Goldcorp 2014 Production Could Be at Low End of Forecast

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Release: 2014-09-05 10:18

Goldcorp Inc's gold production this year could end up near the bottom end of its forecast range if it is unable to restart output at one of its Mexican mines, the company's chief executive said on Thursday.

Goldcorp, the world's most valuable gold miner by market capitalization, said on Tuesday it has suspended mining at its El Sauzal mine in Mexico as a safety precaution after instability in the pit wall.

CEO Chuck Jeannes said it could be weeks or months before the company could resume mining at El Sauzal. In a worst case scenario, Goldcorp would be unable to restart mining at the operation, which is in its last year of active mine life.

The company would then lose out on the 60,000 to 70,000 ounces of gold that El Sauzal was expected to produce over the rest of this year.

"If you combine that with the shutdown we had at Los Filos earlier in the year that would push us toward the bottom end of our guidance range as a whole for the company for 2014," Jeannes told a mining conference in Toronto.

Goldcorp suspended operations at its Los Filos mine in Mexico for about a month in April because of a dispute with a group of local landowners.

Vancouver-based Goldcorp has said it expects to produce between 2.95 million and 3.10 million ounces of gold this year, up on 2.67 million ounces last year.

Source: Reuters

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