Goldcorp: World gold production will reach its peak in 2014-2015
September 10, 2014
Executive Director of one of the largest gold mining companies expects peak production of precious metals in the 2014-2015 period. According to Mr. Chuck Joan (Chuck Jeannes), president and CEO of the Canadian Goldcorp Inc. - A gold mining company with the highest market capitalization in the world in 2014 or in 2015. volume production of the yellow metal reached record levels in the future are unlikely to exceed this level.
Despite the fact that the decline in the volume of supply will support gold prices, mining it over time more difficult as the depletion of the available fields, which may lead to the subsequent process of consolidation in the industry. Nevertheless, the Canadian gold miner does not seek to reassure investors' expectations the new takeover bid after failing to purchase a controlling stake in a competing company.
In an interview with Wall Street Journal, Mr. Joan said that without progress technological advance in industry-leading gold production will fall after the peak. Chuck Joan said that the peak of gold mining have a positive impact on the prices of the precious metal in the long term. Now the price is about 1261 dollars. / Ounce, which is a third less than the record price of gold in September 2011 Against the backdrop of declining prices and performance evaluation of portfolio companies-producers. While Goldcorp, the third largest gold producer in the world, to increase output, the value of its shares fell twice during this time.
Mr. Joan expects gold to trade in a narrow range in the next few years, quotes will depend on the balance of supply and demand. As noted by Mr. Joan, gold is trading at less as a safe-haven, and hardly at its cost significantly affected geopolitical problems in recent years. As the production process becomes more complicated and performance indicators are falling, companies are beginning to compete for the rights to explore for new deposits, the amount of which decreases with age.
According to SNL Metals Economics Group, in 1995, was discovered 22 new deposits of precious metal resources with about 2 million ounces each, in 2010 the figure was six fields, in 2011 - only one, and in 2012 there was no open any new deposit. With this in mind, Goldcorp, along with other players in the sector expect an increase in mergers and acquisitions in the industry, as gold miners in these conditions easier to acquire a company with proven reserves of its own, rather than independently engage in the exploration and development of new fields.
In January, Goldcorp has sent a proposal to acquire the entire share capital of gold Osisko Mining Corp. for $ 2.5 billion., but a consortium of Canadian Yamana Gold and Agnico Eagle Mines offered more and intercepted deal. In this case, Chuck Jeanne told investors that his company has no plans to use this part of the funds for the search and purchase of other miners. In addition, Goldcorp is not considering a management buyout shares of the joint venture in Diminikane Pueblo Viejo, which the company is developing with Barrick Gold Corp. President of the company commented that having a partner in the development of such a large project reduces the risk.
The company is also developing its own portfolio of assets. Goldcorp recently smelted the first gold mine in Argentina, as well as plans to launch two more mines in the next year. In the last four years, the company has implemented a huge investment in the development of their potential, and currently Goldcorp expects growth in production, reduce operating costs and reduce capital expenditures.
September 10, 2014
Sogra