Company type | Subsidiary |
---|---|
TSX: NGT | |
Industry | Gold Mining |
Founded | 1994 |
Founder | Rob McEwen |
Headquarters | , Canada |
Key people | Ian Telfer (Chairman) David Garofalo (President and CEO) |
Products | Gold |
Revenue | $3,510.00 million (2016) |
$369.00 million (2016) | |
$162.00 million (2016) [1] | |
Total assets | $21.5 billion (2016) [2] |
Number of employees | 15,800 (2015) [3] |
Website | goldcorp |
Goldcorp Inc. was a gold production company headquartered in Vancouver, British Columbia, Canada. The company stood among the largest gold producers in the world, employed about 15,800 people worldwide, [4] engaged in gold mining and related activities including exploration, extraction, processing and reclamation. Goldcorp’s operating assets included eleven mines in North and South America. [5]
In 2019, Goldcorp merged with Newmont Mining Corporation, the world’s second-largest producer of gold. [6]
In June 2016, Goldcorp was named one of Corporate Knights magazine's Best 50 Corporate Citizens in Canada. [7] In the same year, the company was also ranked among Canada's Top 100 Employers. Goldcorp has repeatedly been accused of harming the environment, livestock, and public health in multiple studies by advocacy groups and activists, contaminating areas with toxic heavy metals by its mining activities. These allegations have been denied by the company and none have been proven in a court of law. [8] The company's track record around transparency, policies and practices has improved [9] since a damning 2010 study accused the company of human rights violations.
Goldcorp’s operating assets included mines in Canada, Mexico, Central and South America. [10] Goldcorp also has a number of projects including the Coffee, Cochenour and Borden projects in Canada,[ citation needed ] and NuevaUnión (formerly known as Project Corridor), a joint venture with Teck Resources in Chile. [11]
In 2017, Goldcorp announced it had formed a 50/50 joint venture with Barrick Gold to consolidate the Maricunga Gold Belt in the Atacama Region of northern Chile. On June 9, Goldcorp acquired the minority 25% interest held by Kinross Gold in Cerro Casale and 100% interest in the Quebrada Seca exploration project for US$260 million [12] and a 1.25% royalty interest in favor of Kinross on 25% of gross revenues from payable metal from Cerro Casale and Quebrada Seca, with Kinross foregoing the first $10 million payable, a contingent payment of $40 million payable after a construction decision at Cerro Casale, and assumption of a $20 million obligation to Barrick payable on commercial production at Cerro Casale. [13]
In April 2017, Goldcorp closed on the sale of its Los Filos gold mine Guerrero State, Mexico to Leagold Mining for US$350 million. The transaction included US$279 million in cash and $71 million in common shares of Leadgold. Goldcorp also nominated Russell Ball, the Leagold's board of directors. [14]
In June 2017, Goldcorp announced it had formed a 50/50 joint venture with Barrick Gold to develop the Maricunga District in Chile. [15] The transaction included the acquisition of Exeter Resource Corp. along with a US$260 million payment at closing to Kinross Gold. Goldcorp also granted Kinross a 1.25% royalty on the Cerro Casale and Quebrada Seca deposits. [16]
A week-long protest and blockade disrupted operations at the Peñasquito mine during the first week of October 2017. [17]
In Q2 2017, Goldcorp reported net earnings of US$135 million and production of 635,000 ounces of gold. [18]
In Q1 2017, Goldcorp reported net earnings of US$170 million and production of 655,000 ounces of gold. [19]
In 2016, Goldcorp produced 2.873 million ounces of gold at all-in sustaining costs of $856 per ounce. [20]
In 2015, production totalled 909,400 ounces for the fourth quarter and 3,464,400 ounces for the full year 2015,[ citation needed ] compared to 890,900 ounces and 2,871,299 ounces, respectively, in 2014.[ citation needed ]
Financials (US $ Millions) | 2015 | 2014 |
---|---|---|
Revenues | $4,375 | $3,436 |
Adjusted Net Earnings | ($88) | $498 |
Cash Flow from Operations | $1,430 | $1,014 |
Cash & Cash Equivalents | $326 | $482 |
Total assets at Dec 31 | $21,428 | $27,866 |
Goldcorp was officially incorporated in 1994. Following a period of M&A activity, the company quickly grew to become a leading gold producer. The company is focused on responsible mining practices with safe, low-cost production in areas of low political risk. Through the consistent application of its business strategy, Goldcorp has achieved significant growth, industry recognition, and numerous awards.
