Canadian miner Goldcorp has returned a 35% in gold production for calendar 2007, delivering 2.29 Moz. The result is at the upper end of its guidance range of 2.2-2.3 Moz.

The result was aided by record gold production in the fourth quarter of 633,000 oz.

Total cash costs for 2007 had not yet been compiled, but were expected to be slightly higher than the predicted of $150/oz, primarily because of lower copper prices realised during the fourth quarter. 

President and Chief Executive Officer, Kevin McArthur: "We believe 2008 will extend our peer-leading growth profile, with gold production expected to increase 14% over 2007.” 

“This growth comes from high quality, long-lived assets with intriguing exploration potential and strong cash flows.  Goldcorp's business continues to expand substantially – building big mines in safe countries, with over 80% of its gold production expected from NAFTA countries in 2008. 

“This impressive value-creation remains unmatched among senior gold producing companies."

Goldcorp expects to produce about 2.6Moz of gold at a total cash cost of about $250/oz. Assumptions used to forecast cash costs are by-product silver price of $13/oz, by-product copper price of $3/lb and parity between US and Canadian dollars.

The 2008 total cash cost forecast is some $250/oz. The forecast is higher than 2007 because of the following:

• The 2007 joint venture asset swap added more than 260,000 oz of gold production in Canada, but increases total cash costs by approximately $30/oz

• The first full year of commercial production at Los Filos mine in Mexico is expected to increase total cash costs by about $20/oz in 2008

• The 2008 forecast by-product copper price of $3/lb is below the average copper price realised during 2007, contributing to an increase in total cash costs of some $35/oz

• Cost inflation and foreign exchange effects also result in increased total cash costs