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Goldcorp Inc.

Chuck Jeannes resigns as Goldcorp CEO – by Ian McGugan (Globe and Mail – December 4, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Chuck Jeannes is stepping down as chief executive of Goldcorp Inc. after leading the Vancouver miner through the heights of the commodity boom as well as the more recent slump in precious metals.

His resignation takes effect following Goldcorp’s annual general meeting in April. He will be replaced as president and chief executive by David Garofalo, president of HudBay Minerals Inc., a Toronto-based miner of copper, zinc and gold.

“It’s something I’ve been planning for a while,” Mr. Jeannes, 67, said in an interview. “It’s time to let someone else take the reins. Change is good for an organization.”

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AUDIO: Musselwhite mine death highlights need for new mine safety regulations (CBC News Thunder Bay – November 27, 2015)

http://www.cbc.ca/news/canada/thunder-bay/

Ontario’s Chief Prevention Officer says changes are coming to regulations dealing with safety in underground mines.

A death this week at Goldcorp’s Musselwhite mine comes after a provincial review on mining safety, led by George Gritziotis. He told CBC News that, because of that review, regulations are now being proposed to mandate higher safety standards.

“The review was about being able to be very focused and targeted on what those high hazards and associated risks are that we need to go after right away.”

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Goldcorp’s Jeannes: ‘We’re close to the end of the gold bear market'(Northern Miner – November 2, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

VANCOUVER — Despite posting a US$192 million net loss during the third quarter, Goldcorp’s (TSX: G; NYSE: GG) management team is telling investors to focus on what it labels “strong fundamentals.”

The company churned out record quarterly gold production and generated around US$243 million in free cash flow over the past three months. President and CEO Chuck Jeannes pointed out that successful cost control measures and promising macro-economic conditions should contribute to brighter days ahead.

Goldcorp produced 922,200 oz. during the third quarter at all-in sustaining costs of US$848 per oz. Assuming an average realized gold price of $1,114 per oz., the company reported adjusted revenues of US$1.3 billion and adjusted operating cash flow of US$374 million for the quarter.

Excluding unrealized losses from the foreign exchange translation on deferred income taxes, Goldcorp’s adjusted net loss totalled US$37 million, or 4¢ per share, during the quarter, which compares to adjusted earnings of US$65 million, or 8¢ per share, in the previous quarter.

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Upbeat gold miners report stronger results – by Lisa Wright (Toronto Star – October 30, 2015)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Barrick, Goldcorp increase production, cut costs in third-quarter

There was a funny sound that hasn’t been heard in several years on Barrick Gold Corp.’s latest earnings conference call: optimism.

Battered by one of the worst bear markets ever for metals, the Toronto-based gold giant reported a second straight quarter of positive cash flow and that it’s well on the way to meeting its massive debt reduction target of $3 billion (U.S.) this year.

“We’re getting Barrick back into a position of financial strength,” said company president Kelvin Dushnisky, who was audibly more upbeat on a call with analysts Thursday. “We’ve really started to deliver,” he said.

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Hollinger pit now operating 24/7 – by Ron Grech (Timmins Daily Press – October 30, 2015)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – An update to city council on the latest developments at the Hollinger open pit mining included the response to a fly rock the size of a “softball” coming over the berm and landing next to the water tower.

Don Burke, the new manager of the open pit, having recently moved to Timmins from Red Lake, explained the mine has taken measures in response to that incident.

He said they brought in a world-renowned blasting expert to offer additional direction and have introduced new protocols when blasting rock in “pioneering areas” of the mine.

Mayor Steve Black told Burke, “I am happy to see you have taken measures to prevent this from happening again but I don’t want to understate the seriousness and the concern that obviously us at city hall and residents did have in that regard.

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Slash in Goldcorp’s share price shows that investors still wary of gold’s prospects – by Ian McGugan (Globe and Mail – October 30, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Skittish investors have grown sensitive to any hint of problems in the gold sector after four years of falling metal prices and disappointing share performance.

They demonstrated their anxiety on Thursday by chopping 10 per cent off Goldcorp Inc.’s share price after the company reported a surprise loss for the quarter, largely as a result of inventory adjustments and other non-cash items.

Analysts said the fall in Goldcorp’s share price was also related to teething problems at a number of its operations. At its new Éléonore mine in Quebec, for instance, folds and cracks in the rock are resulting in lower-than-expected ore grades being mined. In addition, the company is facing labour issues at its Cerro Negro mine in Argentina and is having to rethink how it approaches the Cochenour ore deposit in Ontario after exploratory drilling revealed a different shape from what had been expected.

