Canada's Goldcorp to stay focused on gold: CEO

Fri Mar 8, 2013 12:29pm EST
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By Julie Gordon

(Reuters) - Goldcorp Inc (G.TO: Quote), Canada's second-largest gold mining company, has no plans to diversify away from gold into other metals and remains focused on increasing its gold output, Chief Executive Chuck Jeannes said on Friday.

Jeannes, speaking at an investor day in Boston, also said Goldcorp has reviewed its plans in light of costs weighing on the mining industry and remains focused on managing those costs while increasing output.

"We have reviewed our strategy," he said. "And we're confident in fact that the strategy is sound, that we are on the right track and that we don't need to change our strategic focus."

The promise of business as usual, with a $5.5 billion five-year spending plan, caused little reaction in the market. The shares were barely changed at C$33.65 on Friday morning on the Toronto Stock Exchange.

"We want to stay - primarily, certainly - a gold company," Jeannes said, in response to a question about diversifying into copper.

"Certainly if we're looking out there and we find something that is a significant divergence from our current strategy, which is to grow our gold production, we'd have to have a lot of discussion about that," he said, adding he still believes there is a premium paid in the market for gold production.

Top North American mining companies that have diversified their output base have not fared well recently.

Barrick Gold Corp (ABX.TO: Quote), the world's largest gold miner, said last month it had booked a $3.8 billion charge to write down the value of its Lumwana copper project in Zambia, acquired as part of an unpopular C$7.3 billion ($7.3 billion) 2011 takeover of Equinox Minerals Ltd.   Continued...

Goldcorps President & CEO Chuck Jeannes speaks during Reuters Global Mining and Steel Summit in Toronto, Ontario, March 27, 2012. REUTERS/Hyungwon Kang