VANCOUVER (miningweekly.com) – Canadian mining major Goldcorp has reported a sharp drop in first-quarter profit, as higher gold prices failed to offset lower production, sales and rising costs.

The Vancouver-based miner reported profit of $67-million, or $0.08 a share, which was far removed from the $170-million, or $$0.20 a share, the company reported in the same period a year earlier.

Analysts had, on average, expected earnings of $0.11 a share, according to Thomson Reuters data.

Goldcorp said revenues fell 4% year-on-year to $846-million, mainly owing to decreases in gold and silver sales volumes of 14% and 11%, to 466 000 oz and six-million ounces, respectively, and an 8% lower average realised silver price of $14.21/oz.

Goldcorp advised that these decreases were offset partially by a 30% increase in zinc revenues, driven by a 14% increase in the average realised price and lower treatment and refining charges, and an 8% increase in the average realised price of gold to $1 334/oz.

The lower gold sales were mainly attributable to the impacts of the sale of Los Filos, in April 2017, and closure of the Marlin mine in the second quarter of last year. Further, gold sales volumes were lower at Peñasquito on the back of lower-grade ore as a result of the planned transition from the higher-grade area of Phase 5 at the bottom of the Peñasco pit, to primarily lower-grade ore from the beginning of Phase 6 and lower-grade stockpiles.

These decreases in gold sales volume were partially offset by an increase in sales volumes at Cerro Negro, mainly owing to a higher grade as a result of mine sequencing. The decrease in silver sales volumes was mainly owing to the closure of Marlin, the company said.

Goldcorp advised that gold output came in at 590 000 oz, at a cost of $810/oz, compared with 655 000 oz at a cost of $800/oz in the comparable first quarter of 2017.

The company has confirmed its full-year guidance of 2.5-million ounces at a cost of $800/oz.

The major said it is on track to meet its goal of reaching $250-million of sustainable annual efficiencies by the middle of 2018, with $210-million achieved as of the end of the first quarter.

According to CEO David Garofalo, Goldcorp’s operations met their quarterly targets and its pipeline of growth projects are progressing in step with its ‘20/20/20’ growth plan to grow production and reserves by 20%, while reducing costs by 20% by 2021.

Goldcorp’s NYSE-listed stock closed down 2.86% on Wednesday at $13.95 a share, and it lost a further 1.36% in after-market trading to $13.76 apiece.