Well...it is about time! Goldcorp leads the way...others will follow!
VANCOUVER, Jan. 7, 2013 /PRNewswire/ - GOLDCORP INC. (TSX: G, NYSE: GG) today announced gold production and cash costs for 2012 and provided production and cash cost guidance for 2013 and the five-year period ending 2017.
Highlights
- Strong fourth quarter 2012 gold production totaling 696,700 ounces, with total 2012 gold production of 2.39 million ounces, within previous guidance.
- Forecast 2013 gold production to grow approximately 10% to between 2.55 and 2.80 million ounces.
- Forecast five-year gold production to increase to 4.0 - 4.2 million ounces by 2017.
- Forecast average five year by-product cash costs1 expected to remain below $500 per ounce.
- Dividend increases 11% to $0.60 per share.
- Adopting all-in sustaining cash cost1 reporting measure for 2013.
Furthermore:
Working with the World Gold Council, the Company is adopting an "all-in sustaining cash cost" measure that the Company believes more fully defines the total costs associated with producing gold. All-in sustaining cash costs include by-product cash costs, sustaining capital, corporate general & administrative expenses and exploration expense. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation. A full reporting of cash activities will continue to be available in the Company's quarterly financial statements and Goldcorp will continue to report cash costs on a by-product and co-product basis in addition to all-in sustaining cash costs. For 2013, the Company estimates all-in sustaining cash costs of $1,000 to $1,100 per ounce compared to approximately $865 per ounce in 2012. Cash costs are forecast at between $525 to $575 per ounce on a by-product basis and between $700 to $750 per ounce on a co-product basis. Cash costs are expected to rise from 2012 levels primarily due to industry-wide cost inflation and the impacts of lower grades and by-product production at Peñasquito.
One of the lowest cost producers in the industry forecasts $1,000.00 to $1,100.00 per ounce....all in!
I am very confident with my estimate for Lakeshore Gold of $1,400.00 to $1,500.00 per ounce all in cash cost. (might even be higher for a while)
One must ask themselves...where is the profit going to come from?
I am very much pleased that the industry is moving to an all in cash cost...I have seen it over and over again where most investors are looking at the cash cost only...big mistake.
Digger144
P.S. Yes...a significant rise in the Gold price will help..but...just think of how much other lower cost players will benefit and what it will do to the share price...it is all relative!