In 2000, Goldcorp founder Rob McEwen launched the Goldcorp Challenge, sharing with the public the company’s geological data with the offer of $575,000 in prizes to those who could help locate Red Lake mine’s next six million ounces of gold. The challenge was successful, with more than 110 sites identified and more than 80 percent of sites yielding significant gold reserves. The challenge helped turn the company from a struggling enterprise into one of the most profitable in the industry.
As of the third quarter of 2014, Goldcorp was the world's fourth-largest producer of gold. [21]
In January 2017, Goldcorp announced it had divested two non-core assets through the sales of the Cerro Blanco Gold Project in Guatemala to Bluestone Resources, [22] as well as the Los Filos Mine in Mexico to Leagold Mining. [23]
In January 2017, Goldcorp reported preliminary full year 2016 production totaling 2.873 million ounces of gold at all-in sustaining costs of around $850 per ounce. The Company expects to increase total annual gold production by over 20% over the next five years to more than three million ounces annually. [24]
In February 2017, Goldcorp announced it had purchased New Gold's 4% gold stream on the El Morro deposit. The El Morro deposit is part of NuevaUnión, a 50/50 joint venture with Teck Resources that combines the Relincho and El Morro deposits. [25]
On 14 January 2019, Goldcorp agreed to a merger acquisition by Newmont Mining Corporation, the world’s second-largest producer of gold, with the merged "Newmont Goldcorp" to be the world’s largest producer. [26] In 2020, the merged company's name was shortened to Newmont. [27]
The environmental, economic and human impact of the company’s Latin American mines has been a controversial topic for a number of years.
A study by Italian activist Flaviano Bianchini in 2006 found dangerous levels of arsenic and lead in the blood of Hondurans living downstream from Goldcorp's San Martín mine, located in the Siria Valley. [28] While people living in the valley had equated their health problems with the mine's operations since it opened in 1999, both the company and the Honduran government disputed the study's findings. [29] Honduran authorities, the company said, took water samples during three visits in 2008 and all pH measurements were normal. They also reviewed and approved the mine's closure plan.
In 2009, two studies commissioned by the UK-based advocacy group CAFOD have found the company's methods to extract gold from low-grade deposits also releases other toxic heavy metals such as arsenic, mercury and lead, contaminating streams and groundwater. The first study from Newcastle University detected acidic mine drainage, whereby sulphides in the rock are exposed to oxygen and water and produce sulphuric acid, which can have devastating effects on animals and plants. A follow-up study by the same university found evidence of "severe" contamination in the form of highly acidic and metal-rich water from the mine site flowing into a stream used by villagers for agriculture and domestic purposes. [30]
Since the closure of San Martin mine in 2008, the 1,500 hectare former mine site has been reclaimed into agricultural farmland and the former camp facilities remodeled into an ecotourism hotel. These developments have since provided employment, skills training and new investment to the area.
An investigative report by the CTV Television Network's W5, published on their website on April 17, 2010, reported criticism by human rights workers about the damage they believe mining companies were doing to the people, the land, and the culture of Guatemala. [31] The same news program ran a four-part documentary entitled "Paradise Lost" which explored some of the controversy surrounding Goldcorp's Marlin mine operation, and investigated the economic, environmental, and social costs and benefits of Canadian mining operations in Central America. [32]
At the request of Goldcorp shareholders, an independent human rights impact assessment (HRIA) was conducted by external auditors in 2010. [29] Goldcorp has since implemented all recommendations from the HIRA, including the publishing of an official Human Rights Policy in 2010.
On 15 July 2012, the self-organized International Peoples’ Health Tribunal, a panel of twelve "judges" with backgrounds in science, health, ecology, and human rights met in Guatemala to hear testimony relating to the effects of Goldcorp's South American mines. After the two-day tribunal, the panel found Goldcorp financially liable for health and ecological damages to the communities near its mines in Honduras, Guatemala, and Mexico. [33]
Pueblo Viejo mine is an open-pit gold and silver mine in the Sánchez Ramírez Province of the Dominican Republic where mining operations started in 2012 and expect to cease in 2041. [34] It is the largest gold mine in Latin America and 13th largest gold mine in the world. [35] The mine is run by Pueblo Viejo Dominicana Corporation (PVDC), which is 60% owned by Barrick Gold Corporation and 40% owned by Newmont Corporation. [34]
Pueblo Viejo employs approximately 2,350 employees and 2,500 contractors. [36] The economic activities of the mine represent 2% of the Dominican Republic’s gross domestic product [37] and Pueblo Viejo is the largest corporate taxpayer in the country. [38]
The mine has generated an environmental conflict, because pollution from the tailings dam and windblown particulates have contaminated rivers and killed local livestock who ingested the toxins. [39] Local communities say that the mine has ruined their lives and caused many health problems: skin lesions are common; [40] children are sickened by chemical vapors; [41] and agricultural land is no longer productive. [42] Local people have asked to be relocated away from the mine since 2013, [43] but the government nor the company have responded to their requests.
The company proposed to expand the mine in 2019, meeting with fierce resistance from communities in Yamasá who would be impacted by the expansion. [44]Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada. It has mining operations in Argentina, Canada, Chile, Côte d'Ivoire, Democratic Republic of the Congo, Dominican Republic, Mali, Papua New Guinea, Saudi Arabia, Tanzania, the United States and Zambia. In 2023, it produced 4.05 million ounces of gold at all-in sustaining costs of $1,335/ounce and 420 million pounds of copper at all-in sustaining costs of $3.21/pound. As of 31 December 2023, the company had 77 million ounces of proven and probable gold reserves.
Newmont Corporation is an American gold mining company based in Greenwood Village, Colorado. It is the world's largest gold mining corporation. Incorporated in 1921, it owns gold mines in Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname. In addition to gold, Newmont mines copper, silver, zinc and lead.
Yanacocha is a gold mine in the Cajamarca region of the Northern Highlands of Peru. Considered to be the fourth largest gold mine in the world, it produced 0.97 million ounces of gold in 2014. The 251-square kilometer open pit mine is situated about 30 kilometers north of Cajamarca, in high pampa, straddling the watershed. The operation is a joint venture between Newmont Goldcorp, Compañia de Minas Buenaventura (43.65%) and the International Finance Corporation (5%).
The Fimiston Open Pit, colloquially known as the Super Pit, is an open-pit mine in Australia. It was Australia's largest open cut gold mine until 2016 when it was surpassed by the Newmont Boddington gold mine also in Western Australia. The Super Pit is located off the Goldfields Highway on the south-east edge of Kalgoorlie, Western Australia. The pit is oblong in plan view and is approximately 3.5 kilometres long, 1.5 kilometres wide and over 600 metres deep.
NOVAGOLD is a Canadian company that is pursuing the development of the Donlin Gold mine in Alaska. Headquartered in Vancouver, the company is listed on the NYSE American and the Toronto Stock Exchange. The company was founded in Dartmouth, Nova Scotia, in 1984, to pursue exploration and development of mining properties. While the company bought and sold numerous exploration rights across North America, they have principally focused on four properties. They developed and operated the Murray Brook Mine in Nova Scotia from 1989 to 1992 and developed the Rock Creek Mine in Alaska but defaulted on financial obligations forcing it to close shortly after opening in 2008. They conducted exploration and development work on the Galore Creek mine in British Columbia between 2003 and 2018 but sold its interests. The development of the Donlin Gold mine has been pursued since the formation of a joint venture with Barrick Gold in 2012.
Kinross Gold Corporation is a Canadian-based gold and silver mining company founded in 1993 and headquartered in Toronto, Ontario, Canada. Kinross currently operates six active gold mines, and was ranked fifth of the "10 Top Gold-mining Companies" of 2019 by InvestingNews. The company's mines are located in Brazil, Mauritania, and the United States. It trades under the KGC ticker in the New York Stock Exchange, and under K in the Toronto Stock Exchange.
Gold mining in Nevada, a state of the United States, is a major industry, and one of the largest sources of gold in the world. In 2018 Nevada produced 5,581,160 troy ounces, representing 78% of US gold and 5.0% of the world's production. Total gold production recorded from Nevada from 1835 to 2017 totals 205,931,000 troy ounces (6,405.2 t), worth US$322.6 billion at 2020 values. Much of Nevada's gold production comes from large open pit mining using heap leaching recovery.
The Boddington gold mine is a gold and copper mine located 13 kilometres (8.1 mi) northwest of Boddington, Western Australia.
