Reports continue of black ink for Canadian gold producers for 2004. Toronto-based BARRICK GOLD CORP. says net income for the year was US$248 million from 5.0 million oz of gold produced. Total cash costs per oz were $212, and reserves at the end of 2004 stood at 89.1 million oz, the second largest reserve in the industry.
As previously announced, Barrick expects 2005 production of 5.4-5.5 million oz at average total cash costs of $220-$230/oz, and has a 40% targeted growth plan and gold production target for 2007 of 6.8-7.0 million oz at average total cash costs slightly above $200/oz. Production in the second half of 2005 is expected to exceed the first half of the year as the Lagunas Norte mine in Peru and the Veladero mine in Argentina are targeted to commence production in the third and fourth quarters, respectively.
Having succeeded in the friendly take-over of Wheaton River Minerals, GOLDCORP of Toronto reports record gold production of 628,005 oz for 2004. Total earnings for the year were US$51.3 million on revenues of $191.0 million, compared with $98.8 million on revenues of $262.6 million for 2003. At the end of 2004, Goldcorp had a gold inventory of 221,200 oz with a market value of $96 million.
Goldcorp’s rich Red Lake mine in northern Ontario produced 551,886 oz of gold in 2004, the fourth year in a row that production exceeded forecasts. A new shaft is being sunk to increase the Red Lake mine output even more. The shaft will reach 2,180 metres so that already-defined ore can be recovered beginning in the last half of 2006.
CAMBIOR INC. of Montreal posted revenues of US$300.9 million in 2004, up 55% from the $193.9 million in the previous year. Included in this was revenue for a record 692,000 oz of gold produced at a cost of $244/oz. Although the company recorded a 57% increase in cash flow from operations, it reported a net loss of $73.8 million, mostly attributable to writing down the value of the Doyon gold mine by $73.2 million. Proven and probable reserves for all of Cambior’s gold mines stood at 3.5 million oz at the end of 2004.