Goldcorp Inc. (G), the world’s second- largest gold producer by market value, is looking for further acquisitions as many projects face higher-than-expected operating costs.
“We are very good at acquiring a lot of high-quality projects and we continue to look for them,” Chief Executive Officer Chuck Jeannes said today in an interview with Bloomberg Television’s Alix Steel from Hollywood, Florida.
Goldcorp sees more projects becoming available because their developers underestimated rising costs, Jeannes said today in a separate interview from the BMO Capital Markets mining conference. Goldcorp’s average cost to produce and sell gold rose 17 percent to $621 per ounce in the fourth quarter from a year earlier, the Vancouver-based company said on Feb. 14.
“There’s been a lot of projects out there that have had a very unrealistic view of the world in terms of capital costs and operating costs and as those views are updated the market is responding accordingly,” he said.
Goldcorp rose 1.3 percent to C$33.64 at the close in Toronto.
To contact the reporters on this story: Christopher Donville in Vancouver at email@example.com; Liezel Hill in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com