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29

Goldcorp Will Benefit if Gold Falls to $500

Canada's Goldcorp will be well placed if the gold price falls to $500 per ounce, Chief Executive Kevin McArthur said on Thursday

Canada's Goldcorp will be well placed if the gold price falls to $500 per ounce, Chief Executive Kevin McArthur said on Thursday.

The firm has $450 million in cash, no debt and a $1.5 billion revolving facility that is untapped, McArthur told the RBC gold conference in London.

"We all have to be rational. I went through this in 1998 when the gold price fell below $300 per ounce and today $500 may be the new $300," he said.

"Nobody wants to go there again, but we are willing and ready to take that on if that happens."

The gold price has tumbled from a record peak above $1,000 per ounce and was trading at $713 on Thursday afternoon.

Goldcorp is taking a hard look at its capital expenditure plans and discretionary spending and the board will review options in mid-December, McArthur said.

"We are very bullish on metals prices going forward, but we're ready if we have to sustain the company for a period of time waiting for the metals prices to return."

The company has said it expect to produce 2.3 million to 2.4 million ounces this year while cash costs per ounce should be just under $300.

Author: Jo Amey