With that, I will now turn the call over to Chuck Jeannes, President and Chief Executive Officer.Chuck Jeannes Thank you, Jeff; and thanks everyone for joining us today. I am pleased to report that Goldcorp's second-quarter saw solid gold production throughout the portfolio, leading to strong growth in revenues, cash flow, and earnings. Overall, gold production met our expectations for the quarter at over 609,000 ounces, at a total by-product cash cost of $363 per ounce. Another solid quarter at Red Lake anchored our production, and we are especially proud of the continued success of two of our newest mines, Los Filos and Marlin. Following the startup of the crushing and agglomeration plant at Los Filos during the first quarter, the mine experienced its highest production to date, 82,600 ounces. Marlin has also been a consistent performer for the company for some time, and I can assure everyone on this call that the operational excellence on display every quarter at Marlin extends to all aspects of the mine, including a clear commitment to operating safely and responsibly. The combination of solid low-cost gold production and strong gold prices drove a 34% increase to revenues and record operating cash flow of over $382 million. It is interesting to note that our second-quarter cash margin of $845 per ounce of gold is the level at which gold itself was trading just 18 months ago. Delivering these strong and steadily increasing cash margins enables our shareholders to maximize exposure to robust gold prices. In the first half of the year, our disciplined M&A strategy has also created value for shareholders through a number of transactions that have significantly strengthened Goldcorp's overall asset portfolio. We began the year by completing two important strategic acquisitions, in the El Morro project in Chile, and the Camino Rojo deposit near Peñasquito. This was followed in the second quarter by the disposition of non-core assets that created value available for investment into our existing suite of growth projects. The completed or announced sales of the Escobal silver deposit, the San Dimas gold silver mine, and our interest in train metals, each unlocks value on our balance sheet, and frees up management time and resources that can be reinvested back into our business. These assets will now be developed by talented management teams to build new growth platforms, in which our shareholders will participate.
The other major development of the second quarter was the successful start-up of the second sulfide processing plants at Peñasquito. It is now in the commissioning phase and ramping up towards its designed 50,000 ton per day capacity. Commercial production at Peñasquito is expected this quarter, with full completion of the processing circuits still expected by year-end. And I will cover more on Peñasquito in just a moment.Those of you on the webcast can see the dramatic increase in cash margins Goldcorp has experienced over the last several years, culminating in outstanding cash margins on a year-to-date basis. We remain confident in the fundamental strength of gold markets, despite recent weakness that we normally see this time of the year. In fact, current prices could provide an attractive entry point for the investment and fabrication sectors ahead of summer's end and the start of the traditional Indian wedding season. With our forecast calling for strong second-half gold production, we expect this positive trend and expanding margins to continue. As I mentioned at the outset, the trends at Peñasquito have continued to be very positive in all facets of the operation. From mining rates, ore grades, mill throughputs and recoveries, to the delivery and sale of concentrates to smelter partners around the world. We see production ramping up on track towards our 2010 forecast of 180,000 ounces of gold. Read the rest of this transcript for free on seekingalpha.com