Goldcorp Advised By Barrick of Mechanical Failures at Pueblo Viejo Oxygen Plant
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(All amounts in $US unless stated otherwise)
TSX: G NYSE: GG
VANCOUVER, Nov. 23, 2015 /CNW/ - Goldcorp Inc. (TSX: G, NYSE: GG) announced today that it has been informed by Barrick Gold Corp. ("Barrick") that a mechanical issue at the Pueblo Viejo mine in the Dominican Republic is expected to result in reduced production at the operation until mid-January 2016. The Pueblo Viejo mine is a joint venture between Goldcorp Inc. ("Goldcorp") and Barrick, where Goldcorp is a 40% partner and Barrick is the 60% partner and the mine operator.
Two of three electric motors at the mine's oxygen plant experienced an unexpected failure on November 19 and must be shipped to a specialized facility in the United States for repair. One motor remains operational. The plant provides the oxygen required for the autoclave processing facility that treats Pueblo Viejo's refractory ore. Until the damaged motors are repaired, the autoclave facility will operate at a reduced capacity. The cause of the motor failure is currently under investigation.
Current estimates by Barrick indicate repairs can be completed with units back in service by mid-January. While repairs are underway, Pueblo Viejo will bring forward maintenance activities previously scheduled for January to optimize the processing downtime. Pueblo Viejo has Property and Machinery Breakdown Insurance, including Business Interruption coverage, which is triggered after 30 days.
Based upon the impact of lower production from Pueblo Viejo in the fourth quarter, Goldcorp's 2015 gold production is expected to be at or near the mid-point of the Company's current guidance of between 3.3 and 3.6 million ounces. All-in sustaining cost guidance remains between $850 and $900 per ounce.
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Goldcorp is a leading gold producer focused on responsible mining practices with safe, low-cost production throughout the Americas. A portfolio of long-lived, high-quality assets positions Goldcorp to deliver long-term value.
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Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the risk that the transactions will not be completed as planned, risks related to the integration of acquisitions; risks related to international operations, including economic and political instability in foreign jurisdictions in which Goldcorp operates; risks related to current global financial conditions; risks related to joint venture operations; actual results of current exploration activities; environmental risks; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; mine development and operating risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; risks related to indebtedness and the service of such indebtedness, as well as those factors discussed in the section entitled "Description of the Business – Risk Factors" in Goldcorp's annual information form for the year ended December 31, 2014 available at www.sedar.com and the United States Securities and Exchange Commission at www.sec.gov. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Goldcorp, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Goldcorp does not undertake to update any forward-looking statements that are included or incorporated by reference in this document, except in accordance with applicable securities laws.
SOURCE Goldcorp Inc.
Contact
Jeff Wilhoit, Vice President, Investor Relations, Goldcorp Inc., Telephone: (604) 696-3074, Fax: (604) 696-3001, E-mail: info@goldcorp.com, www.goldcorp.com