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Goldcorp president and CEO Chuck Jeannes

© Ben Nelms / Reuters/Reuters

Goldcorp Inc. cut its 2012 production guidance Tuesday as it blamed operating delays at its Red Lake mine in Ontario and inadequate water supply at its Penasquito mine in Mexico.

The Vancouver-based gold miner said it expected to produce between 2.35 and 2.45 million ounces of gold for the year, down from an earlier estimate of 2.6 million ounces.

Due to the lower expected production, the company also revised its total cash cost guidance to between $310 (U.S.) and $340 per ounce of gold on a by-product basis, up from $250 to $275 per ounce.

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Goldcorp president and chief executive Chuck Jeannes said he was disappointed.

"Our focus is on addressing these issues promptly and in a manner supporting the long-term opportunities at these key assets," he said in statement.

Mr. Jeannes said the company looked forward to the resumption of mining in areas of the high grade zone at Red Lake, while a team was assessing opportunities to address water deficits at Penasquito.

Goldcorp also cut its production guidance for several of its by-product metals.

For 2012 it forecast 30 million to 31 million ounces of silver compared with previous guidance of 34 million ounces.

Zinc production was expected to total about 310 million to 325 million pounds, while lead production is forecast to amount to 155 million to 160 million pounds. That is down from earlier guidance of 400 million pounds and 180 million pounds respectively.

Production guidance for copper was unchanged at 110 million pounds.

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Goldcorp said Tuesday that production in the second quarter totalled 578,600 ounces of gold, up 10 per cent compared with the first quarter of 2012, while total cash costs on a by-product basis for the second quarter are expected to be about $370 per ounce.

The company has mines as well as exploration and development projects in Canada, the United States, Mexico and Guatemala and Argentina.

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