Gold steadies as traders weigh outlook for Fed rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
Goldcorp, the world’s second largest gold miner, saw revenues increase by 62% over the 2010 second quarter, to $1.3 billion, on gold sales of
606,400 ounces.
However, flooding, forest fires and problem equipment caused production to slip at some of the company’s mines. Goldcorp downgraded its total expected gold production by six percent, from between 2.65 million and 2.75 million ounces to between 2.50 million and 2.55 million ounces.
The company released its second quarter results for 2011 on Thursday.
Peñasquito saw a steep drop in expected gold production, falling from an expected 350,000 ounces in 2011 to 250,000 ounces.
“The high pressure grinding roll circuit to increase designed throughput from 100,000 tonnes per day to 130,000 tonnes per day has been commissioned, but low pebble generation in the SAG mills continues to challenge efforts to feed that circuit at designed capacity,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer.
“In addition, the limited availability of material required to raise the tailings dam embankment contributed to inadequate quantities of reclaim water necessary for full-capacity operation of the milling circuit.”
Jeannes said production problems at Peñasquito should be alleviated by 2012.
Other production disruptions were forest fires at the Musselwhite mine and flooding at the Pueblo Viejo joint venture.
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