There are different methods by which gold mining companies are ranked. One is by their annual production. Another is by their cash cost per ounce, that is, how much money it costs them to mine the gold. Since gold prices are the same everywhere, companies with lower costs per ounce make more profit. The most common method lists by market capitalization which considers the total value of capital holdings by that company. Also considered when comparing companies is their market capitalization per ounce of gold equivalent which takes the market value and total reserves and resources for each company as well as the price of gold into consideration. The figures for each company can be used to determine the value the stock market gives to each company's reserves on an ounce to ounce basis.
Pueblo Viejo is a municipality (municipio) of the Azua province in the Dominican Republic.
The Canadian Malartic Corporation is a mining company that operates the Malartic mine near Malartic, Quebec. Prior to 2014 the company was a public company named Osisko Mining Corporation with shares listed on the Toronto Stock Exchange and New York Stock Exchange. In 2014, Osisko Mining was subject to a hostile takeover bid by Goldcorp but an alternative bid by white knights Yamana Gold and Agnico Eagle Mines Limited was accepted that, in addition to offering a higher price, created the spin-off Osisko Gold Royalties and turned Osisko Mining Corporation into the subsidiary company Canadian Malartic Corporation jointly owned by Yamana Gold and Agnico Eagle. From its founding in 1982 until 2006, Osisko Mining bought and sold mineral exploration rights in Quebec, conducting exploration work. The company acquired an interest in the Canadian Malartic property in 2004 and after promising feasibility studies the mine was constructed with commercial production achieved in May 2011.
The Red Lake mine was one of the largest gold mines in Canada and in the world. The mine is located in northwestern Ontario at Red Lake. The mine had estimated reserves of 3.23 million oz of gold in 2013. Note that the Campbell and Red Lake mines are mining the same orebody, commonly referred to as the Campbell-Red Lake deposit.
Wheaton Precious Metals Corp. is a Canadian multinational precious metals streaming company. It produces over 26 million ounces and sells over 29 million ounces of silver mined by other companies as a by-product of their main operations.
New Gold Inc. is a Canadian mining company that owns and operates the New Afton gold-silver-copper mine in British Columbia and the Rainy River gold-silver mine in Ontario, Canada. Through a Mexican subsidiary company, they also own the Cerro San Pedro gold-silver mine in San Luis Potosí, Mexico, which ceased operation in 2017. While New Gold was founded in 1980 for the purposes of mineral exploration, the company became a mine operator with its merger of Peak Gold and Metallica Resources in 2008. A fourth company, Western Goldfields, joined in 2009. Together they operated the Peak mine in Australia and Mesquite Mine in California but sold both in 2018. Headquartered in Toronto, shares of the company are traded on the Toronto Stock Exchange and NYSE American.
Tahoe Resources Inc. was a mining company and intermediate precious metals producer with silver and gold mines in Canada, Guatemala and Peru. It was founded in Vancouver, British Columbia by Kevin McArthur, former CEO of Glamis Gold and Goldcorp. Incorporated in British Columbia, Canada, the company's U.S. headquarters is located in Reno, Nevada.
Maricunga Gold Mine is an open pit gold mine in Chile. It is owned by Toronto-based Kinross Gold, but it has been closed since August 2016.
Canadian mining in Latin America and the Caribbean began in the 20th century. Latin America and the Caribbean's vast resources give the region great geopolitical importance, attracting foreign interest for centuries. From the colonial race of European empires, to the multinationals of today's neoliberal capitalist world, this region continues to draw interest. Canada's involvement in Latin America increased dramatically since 1989 with several landmark negotiations and agreements. By 2009, the Canadian larger-company mineral exploration market in this region was valued at US$1.7 billion.
Pueblo Viejo mine is an open-pit gold and silver mine in the Sánchez Ramírez Province of the Dominican Republic where mining operations started in 2012 and expect to cease in 2041. It is the largest gold mine in Latin America and 13th largest gold mine in the world. The mine is run by Pueblo Viejo Dominicana Corporation (PVDC), which is 60% owned by Barrick Gold Corporation and 40% owned by Newmont Corporation.
The El Morro mine is one of the largest gold mines in Chile and in the world. The mine is located in the north of the country in the Atacama Region. The mine has estimated reserves of 6.7 million oz of gold. The mine also holds reserves amounting to 449.5 million tonnes of ore grading 0.49% copper.
The Los Filos mine is one of the largest gold mines in Mexico and in the world. The mine is located in the south of the country in Guerrero. The mine has estimated reserves of 7.43 million oz of gold and 52.54 million oz of silver. In January 2017, Goldcorp sold the mine to Leagold Mining Corporation for $438 million as part of a divestment of non-core assets.