TORONTO (miningweekly.com) – Goldcorp CEO Chuck Jeannes is not budging from his prediction that gold will reach its all-time inflation adjusted high of $2 400/oz “in the next year or two”, despite bullion having corrected over the past month.
“The macroeconomic factors supporting a higher gold price very much remain in place,” he said, adding that the recent fall off was “healthy” for the price of the yellow metal.
“We’ve seen very strong physical demand and buying by central banks, and the overall trend is very positive.”
Jeannes told Mining Weekly Online in an interview that the gold price would likely remain volatile, but said he “wouldn’t be surprised” if it ended the year higher than current levels.
Bullion was trading at $1 720/oz on Wednesday, well off the $1 923/oz record it reached in September.
Goldcorp earlier on Wednesday reported third-quarter earnings of $336-million, a 53% reduction compared with the $721-million figure it reported for the same period last year.
On an adjusted basis, earnings surged 88% to $459-million, as revenues grew 48% on the back of soaring metals prices.
Goldcorp aims to grow its production from the 2.5-million to 2.55-million ounces forecast for this year to four-million ounces in 2014.
“That comes from the projects we’re already operating or building as we speak,” Jeannes said.
He said that Goldcorp leadership “always keeps our eyes open” for acquisition opportunities, but that the company’s significant internal growth meant that “we’re not pressed to buy things”.