38 www.resourceworld.com
F E B R U A R Y / M A R C H 2 0 1 5
F
or most gold producers, 2014 was a scrappy year at best, nail
biting at worst. The yellow metal came under pressure on
several occasions, particularly in Q4 on a stronger US dollar
and the US Federal Reserve's decision to bring quantitative easing
to a close. At the time of writing, gold has been ricocheting around
the $1,270/oz level. In these tough conditions gold producers have
focused on growing resource bases, advancing operations where
possible, divesting non-core assets and continuing to cut costs.
NEw ARRIVALS
Senior Canadian gold producer Goldcorp Inc. [G-TSX; GG-NYSE]
went several steps further in 2014. Not only did it manage to cut
costs, make divestments and push ahead with exploration, it also
brought two major mines into production: Cerro Negro in Santa
Cruz province, Argentina, and Éléonore in the James Bay region,
northern Québec. Both operations are currently ramping up, with
full commercial production forecast for Cerro Negro shortly and
Éléonore during Q1 2015.
Production at Éléonore for 2014 is estimated to be between
40,000 and 60,000 ounces gold, while capital expenditure (capex)
for the project is expected to be between $1.8 billion and $1.9 bil-
lion. The development plan foresees an average output of 600,000
ounces gold per year, while there are opportunities for further
resource expansion. "The mine is going to be a tremendous asset
for our company; we look forward to operating one of the best
new underground mines in Canada," Goldcorp VP investor rela-
tions, Jeff Wilhoit, told Resource World.
Cerro Negro poured first gold in late July 2014 and produc-
tion for the year is expected to be between 130,000 and 180,000
ounces. Proven and probable gold mineral reserves comprise
5.74 million ounces effective December 31, 2013, while capex is
expected to be between $1.65 billion and $1.7 billion. Given the
challenges of working in Argentina, which continues to suffer
major economic instability, the achievement of bringing the oper-
GolDcorp bUilDinG vAlUE
in difficult conditions by Simon Rees
