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Probe’s David Palmer our Mining Person of the Year – by Trish Saywell (Northern Miner – February 25, 2015)

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

When the discovery of a new gold patch rocks the mining world, it is a wondrous thing. When the discovery is made in an underexplored area with no previously known precious metal deposits it’s even more exciting, and when the discovery stems, in part, from a simple good deed, it becomes extraordinary.

The tale of how David Palmer discovered the Borden Lake gold deposit and earned the prestigious Bill Dennis Award and title to The Northern Miner’s Mining Person of the Year for 2014 begins in 2003, about four years after he graduated from McGill University with a PhD in economic geology.

The geologist, whose PhD thesis focused on ore-forming hydrothermal fluids associated with carbonatites, was working for a junior, when a prospector he didn’t know by the name of Bob de Carle, pitched a nickel property called Sunday Lake, north of Thunder Bay.

The property didn’t fit the company’s model, so it passed. But Palmer thought it still held promise. His view was that the material just hadn’t been presented in the right way, which masked some of what he felt were its most interesting features. So he offered to spend some personal time reworking the geological data to improve the odds that de Carle — a geophysicist by training — could find success the next time he shopped it around.

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Bad times for Canada’s big gold miners – by Lisa Wright (Toronto Star – February 20, 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 take massive Q4 writedowns amid weak gold prices.

Barrick Gold Corp. chairman John Thornton’s message to Bay Street came through loud and clear: he wants to take the world’s largest gold producer back to its roots as a smaller company with fewer mines and micro-managers — and hopefully return it to profitability.

To that end, the Toronto mining giant is slashing staff at headquarters by nearly half and selling two Asia-Pacific mines. It will be “laser focused” on reducing its debt by $3 billion this year amid rocky times in the mining industry and a weak gold price, he told analysts on a conference call Thursday.

It wasn’t a banner day for either of Canada’s two largest bullion miners, as Vancouver-based Goldcorp Inc. reported a loss of $2.4 billion (U.S.) in its latest quarter as it wrote down the value of its Cerro Negro mine in Argentina. Barrick also reported a massive $2.85 billion fourth-quarter loss due to an after-tax impairment charge on its soon-to-be closed Lumwana copper mine in Zambia and the Cerro Casale project in Chile.

Gold miners are struggling as the gold price has lost 35 per cent of its value since its peak of $1,900 (U.S.) an ounce in 2011 and as the industry suffers through a brutal downturn following a 13-year market rally.

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Goldcorp takes US$2.3-billion writedown on ‘cornerstone’ Argentine project – by Alexandra Posadzk (Canadian Business – February 19, 2015)

http://www.canadianbusiness.com/

Goldcorp Inc. reported a US$2.4-billion net loss in its latest quarter as it took a big writedown charge on its Cerro Negro project, but the company’s chief executive says he still has high hopes for the Argentine mine.

“This is an accounting charge and does not reflect losses of gold ounces in the ground or our expectations for this asset,” Charles Jeannes told investors during a conference call Thursday.

“Quite the contrary, we continue to believe Cerro Negro will be a cornerstone operation for Goldcorp for a long time to come.”

The news came after the gold miner announced a loss of $2.94 per diluted share in the fourth quarter compared with a loss of US$1.1 billion or $1.34 per diluted share in the last three months of 2013.

The loss includes the US$2.3-billion hit that Goldcorp took in relation to a drop in the value of the Cerro Negro project, which began commercial production last month.

On an adjusted basis, Goldcorp says it earned US$55 million or seven cents per share, down from nine cents per share in the fourth quarter of 2013. Analysts had estimated an adjusted profit of 12 cents per share for the quarter, according to Thomson Reuters.

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Dome still has ‘lots of life’ – by Len Gillis (Timmins Daily Press – February 13, 2015)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Goldcorp’s Dome Mine is the longest continuously operating underground gold mine in North America and it looks like that is easily going to continue for a few more years yet, according to the company’s newest mine general manager

“I think the Dome Mine has still got lots of life left in it,” said Brendan Zuidema, the newly appointed manager of Goldcorp Porcupine Gold Mines (PGM). He was the keynote speaker to the Timmins Chamber of Commerce “Inside Business” luncheon held Thursday.

Zuidema said a lot of the attention in recent months has been directed at the new Hollinger open pit, which observed the first anniversary of its first production blast just two days ago on Wednesday. Zuidema said there are other PGM operations that are just as important in sustaining the company and its 1,100 jobs in Timmins.

“We’ve got right now in reserves five years left at the Dome Mine, for underground,” said Zuidema. “I am not sure what we have in the open pit. The open pit is not done. The Dome Mine is one of those mines that keeps on giving and giving.”

