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TORONTO (miningweekly.com) – The NYSE-listed stock of miner Goldcorp on Thursday fell 10% after the world’s largest gold producer by market capitalisation swung to a net loss for the three months ended September 30.
Vancouver-based Goldcorp had a loss for the third quarter of $44-million, or $0.05 a share, compared with net earnings of $5-million, or $0.01 a share, in the comparable quarter a year earlier.
The company reported adjusted net earnings of $70-million, or $0.09 a share, which was 63% lower year-on-year when compared with the $190-million, or $0.23 a share, recorded in the corresponding 2013 period.
Both reported earnings and adjusted earnings were negatively impacted by a $36-million, or $0.04 a share, noncash reduction in the value of low-grade stockpiles at Peñasquito, in Mexico.
Wall Street analysts had, on average, expected adjusted earnings of $0.18 a share on revenue of $1.05-billion.
Revenue came in at $1.08-billion, a 6% decrease year-on-year, owing mainly to lower sales.
Gold sales volumes were marginally lower at 641 400 oz, while at 18.6-million pounds, copper sales were down 15% compared with last year. Silver sales rose by 5% to 8.45-million ounces, with lead and zinc sales higher in the quarter under review.
Goldcorp, which operates mines in the Americas, reported lower realised prices for gold, copper and silver, while base metals prices increased in the period.
Third-quarter gold output increased over last year's third quarter despite the company losing gold production capacity from the divestiture earlier in the year of Marigold, in Nevada, and lower output from El Sauzal, in Mexico, after the company suspended operations owing to pit wall instability.
Gold output was 651 700 oz compared with 637 100 oz in the 2013 third quarter and silver output was 7.8-million ounces compared with 7.7-million ounces a year earlier.
All-in sustaining costs were higher at $1 066/oz, up from $995/oz in the comparable period.
Goldcorp president and CEO Chuck Jeannes said the lower-than-expected production at El Sauzal and the second-quarter month-long stoppage at Los Filos, in Mexico, as a result of a dispute with local land owners, would cause gold output to be at the low end of the company’s guided range of between 2.95-million ounces and 3.1-million ounces this year.
Jeannes also reported that the company’s cost-cutting programme had exceeded expectations, realising $185-million in savings over the past nine months, ahead of its $100-million target for the year. “This performance is expected to help drive all-in sustaining costs toward the low end of our guided range of between $950/oz and $1 000/oz for the year,” he added.
Goldcorp confirmed its 2014 capital budget at between $2.3-billion and $2.4-billion.
The company's NYSE-listed stock trended lower on Thursday, trading at $19.38 apiece, having lost 18.33% in value in the last 12 months.