32 32 Page 32 By Gregory Reynolds Goldcorp Inc is planning to spend 130 million in 2017 on capital proj ects on its T immins Gold Mines but it also wants 30 to 40 million in ef fciencies achieved as part of a com panywide plan to cut costs by 250 million by 2018 A complete turnaround in its fnancial afairs was achieved in 2016 by Gold corp From a loss of 417 billion in 2015 the company achieved a proft of 162 million in 2016 The company has seven major pro ducing mines as well some other gold sources and development projects For 2017 the company said consis tent with Goldcorp s focus on proft able ounces and growing net asset value NA V per share forecast 2017 gold production is expected to be 25 million ounces 5 Allin sustaining costs AISC are ex pected to be approximately 850 per ounce 4 5 as the company continues to realize savings from its 250 million tar get in annual sustain able efciencies The company s fve year growth outlook is focused on growing gold production by 20 from 25 million ounces to 3 million ounces reducing AISC by 20 to 700 per ounce and growing gold reserves by 20 to 50 million ounces David Garofalo president and CEO stated in 2016 we undertook a sig nifcant restructuring to substantially grow the net asset value NA V per share of our company by decentraliz ing the business to drive accountabil ity down to the mine sites signifcant ly reducing operating costs selling noncore assets and reinvesting that capital into a robust internal pipeline and a new geologically prospective mining camp in the Y ukon This culminated in the January 2017 announcement of our ambitious 202020 fve year growth program that would see Goldcorp deliver a 20 increase in production a 20 increase in gold reserves and a 20 decrease in allin sustaining costs positioning the company to drive in creasing NA V per share The T immins Gold Camp properties are in the process of replacing the Red Lake Complex long recognized by the company as its key asset In T imm ins Hoyle Pond and the new Hoyle Pond Extension are now called a value driver by the company The 130 capital project in T immins calls for 70 million in spending on Growth projects and 60 million on Sustaining activities The company intends to create a ma jor under ground shop complex at the Hoyle Pond Extension which is ac cessible by ramp whereas the Hoyle Pond Mine is a traditional headframe and shaft operation Nearby base metal operator Glencore Inc Kidd Creek Mine for decades has had many of its service s under ground partially to avoid T immins city taxes The Goldcorp plan will result in tax savings as municipalities in Ontario can only tax surface structures Another capital spending objective is to accelerate development for a sec ond mining front No deta ils were provided by Goldcorp Porcupine mines achieved fourth quarter gold production of 66000 ounces at AISC of 985 per ounce Production was lower compared to the fourth quarter of 2015 due to planned lower production from the depletion of the Dome under ground and lower tonnes were milled as depletio n of the completes turn ar ound and its T immins mines to expand Goldcorp Contd on pg 34 Page 33