Osisko expects gold production between 525,000 and 575,000 ounces this year

MONTREAL – Osisko Mining Corp. (TSX:OSK) said Thursday that its Canadian Malartic mine is expected to produce between 525,000 to 575,000 ounces of gold this year, up from 475,277 ounces in 2013.

The company, which is fighting off a hostile takeover bid by Goldcorp Inc. (TSX:G), said cash costs per ounce are estimated to be between $580 and $635, down as much as 24 per cent from last year.

Capital expenditures for 2014 are expected total $148.0 million, including $125.8 million at Canadian Malartic.

Montreal-based Osisko has said the Goldcorp’s offer, worth about $2.9 billion, doesn’t adequately recognize the potential for its Canadian Malartic mine in Quebec or risk inherent with Goldcorp’s stock.

Under terms of the offer, Osisko shareholders are entitled to receive 0.146 of a Goldcorp common share plus $2.26 in cash for each Osisko common share.

Osisko shares have traded well above the implied value of the Goldcorp offer since the bid was first announced.

Shares in the company closed down two cents at $7.59 on Wednesday, while Goldcorp shares fell 84 cents at $30, making the current implied value of the offer about $6.64 per share.