Photo by: Reuters
VANCOUVER (miningweekly.com) – Two of the world’s largest gold producers by volume have realised their production goals for 2017.
Toronto-based Barrick Gold, currently still the world’s largest gold producer by output, on Tuesday announced that preliminary full-year gold output of 5.32-million ounces for 2017 was in line with the adjusted guidance of 5.3-million to 5.5-million ounces.
Preliminary full-year gold sales stood at 5.3-million ounces.
In the three months to December 31, Barrick produced 1.34-million ounces of gold, with initial fourth-quarter gold sales estimated at 1.37-million ounces. The average market price for gold in the fourth quarter was $1 275/oz.
Barrick also reported full-year copper output of 413-million pounds, slightly below the adjusted guidance of 420-million pounds to 440-million pounds for 2017, but in line with its original full-year guidance of 400-million pounds to 450-million pounds of red metal. Preliminary full-year copper sales were 405-million pounds.
For the fourth quarter, preliminary copper output was 99-million pounds, and preliminary copper sales were 107-million pounds. The average market price for copper in the fourth quarter was $3.09/lb.
Barrick will provide further details when it reports its quarterly results on February 14.
Meanwhile, Goldcorp also on Tuesday announced positive preliminary production results for 2017, reporting total output of 2.57-million ounces of gold, which beat the midpoint of its gold guidance of 2.5-million ounces of yellow metal.
Fourth-quarter output was 646 000 oz of gold.
Goldcorp said it expects its all-in sustaining cost (AISC) metric to come in at the guidance level of $825/oz.
The Vancouver-based company said it is well on its way to deliver on its five-year plan of growing gold production and gold reserves by 20% and reducing AISC by 20% by 2021.
“With the most robust growth pipeline among global senior gold companies, we are making an initial investment of $100-million in our long-term portfolio 'Beyond 20/20'. Together with an enhanced exploration budget of $125-million, the objective of Beyond 20/20 is to maximise the net asset value of our existing mines and projects by continuing to grow low-cost gold production from our growing gold reserves,” Goldcorp president and CEO David Garofalo said in a statement.
Goldcorp expects to produce 2.5-million ounces of gold this year, which is in line with previous guidance. AISC is expected to fall further to about $800/oz of gold, as the company continues to realise savings from its programme targeting $250-million of annual sustainable efficiencies.
Gold output is expected to increase by 20% to three-million ounces by 2021. AISC is expected to decrease by 20% to about $700/oz over the same period, driven by increased gold output and the ongoing focus on cost efficiencies and productivity improvements.
Building on the successful conversion of 4.7-million ounces of gold into reserves at the Ontario-based Century project in 2017, gold reserves are expected to increase by 20% to 60-million ounces by 2021, supported by the exploration potential and ongoing programmes at Coffee (Canada’s Yukon Territory), Norte Abierto (formerly Cerro Casale/Caspiche, in Chile), Cerro Negro (Argentina) and Pueblo Viejo (Dominican Republic).
Goldcorp also plans to release more details when it publishes its financial results on February 14.