Toronto, 6 November 2009 

Already at record levels, gold could charge above $1,500 per ounce in the next two or three years, regardless of the plight of the U.S. dollar, Goldcorp Chief Executive Chuck Jeannes said on Thursday. 

In an interview a day after the Canadian gold producer reported a stronger-than-expected third-quarter profit, Jeannes said the metal's recent strength shows the currency is being viewed as an asset in it's own right, and not simply as a hedge against the greenback.

"People have this in their minds that this is a short-term event and it's just a dollar-driven event and it's not at all," he said. "If I look out two or three years, I can easily see $1500 gold."

Higher year-over-year gold prices and strong production from its key mines helped Goldcorp report a core profit of $140.6 million, or 19 cent per share, which beat analysts' estimates of 16 cents a share.

The strong production, combined with higher prices for byproduct silver and base metals, allowed the company to raise its 2009 production expectations and chop its cost outlook.

After years of cost inflation, miners have been mostly able to keep a lid on costs in the past year, as energy prices have come off their peak and other cost inputs have gone down due to the economic slowdown.

While energy prices have been creeping up of late and the economy has shown signs of rebounding, Jeannes said he doesn't see cost inflation being an issue next year.

"I think you need to see the world economies pick back up in a significant way before you're going to see inflation, but I do see inflation as a risk a few years out," he said. The company expects production of 2.4 million gold ounces this year, and Jeannes said that figure should rise to 3.5 million ounces by 2013.

He said the company will release an extended production outlook in January. Goldcorp's shares were up 5 Canadian cent at C$42.69 on the Toronto Stock Exchange, as gold prices came down slightly from a record high of $1,098.50 hit on Wednesday. George Albino, an analyst at Macquarie Equities Research, called the company's quarterly performance "very positive".

"This quarter's results clearly differentiate Goldcorp from other large-cap producers with the production beat and upward revision to guidance. We recommend investors accumulate shares," he said in a research note.

Ends --

By Cameron French, Thomson Reuters