Gold mining giant Goldcorp Inc. (GG) has filed National Instrument 43-101 technical report pertaining to its 100% owned Éléonore project in Quebec and its 40% owned Pueblo Viejo mine in Central America.
As of Dec 31, 2013, the Éléonore project contained 4.03 million ounces of proven and probable gold mineral reserves (19.3 Mt at 6.49 g/t) and 4.10 million ounces of inferred gold mineral resources (13.25 Mt at 9.63 g/t).
The Éléonore mine is expected to commence production from late 2014. Goldcorp expects gold production in 2014 to be in the band of 40,000–60,000 ounces. Average annual gold production, once the mine reaches full production, is expected to be about 600,000 ounces. Gold reserves are expected to be 4 million ounces. Total capital expenditure is expected to be between $1.8 and $1.9 billion. Roughly $1.3 billion has been already spent for the completion of the project.
Goldcorp has also set aside the full rehabilitation cost for its Éléonore gold mine as announced on Mar 3. Goldcorp has secured $40.1 million to cover 100% of the closure obligation associated with the Éléonore mine site.
As of Dec 31, 2013, the Pueblo Viejo project contained 6.46 million ounces of proven and probable gold mineral reserves (61.9 Mt at 3.25 g/t) and 0.33 million ounces of inferred gold mineral resources (3.31 Mt at 3.11 g/t). The mine also contained 40.72 million ounces of proven and probable silver mineral reserves (61.9 Mt at 20.46 g/t) and 2.16 million ounces of inferred silver mineral resources (3.31 Mt at 20.27 g/t).
At Pueblo Viejo, gold production increased 139.5% year over year and 39% sequentially in fourth-quarter 2013 to 104,700 ounces (40% basis) at an all-in sustaining cost of $688 per ounce. Sequentially, production increased due to an increase in tons milled during the quarter following the completion of autoclave modifications during the fourth quarter.
Goldcorp released its fourth-quarter 2013 results last month. The company’s adjusted earnings (barring one-time items) of 9 cents a share missed the Zacks Consensus Estimate of 23 cents and was well below 57 cents a share in the year-ago quarter.
Net loss, as reported, in the quarter was $1.1 billion or $1.34 per share compared with net earnings of $504 million or 47 cents per share a year ago.
Goldcorp posted revenues (as adjusted) of $1,203 million in the quarter, down 16.2% year over year. The company missed the Zacks Consensus Estimate of $1,242 million. Average realized gold price for the reported quarter declined 25.9% to $1,254 per ounce from $1,692 per ounce in the prior-year quarter.
For 2014, Goldcorp expects a 13–18% increase in gold production to a range of 3–3.15 million ounces. All-in sustaining costs are expected to reduce and lie between $950 and $1,000 per ounce of gold. The company will revise both the gold production and cash cost guidance following the expected closing of the Marigold divestiture in Apr 2014.
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the mining sector include AngloGold Ashanti Ltd. (AU), Golden Star Resources, Ltd. (GSS) and NovaGold Resources Inc. (NG). While AngloGold carries a Zacks Rank #1 (Strong Buy), Golden Star Resources and NovaGold Resources hold a Zacks Rank #2 (Buy).
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