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Goldcorp Canada mines more gold in 2014

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Mar. 16 2015, Updated 6:06 p.m. ET

Goldcorp Canada

In Canada, Goldcorp operations include three mines in the province of Ontario:

  • Red Lake
  • Porcupine
  • Musselwhite

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Red Lake

Gold production at Red Lake increased 31% from the prior quarter to 130,300 ounces at an all-in sustaining cost, or AISC, of $809 per ounce. The rise was driven by higher mill throughput and higher grades of gold. For the full-year 2014, gold production totaled 414,400 ounces at AISC of $934 per ounce. In 2015, Red Lake production is expected to be between 400,000 and 425,000 ounces.

Porcupine

Fourth-quarter gold production totaled 90,400 ounces at AISC of $857 per ounce. The improved performance was due to higher grades from numerous higher-grade veins in the Hoyle Pond underground operation. For the full-year 2014, gold production totaled 300,000 ounces at AISC of $906 per ounce. In 2015, gold production at Porcupine is expected to be between 300,000 and 320,000 ounces.

Musselwhite

Up to 25% higher grades resulted in 9% more gold production at this mine in 2014 than in 2013. The mine produced 278,300 ounces, although the gains were partially offset by 12% lower mill throughput. AISC for 2014 was $811 per ounce, including by-product cash costs of $629 per ounce. This was a respective $277 per ounce and $131 per ounce less than in 2013.

The 25% decrease in AISC—inclusive of the by-product cash cost impacts—was due to lower sustaining capital expenditures, higher gold production, a weaker Canadian dollar, and lower operating costs.

Goldcorp’s (GG) Canadian operations include the Éléonore and Cochenour projects, which are in execution stage.

As far as production growth is concerned, projects such as Éléonore, Cerro Negro, and Cochenour give Goldcorp an edge over Newmont Mining (NEM) and Barrick Gold (ABX).

The VanEck Vectors Gold Miners ETF (GDX) invests in mining companies. Goldcorp is its top holding at 10.3%. Investors can get exposure to spot gold by investing in the SPDR Gold Trust (GLD).

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