Goldcorp slashes '09 gold costs estimates, ups production forecast

Goldcorp CEO Chuck Jeannes says the company's "strong performance through the first nine months of this year" has led Goldcorp to increase its production guidance.

RENO, NV - 

Goldcorp Wednesday increased its 2009 gold production guidance from 2.3 million ounces to 2.4 million ounces, and lowered guidance on total cash costs to $300 per ounce for gold compared to the previous guidance of $365/oz.

While gold production increased 11% to 621,000 ounces during the third quarter, Goldcorp also reported that net income fell 62% to $114.2 million or 16-cents per share during the period.

The company recorded a $17.5 million forex loss as operating expenses increased by 9% or $24.3 million.

Meanwhile during the first nine months of this year, Goldcorp reported net earnings of $173.5 million or 24-cents per share, a substantial drop from the net income of $517.5 million or 73-cents/sh reported during the same period a year ago.

Goldcorp reported a $201.7 million forex loss during the first nine months of this year on the translation of future income tax liabilities on mining interests arising from acquisitions.

In a news release Wednesday, Goldcorp CEO Chuck Jeannes said, "Red Lake experienced an outstanding quarter, driven by excellent results in the High Grade zone and continued productivity enhancements. Also in Ontario, Porcupine's quarterly gold production was its best in almost three years."

"Marlin in Guatemala and Los Filos in Mexico were also important contributors to our quarterly results, with the Los Filos open pit operation achieving record quarterly gold production." Los Filos reported a gold production of 60,200 ounces during the third quarter of this year. At Marlin gold production was reported at 68,800 ounces of gold and 1.083,200 ounces of silver during the quarter.

"We saw continued success among our next generation of growth drivers as well," he said. "At Peñasquito, I am pleased to report that shipments of both lead and zinc concentrates began this week. Achieving this important milestone supports our continued confidence in the outlook for this world-class operation."

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