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Goldcorp Inc reports Q3 loss, but maintains guidance – by Peter Koven (National Post – October 29, 2015)

The National Post is Canada’s second largest national paper.

Goldcorp Inc. reported a loss in the third quarter as it dealt with weak gold prices and struggled to ramp up production at the new Eleonore mine in Quebec.

However, the Vancouver-based miner maintained its production and cost guidance and said it generated a healthy US$168 million of free cash flow despite low gold prices.

Goldcorp said it had an adjusted loss of US$37 million in the quarter, or four cents a share. After stripping out one-time items (including stock-based compensation charges), Goldcorp had a profit of three cents a share, which was still below the average analyst estimate of four cents. It earned nine cents a share (on an adjusted basis) in the same quarter a year ago.

Production from Eleonore reached 86,700 ounces in the quarter. That was double the result in the second quarter, but was still lower than expected as Goldcorp continues to have some challenges with gold recoveries. On the other hand, the company delivered solid results from its Penasquito, Cerro Negro and Musselwhite operations.

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For many miners, there’s no avoiding the gold ‘production cliff’ now – by Peter Koven (National Post – October 3, 2015)

The National Post is Canada’s second largest national paper.

When Steve Parsons and his colleagues published their first report on the gold “production cliff” in early 2013, they thought the thesis was obvious, even though almost no one was talking about it.

“It’s not a matter of if or even when the production cliff will happen,” the National Bank analyst said in an interview this week. “It’s really a matter of how companies respond.”

Gold miners hardly ever spoke up on this issue over the last several years. It may be that they didn’t agree with the conclusion, or perhaps they just didn’t want to think too hard about the implications. But there’s no avoiding it now.

Parsons’ thesis, in short, is that global gold production is set to fall in a big way. He calls it the “production cliff” while Goldcorp Inc. and others call it “peak gold,” but it amounts to the same thing.

The cliff appears to be imminent. According to numerous professional estimates, gold output will top out in 2015 or 2016 and then go into decline for several years at least.

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World’s best coming to Sudbury for mining games – by Keith Dempsey (Sudbury Star – September 29, 2015)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The Nickel City will host the 2016 International Mines Rescue Competition. Hosted by Workplace Safety North and Ontario Mine Rescue, the event will bring mine rescue teams from around the world for the competition, which will be held from Aug. 19-Aug. 26.

Vale, Glencore, KGHM, Goldcorp and Drager are sponsoring the event.

“Quite frankly, the competition we’ll see is second to none,” Alex Gryska, Canada International Mines Rescue Competition co-ordinator, said. “If you take a look at this event, you’re going to have volunteers and full-timers (taking part), so you’ll have individuals that are in this event who are full-time mine rescue responders, so the level of capability will be extremely high.”

Hosting the International Mines Rescue Competition in Canada has been something Gryska has been chasing for years.

“I’ve been connected with the International Mines Rescue body since 2001, and my colleagues oversee mine rescue in their respective organizations, so I’ve been connected with them,” Gryska said.

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In refreshing change, gold producers pitch investors on their survival instincts – by David Milstead (Globe and Mail – September 26, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Can a gold company be all things to all kinds of gold investors? Let’s hear what Goldcorp Inc. CEO Chuck Jeannes had to say at this week’s Denver Gold Forum.

“I think there’s a couple camps out there. One would be the group that continues to believe very much in gold, and in the near term, thinks gold is going up, and is very much focused on our leverage to the gold price,” Mr. Jeannes said in kicking off Goldcorp’s investor presentation.

“I think Goldcorp is a very good choice for that camp of investor. We’ve got growing production this year, our costs are declining, we have zero limitations on our exposure to gold price, no hedging, no streams on gold assets, so we give you that exposure.

“The biggest and second camp of investors are those who continue to believe in gold, but are concerned about what the price is going to do in the near and medium term, so you want to minimize your risk of holding shares while you wait for the gold price to recover – and you don’t know when that’s going to happen,” Mr. Jeannes continued.

“For that class of investor, I think Goldcorp is a really safe choice.

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Gold stocks explode higher – Barrick up 11% – by Frik Els (Mining.com – September 24, 2015)

http://www.mining.com/

On Thursday, the price of gold spiked higher after turmoil on world equity markets and global economic fears sparked a return to safe-haven buying.

Futures contracts in New York with December delivery dates jumped 2% to a high of $1,156 an ounce – gold’s best level in a month.

After weeks of lacklustre trade ahead of the US Federal Reserve interest rate decision, volumes on Comex shot up to twice the daily average on Thursday with just under 20 million ounces traded.

