Gold mining giant Goldcorp Inc. (GG) has unveiled its production results for 2014 and its outlook for 2015. It has achieved a record production of 886,000 ounces in the fourth quarter of 2014, bringing the total gold production for the year to 2.87 million ounces, an 11% rise over 2013. The 2014 gold production was expected to be at the low end of its previously guided range of 2.95 million–3.1 million ounces.
Goldcorp, one of the leading gold mining companies along with Barrick Gold (ABX), Newmont (NEM) and Kinross Gold (KGC), said that all-in sustaining costs for fourth-quarter 2014 were roughly $1,045 per ounce of gold. Its full-year 2014 all-in sustaining costs were down 6% year over year to roughly $950 per ounce of gold, within the guidance of $950–$1,000 per ounce. Total cash costs on a by-product basis are projected to be roughly $600 per ounce of gold for the fourth quarter and around $545 per ounce of gold for 2014.
Gold production for the Penasquito and Los Filos mines in Mexico is 567,800 and 258,700 ounces of gold, respectively, for 2014. The Red Lake (includes Cochenour), Porcupine and Musselwhite mines in Canada produced 414,400, 300,000 and 278,300 ounces of gold, respectively for the same year. The Pueblo Viejo (40% interest) mine in Central America and Marlin mine in Guatemala produced 439,100 and 186,500 ounces of gold in 2014.
All the Goldcorp-operated mines either met or exceeded the 2014 production guidance except for the Los Filos mine where continued weakness led to a fall in production.
For full-year 2015, Goldcorp expects gold production to rise around 20% to between 3.3 and 3.6 million ounces of gold. The company further estimates gold production for the Penasquito and Los Filos mines to be within the range of 700,000–750,000 ounces and 265,000–290,000 ounces, respectively, in 2015.
Goldcorp also expects gold production for 2015 at the Red Lake (includes Cochenour), Porcupine and Musselwhite mines to range between 400,000 and 425,000 ounces, 300,000 and 320,000 ounces, and 250,000 and 270,000 ounces, respectively. For the Pueblo Viejo and Marlin mines, Goldcorp expects gold production for 2015 to be within the range of 420,000 to 460,000 ounces, and 160,000 to 175,000 ounces, respectively.
Goldcorp estimates all-in sustaining costs to decrease to a range of $875–$950 per ounce in 2015. The decline in costs is expected to result from new contributions from two new low-cost mines at Pueblo Viejo and Cerro Negro, and attainment of cost efficiencies through the Operating for Excellence program.
For 2015, Goldcorp forecasts capital expenditures to decrease around 40% from 2014 to between $1.2 billion and $1.4 billion, of which roughly $235 million will be allocated at Cerro Negro, $215 million to Penasquito, $115 million to Éleonore and $95 million to Cochenour.
Goldcorp achieved first commercial gold production at Cerro Negro as on Jan 1, 2015. At Eleonore, gold production will start (expected in first-quarter 2015) only after solving the remaining start-up issues. The integration of the Cochenour project into Red Lake operations is a major priority in 2015. Significant contributions from these new projects are expected to drive five-year gold production growth.
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