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Goldcorp: 2019 Guidance Steady For Gold, Higher For Other Metals

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(Kitco News) - Goldcorp Inc. (TSX: G, NYSE: GG) looks for 2019 gold production to be comparable to last year but envisions higher output of silver, zinc and lead, the company said Monday.

As a result, gold-equivalent production is forecast to be in a range of 3.3 million to 3.7 million ounces, up from 3 million in 2018.

Goldcorp is in the process of being acquired by Newmont Mining Corp. (NYSE: NEM) in a mostly all-stock transaction announced two weeks ago. Assuming this receives shareholder and other approvals, the deal will create the largest gold-mining company in the world.

Goldcorp’s guidance for 2019 gold production was put at 2.2 million to 2.4 million ounces. Output in 2018 was 2.294 million.

“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,” Goldcorp said in its guidance announcement. “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.”

Back in December, before the merger announcement, Newmont said it anticipated producing 5.2 million gold ounces this year. Thus, when combining this and Goldcorp’s guidance released Monday, the combined company presumably would be looking for approximately 7.5 million ounces.

Goldcorp’s silver output during 2019 is seen rising to a range of 40 million to 50 million ounces, compared to 25 million in 2018. Zinc production is seen between 390 million and 450 million pounds, which would be up from 318 million in 2018. Lead production is forecast at between 240 million and 290 million pounds, up from 116 million.

Guidance for 2019 gold all-in sustaining costs was listed at $750 to $850 an ounce.

The company’s Pyrite leach project at Peñasquito achieved commercial production during the fourth quarter, with Goldcorp reporting that this was completed under budget and ahead of schedule. Meanwhile, at Porcupine, Borden has obtained all permits and is advancing towards commercial production in the second half of this year.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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