Published: August 2, 2017
BY JENNIFER PARSONS
Goldcorp Inc. released its second quarter results last week, posting net earnings of $135 million, or $0.16 per share, while lowering its forecast for costs this year.
“Since the reorganization of the company in the second quarter 2016 we have delivered four consecutive quarters of steady, on target, and increasingly profitable gold production,” President and CEO David Garofalo told investors on July 27. “During the second quarter we produced 635,000 ounces of gold at an all-in sustaining cost of $800 per ounce compared to 613,000 ounces of all-in sustaining costs of $1,067 per ounce for the second quarter of 2016. This puts us slightly ahead of pace mid-year to achieve our full year guidance of 2.5 million, plus or minus five per cent.”
Garofalo also noted the company’s all-in sustaining cost (AISC) guidance had been lowered to $825 per ounce from $850 per ounce.
“Quarterly gold production is expected to be – is expected to continue to be in a fairly flat range of 625,000 to 650,000 ounces per quarter as a planned decrease in grades at Peñasquito in the second half of the year will be largely offset by the continued ramp-up in production at Cerro Negro and Éléonore, and an improved grade profile in Red Lake,” he added.
Providing an update on exploration activities across the company’s mine sites Senior Vice President Paul Harbidge said work continues to increase the “geological understanding” of the upper main zone at Cochenour noting the company is on track to release the first reserve estimate on the upper part of the deposit next quarter.
“The high-grade plunge at HG Young is caused by the intersection of the HG young Shear and the Mine Trend Faults,” Harbidge noted while explaining the Red Lake camp’s other exploration project HG Young.
“New resource estimate is being calculated, which will form the basis to a development strategy for the deposit, and whether we do this from a surface decline or underground drift from an existing infrastructure. Drilling will continue to develop this project, with holes targeting the above structural controls, including high-grade plunge.”
The company also announced two organization changes including the appointment of former National Chief Matthew Coon Come to the Board of Directors as well that the appointment of Jason Attew to EVP, Chief Financial Office and Corporate Development to replace former CFO Russell Ball.