Goldcorp unveils five-year growth plan – by Salma Tarikh (Northern Miner – February 21, 2017)

http://www.northernminer.com/

Goldcorp (TSX: G; NYSE: GG) has outlined an ambitious five-year growth plan, targeting a 20% increase in both gold reserves and annual production and a 20% reduction in all-in sustaining costs, after spending 2016 restructuring its business, strengthening its management team and selling non-core assets.

“It has been a very busy year as we transition to harvest mode. But we now have a structure and people in place to increase that net asset value (NAV) per share to drive long-term shareholder value,” David Garofalo, Goldcorp’s president and CEO, said on a recent conference call.

“For 2017, our production is projected to be approximately 2.5 million oz. at all-in sustaining cost of US$850 per oz. and expected to grow to 3 million oz. at all-in sustaining cost of US$700 per oz. within five years,” he added.

The improvement in annual output should come mainly from four of Goldcorp’s seven gold mines including the ramp-up to nameplate capacity at the Cerro Negro mine in Argentina and the Éléonore mine in Quebec. Both achieved commercial production in early 2015 and last year produced a total of 637,000 oz. gold, or 22% of Goldcorp’s 2016 output of 2.9 million oz.

In Mexico, improved grades at the Penasquito mine and the execution of the pyrite leach project should deliver higher production. As part of the pyrite leach project, the company intends to finish building a carbon pre-flotation facility in 2018 to enable processing of higher carbon content ore.

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