Gold Mining Stocks (XAU)

[NYBob]

Goldcorp 2014 gold production increases 11% as costs decrease 6%;
Forecast production growth of approximately 20% in 2015 -
January 12, 2015
TSX: G
NYSE: GG

(All Amounts in $US unless stated otherwise)
VANCOUVER, Jan. 12, 2015 /CNW/ -

GOLDCORP INC. (TSX: G, NYSE: GG) today announced gold production and
preliminary cash costs for 2014 and provided production and cash cost
guidance for 2015 and production forecasts for the five-year period
through 2019.

Highlights

Record gold production of 886,000 ounces in the fourth quarter, resulting
in 2014 gold production of a record 2.871 million ounces.
All-in sustaining costs2 total approximately $1,045 per ounce in the
fourth quarter of 2014; all-in sustaining costs decreased 6% to
approximately $950 per gold ounce for 2014.

Forecast 2015 gold production to grow approximately 20% to between 3.3 and
3.6 million ounces, in line with previous Company guidance after
divestitures of Marigold and Wharf mines.

Forecast 2015 all-in sustaining costs expected between $875 and $950 per
gold ounce.

Forecast 2015 capital spending expected to decrease to between $1.2 billion
and $1.4 billion.

Commercial production achieved at Cerro Negro on January 1, 2015;

Éléonore commercial production expected in the first quarter of 2015.

Goldcorp's year-end financial statements are scheduled to be released on February 19, 2015.
The final calculation of capital and operating costs has not yet been
completed, but all-in sustaining costs for the fourth quarter and
2014 are expected to be approximately $1,045 and
$950 per ounce of gold, respectively.

On a by-product2 basis, for the fourth quarter and 2014 costs are expected
to be approximately $600 and $545 per ounce of gold, respectively.

"Goldcorp delivered another year of double-digit gold production growth at
significantly lower costs in 2014," said Chuck Jeannes, Goldcorp President
and Chief Executive Officer.

"An excellent year from the flagship Peñasquito mine in Mexico and
the achievement of production guidance at most mines in the portfolio
nearly offset previously-reported production challenges at Los Filos and
El Sauzal mines in Mexico.
Despite record fourth quarter gold production, continued weakness at Los
Filos and start-up issues at Éléonore left us short of full year
production guidance.
Most importantly, we achieved Goldcorp's first operational objective as we
produced gold with zero fatalities. At the same time, we significantly
reduced the number of injuries across our organization.

"Another key accomplishment during 2014 was the achievement of initial gold production at the three new growth projects that comprise the backbone of Goldcorp's growth profile. We were pleased to achieve commercial production at Cerro Negro as at January 1, 2015. At Éléonore we expect to address remaining start-up issues early in the year in order to position the mine for strong, sustained gold production. The seamless integration of the Cochenour project into the operations of Red Lake in this year of transition is also a key priority during 2015. All three projects are well-positioned for long term success, and with their capital investment nearly complete, we enter 2015 with an outstanding portfolio anchored by young, low-cost mines that are positioned to contribute free cash flow this year and beyond.

"At all of our mines and projects, the focus remains on profitable gold production that demonstrates clear returns for shareholders and we have eliminated marginal ounces that do not meet this objective from our mine plans. We accomplished this in 2014 with the completion of a new mine plan at Peñasquito that delivered stronger returns, and the latest example of this is at Red Lake, where remnant production from the declining Campbell operation no longer meets our return requirements and will be phased out in 2015. A disciplined focus on margins results in a better asset portfolio and a financially stronger company.

"World economic factors continue to support our expectation for stable gold prices in 2015. Strong demand for gold from Asia and developing economies around the world will support demand while we believe that global gold production will remain flat at best. Even in the current gold price environment, Goldcorp's strong, investment-grade balance sheet, cost profile and production growth leave us well-positioned for long-term success."

With respect to the Cerro Negro mine in Argentina the Argentine government continues to support various actions and programs aimed at conserving its foreign exchange reserves, including restrictions on importation of goods and services and limitations on the exchange of Argentine pesos into US dollars. The financial consequences of these programs as well as the continuing inflationary environment in the country are negatively impacting operations at the Cerro Negro mine. Additionally, the market valuations of future exploration potential have declined. Concurrent with the declaration of commercial production, the Company is conducting an impairment test of its Cerro Negro assets to assess the full effect of these actions in light of ongoing challenging fiscal conditions in Argentina. Preliminary analysis indicates an after-tax asset impairment charge in the range of approximately $2.3 to $2.7 billion4 in the fourth quarter. The Company expects to complete its final impairment analysis for inclusion in its fourth quarter earnings release.

http://finance.yahoo.com/news/goldcorp-forecasts-20-pct-increase-225906375.html

A number of fundamental drivers are still firmly in place that will
ensure gold reaches new heights:


http://moneymorning.com/2014/09/10/gold-price-forecast-how-the-yellow-metal-will-reach-5000-per-ounce/

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109820645


God Bless