TORONTO (miningweekly.com) – Canada's second-biggest gold-miner, Goldcorp, posted a $958,1-million net profit for the fourth quarter of 2008, compared with $256,5-million a year earlier, after recording a noncash foreign exchange gain on the reevaluation of future income tax liabilities.

Stripping out once-off items, adjusted net earnings for the quarter were $84,4-million, compared with   $178,5-million in the fourth quarter of 2007.

Fourth quarter revenue slid 10% to $609-million, from $679,8-million in the year-prior period, mainly owing to lower realised silver and copper prices.

Vancouver-based Goldcorp produced a best-ever 691 800 oz of gold in the quarter, 11% higher than a year earlier.

However, total cash costs jumped 55% to $323/oz, from $208/oz in the fourth quarter of 2007, mainly because of lower prices for silver and copper, which the company produces as byproducts and uses to offset costs.

On a standalone basis, cash costs increased to $358/oz of gold, from $327/oz in the fourth quarter of 2007.

For the full year, Goldcorp produced 2,23-million ounces of gold, at total cash costs of $305/oz in 2008.

“Our performance in the fourth quarter underscores the substantial operational improvements under way throughout the company, and our priority in 2009 and beyond is on building on this improved performance while delivering on our goals and objectives," said CEO Chuck Jeannes.

“Our outstanding balance sheet, strong cash flows and available credit facility allow us to finance this entire growth profile from existing sources, while providing us the flexibility to maximize the potential of numerous other important growth projects within the company."

Goldcorp also announced on Thursday that it has increased total proven and probable gold reserves by 7%, to 46,3-million ounces at the end of 2008.

Proven and probable silver reserves increased 17% to 1,25-billion ounces.

Goldcorp shares slid 2,45% on Thursday morning, to C$39,85 apiece by 9:31 in Toronto.

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