Goldcorp's costs will be 'more fully' defined
Goldcorp (NYSE:GG) will be using a an "all-in sustaining cash cost" measure to more fully define the total costs associated with producing gold, said the company in its five-year production profile it released today.
The company, the world's second largest gold miner, says the ". . . measure seeks to reflect the full cost of gold production from current operations."
Examples of all-in sustaining cash costs would include by-product cash costs, sustaining capital, exploration expense, and administrative expense. New project capital will not be included in the calculation.
For example Goldcorp's 2013 cash costs are forecast at $525 to $575 per ounce, but the all-in sustaining cash costs are $1,000 to $1,100.
The World Gold Council has been lobbying for the change, which it believes will give a better window into a company's profitability. It hopes the accounting changes becomes an industry standard.
Regarding its future production Goldcorp saw more growth.
Goldcorp expects to produce 10% more gold in 2013, between 2.55 and 2.80 million ounces.
BY 2017 the company expects 70% higher production, about 4.0 – 4.2 million ounces.
The average cash cost will remain below $500.