TORONTO (miningweekly.com) - Canada's second-biggest gold-miner, Goldcorp, earned $290,9-million in the first quarter of this year, compared with $229,5-million a year earlier.

Net income was boosted by a $121,4-million noncash foreign exchange gain, compared with a $56,5-million loss in the first quarter of 2008, due
primarily to the weakening of the Canadian dollar and Mexican peso.

Stripping out once-off items, adjusted net earnings were $169,3-million, more or less flat compared with  $164,7-million a year ago, after higher gold revenues offset the decrease in silver and copper revenues, Goldcorp said.

Gold production in the quarter was 18% higher than in the same period of 2008, at 616 500 oz, while total cash costs on a co-product basis improved year-on-year to $353/oz of gold, compared with $395/oz.

"Our total cash costs remained the lowest among the senior gold group, providing Goldcorp shareholders with increasing cash margins and full exposure to rising gold prices," said CEO Chuck Jeannes.

"With approximately 90% of our first quarter revenue coming from gold sales, we were particularly pleased to see our strong gold production more than offset the impact of lower by-product metals prices."

The company maintained its previous full-year production guidance for 2009 of 2,3-million ounces, at total cash costs of $365/oz on a by-product basis and $400/oz on a co-product basis.

Goldcorp said it is still on track to start commissioning the first phase of the sulphide process plant at its large Penasquito project, in Mexico, by mid-year, with the first metals concentrates targeted in the fourth quarter.

The firm also outlined developments plans for its Cochenour project, in Red Lake, where it plans to link up the old Cochenour mine with the high-grade Bruce Channel deposit, that it acquired last year.

Dewatering will begin immediately at the old Cochenour shaft, and Goldcorp plans to complete a prefeasibility study and start early development next year, the company said.

The mine could contain around 5-million ounces, according to Goldcorp estimates.

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