VANCOUVER, Jan. 28, 2019 /PRNewswire/ - GOLDCORP INC.
(TSX: G, NYSE: GG) ("Goldcorp" or the "Company") is providing a
summary of fourth quarter 2018 milestones and 2019 annual
guidance.
Fourth Quarter Milestones
- As previously disclosed, fourth quarter 2018 gold production of
630,000 ounces exceeded guidance. All-in sustaining costs for the
full year are expected to be in line with guidance of $850 per ounce.
- Cerro Negro exited the year at 4,000 tonnes of ore per
day, completing the ramp up of the mine to nameplate capacity.
- Éléonore exited the year at 6,600 tonnes of ore per day
and produced an average of 35,000 ounces per month in the fourth
quarter, in line with targeted annual gold production of 400,000
ounces.
- At Peñasquito the Pyrite Leach Project achieved
commercial production. The project was completed under budget and
ahead of schedule.
- At Porcupine,
Borden has obtained all permits
and is advancing towards commercial production in the second half
of 2019. Borden will be the
world's first all electric mine and is expected to create 200 jobs
in the Chapleau, Ontario
area.
Detailed 2019 Guidance
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Production
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Units
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2019
Guidance
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2018
Actuals
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Gold
Production1,2
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Moz
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2.2 – 2.4
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2.294
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Silver
Production1,2
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Moz
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40 – 50
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25
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Zinc
Production1,2
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Mlbs
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390 – 450
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318
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Lead
Production1,2
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Mlbs
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240 – 290
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116
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Gold Equivalent
Production1,2
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Moz
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3.3 – 3.7
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3.0
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Costs
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Units
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2019
Guidance
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AISC1,2,3,4,7
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$/oz
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$750 -
$850
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By-product Cash
Costs1,2,5,7
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$/oz
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$400 -
$500
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Capital
Expenditures
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Units
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2019
Guidance
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Sustaining
Capital1,2,6
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$M
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$575 -
$625
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Growth
Capital1,2,6
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$M
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$290 -
$350
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While gold grades in the first quarter of 2019 are expected to
be lower at Cerro Negro, Éléonore and Red
Lake, due to mine sequencing, gold production in 2019 is
expected to increase progressively each quarter as the Musselwhite
Materials Handling and Borden
projects are expected to achieve commercial production in the
second half of the year. In addition, grades and recoveries are
expected to steadily climb at Peñasquito as the mine benefits from
the completion of the multi-year waste stripping campaign in the
main Peñasco pit and a full year of operation at the now fully
commissioned pyrite leach plant.
Further to the press release dated, January 14, 2019, entitled Newmont and
Goldcorp Combine to Create World's Leading Gold Company,
subsequent to the expected closing in the second quarter of 2019,
Newmont Goldcorp will provide updated guidance for the combined
company.
Footnotes
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1.
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Guidance projections
used in this document ("Guidance") are considered "forward-looking
statements" and represent management's good faith estimates or
expectations of future production results as of the date hereof.
Guidance, with the exception of the Gold Equivalent Production, is
based upon certain assumptions, including, but not limited to,
metal prices, oil prices, certain exchange rates and other
assumptions. 2019 guidance assumes Au=$1,250/oz, Ag=$16.00/oz,
Cu=$2.75/lb, Zn=$1.10/lb, Pb=$0.95/lb, $1.30 CAD/USD,
19.00 MXN/USD. Gold Equivalent Production assumes
Au=$1,300/oz, Ag=$18.00/oz, Cu=$3.00/lb, Zn=$1.15/lb, Pb=$1.00/lb.
Such assumptions may prove to be incorrect and actual results
may differ materially from those anticipated. Consequently,
Guidance cannot be guaranteed. As such, investors are cautioned not
to place undue reliance upon Guidance and forward-looking
statements as there can be no assurance that the plans, assumptions
or expectations upon which they are placed will occur.
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2.
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The Company has
included certain performance measures, including non-GAAP
performance measures, in this release, which have been calculated
on an attributable (or Goldcorp's share) basis.