As an example, Zuidema described a bulk stope (a large underground excavation) at the mine that was expected to provide about 400,000 tonnes of muck. He said it produced nearly double at 800,000 tonnes. “We called it the magic stope. The ore just kept coming,” he said.

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Gold positioned for comeback: Goldcorp founder, CEO – by Robert Gibbens (Montreal Gazette – February 2, 2015)

http://montrealgazette.com/

Both the founder and the present CEO of Goldcorp Inc., now commissioning the big Éléonore mine in Northern Quebec, predict investors will soon start returning to the unloved gold mining sector.

“In the past two years, as bullion dropped from a record of almost US$2,000 an ounce, gold miners have dumped old management, slashed exploration spending, lowered operating costs and shifted to high-grade ore to focus fully on restoring cash flow,” said Rob McEwen, chairman of McEwen Mining Inc.

“You’ve got a serious gap developing between declining global output and steadily mounting demand from Asia where millions of new middle-class consumers are emerging,” he said in a recent telephone interview. “That gap could last several years.”

McEwen created Goldcorp via a string of mergers in the 1990s and left in 2005 after a disagreement over strategy. Goldcorp is now the world’s largest gold producer by market value.

He then formed McEwen Mining which plans to dig 96,500 ounces of gold and 3.12 million ounces of silver from mines in Mexico and Argentina in 2015 and aims at intermediate status with annual output of one million ounces of gold.

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Goldcorp, Wabauskang sign agreement – by Staff (Northern Ontario Business – January 30, 2015)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Goldcorp and Wabauskang First Nation have signed a collaboration agreement that paves the way for long-term economic benefits for the northwestern Ontario First Nation.

The new agreement, which marks Goldcorp’s sixth First Nation partnership in Canada, provides a framework for strengthened collaboration in the development and operations of Red Lake Gold Mines. A signing ceremony was held Jan. 29 in Wabauskang, located about 100 kilometres south of Red Lake.

Goldcorp now has collaboration agreements in place with all of the First Nations which assert Aboriginal and treaty rights in the vicinity of its active operations in Canada: Red Lake Gold Mines, Musselwhite Mine, Porcupine Gold Mines and Éléonore Mine.

“This new agreement is about so much more than economic benefits,” said Brent Bergeron, Goldcorp’s executive vice-president of corporate affairs and sustainability, in a news release. “It’s about long-term partnership, open dialogue and shared prosperity. It demonstrates our company’s ongoing commitment to develop Northern Ontario’s natural resources in a mutually beneficial and sustainable way, and will bring well-deserved recognition to the people of Wabauskang.”

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Goldcorp’s Jeannes at Roundup 2015: Gold sector ‘on its way back to relevance’ (Northern Miner – January 28, 2015)

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

“I think in our business we’re really too insular. The reality is we have
a lot more people to convince in order to be given the broad social license
we need to continue to conduct our business. We have to operate in a way
that benefits more than just our shareholders.”
(CEO Goldcorp Chuck Jeannes – 2015 Vancouver Roundup)

VANCOUVER — When it comes to discussing gold markets there likely aren’t many people who can command as much attention as Goldcorp (TSX: G; NYSE: GG) president and CEO Chuck Jeannes. The company is positioned as the world’s biggest gold producer by market capitalization, and has been an industry leader when it comes to controlling operating costs and driving growth with a policy of strong capital discipline.

Goldcorp hit record production of 886,000 oz. gold during the fourth quarter, and produced 2.87 million oz. last year. The company brought two new mines into commercial production over the past six months — including the Cerro Negro operation in Argentina and Éléonore project in Quebec — and it is now positioned to generate free cash flow indefinitely, assuming a gold price of around US$1,200 per oz.

“Right now the multiples the market is affording our business is at a thirty-year low. When I say our shareholders have abandoned us I think that’s the biggest piece of proof. But that gives us great opportunity to improve moving forward, and I think you’ll see those multiples bounce back,” Jeannes comments.

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Acquisitions are vital for survival, Goldcorp chairman says – by Rachelle Younglai (Globe and Mail – January 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.

Goldcorp Inc.’s quest for new mines is a matter of survival, according to the company’s chairman. “The only way mining companies can grow is through acquisitions and the only way they can survive is through acquisitions. Sometimes, I’m not sure people outside the mining business appreciate that,” Ian Telfer said in a recent interview.

“You have to keep buying stuff or you shrink … When you get to the size that we are, you have to buy things that are considerable sized and the opportunities are limited,” he said.

Last week, the Vancouver-based company made a half-a-billion dollar all-stock offer for Probe Mines Ltd. for its gold property in Ontario. The site is near Goldcorp’s mine in Timmins, Ont., which will allow the company to use its existing operations to develop the mine.

