Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Miners inside the Eureka vein at Cerro Negro.
Canada’s gold giant Goldcorp (TSX:G), (NYSE:GG) said Mondayit has poured the first gold at its Cerro Negro gold and silver project in Argentina’s Santa Cruz province, with commercial production not expected until late this year.
“This milestone signals not only the start of Cerro Negro’s mine life, but also a period of sustained growth for Goldcorp,” said chief executive Chuck Jeannes in the news release.
On July 25, the initial dore bar weighing approximately 100 kilograms was poured at the mine containing an estimated 317 ounces of gold.
With an estimated life of nine years, the mine will produce over half a million ounces of gold per year for the first five, and 250,000 ounces per annum in the remaining four years.
Capital costs at the site are now expected to be in the range of $1.6bn to $1.7bn this year, slightly below the revised estimate of $1.6bn to $1.8bn made in October 2013.
There is the possibility that Goldcorp decides to extend the mine’s life and increase the number of years that it produces at the higher rate of production.
The Vancouver-based miner, which also has a 37.5% interest in the Alumbrera mine in Argentina’s Catamarca province, has mines and projects in Canada, Chile, the Dominican Republic, Guatemala, Mexico and the US.
Image courtesy of Goldcorp via Flickr.
2 Comments
Eva Peron
That was the easy part. Now let see if they can get the money out of Argentina.
Mike Failla
Good luck with that!