Goldcorp stocks tick lower on earnings miss, fall in prices despite record output
TORONTO (miningweekly.com) – The stock of the world’s largest gold miner by market capitalisation, Goldcorp, on Thursday trended in negative territory, as investors were disappointed by a bigger-than-expected third-quarter loss, as lower metal prices weighed on the company's bottom line, despite record output.
For the three months ended September 30, the Vancouver-based miner reported a net loss attributable to shareholders of $192-million, or $0.23 a share, compared with a net loss of $44-million, or $0.05 a share, for the third quarter of 2014.
TSX- and NYSE-quoted Goldcorp reported headline earnings of $37-million, or $0.04 a share, compared with $70-million, or $0.09 a share, for the third quarter of 2014. This included a reduction in the carrying values of inventory stockpiles of $40-million, or $0.05 a share.
Analysts had on average expected Goldcorp to earn $0.04 a share on an adjusted basis to remove special items.
Free cash flow rose to $243-million, compared with negative free cash flow of $355-million in the comparable quarter of 2014.
Goldcorp reported record output for its operation in the period, lifting gold production 42% over the year-earlier period to 922 200 oz. Total sales were 942 600 oz at an average realised gold price of $1 114/oz, compared with sales of 641 400 oz at an average realised gold price of $1 266/oz a year earlier.
All-in sustaining costs (AISC) were $848/oz for the quarter compared with $1 066/oz in the same period of 2014. Excluding noncash inventory impairments at Los Filos and Peñasquito, both located in Mexico, AISC for the third quarter of 2015 would have been $802/oz, Goldcorp advised.
Silver output reached 11.3-million ounces over last year’s 7.8-million ounces in the quarter.
Higher-than-expected folding and faulting at the Éléonore mine, in the James Bay region of Quebec, had resulted in Goldcorp revising the young mine’s 2015 production guidance downwards to between 250 000 oz and 270 000 oz. Earlier estimates were between 290 000 oz and 330 000 oz.
Goldcorp expected to hit the upper end of its full-year production guidance of between 3.3-million ounces and 3.6-million ounces, at AISC of between $850/oz and $900/oz.
The company's NYSE-traded stock fell by more than 8% on Thursday midday to change hands at $13.47 apiece.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation