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oldcorp reports record production in 4Q08, 7% increase in reserves

Goldcorp reported it has increased total gold and silver reserves by 2.9 million ounces and 182 million ounces respectively in 2008.

Author: Dorothy Kosich
Posted: Friday , 20 Feb 2009

RENO, NV -

Goldcorp Thursday reported adjusted net earnings of $397 million or 56-cents per share for 2008, down from adjusted net earnings of $440.4 million (62-cents/sh) in 2007.

The 2008 adjusted income included a $1 billion loss on foreign exchange and other writedowns.

The company also announced that proven and probable reserves increased 7% to 46.3 million ounces as of the end of December 31, 2008, which was Goldcorp's fifth consecutive yearly reserve increase. Silver reserves also increased by 182 million ounces to 1.247 billion ounces.

Goldcorp reported it produced 2.32 million ounces of gold at total cash costs of $305/oz. Record gold production of 691,800 ounces was reported during the fourth-quarter 2008.

For the fourth-quarter 2008 Goldcorp reported adjusted net earnings of $84.4 million or 12-cents per year down substantially from the $178.5 million (25-cents/sh) in adjusted net earnings reported during the same period of 2007.

The company plans to invest $430 million in the Pueblo Viejo joint venture project in the Dominican Republic this year. During a conference call Thursday Jeannes told analysts that the existing historic mine site has been demolished with the focus this year on new construction.

"Goldcorp ended 2008 with strong performance at every mine in our portfolio," said Chuck Jeannes, Goldcorp president and CEO. "Decreasing cash costs enabled the company to capture greater margins in a rising gold price environment, contributing to 2008 margins of $563 per ounce of gold sold. Our performance in the fourth quarter underscores the substantial operational improvements underway throughout the company, and our priority in 2009 and beyond is building on this improved performance while delivering on our goals and objections."