Goldcorp Inc. boosted its gold production for the year but reported a lower long-term outlook and said its key Penasquito mine in Mexico would only produce gold for 13 years instead of 19 years.
The Penasquito news and the weaker forecast triggered RBC Dominion Securities to lower its share price target for Goldcorp to $30 (U.S.) from $32.
Goldcorp traded around $24 a share mid-morning on Thursday.
Higher grades of ore from Penasquito will help boost Goldcorp’s overall production this year by as much as 18 per cent to 3.15 million ounces.
Last year, the company produced 2.67 million ounces from its mines, the company said in a statement late on Wednesday.
The Vancouver-based company lowered its production forecast for 2016 and 2017.
Under a revised plan for Penasquito, the company said the mine would only produce for 13 years in part because some of the lower-grade rock will not be mined.