Finding cheaper ways to dig up metal has become every miner’s mission amid persistently weak commodity prices. Goldcorp enjoys the status of being the biggest gold miner by market capitalization, while producing less than the world’s two biggest producers, Barrick Gold Corp. and Newmont Mining Corp. It has a healthy balance sheet and is one of the few gold miners that can use its shares for acquisitions.

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Mining mogul shares lessons in industry mistakes – by Lindsay Kelly (Northern Ontario Business – January 23, 2015)

http://www.northernlife.ca/

While dishing out advice on how to avoid mistakes through a successful career in mining, Ian Telfer elicited startled silence from his audience with this tidbit: don’t listen too much to your shareholders.

“I know all you shareholders in Goldcorp love to hear that,” chuckled Telfer, chair of the company’s board of directors, during a Jan. 16 luncheon hosted by Laurentian University’s Goodman School of Mines in Sudbury.

It wasn’t the sort of pep talk you expect to hear from the chair of the world’s third largest gold miner. But Telfer’s guidance is gleaned from more than 25 years of experience in the precious metals business, including the last eight at the helm of Goldcorp’s board and six chairing the World Gold Council.

Everyone has an opinion on how a publicly traded company should function, he said, but shareholders just have temporary interest in the company, whereas a company’s employees and the communities in which they operate are its more permanent beneficiaries.

“You have to keep that in mind when they’re trying to advise you as to what you should do.” It’s difficult to suggest an appropriate avenue to reach a goal, Telfer said, but a good barometer for success is regret: try to make the best decision that has the least potential for regret, he said, and worry less about what other people think. Instead, focus on what you get excited about.

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Gold shines bright as hottest investment this year – by Lisa Wright (Toronto Star – January 23, 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.

Metals gold and copper proving to be very reliable barometers of economic stability

Forget oil. If you want to know how the world economy is faring, just look at two metals: gold and copper. They are usually discovered and mined in the same places, but the yellow and rusty red metals are going in opposite directions price-wise despite an overall slump in commodities — especially this year.

The price of copper — critical in manufacturing and construction — has fallen 10 per cent in 2015 as global growth stalls, while ‘safe haven’ gold has enjoyed a double-digit bounce this month as market and geopolitical volatility continues.

“Just when everyone gave up on gold, turns out the obituaries were premature,” says gold bug John Ing, president of Maison Placements Canada.

In fact gold has amazingly emerged as the top performer of 2015, not just among metals but also compared to stock markets and currencies, he notes. That is largely due to bullion’s traditional role as a fear magnet which investors tend to latch onto when everything else is rocky – and it is lately, from the tanking oil price to topsy-turvy stock markets.

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Canadian gold miners raising nearly $800 million as financing window opens – by Peter Koven (National Post – January 22, 2015)

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

The financing window is open for Canadian gold miners, and they are rushing through it at a frantic pace before it shuts.

Six companies have announced bought deal offerings since Tuesday evening: Romarco Minerals Inc., Detour Gold Corp., Osisko Gold Royalties Ltd., Primero Mining Corp., Asanko Gold Inc., and Richmont Mines Corp. Between them, they are raising a whopping $789.8 milllion. Last week, Yamana Gold Inc. unveiled a $260.2-million equity deal of its own, and Lydian International Ltd. tapped the market for $16.5 million.

The flood of financings coincides with a significant jump in the gold price that has reignited investor enthusiasm for the sector. Bullion is up almost 10% this month and topped US$1,300 an ounce on Wednesday for the first time since August.

Gold has been out of favour with investors for most of the past two years, so the opportunities for most miners to raise capital have been few and far between. Not surprisingly, they are keen to push these deals through quickly while sentiment remains positive and gold equities are performing very well.

“We see it over and over again. These windows open so quickly and might be so short,” said Jay Kellerman, managing partner at Stikeman Elliott LLP. “Who would have imagined this [financing wave] a week ago?”

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Goldcorp buys Probe Mines’ promising gold project – by Lisa Wright (Toronto Star – January 20, 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.

‘Feels like a new gold market,’ says analyst of the $526 million deal

Amid a struggling metals market, Goldcorp Inc. has struck an all-stock deal valued at $526 million to buy Toronto’s Probe Mines Ltd. and scoop up one of Canada’s most promising new gold discoveries in northern Ontario.

The friendly takeover gives the Vancouver bullion giant control of the highly-touted Borden gold project near Chapleau, Ont., about 160 kilometres west of Goldcorp’s century-old Porcupine mine in Timmins.

Shares in the Toronto-based junior explorer jumped 49 per cent after the Goldcorp announcement Monday that analysts say, among other recent industry acquisitions, signals new interest in the depressed gold mining sector.

“It feels like we are in a new gold market,” said analyst Barry Allan of Research Capital Corp. “It means we should see a lift on other gold assets if they are also well-located and high quality,” he said.

The price of gold has jumped 10 per cent so far this year after limping through a bear market that has rocked the cyclical industry since the heady days of its all-time high of $1,921 U.S. an ounce in September, 2011.

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NEWS RELEASE: Goldcorp expands Porcupine district with acquisition of Probe Mines Limited

VANCOUVER, Jan. 19, 2015 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) and Probe Mines Limited (“Probe”) (TSX-V: PRB) today announced an agreement whereby Goldcorp will acquire, through a friendly plan of arrangement (the “Arrangement”), all the outstanding shares of Probe. The total consideration for the purchase is approximately C$526 million.

Under the Arrangement, each common share of Probe not owned by Goldcorp will be exchanged for 0.1755 common shares of Goldcorp. Goldcorp currently owns 8.4 million shares of Probe representing 9.3% of the basic shares outstanding. Based on the closing price of Goldcorp’s common shares on the TSX on January 16, 2015, the transaction values each Probe share at C$5.00. The consideration received by Probe shareholders represents a 49% premium to the closing price of Probe on January 16, 2015. The number of Goldcorp shares to be issued will be approximately 17 million based on the issued and outstanding shares as of the announcement date, but will be subject to adjustment depending on the number of options and warrants exercised under the Arrangement. The transaction is expected to close in late March, 2015.

In addition to the Goldcorp shares, shareholders of Probe will receive an interest in a new exploration company (“New Probe”) containing Probe’s mineral properties in the Ring of Fire in Northern Ontario, as well as C$15 million in cash and certain other assets currently owned by Probe. Goldcorp will own approximately 9.3% of New Probe following completion of the transaction and looks forward to supporting New Probe in the execution of its business plan.

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Ian Telfer (Born 1946) – 2015 Canadian Mining Hall of Fame Inductee

The Canadian Mining Hall of Fame was conceived by the late Maurice R. Brown, former editor and publisher of The Northern Miner, as a way to recognize and honour the legendary mine finders and builders of a great Canadian industry. The Hall was established in 1988. For more information about the extraordinary individuals who have been inducted into the Hall of Fame, please go to their home website: http://mininghalloffame.ca/

Ian Telfer earned his reputation as a financially astute and visionary mining entrepreneur by building a series of companies through timely acquisitions and value-driven mergers.

The companies that he founded or led — TVX Gold, Wheaton River (later merged with Goldcorp), Silver Wheaton, Terrane Minerals and Uranium One, among others — reached a combined market capitalization of more than $50 billion at their peak. Telfer’s greatest accomplishment began modestly in 2001, when he saw low gold prices as an opportunity to acquire Wheaton River Minerals and leverage its treasury to buy producing gold mines at bargain prices.

The strategy was so successful that Wheaton River was soon able to execute a friendly merger with established miner Goldcorp. With Telfer at the helm, Goldcorp grew through subsequent mergers and acquisitions to become a world-class gold mining company.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

Born in Oxford, England, Telfer was raised in Canada, and holds a BA from the University of Toronto and an MBA from the University of Ottawa. He worked as an accountant for Hudson’s Bay Mining and Smelting before becoming a founding partner of TVX in 1983. Telfer’s talents came to industry attention as TXV grew into a global gold-miner from an initial base in Brazil.

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Goldcorp chairman Ian Telfer reflects on his career as he accepts prestigious award – by Peter Koven (National Post – January 15, 2015)

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

Ian Telfer is about to accept a lifetime achievement award, but he has no intention of slowing down. The 68-year-old entrepreneur and chairman of Goldcorp Inc. will be inducted into the Canadian Mining Hall of Fame Thursday night in recognition of more than three decades of success in the industry. Mr. Telfer recently overcame a cancer scare, and is now brimming with energy and excitement as he plots Goldcorp’s future. He sat down with the Financial Post’s Peter Koven to discuss his career, his company and the gold business.

Q How did Goldcorp become the world’s biggest gold company?

A I think in all industries, there is a time where you can create something meaningful. There was a time to create Microsoft, there was a time to create Apple, and there was a time to create Goldcorp. And we just happened to be doing it at the right time. At the bottom of the last cycle, when it was very bleak and gold was US$250, Frank Giustra and I said we should get back into gold. We had never worked together. We just believed that the price of gold was going to go up and it was going to go up fast.

If we were going to participate in this, we’d better get out there and acquire gold assets as fast as we can. Over a five-year period, virtually every gold asset that came available went to auction, and we outbid everybody else because we had a more passionate view of what the gold price was going to do. And we happened to be right.

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