Goldcorp Inc (NYSE:GG) posted its preliminary gold production numbers for the fourth quarter and FY2017 of 646,000 and 2.569 million ounces, in that order, surpassing the midpoint of gold production projection of 2.5 million ounces. All-in sustaining costs for the full year are projected to be in line with the enhanced midpoint projection of $825 an ounce. The company’s complete 2017 financial data will be announced on February 14, 2018.
David Garofalo, the CEO and President of Goldcorp, expressed that since they restructured their operations during 1H2016 to lead a culture of sound operating and accountability principles, they have offered predictable, low-cost and consistent gold production. They are well on plan to deliver on their 5-year plan of increasing gold reserves and gold production by 20% and lowering AISC by 20% by 2021.
With the strong growth pipeline among international senior gold firms, they are doing a preliminary investment of $100 million in their long-term portfolio of ‘Beyond 20/20’. Combined with an improved exploration budget of $125 million, the goal of Beyond 20/20 is to increase the net asset value of company’s existing mines and assignments by continuing to advance low-cost gold production from its growing gold reserves.
Goldcorp projects to produce 2.5 million ounces of gold in 2018, in par with previous projection; AISC are anticipated to decline further to around $800 per ounce as the firm continues to record savings from its program targeting annual sustainable efficiencies of $250 million.
The firm’s 20/20/20 plan continues to stay unchanged. As earlier stated, gold production is projected to jump 20% to three million ounces by 2021. All-in sustaining costs are projected to drop by 20% to around $700 an ounce over the comparable period led by higher gold production and the underway focus on productivity improvements and cost efficiencies.