Musselwhite And Cerro Negro Highlight Exploration Results

 

 

VANCOUVER, BC - David Garofalo, President and Chief Executive Officer of Goldcorp Inc. said,  "With the ongoing successful ramp up of the Eleonore and Cerro Negro mines, on plan gold production across the portfolio and our pipeline of growth projects being advanced on budget and on schedule, we continue to execute on the delivery of our 20/20/20 plan of growing production and reducing AISC by 20% by 2021. In addition, the strong exploration results achieved during the quarter, highlighted by the results at Musselwhite and Cerro Negro, demonstrate our exploration team's ability to find new discoveries within Goldcorp's highly prospective and under-explored land packages in order to achieve 20% reserve growth by 2021."

The company reported report a net loss of $131 million, which was impacted by non-cash foreign exchange losses of $178 million primarily arising on deferred tax balances. Operating cash flows and adjusted operating cash flows for the three months ended June 30, 2018 were $158 million and $310 million, respectively, compared to $158 million and $320 million, respectively, for the three months ended June 30, 2017.

Gold production of 571,000 ounces at all-in sustaining costs ("AISC") of $850 per ounce, compared to 635,000 ounces at AISC of $800 per ounce for the three months ended June 30, 2017. Ramp-up of sustainable capacity at Eleonore and Cerro Negro continued and are expected to be key contributors to increasing production in the second half of the year. Full year 2018 guidance reconfirmed for gold production of 2.5 million ounces (+/-5%) at AISC of $800 per ounce (+/- 5%). 

Project pipeline continues to advance in support of the Company's 20/20/20 growth plan. The Penasquito Pyrite Leach has completed construction with commissioning further accelerated to the third quarter of 2018, now two quarters ahead of schedule, while the Musselwhite Materials Handling project advanced to 76% completion, on schedule and 10% below budget. 

Significant milestones reached at Coffee and Borden with the signing of agreements with First Nation communities. On April 30, 2018, Goldcorp signed a collaboration agreement with Trondek Hwechin relating to the Coffee project and, on June 6, 2018, signed an Impacts and Benefits Agreement with three First Nation communities with respect to the development and operation of the Borden project. 

Goldcorp successfully executed on the Company's $250 million sustainable annual efficiency program with target now increased by a further $100 million. Through the execution of numerous cost reduction and productivity improvements across the portfolio, the Company achieved its target of $250 million of sustainable efficiencies and extended the program, targeting additional improvements of $100 million by the end of 2019.