TORONTO (miningweekly.com) – Canada’s Goldcorp on Tuesday said it expects to lift gold production by about 10% during 2013, to about 2.55-million to 2.8-million ounces, adding that it is on track to increase gold production to between 4-million and 4.2-million ounces by 2017.
The company reported strong fourth-quarter gold production at 696 700 oz, and production for 2012 totalled 2.39-million ounces.
The gold major also lifted its dividend by 11% to 60c a share.
Goldcorp said it expected average five-year by-product cash costs to remain below $500/oz, while new production comes on line.
"Looking forward, we expect to deliver meaningful production growth in 2013, driven by solid performance expected throughout the portfolio as well as the ramp-up in production at the Pueblo Viejo joint venture in the Dominican Republic,” Goldcorp CEO Chuck Jeannes said in a statement.
He added that production is expected to build in the second half of the year.
Forecast silver production for 2013 is between 29-million and 31-million ounces, including about 20-million to 21-million ounces at Peñasquito, in Mexico. Zinc production is expected to be between 285-million and 305-million pounds and lead production is expected to total between 145-million and 160-million pounds.
Copper production of between 95-million and 100-million pounds is expected. On a gold-equivalent basis, company-wide expected gold production in 2013 totals about 3.5-million to 3.8-million ounces.
At Peñasquito, the company expects to continue to bring additional water wells into production within the Cedros basin, in addition to new dewatering wells within the Chile Colorado pit. The additional water wells in 2013 are expected to increase mill throughput to 105 000 t/d compared with 98 800 t/d achieved in the fourth quarter of 2012.
A water and tailings study to develop a comprehensive long-term water strategy for the Peñasquito district is under way and expected to be complete during the first half of this year.
Goldcorp said it expects the Cerro Negro project, in the province of Santa Cruz, Argentina, which is slated as the company’s next cornerstone gold mine, to remain on track for first gold production late this year.
Meanwhile, the company said the El Morro project, in Chile, remains suspended since April 30, pending the resolution by the Chilean environmental permitting authority, the Servicio de Evaluación Ambiental, of certain permitting deficiencies specifically identified by a decision of the Antofogasta Court of Appeals. The permit was cancelled on the grounds that the environmental agency had not adequately consulted nor compensated the indigenous people.
“The company continues to work with the Chilean authorities and local communities to rectify these deficiencies which include advancing the consultation process,” Goldcorp said.
The company’s TSX-listed stock traded at C$34.93 apiece on Tuesday.