Mining company Goldcorp Inc. lowers production outlook for 2008 on delays, cost pressures

Mining company Goldcorp Inc. told the press that the company lowered its production outlook for the rest of the year, citing production delays, industry-wide cost pressures and a previously reported shortfall.

The company now expects to produce 2.3 million to 2.4 million ounces of gold at a total cash cost of less than $300 per ounce.

“While we expect improvements in the second half, the delayed gold production, industry-wide cost pressures and a previously reported shortfall in ounces at our Canadian mines have led to a revision of guidance for 2008,” Kevin McArthur, Goldcorp’s president and chief executive, said in a statement.

At the company’s Los Filos mine, 2008 production will be hurt by a ground movement detected in mid-July on a portion of the heap leach pad. Production at the Marlin mine was hurt by power disruptions due to tampering with the mine’s power line and later disruption of ore processing.

Goldcorp also said production at Red Lake is not expected to meet original 2008 projections.

The company also warned that continued cost pressures combined with lower gold production will result in higher-than-projected total cash costs for the year. Production guidance for 2008 has been revised to 2.3 million to 2.4 million ounces of gold at a total cash cost of less than $300 per ounce.

Shares of Goldcorp were up 38 cents, or about 1 percent, to $39.37 in morning trading.