In 4Q16, Goldcorp reported net earnings of US$101 million, up from the US$4.3 billion net loss it recorded in the fourth quarter of the previous year. The improved position is due to the company’s effort to decentralize its business.
This was effective in “significantly reducing operating costs, selling non-core assets and reinvesting that capital into a robust internal pipeline and a new geologically prospective mining camp in the Yukon,” said David Garofalo, President and CFO of Goldcorp.
The company ended 4Q16 with US$239 million in operating cash flows, a 40 percent fall from the US$401 million it achieved in 4Q15. The cash flow from this quarter was used repay debt, fund the company’s growth pipeline and to pay dividends.
Peñasquito is currently in the early stages of productivity and cost optimization efforts and is expected to deliver approximately US$55 million in annual sustainable efficiencies.
For 2017, Goldcorp forecasts a gold production level of 2.5 million ounces. Goldcorp also announced an ambitious five-year growth program to increase production and gold reserves by 20 percent. The plan would increase its gold production to 3 million ounces, and increase gold reserves to 50 million ounces.