Significant Changes during 2017
Our financial highlights demonstrate that we experienced a number of important events in 2017:
- We progressed our growth plan, which was rolled out in 2017. This plan is expected to deliver a 20% increase in gold production, a 20% increase in gold reserves and a 20% reduction in all-in sustaining costs (AISC) by 2021. In this pursuit, we maintain our commitment to being responsible stewards of the environment and building collaborative partnerships with communities, governments and all other stakeholders for mutual success. We also launched “Beyond 20/20,” investing in our long-term portfolio to continue to grow low-cost gold production from our growing gold mineral reserves.
- On February 17, 2017, we acquired New Gold Inc.’s 4% gold stream on the El Morro deposit. NuevaUnión is a copper-gold-molybdenum project that combines our El Morro project with Teck’s Relincho project to produce a 50/50 joint venture. The projects are 40 km apart in the Huasco Province of the Atacama region in Chile.
- On April 7, 2017, we completed the sale of our Los Filos mine, located in Mexico, to Leagold Mining Corporation. This allowed us to focus on our core assets so as to drive increasing net asset value per share. At the time this report was published, our ownership of Leagold was 12.2%.
- On April 27, 2017, Mr. Peter Dey retired from our Board.
- On May 31, 2017, we completed the sale of our Cerro Blanco gold-silver project, located in Guatemala, to Bluestone Resources Inc. Our holdings in Bluestone represent less than 5% of the issued and outstanding shares of the Company.
- In May 2017, our Marlin mine in Guatemala ceased production. The mine was in operation for 12 years, producing 2.3 million ounces of gold and 63 million ounces of silver.
- On June 9, 2017, we completed the acquisition of a 50% interest in the Cerro Casale project (“Cerro Casale”), and 100% interest in the Quebrada Seca exploration project located in the Maricunga Gold Belt in Chile. This resulted in Barrick Gold Corporation and Goldcorp each owning 50% of the project and subsequently forming a 50/50 joint operation.
- We announced the appointment of Mr. Matthew Coon Come to our Board of Directors, effective as of July 26, 2017. Mr. Coon Come has a long history of achievement in the areas of Indigenous affairs and environmental stewardship, making him an ideal candidate to help guide us as we work with our Indigenous partners to advance our operations in a mutually beneficial and environmentally sustainable manner.
- On July 26, 2017, we announced that Mr. Russell Ball, our Executive Vice President, Chief Financial Officer and Corporate Development, would be departing his position and Mr. Jason Attew, formerly our Senior Vice President, Corporate Development and Strategy, would be appointed as his successor. Mr. Attew became our Executive Vice President, Chief Financial Officer and Corporate Development on October 26, 2017.
- On August 2, 2017, we completed the acquisition of all of the outstanding shares of Exeter Resource Corporation (“Exeter”). Exeter’s key asset is the 100% owned Caspiche project, located within the Maricunga Gold Belt in Chile. Following the completion of the acquisition, the Caspiche project was transferred into the joint venture with Barrick, which resulted in Barrick and Goldcorp respectively holding an indirect 50% interest in each of the Cerro Casale and Caspiche projects (now combined as the Norte Abierto Project). The joint venture includes a 100% interest in each of the following projects: Cerro Casale, Caspiche and Quebrada Seca.
- On October 18, 2017, we completed the sale of our 21% interest in the San Nicolas copper-zinc project, located in Zacatecas, Mexico to Teck. This transaction is consistent with our strategy of optimizing our portfolio of assets and unlocking value by monetizing non-core assets such as San Nicolas.
- On November 7, 2017, we completed the sale of our 100% interest in the Camino Rojo oxide project, located in Zacatecas, Mexico to Orla Mining Ltd. (“Orla”). We now own approximately 19.9% of Orla’s issued and outstanding common shares.
- In late 2017, Marlin was the first gold mine in Guatemala to be responsibly closed and audited to verify that cyanide facilities have been safely decommissioned and that the International Cyanide Management Code (ICMC) no longer applies to the operation.