Goldcorp finishes 2012 strong with record quarterly production

Canadian-based Goldcorp (TSX:G; NYSE:GG) saw a new record for gold production with 700,400 ounces in its fourth quarter of 2012 and revenues of $1.4 billion, the company announced Friday.

Overall gold production for the year was 2.4 million ounces with revenues of $5.4 billion.

Chief Executive Officer Chuck Jeannes said the 2012 results were due to a strong effort from most of their mines, particularly Red Lake in Ontario and Pinasquito in Mexico.

He also said with the Pueblo Viejo mine — a joint venture with Barrick Gold Corp. in the Dominican Republic achieving commercial production in January, their three linchpins for their 2013 performance were all headed in the right direction.

Goldcorp increased its annual gold reserve for the ninth consecutive year. Drilling at Cerro Negro in Argentina, as well as positive increases at the Marigold mine in Nevada and Porcupine mine in Ontario, contributed to the significant increase.

The company's growth projects remain on schedule, saw advancement through the last year and are expected to keep moving forward.

Pueblo Viejo drives approximately 10% production growth this year and Cerro Negro starts late this year and will supply additional growth in 2014. The Eleonore project in Quebec starts late in 2014 and Couchenour in Ontario gets going in the first half of 2015. These projects result in a forecasted 70% production growth during the company's five-year plan.

Jeannes said  they were certainly looking at a high watermark on costs in 2013 compared to the rest of the five-year plan due to Penasquito and Alumbrera, in Argentina, working through planned low-grade cycles this year. The company's capital spending is forecast at $2.8 billion for this year.

The 2013 guidance is for 2.55 to 2.80 million ounces of gold, especially with the ramp up at Pueblo Viejo.

Image courtesy Goldcorp