Amid the recent onslaught of earnings reports from major mining companies, BNN sat down with a number of executives to discuss their latest quarter and how they’re managing their costs. The conversations come amid a cost-cutting trend in Canada’s resource sector, while companies also aim to ramp up production.

 

First on BNN: Goldcorp CEO says company 'hitting on all cylinders'

Goldcorp shares are trading lower following the release of the company's latest quarterly results and outlook, but CEO David Garofalo says they're "doing all the right things." In summing up the quarter, Garofalo says the company has "hit its cost-cutting and production targets" and there's been a ''dramatic" improvement in profitability.

Goldcorp President and CEO David Garofalo

"What we’re not doing is taking any shortcuts with any of our businesses. We’re not playing the shell game by deferring underground development or deferring stripping at open pits. We’re actually intensifying our stripping costs at Penasquito and intensifying underground development at our long-life assets so we can liberate a lot of value in some of these higher-grade parts of the deposits."

 

First on BNN: Cameco CEO says market conditions tough but will improve

Comeco CEO Tim Gitzel comments on the company's Q2 results and outlook, which includes the company reducing uranium supply and cutting costs to remain profitable in a "tough market." But Gitzel also believes there are signs of improvement in the uranium sector, saying about 57 nuclear power reactors are now under construction around the world.

Cameco President and CEO Tim Gitzel

"The market we can’t control, but we can control what’s going on in the company and we are working hard to streamline all of our costs. Our production costs are down 23 per cent this year, admin 28 per cent and we’re doing everything we can. The company’s in good shape."

 

Agnico Eagle lowers cost forecast, raises production outlook for 2017

After topping cost and production beats in the second quarter, Sean Boyd, Chief Executive Officer of Agnico Eagle talks to BNN about how the company is managing to lower cost forecast and raise production outlook for 2017.

Sean Boyd, CEO, Agnico Eagle

“It’s really just being efficient at your site. Your biggest single cost is your labour and you build in an annual wage increase, which has been [in the] two-to-three per cent range for the last couple of years. What we try to do is factor that in every year and try to improve the operations so we’re basically offsetting those increases in our biggest single cost factor through efficiencies and optimization.”

 

Higher copper prices buoy Lundin Mining

Lundin Mining released Q2 results today showing strong production from its Chile and U.S. copper mines. The company is also reporting that operating costs for the quarter were up due to higher overall sales volumes. We check in with Paul Conibear, president and CEO at Lundin Mining.

Paul Conibear, CEO, Lundin Mining

“When you take a look at it in local currency, operating costs are staying stable, or improving…What we focus on is making sure that we accomplish what we tell the market what we will do...We are patient and always looking for expansion.”

 

First on BNN: Barrick president ‘not satisfied’ despite Q2 earnings beat

Second-quarter results at Barrick Gold topped expectations. We dig into the numbers and outlook for the company with Barrick President Kelvin Dushnisky. He also provides an update on the dispute with the government of Tanzania, which has banned the export of gold-ore concentrate, and the company's Pascua Lama project in South America.

Kelvin Dushnisky, president, Barrick Gold

“We had a strong quarter, very happy. Production is up, costs are down, relatively speaking quarter over quarter. But we’re not satisfied – we think we can continue to do more. And that’s going to be our objective.”

We’re halfway through the year and we’ve already reduced our total debt by $500 million. As we sit here today, we have about $7.4 billion in total debt…our intent is to be at $5 billion in total debt by 2018. And [by] executing on that and our other priorities, including improving the operations and bringing the company into the 21st century with our digital approach, we’re seeing our share price increase and we hope it will continue.” 

 

First on BNN: Sherritt faces challenges in Q2 with low nickel price

David Pathe, president and CEO, Sherritt International, joins BNN to discuss the latest earnings from the company. They've faced challenges with nickel and cobalt prices and have lowered their forward guidance for nickel production at their Cuba and Madagascar operations.

David Pathe, president and CEO, Sherritt International

“As we get through the Ambatovy right now, what we are focused on is continuing to get our costs down and get both of our operations into the bottom quartile from a cost perspective...and we are continuing to look in our oil business to drill out opportunities we have there." 

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