Have you seen this? The SOBs are stealing juniors at $60 oz
UPDATE 1-Gold could hit $1,500 in 2 years-Goldcorp CEO
TORONTO, Sept 10 (Reuters) - Goldcorp's (G.TO: Quote, Profile, Research, Stock Buzz) chief executive said on Wednesday gold prices should rebound soon, and could nearly double to $1,500 an ounce over the next two years.
"We're going to see gold over $1000, I like to say $1500 gold over the next 18-24 month period," Kevin McArthur, CEO of the Canadian gold senior, said at the Denver Gold Forum. Spot gold <XAU=> was at $763 on Wednesday.
McArthur said tight global supply will push gold higher soon again. He said he was surprised at the depth of the metal's 22 percent retreat over the past two months.
"We believe we're in a correction. We just are surprised by the quickness and amplitude of this correction," he said.
"We're going to see gold over $1,000, I like to say $1,500 gold over the next 18-24 month period."
McArthur also said Goldcorp's costs per ounce should trend downward over the next four years as the company opens new lower-cost mines and raises its gold production by around 50 percent over the next 5 years. Output this year is seen at 2.3 million ounces to 2.4 million ounces.
The company's production lagged expectations in the first half of the year, but output should get a boost from completion of the No. 3 shaft at the flagship Red Lake mine in Ontario in December, McArthur said.
Commenting on possible mergers, he said accretive acquisitions were part of the company's long-term growth plan, and suggested the focus was on smaller players with development-stage properties.
"We don't do grass-roots exploration. We believe that the juniors do that better than us, and I think history proves that the seniors don't do that well," McArthur said.
He said Goldcorp would "keep its powder dry" in managing cash.
He said the company should close its acquisition of gold explorer Gold Eagle Mines (GEA.TO: Quote, Profile, Research, Stock Buzz) as early as next week. |
