Goldcorp Defers Work at Argentina Mine Project After Costs Soar
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The company's average cost to produce and sell gold, after profiting from sales of silver and other metals, was $551 an ounce, compared with $220 an ounce in the third quarter of 2012 and the $554 average of seven estimates compiled by Bloomberg.
All-in sustaining costs, a more comprehensive metric adopted this year by most producers, rose to $992 an ounce from $801.
Gold production rose to 637,100 ounces from 592,500 ounces a year earlier. The average of eight estimates was for 683,100 ounces.
Goldcorp expects 2013 output will be 2.6 million to 2.7 million ounces, at all-in sustaining costs of $1,050 to $1,100 per ounce. Its previous forecasts were for 2.55 million to 2.8 million ounces and costs of $1,000 to $1,100 per ounce.
Gold averaged $1,328 on the Comex in New York in the third quarter, 20 percent less than a year earlier and 6.3 percent lower than the second quarter
Eoin Treacy's view Controlling costs while attempting to increase
reserves has been a major challenge for gold miners that has eaten into free
cash flow over the course of the last decade. It is therefore a welcome development
that an increasing number of companies have developed a new found respect for
Following a precipitous decline from its 2011 peak, the NYSE Arca Gold BUGS Index has found support above 200; exhibiting a high degree of commonality with gold which is building support above its lows near $1180, A sustained move below 200 would be required to question the base building hypothesis. Randgold Resources remains a relative strength leader.