TORONTO (miningweekly.com) – Canada's second-biggest gold-miner, Vancouver-based Goldcorp, reported lower third-quarter net earnings late on Wednesday, mainly thanks to a noncash forex gain a year earlier, but posted increased core earnings and raised its production expectations for this year.

Goldcorp's net income for the third quarter slid to $114,2-million, compared with $297,2-million in the third quarter of 2008, when the company recorded a $253,7-million gain on foreign exchange.

However, stripping out some one-off items, including a $28,1-million foreign-exchange loss, third-quarter adjusted earnings more than doubled to $140-million, from $64,7-million a year earlier.

Goldcorp, the second-biggest gold producer in the world by market value, said that gold production rose 11% year-on-year, to 621 100 oz, and the company increased its output guidance for the full year from 2,3-million ounces to around 2,4-million ounces.

Realised gold prices for the quarter jumped to $968/oz, from $865/oz in the third quarter of 2008, and cash costs were $295/oz on a by-product basis and $384/oz excluding byproduct credits.

For the full year, Goldcorp is now expecting by-product cash costs of $300/oz, compared with its previous guidance of $365/oz.

"Consistent with our 2009 theme of execution throughout our operations, Goldcorp's gold production and cash costs were again very strong in the third quarter," said CEO Chuck Jeannes.

"Red Lake experienced an outstanding quarter, driven by excellent results in the High Grade zone and continued productivity enhancements.

"Also in Ontario, Porcupine's quarterly gold production was its best in almost three years. Marlin in Guatemala and Los Filos in Mexico were also important contributors to our quarterly results, with the Los Filos openpit operation achieving record quarterly gold production."

Final figures will be available early next year, but the company does not expect “significant” changes from the current production guidance of 2,6-million ounces in 2010, based on the five-year plan published in January this year, Jeannes said on a conference call.

The company's new Penasquito mine in Mexico shipped its first lead and zinc concentrates this week, he said.