike gold rush produced 12 million ounces of gold, the Porcupine gold rush has lasted for more than 100 years with more than 67 million ounces of gold coming out of Timmins mines.
Laughren said the lustre of gold in this city continues to be as bright as ever with a record number of exploration companies working in Timmins and people from around the world continue to travel to Timmins to take advantage of the opportunities.
One contentious issue mentioned at the meeting was from some shareholders who expressed concern about the Goldcorp Marlin Mine in Guatemala. There was a difference of opinion on the cost of the closure plan for that mine. Activists speaking on behalf of the people in that area said Goldcorp needs to commit $49-million for the closure of the mine. Goldcorp disagreed and said the cost should only be $27.6-million. The activists put up a motion to have Goldcorp agree to the $49 million closure plan. The motion was defeated.
Following the annual meeting, the board of directors and invited guests, attended a private reception at the Timmins Museum.