VANCOUVER (miningweekly.com) – The adage ‘What you lose on the swings, you make up for on the roundabouts’ could probably be said of major precious metals miner Goldcorp, after it announced a 17% year-on-year drop in gold output during 2016, to 2.87-million ounces.

Despite the 2017 guidance calling for even less output, forecast at 2.5-million ounces of gold, the company on Monday outlined a prodigious five-year growth profile, that will see Goldcorp boost output by 20% to three-million ounces, lift gold reserves by 20% to 50-million ounces and reduce all-in sustaining costs (AISC) by 20% to $700/oz.

"Goldcorp achieved production and all-in sustaining cost guidance as we reoriented the business model in 2016. Significant changes have been undertaken to focus the company on growing net asset value per share," president and CEO David Garofalo stated on Monday.

Over the past several years the company has been streamlining its asset base to focus on core low-cost, high-grade mines in stable jurisdictions, divesting from noncore assets to strengthen the balance sheet. The new reserves are expected mainly from the conversion of existing resources at the Century project, Peñasquito and Pueblo Viejo.

"The ramp-up to nameplate capacity at Cerro Negro and Éléonore, a continued focus on productivity and efficiency improvements at our existing camps, and advancing our robust project pipeline, will position the company to deliver significant growth in net asset value per share,” Garofalo said.

As a result, AISC for 2016 are expected to be at the low end of the original guidance range of between $850/oz and $925/oz. AISC are expected to be about $850/oz for 2017, as the company continues to realise savings from its $250-million target in yearly sustainable efficiencies.

The Vancouver-based company also announced preliminary gold output for the fourth quarter of 761 000 oz, down 16% over the comparable period of 2015.

Goldcorp's 2016 financial results will be released on February 15.