THUNDER BAY – Mining Now – Goldcorp Inc. (TSX: G, NYSE: GG) reported fourth quarter gold production of 687,900 ounces at a total cash cost of $261 per ounce, leading to record revenues of $1.5 billion and operating cash flows before working capital changes2 of $831 million. Reported net earnings in the quarter were $405 million compared to $560 million in the fourth quarter of 2010. Adjusted net earnings3 were $531 million, or $0.66 per share, compared to $431 million, or $0.59 per share, in the fourth quarter of 2010.
Red Lake and Porcupine Pace Gold Production in Canada. Gold production at Red Lake increased 21% compared to the third quarter of 2011 to 154,000 ounces at total cash costs of $374 per ounce. For 2011, gold production totaled 622,000 ounces at total cash costs of $360 per ounce. During 2012 production will benefit from an increase in tonnes mined from lower-grade zones, with gold production expected to total 650,000 ounces. Additionally, exploration and development work continued to advance the Upper Red Lake Complex, the Far East Zone and the Footwall Zones into sustained production as alternate sources of ore and to complement the fill the mills program and provide flexibility. Evaluation of the potential of near-surface, bulk long-hole mining, based on recent results from surface drilling, will continue into mid-2012.
At Porcupine in Ontario, strong grade and tonnage contributions from Dome underground operation led to fourth quarter gold production of 74,700 ounces at a total cash cost of $593 per ounce. For 2011, gold production totaled 273,100 ounces at a total cash cost of $656 per ounce. The Hoyle Pond Deep project continued to progress, which will access deeper discovered zones of gold mineralization and enhance operational flexibility and efficiencies throughout the Hoyle Pond underground complex. A pilot raise was completed to align the shaft in preparation for the commencement of shaft sinking planned for the first half of 2012.
On January 9th, the Company announced approval of the Hollinger open pit project. The $75 million construction phase for the project has begun and will continue for a period of 12-18 months, with initial focus on equipment procurement, installation of the dewatering system, site clearing and development of the five-kilometre haulage road between the Hollinger site and the Dome mill. The mine is expected to begin production in the third quarter of 2012.
Michael Dehn shares, “Finally the Cochenour Mine project is on track for production. Bill Paterson and I managed this project for many years right after Goldcorp acquired it. Lots of great people worked on this project including Sonia Lednicky, Rob Penczak, Peter Irwin, Lou Chastko (Jason’s dad), David Hunt, Tony Pryslak, Pascal Chantigny, Christian Sasseville, Dean Cutting, Andrew Tims, Louis Martin, CJ Baker, Reg Syler, Tony Maciejewski, Gerry and Danny Strilchuk”.
“We used the UDR 3000 for some of the work – which was the biggest drill core rig in Canada when we had it. Rob McEwen gave us a great opportunity to work this project. I feel real lucky to be involved right from the beginning with Dave Sannes, Dutch Van Tassell and I were the ones recommending the project for Goldcorp for exploration potential back around 1997”.
“Later I was able to work out a deal with Louis Dion from Barrick Gold and Goldcorp picked up the past producing McKenzie Mine for $1. I’m really proud of the team who made the initial discoveries of the extensions of the old mine – Lou Chastko who was Chief Geo at the mine in the past had great insight.
“Peter even named one of the zones at Cochenour after our favorite waitress at the Lakeview – the Shy-Anne zone after Shy-Anne Hovorka. And great supporters of the project were Tim Twomey, Stephen MacGibbon, Gilles Filion, Bruce Humphries, and the Goldcorp BOD who came up, reviewed what we did and encouraged us to keep going”.
Fourth Quarter 2011 Highlights:
Revenues increased to $1.5 billion, on gold sales of 685,000 ounces.
Record operating cash flows before working capital changes totaled $831 million or $1.03 per share.
Adjusted net earnings totaled $531 million, or $0.66 per share.
Total cash costs were $261 per ounce on a by-product basis. Co-product cash costs1 totaled $529 per ounce.
Dividends paid amounted to $91 million. Dividend increased 32% to $0.54 per share.
Certificate of Authorization was issued for the Éléonore project in Quebec allowing full construction to commence immediately.
Received approval of amended Environmental Impact Assessment at the Cerro Negro project in Argentina.
Entered into a $2 billion senior revolving credit facility, replacing the existing $1.5 billion facility.
Full-Year 2011 Highlights
Revenues increased 43% over 2010, to a record $5.4 billion driven by gold sales of 2.5 million ounces.
Adjusted net earnings increased 70%, to a record $1.8 billion, or $2.22 per share.
Record operating cash flows before working capital changes totaled $2.7 billion or $3.35 per share.
Total cash costs were $223 per ounce on a by-product basis and $534 per ounce on a co-product basis.
Dividends paid amounted to $330 million.
Proven and probable gold mineral reserves increased 8% to 64.7 million ounces; 6% on a per share basis.
“Strong, low-cost gold production and another year of gold reserve growth provided a great finish to another solid year for Goldcorp,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer. “Our record performance is the result of strength throughout the mine portfolio, as demonstrated by sustained operational excellence at Los Filos in Mexico, which led to a record year at this important operation. Marlin in Guatemala had a particularly strong quarter and year as mining in the final, higher grade portions of the open pit were completed and the mine successfully transitioned to an exclusively underground operation. In addition, Red Lake in Ontario finished with a strong quarter for the year, highlighting the continued strength of this flagship operation”.