* Sees gold topping $1,050/oz this year
* Focused on growth pipeline, not on acquisitions
(In U.S dollars, unless noted)
By Cameron French
TORONTO, July 29 (Reuters) - Goldcorp <G.TO> Chief
Executive Chuck Jeannes expects gold to break out of its recent
pattern and top last year's record highs, but he isn't planning
to rush out and buy up new assets to take advantage of the
expected price gains.
With the massive Penasquito mine set to open in Mexico and
$1.5 billion in capital spending already committed for the
year, Jeannes considers the pipeline well stocked and his hands
full.
"We always continue to look for opportunities, but with a
50 percent growth profile over the next five years, we're not
pressed to run out and buy anything right now," Jeannes said in
an interview shortly after the miner released its
second-quarter results.
The company, the world's No. 2 gold miner by market
capitalization, expects to produce 2.3 million ounces of gold
this year, and sees that figure rising to about 3.5 million
ounces once Penasquito gets going at full tilt in five years or
so. The mine is expected to produce 500,000 ounces a year over
its 22-year life.
"Our primary focus is on the growth projects that we've
already got," Jeannes said.
Regarding the metal, which has retreated since briefly
piercing the $1,000-an-ounce market in February, Jeannes
believes it will break out after escaping the low summer
volumes that often lead to sideways trading.
"It's my belief that we're going to get back over the
$1,050 level in the year," he said. The metal hit a record
intraday high of $1,030.80 in March 2008.
While the price this year has been volatile, it has stayed
mostly above $900 per ounce over the last several months.
Costs, meanwhile, have mostly been down a bit from last
year's levels due to decreases in costs of fuel and other
consumables, although Jeannes cautioned that the relief has
been less than some investors may have liked to see.
"In the unit costs, we're probably not seeing as much
reduction as many would have hoped," he said.
"We did see some of our consumables come down for the
quarter, but they were offset by a turnaround in the fuel
price."
Nevertheless, Goldcorp's cash costs in the first six months
of the year came in at $299 an ounce, which Jeannes noted is
below the company's 2009 guidance of $345 an ounce.
The company took a net loss of $231.6 million, or 32 cents
a share, in the quarter, due to $326 million non-cash foreign
exchange revaluation of future income tax liabilities.
[ID:nN29298270]
Cash flow rose 22 percent, while core earnings were 14
cents a share, 1 cent shy of analysts' expectations.
($1=$1.09 Canadian)
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