Goldcorp Reports Q3 Net Loss and Writedown on Penasquito

Goldcorp Inc. (TSX:G,NYSE:GG) announced its third-quarter operating and financial results, commenting that it recorded adjusted quarterly revenues of $1.1 billion and adjusted net earnings of $70 million, or $0.09 per share.

However, the company also said it recorded a quarterly net loss of $44 million, or $0.05 per share, noting that “[b]oth reported earnings and adjusted earnings were negatively impacted by a $36 million, or $0.04 per share, non-cash reduction in the value of low-grade stockpiles at Peñasquito.”

Other Q3 highlights include:

  • Gold sales of 641,400 ounces on gold production of 651,700 ounces.
  • Adjusted revenues of $1.1 billion.
  • All-in sustaining costs of $1,0661,4 per ounce.
  • Adjusted net earnings of $70 million, or $0.09 per share.
  • Adjusted operating cash flow of $399 million.
  • Dividends paid of $122 million.
  • Ramp–up at Cerro Negro in Argentina and Éléonore in Quebec progressing on schedule.

Chuck Jeannes, Goldcorp’s president and CEO, commented:

The continued ramp-up of new mines Cerro Negro and Éléonore, coupled with stable performance at our existing mines position us for a strong finish to 2014. We expect to meet our 2014 production guidance, but the lower-than-expected production at El Sauzal due to pit wall instability and the second-quarter stoppage at Los Filos will cause gold production to be at the low end of our previously guided range of between 2.95 million and 3.1 million ounces.  With respect to cost guidance, the success of our Operating for Excellence programs has exceeded our expectations, with over $185 million of additional savings already realized through the first nine months of 2014 versus our previous target of $100 million for the year.  This performance is expected to help drive all-in sustaining costs toward the low end of our guided range of between $950 and $1,000 per ounce for the year.  With new project capital spending beginning to wind down, Goldcorp remains well-positioned for sustained growth in free cash flow in 2015 and beyond.

Click here to read the full Goldcorp Inc. (TSX:G,NYSE:GG) press release.

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