Pueblo Viejo mine stats
The Pueblo Viejo mine is an open-pit mining operation located in the central part of the Dominican Republic in the Caribbean. It is operated by the Pueblo Viejo Dominicana Corporation (or PVDC), a joint venture between Barrick Gold Corporation (ABX) (60%) and Goldcorp Inc. (GG) (40%).
Production up 49% year-over-year
Barrick Gold’s 60% share in 3Q14 production at Pueblo Viejo was 168,000 ounces, an increase of 49% from the year-ago level. The increase is because of the full ramp-up of the mine following modifications to the facilities. All-in sustaining costs (or AISC) came in at $551 per ounce, a decrease of $219 per ounce, because of lower adjusted operating costs as production ramped up to full capacity. Segment income also increased, corresponding to the increase in volumes and reduction in AISC to $181 million, an increase of 66% year-over-year.
Higher grade to help production
Fourth-quarter 2014 production is expected to benefit from higher-grade ore. The copper circuit is in the commissioning phase, and copper shipments are expected to commence in the first quarter of 2015. Copper and silver are produced as byproducts from the mine. Production in 2014 is expected to be 600,000 to 700,000 ounces at AISC of $510 to $610 per ounce.
Newmont Mining (NEM) is also increasing production by mining higher grades at some of its mines.
The VanEck Vectors Gold Miners exchange-traded fund (or ETF) (GDX) invests in the above-mentioned stocks, while Standard and Poors depositary receipt (or SPDR) Gold Shares (GLD) is a physical gold-backed ETF.