VANCOUVER, Jan. 16, 2017 /PRNewswire/ - GOLDCORP
INC. (TSX: G, NYSE: GG) announced today it will host its
Investor Day on Tuesday, January 17,
2017 at 8:00am EST. The
Company's senior management team will provide details behind its
strategy of growing net asset value per share through organic
growth, lower operating costs and brownfield exploration. The
event will be webcast and available at www.goldcorp.com.
The Company also announced preliminary gold
production1 for the fourth quarter and full year of 2016
of 761,000 ounces and 2,873,000 ounces, respectively, and all-in
sustaining costs ("AISC")1,2 for the full year 2016 are
expected to be at the low end of the original guidance range of
between $850 and $925 per
ounce3. Goldcorp's 2016 financial results will be
released on February 15,
2017.
"Goldcorp achieved production and all-in sustaining cost
guidance as we re-oriented the business model in 2016," said
David Garofalo, President and Chief
Executive Officer of Goldcorp. "Significant changes have been
undertaken to focus the company on growing net asset value per
share. The changes have resulted in a renewed growth strategy
where we expect over the next five years to achieve 20% growth in
gold production, 20% growth in gold reserves and a 20% reduction in
our all-in sustaining costs. The ramp-up to nameplate
capacity at Cerro Negro and Éléonore, a continued focus on
productivity and efficiency improvements at our existing camps and
advancing our robust project pipeline, will position the Company to
deliver significant growth in net asset value per share."
The Company expects to produce approximately 2.5 million ounces
(+/- 5%) of gold in 2017, in line with previous 2017 guidance after
accounting for the recently announced sale of Los Filos and the
closure of Marlin; AISC are expected to be approximately
$850 per ounce3 (+/- 5%)
as the company continues to realize savings from its $250 million target in annual sustainable
efficiencies.
Over the next five years gold production is expected to increase
20% to approximately 3 million ounces, excluding potential
production from the Cochenour and
HG Young projects in the Red Lake Camp, the Century project in the
Porcupine camp and the NuevaUnión project in Chile. AISC are expected to decrease by
20% to approximately $700 per ounce
over the next five years driven by the focus on cost efficiencies
and productivity improvements. Reserves are expected to
increase 20% to 50 million ounces over the next five years from the
conversion of existing resources at the Century Project, Peñasquito
and Pueblo Viejo. For 2017 and five year guidance details
refer to:
http://www.goldcorp.com/files/doc_downloads/guidance/2017/Goldcorp-Guidance-Jan-2017.pdf
About Goldcorp
Goldcorp is a senior gold producer focused on responsible mining
practices with safe, low-cost production from a high-quality
portfolio of mines.
Footnotes
- The Company has included non-GAAP financial measures on an
attributable basis (Goldcorp share) throughout this document.
Attributable performance measures include the Company's mining
operations and projects and the Company's share from Alumbrera and
Pueblo Viejo. The non-GAAP financial measure all-in
sustaining cost as described below, and used in above, is not
intended as a substitute or as an alternative to total production
cash costs as an indicator of our performance or any other measures
of performance or liquidity derived in accordance with GAAP. In
addition, our non-GAAP financial measures may be different from
non-GAAP measures used by other companies, limiting their
usefulness for comparison purposes.
- All-in sustaining cost is a non-GAAP performance measure that
the Company believes more fully defines the total costs associated
with producing gold. The presentation of all-in sustaining cost is
intended to enhance the usefulness of our financial information by
providing a broader measure which management internally uses to
assess and evaluate the overall performance of its business and
those of possible acquisition candidates, and highlight trends in
the overall business.
- Our projected 2017 all-in sustaining costs are not based on
GAAP total production cash costs, which forms the basis of the
Company's by-product cash costs. The projected range of 2017 all-in
sustaining costs is anticipated to be adjusted to include
sustaining capital expenditures, corporate administrative expense,
exploration and evaluation costs and reclamation cost accretion and
amortization, and exclude the effects of expansionary capital, tax
payments, dividends and financing costs. Projected GAAP total
production cash costs for the full year 2017 would require
inclusion of the projected impact of future included and excluded
items, including items that are not currently determinable, but may
be significant, such as sustaining capital expenditures,
reclamation cost accretion and amortization and tax payments. Due
to the uncertainty of the likelihood, amount and timing of any such
items, we do not have information available to provide a
quantitative reconciliation of 2017 projected all-in sustaining
costs to a total production cash costs projection.
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking statements", within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, or the United States Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
under the provisions of applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of Goldcorp. Forward-looking statements include, but are
not limited to, statements with respect to the future price of
gold, silver, copper, lead and zinc, the estimation of mineral
reserves and mineral resources, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, targeted cost reductions, capital
expenditures, free cash flow, costs and timing of the development
of new deposits, success of exploration activities, permitting time
lines, hedging practices, currency exchange rate fluctuations,
requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation
expenses, timing and possible outcome of pending litigation, title
disputes or claims and limitations on insurance coverage.
Generally, these forward-looking statements can be identified by
the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", "believes" or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "should", "might" or "will", "occur" or "be
achieved" or the negative connotation thereof.
Forward-looking statements are necessarily based upon a number
of factors that, if untrue, could cause the actual results,
performances or achievements of Goldcorp to be materially different
from future results, performances or achievements expressed or
implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Goldcorp will operate in
the future, including the price of gold and other by-product
metals, anticipated costs and ability to achieve goals. Certain
important factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, among others, gold and other by-product metals
price volatility, discrepancies between actual and estimated
production, mineral reserves and mineral resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), changes in national and
local government legislation, taxation, controls or regulations
and/or change in the administration of laws, policies and
practices, expropriation or nationalization of property and
political or economic developments in Canada, the United
States and other jurisdictions in which Goldcorp does or may
carry on business in the future, delays, suspension and technical
challenges associated with capital projects, higher prices for
fuel, steel, power, labour and other consumables, currency
fluctuations, the speculative nature of gold exploration, the
global economic climate, dilution, share price volatility,
competition, loss of key employees, additional funding requirements
and defective title to mineral claims or property. Although
Goldcorp believes its expectations are based upon reasonable
assumptions and has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
Goldcorp to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to:
risks related to international operations including economic and
political instability in foreign jurisdictions in which Goldcorp
operates; risks related to current global financial conditions;
risks related to joint venture operations; actual results of
current exploration activities; actual results of current
reclamation activities; environmental risks; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; future prices of gold and other by-product
metals; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; risks related to the integration of acquisitions;
accidents, labour disputes; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities and other risks of the mining industry, as
well as those factors discussed in the section entitled
"Description of the Business – Risk Factors" in Goldcorp's most
recent annual information form available on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov. Although Goldcorp has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The forward-looking
statements contained herein are made as of the date hereof and,
accordingly, are subject to change after such date. Except as
otherwise indicated by Goldcorp, these statements do not reflect
the potential impact of any non-recurring or other special items or
of any dispositions, monetizations, mergers, acquisitions, other
business combinations or other transactions that may be announced
or that may occur after the date hereof. Forward-looking statements
are provided for the purpose of providing information about
management's current expectations and plans and allowing investors
and others to get a better understanding of Goldcorp's operating
environment. Goldcorp does not intend or undertake to publicly
update any forward-looking statements that are included in this
document, whether as a result of new information, future events or
otherwise, except in accordance with applicable securities
laws.
SOURCE Goldcorp Inc.