Canada and the US contribute most of Goldcorp’s volumes

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Nov. 27 2019, Updated 5:08 p.m. ET

Goldcorp’s mine volumes in Canada and the US

Goldcorp (GG) operates four mines in Canada and the US. The Red Lake, Porcupine, and Musselwhite mines are based in Ontario, Canada. The Wharf mine is in South Dakota.

Canada and USA

All of the mines in Canada are underground. As a result, the unit cost for extracting gold is high.

To learn more about the costs associated with open-pit and underground mining, read Market Realist’s “Everything you need to know about gold and gold companies.”

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  • Red Lake – It has the highest production of all Goldcorp’s mines. We’ll discuss this in more detail in the next part of this series.
  • Porcupine – It consists of the Hoyle Pond and Dome mines. Both of the mines are underground. It also includes the Hollinger mine. Hollinger is an open-pit mine. It has several large tonnage stockpiles. It also has a central milling facility. Gold is recovered using a combination of gravity concentration and cyanidation techniques. Its estimated mine life is 13 years. It had approximately three million ounces of reserves as of December 2013.
  • Musselwhite – It consists of a combination of leases and mining claim units. It covers an area of 17,548 hectares. Ore is extracted from two main zones in the mine—the PQ Deeps and the Lynx Zone. Exploration drilling continues to expand the northern extent of PQ Deeps and the upper Lynx area. Its estimated mine life is 13 years. It had 1.85 million ounces of reserves as of December 2013. Musselwhite’s relationships and agreements with the local communities are recognized as a best practice.
  • Wharf – It’s the only operating gold mine in South Dakota. It’s an open-pit mine. Its estimated mine life is seven years. It had 0.56 million ounces of reserves as of December 2013.

Goldcorp attempted to increase its reserve base in Canada and the US when it raised a hostile bid to acquire Osisko Mining. Osisko Mining is an intermediate gold player in the region. However, it didn’t raise the bid the second time. It didn’t want to pay too much for the asset. In June 2014, Osisko was acquired by two of Goldcorp’s rivals—Agnico Eagle (AEM) and Yamana Gold (AUY).

The VanEck Vectors Gold Miners Index (GDX) is an exchange-traded fund (or ETF) that invests in the stocks mentioned above. Investors can get exposure to spot gold by investing in the SPDR Gold Shares (GLD). GLD is a physical gold-backed ETF.

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