Goldcorp Reports Big Quarterly Loss and Cuts Dividend

Goldcorp Inc. (TSX:G,NYSE:GG) released its results for Q4 2015, as well as 2015 as a whole, commenting that it incurred a net loss of $4.2 billion, or $5.03 per share, for the full  year. During the fourth quarter, its net loss clocked in at $4.3 billion, or $5.14 per share.
According to the company, the Q4 loss “included an impairment charge of $3.9 billion, net of tax, or $4.69 per share, and losses on foreign exchange translation of tax assets and liabilities and other of $247 million, or $0.30 per share.”
The press release also states:

Driven by two new mines in operation adjusted operating cash flow^1,2 increased to $1.44 billion or $1.73 per share²,  compared to $1.39 billion or $1.71 per share for the year ended December 31, 2014.  Free cash flow³ increased to$335 million for the year compared to negative free cash flow of $1.0 billion for the year ended December 31, 2014.
In the fourth quarter of 2015, adjusted operating cash flow was $339 million, or $0.41 per share, compared to $337 million, or $0.41 per share, for the fourth quarter of 2014.  Adjusted operating cash flow for the quarter was impacted by both lower gold prices and negative copper margins at Alumbrera.  However, free cash flow increased to $239 million compared to negative free cash flow of $241 million for the fourth quarter of 2014, due to a declining capital expenditure profile as all major mine construction is now complete.

In a separate press release, Goldcorp announced that as of April 1, 2016 it will cut its annual dividend to $0.08 per share. The company also plans to pay out future dividends on a quarterly basis instead of monthly.
The Globe and Mail states that Goldcorp’s share price took a hit of more than 9 percent after both pieces of news were released.
Click here to read more about the company’s Q4 and 2015 results.
Click here to read more about its dividend.