Attributable performance measures include the Company's mining
operations and projects, and the Company's share of Pueblo Viejo,
Alumbrera, and NuevaUnión. The Company believes that disclosing
certain performance measures on an attributable basis is a more
relevant measurement of the Company's operating and economic
performance, and reflects the Company's view of its core mining
operations. The Company believes that, in addition to conventional
measures prepared in accordance with GAAP, the Company and certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow; however, these
performance measures do not have any standardized meaning.
Accordingly, it is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with
GAAP.
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3.
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The Company's
projected all-in sustaining costs are not based on GAAP total
production cash costs, which forms the basis of the Company's
by-product cash costs. The projected range of all-in sustaining
costs is anticipated to be adjusted to include sustaining capital
expenditures, corporate administrative expense, mine-site
exploration and evaluation costs and reclamation cost accretion and
amortization, and exclude the effects of expansionary capital, tax
payments, dividends and financing costs. Projected GAAP total
production cash costs for the full year would require inclusion of
the projected impact of future included and excluded items,
including items that are not currently determinable, but may be
significant, such as sustaining capital expenditures, reclamation
cost accretion and amortization and tax payments. Due to the
uncertainty of the likelihood, amount and timing of any such items,
we do not have information available to provide a quantitative
reconciliation of projected all-in sustaining costs to a total
production cash costs projection.
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4.
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All-in sustaining
costs is a non-GAAP performance measure that the Company believes
more fully defines the total costs associated with producing gold;
however, this performance measure has no standardized meaning.
Accordingly, it is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. The
Company reports this measure on a gold ounces sold basis. The
Company's all-in sustaining cost definition follows the guidance
note released by the World Gold Council, which became
effective January 1, 2014. The World Gold Council is
a non-regulatory market development organization for the gold
industry whose members comprise global senior gold mining
companies.
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5.
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The Company has
included a non-GAAP performance measure - total cash costs:
by-product in this document. Total cash costs: by-product
incorporate Goldcorp's share of all production costs,
including adjustments to inventory carrying values, adjusted for
changes in estimates in reclamation and closure costs at the
Company's closed mines which are non-cash in nature, and
include Goldcorp's share of by-product silver, lead, zinc
and copper credits, and treatment and refining charges included
within revenue. Additionally, cash costs are adjusted for realized
gains and losses arising on the Company's commodity and foreign
currency contracts which the Company enters into to mitigate its
exposure to fluctuations in by-product metal prices, heating oil
prices and foreign exchange rates, which may impact the Company's
operating costs. In addition to conventional measures, the Company
assesses this per ounce measure in a manner that isolates the
impacts of gold production volumes, the by-product credits, and
operating costs fluctuations such that the non-controllable and
controllable variability is independently addressed. The Company
uses total cash costs: by product per gold ounce to monitor its
operating performance internally, including operating cash costs,
as well as in its assessment of potential development projects and
acquisition targets. The Company believes this measure provides
investors and analysts with useful information about the Company's
underlying cash costs of operations and the impact of by-product
credits on the Company's cost structure and is a relevant metric
used to understand the Company's operating profitability and
ability to generate cash flow. When deriving the production costs
associated with an ounce of gold, the Company includes by-product
credits as the Company considers that the cost to produce the gold
is reduced as a result of the by-product sales incidental to the
gold production process, thereby allowing the Company's management
and other stakeholders to assess the net costs of gold
production.
The Company reports
total cash costs: by-product on a gold ounces sold basis. In the
gold mining industry, this is a common performance measure but does
not have any standardized meaning. The Company follows the
recommendations of the Gold Institute Production Cost
Standard. The Gold Institute, which ceased operations in 2002,
was a non-regulatory body and represented a global group of
producers of gold and gold products. The production cost standard
developed by the Gold Institute remains the generally
accepted standard of reporting cash costs of production by gold
mining companies.
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6.
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Excludes capitalized
exploration costs. Growth capital includes capital costs for those
projects which are in execution and/or have an approved feasibility
study.
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7.
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Guidance excludes the
impact of the temporary Argentine Export Tax, which is expected to
impact production costs by approximately $25 per ounce in
2019.
