Wednesday, February 27, 2008

Goldcorp reports best ever earnings

Gold has been good to Goldcorp Inc. The Vancouver based mining company, which owns Porcupine Gold Mines in Timmins, has reported a year-end profit of $460 million for 2007.
That amount includes record high fourth-quarter earnings of $256 million.
Goldcorp also reports that company wide gold production was up by 35 per cent to 2.3 million ounces.
The company says it expects that figure to increase to 2.6 million ounces of gold production in 2008, with a production cost of roughly $250 per ounce.
The company also announced this past week that its proven and probable ore reserves has increased by nine per cent, company wide, to more than 43 million ounces.
Part of that increase is due to the fact that Goldcorp now owns all the former Porcupine Joint Venture properties in the Timmins area, after buying out the 49 percent Kinross share of PJV last year.
Goldcorp owns all the major historic gold properties in Timmins, which includes the Hollinger, the McIntyre, the Dome, the Pamour, the Delnite, the Hallnor and Hoyle Pond mines.
A company news releases says proven and probable gold reserves in Timmins are 3.49 million ounces.
The news has driven prices of Goldcorp shares to a 21-month high with shares trading at more than $41 this week.
“Our strong performance in the fourth quarter of 2007 is a clear indication that the initiatives we set out at the beginning of the year have taken hold throughout the organization,” said Kevin McArthur, President and Chief Executive Officer. “Many of our most important projects and operations experienced their best performance in the quarter.”
Goldcorp completed the asset swap transaction that resulted in 100% ownership of the Porcupine Gold Mines in northeastern Ontario and the Musselwhite gold mine in northwestern Ontario in exchange for the La Coipa silver-gold mine in Chile, says a company statement.
In Timmins, the company says reduced production at the Pamour open pit was offset by strong production from the Hoyle Pond and Dome underground operations.
Gold production for Porcupine Gold Mines was 43,400 ounces, reflecting 51% ownership until December 21, 2007, after which production reflected 100% ownership, the company reported in a news release.
The price of gold has been reaching record high levels in recent weeks. This week, gold was trading in London as high as $948 an ounce. Gold futures were selling at more than $950.

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