Goldcorp Inc. updated its production and cost guidance on Monday evening, and the numbers were clear disappointments. Expected production for 2013 is now 2.55 to 2.8 million ounces, down from the prior forecast of 3.2 million (with a notably low target for the Penasquito mine). Cash costs are forecast at US$700 to US$750 per ounce on a co-product basis, well above the 2012 level of US$645 in ounce.
In addition, Goldcorp announced significant capital cost increases at its three key development projects. While it was no secret that the company was set to unveil higher costs, no one was happy to see that costs at the Cerro Negro project have jumped nearly 70% to US$1.35-billion.
But Goldcorp shares held steady Tuesday morning despite the disappointing news. Analysts noted that the share price has been under pressure in anticipation of an announcement like this, meaning it was largely priced in.