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About Goldcorp www.goldcorp.com
Goldcorp is a senior gold producer focused on responsible mining
practices with safe, low-cost production from a high-quality
portfolio of mines.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, the United States Private Securities
Litigation Reform Act of 1995, or in releases made by the United
States Securities and Exchange Commission, all as may be amended
from time to time, and "forward-looking information" under the
provisions of applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of Goldcorp. Forward-looking statements include, but are
not limited to, the acquisition by Newmont of Goldcorp and the
timing and closing of the proposed transaction, future price of
gold, silver, copper, lead and zinc, the estimation of mineral
reserves and mineral resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production, targeted cost reductions, capital
expenditures, free cash flow, costs and timing of the development
of new deposits, success of exploration activities, permitting time
lines, hedging practices, currency exchange rate fluctuations,
requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation
expenses, timing and possible outcome of pending litigation, title
disputes or claims and limitations on insurance coverage.
Generally, these forward-looking statements can be identified by
the use of words such as "plans", "expects" , "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" , "believes", or variations or comparable language of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "should", "might" or "will",
"occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, if untrue, could cause the actual
results, performances or achievements of Goldcorp to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which Goldcorp
will operate in the future, including the price of gold,
anticipated costs and ability to achieve goals. Certain important
factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, among others, gold price volatility,
discrepancies between actual and estimated production, mineral
reserves and mineral resources and metallurgical recoveries, mining
operational and development risks, litigation risks, regulatory
restrictions (including environmental regulatory restrictions and
liability), changes in national and local government legislation,
taxation, controls or regulations and/or change in the
administration of laws, policies and practices, expropriation or
nationalization of property and political or economic developments
in Canada, the United States and other jurisdictions in
which the Company does or may carry on business in the future,
delays, suspension and technical challenges associated with capital
projects, higher prices for fuel, steel, power, labour and other
consumables, currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements and defective title to mineral claims or property.
Although Goldcorp believes its expectations are based upon
reasonable assumptions and has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
Goldcorp to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to:
future prices of gold, silver, copper, lead and zinc; risks
associated with Newmont's and Goldcorp's ability to obtain the
approval of the proposed transaction by their shareholders required
to consummate the proposed transaction and the timing of the
closing of the proposed transaction, including the risk that the
conditions to the transaction are not satisfied on a timely basis
or at all and the failure of the transaction to close for any other
reason; risks related to international operations, including
economic and political instability in foreign jurisdictions in
which Goldcorp operates; risks related to current global financial
conditions; risks related to joint venture operations; actual
results of current exploration activities; actual results of
current reclamation activities; environmental risks; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore reserves, grade
or recovery rates; failure of plant, equipment or processes to
operate as anticipated; mine development and operating risks;
accidents, labour disputes and other risks of the mining industry;
risks associated with restructuring and cost-efficiency
initiatives; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; risks related to the integration of acquisitions; risks
related to indebtedness and the service of such indebtedness, as
well as those factors discussed in the section entitled
"Description of the Business – Risk Factors" in Goldcorp's most
recent annual information form available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. Although Goldcorp has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Forward-looking
statements are made as of the date hereof and, accordingly, are
subject to change after such date. Except as otherwise indicated by
Goldcorp, these statements do not reflect the potential impact of
any non-recurring or other special items or of any disposition,
monetization, merger, acquisition, other business combination or
other transaction that may be announced or that may occur after the
date hereof. Forward-looking statements are provided for the
purpose of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of Goldcorp's operating environment. Goldcorp
does not intend or undertake to publicly update any forward-looking
statements that are included in this document, whether as a result
of new information, future events or otherwise, except in
accordance with applicable securities laws.
For further information please contact:
INVESTOR
CONTACT
|
MEDIA
CONTACT
|
Shawn
Campbell
Director, Investor
Relations
Telephone: (800)
567-6223
E-mail:
info@goldcorp.com
|
Christine
Marks
Director, Corporate
Communications
Telephone: (604)
696-3050
E-mail:
media@goldcorp.com
|
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SOURCE Goldcorp Inc.