With fundamentals pointing to further upside potential for the metal, gold investors piled into mining stocks in massive volumes. The world’s top gold mining stocks gained steadily during the day and traded at their highs at the close on Thursday.

Barrick Gold Corp (NYSE:ABX, TSE:ABX) jumped 10.8% with more than 33 million shares changing hands, 12 million more than already high post-Fed interest.

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Goldcorp stays positive on Éléonore gold mine (Northern Miner – September 23, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Goldcorp (TSX:G; NYSE: GG) highights the potential at its Éléonore gold mine in northern Quebec, despite recently lowering the project’s 2015 production forecast, partly due to higher-than-expected mining dilution.

“Looking forward, I’m not worried about Éléonore. It is a great plant; it’s a great orebody,” Chuck Jeannes, the company’s president and CEO, said in a Sept. 22 webcast presentation at the Denver Gold Forum.

The underground mine reached commercial production on April 1, 2015, after pouring first gold last October. The slower-than-anticipated startup resulted from commissioning issues in the first half of 2015, relating to the tailings filter press and primary crusher feeder. However, those issues have been resolved, Jeannes says.

In August, the Éléonore mill achieved nameplate capacity of 7,000 tonnes per day, with roughly 2,000 tonnes of the feed coming from low-grade stockpiles.

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Goldcorp, Teck Combine El Morro and Relincho Projects in Chile – by Carolyn King (Wall Street Journal – August 27, 2015)

http://www.wsj.com/

Goldcorp will acquire New Gold’s 30% interest in the El Morro copper-gold project in Chile

Goldcorp Inc. on Thursday said it would acquire New Gold Inc.’s 30% interest in the El Morro copper-gold project in Chile and then combine El Morro with Teck Resources Ltd.’s nearby Relincho asset into a single $3.5 billion project.

Goldcorp and Teck, both Canada-based mining companies, said the combination would reduce the project’s development costs and its environmental footprint and thereby improve returns for shareholders. The $3.5 billion estimated cost of bringing the project into production would be less than half the cost of developing the projects separately, they said.

The move comes as mining companies around the world cope with tumbling metal prices and fears of a slowdown in China, the world’s biggest consumer of commodities. The commodity-price swoon has put pressure on many to slash costs and focus on the most promising projects.

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Fine tuning Barrick – by Kip Keen (Mineweb.com – August 20, 2015)

http://www.mineweb.com/

A subtle shift in analyst perspective on the gold producer.

Broadly of course, Barrick’s stock has been pummeled by the bearish gold market that relatively speaking, tends to punish, and conversely reward, miners far more than the yo-yo-ing gold price. But more specifically, Barrick has also been punished, harder than some, for its past failings in acquisitions, strategies and appetite for debt.

This has made for one of those perversions of the market, at least in very simplistic terms, where in recent years Goldcorp, more the market darling, has exceeded Barrick by market cap despite Goldcorp doing half the production and the fact Barrick has longer life assets. As it stands, it is C$16.4 billion to C$12 billion Goldcorp market cap versus Barrick.

In evening out that playing field, Barrick’s John Thornton, Executive Chairman, has some ways to go. But he may be starting to make a little headway.

With much fanfare (at least from Barrick) the company outlined its back to the future strategy earlier this year. It’s a story of cuts and tweaking of management to, it’s hoped, increase efficiencies at operations. It’s also a story of mine sales and debt reduction.

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The Gold Bull of the Great White North Is Ready to Mine More – by Danielle Bochove (Bloomberg News – August 17, 2015)

http://www.bloomberg.com/

Ian Telfer is the proud father of a spanking new $2 billion gold mine named Eleonore. Perched near the rocky shore of James Bay, 500 miles north of Montreal, Eleonore might seem like a problem child given the collapse in world gold prices.

But in this unhappy season for gold bugs, Telfer, chairman of Goldcorp Inc., scoffs at suggestions that gold is somehow falling out of fashion. “Yeah right. Just like Tiffany’s,” he says. “For thousands of years people have wanted to own gold.”

For the moment, the market is far less enthusiastic. Since 2011, gold has generally headed in one direction: down. The price has fallen from a high of more than $1,900 an ounce to around $1,100 and, in the process, lost at least some of its vaunted status as the ultimate safe haven investment.

On an inaugural visit to Eleonore, Telfer is unbowed. While other miners respond to the downturn by selling assets and seeking partners to offset risk, Goldcorp is presiding over a major expansion that includes this mine north of Canada’s 52nd parallel, another in Mexico and one in Argentina — three multibillion-dollar projects in five years.

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