NEW YORK, January 22, 2013 /PRNewswire/ --
Goldcorp has announced a new commercial production at Pueblo Viejo mine in the Dominican Republic. Pueblo Viejo is a joint venture between Goldcorp and Barrick Gold Corporation, a venture that the company states will add a strong contribution to its portfolio.
In a joint venture with Barrick Gold on its Pueblo Viejo mine in the Dominican Republic, Goldcorp Inc.'s (NYSE: GG) [ Full Research Report] (1) forecast share of the gold produced from Pueblo Viejo in 2013 is between 330,000 and 435,000 ounces.
This announcement follows the release of Goldcorp's production forecast for the fourth quarter of 2012. The company had a strong fourth quarter, with gold production totaling 696,700 ounces. The company's dividend also increased 11% to $0.70 per share. Goldcorp is scheduled to release its actual 2012 fourth quarter results on February 14.Goldcorp President and CEO Chuck Jeannes commented on the new project, "Pueblo Viejo represents the first leg of new gold growth as a result of our multi-year investment in new growth projects… our five-year gold production profile builds steadily over the next several years, culminating in forecast gold production growth of approximately 70% by 2017." Despite Goldcorp's promising portfolio, investing in gold is still a tricky issue for analysts. With the exception of Goldcorp, the industry has seen dismal performance in the last quarter of 2012. The future is not bleak however, as forecasts rolling into 2013 call for higher annual gold prices, even while forecasters are toning down their bullish stance. Morgan Stanley estimates that the average price of gold in 2013 will be $1,853. However, there are still those who are expecting little from gold in 2013. HSBC lowered its average price from $1,850 to $1,760. CPM Group only had a prediction of $1,666. Ross Norman, regarded as the most accurate London gold price forecaster throughout the 12-year bull run of gold comments, "People seem to be universally bullish but the price isn't moving. To us that's an indicator that the market may be topping out. I don't think we'll see gold lower, but I think we may have to get used to a single-digit growth rate." Mixed forecasts aside, Goldcorp remains as a strong company. Goldcorp has experienced significant growth over the years, as well as a steady cash flow. Furthermore, due to the new Pueblo Viejo venture, the company is also expected to generate greater revenue moving forward.