(Kitco News) - Goldcorp Inc.’s (TSX:G)(NYSE:GG) belief in operating its assets in Argentina has not wavered after the company absorbed a $2.3 billion non-cash impairment charge on its newest mine in the country.
Reporting its fourth-quarter and full-year earnings last week, the company’s Cerro Negro mine was dinged pretty hard, which set off a few alarm bells in the sector regarding Goldcorp’s willingness to look further into operating in Argentina.
Chuck Jeannes, President & CEO Goldcorp Inc.
Speaking with Kitco News at the BMO Metals & Mining Conference in Florida, Chuck Jeannes, president and chief executive officer of Goldcorp, said that the company will get through the issues in Argentina.
“Cerro Negro will be a long-term cornerstone mine for us,” Jeannes said. “I think about it the way I do our Alumbrera mine, in Argentina.
“When it was built there was the financial crisis in 1999 and 2000 with Argentina, there was a lot of angst about what that might mean and over the long term Alumbrera’s been a very successful, profitable asset,” he said. “So, we have to look at these things with the long term in mind and we’ll get through these issues in Argentina.”
Jeannes also touched on the company’s other new mine, the Eleonore mine located in northern Quebec, which he said has the potential to be Canada’s top producing mine, once it hits full production in a few years.
“We’ve got a high-grade, vertical dipping ore body – so it takes a while to ramp up, we won’t be in full production there until 2018, but it’s a beautiful mill, it’s running well,” he said.
These two new mines will add significantly to Goldcorp’s production profile in the future as the company is well positioned to generate free cash flow in 2015.
“In terms of our actual earnings, and cash flow, for the quarter, we made $350 million in cash, and the operations are doing very well,” Jeannes said. “I’m very excited about the future, as we look in 2015, we’ll be having lower cash costs and higher production.
“Combine that with basically the end of all of our capital spending and building these new mines, and we’ll be generating free cash flow.”
Click HERE to listen in on Chuck Jeannes' full interview.