EmailGoldcorp (GG $33.44 -3.29) announced gold production for the second quarter of 2012 and updated production and cash cost guidance for 2012. For the second quarter gold production totaled 578,600 ounces, an increase of 10% compared to the first quarter of 2012. The final calculation of operating costs has not yet been completed, but total cash costs on a by-product basis for the second quarter are expected to be approximately $370 per ounce. By-product cash costs for the first half of 2012 are expected to be approximately $310 per ounce. On a co-product basis, cash costs are expected to be approximately $620 per ounce for the second quarter and $635 per ounce for the first half of 2012. Red Lake gold production in the second quarter continued to be affected by the previously-announced operating delays in the High Grade Zone due to the need for rock de-stressing cuts at the 41 and 45 levels. At Penasquito, second quarter mill throughput was affected by inadequate water supply in the month of June.
In light of reduced first half production at Red Lake and lower second half production expectations at Penasquito, full-year 2012 gold production guidance has been revised to between to 2.35 and 2.45 mln ounces compared to previous guidance of 2.6 mln ounces. Due to the lower expected production, total cash cost guidance has also been revised, to $310 to $340 per ounce of gold on a by-product basis and $625 to $650 per ounce on a co-product basis. This compares to previous guidance of $250 to $275 per ounce on a by-product basis and $550 to $600 per ounce on a co-product basis. Production of by-product metals for 2012 is forecast at approximately 30 - 31 mln ounces of silver compared to previous guidance of 34 mln ounces; and 310 - 325 mln pounds of zinc and 155 - 160 mln pounds of lead compared to previous guidance of 400 mln pounds and 180 mln pounds respectively. Production guidance for copper remains unchanged at 110 mln pounds.
