TORONTO (miningweekly.com) – The NYSE-listed stock of mining major Goldcorp trended lower on Thursday after the company reported a significant net loss for the fourth quarter ended December 31.
The world’s largest gold miner by market valuation reported a net loss of $2.4-billion, or $2.94 a share, compared with a net loss of $1.1-billion, or $1.34 a share, in the fourth quarter of 2013.
The Vancouver-based miner booked a $2.3-billion after-tax impairment charge on the value of the Cerro Negro mine, in Argentina, where it achieved commercial production on January 1, owing to the decline in market valuations of the future exploration potential and the ongoing challenging fiscal conditions in the country.
The world's top gold producer by production Barrick Gold on Wednesday also reported a significant $2.8-billion after-tax impairment charge related mostly to its Lumwana mine, in Zambia, and its Cerro Casale, project in Chile.
Goldcorp reported adjusted earnings of $0.07 a share, lower than the $0.09 a share the company reported in the same period of 2013, missing analyst forecasts of $0.12 a share.
Revenues came in at $1.1-billion, down from $1.2-billion in the comparable quarter a year earlier. The company sold 890 900 oz of gold in the quarter at an average realised price of 1 203/oz.
After reporting its financial results late on Wednesday, Goldcorp’s NYSE-listed stock was caught in a negative trend on Thursday, falling 8% to $21.39 a share.
For 2015, the company expected gold output to rise 20% to between 3.3-million and 3.6-million ounces, up from 2.87-million ounces in 2014. It expected all-in sustaining costs to average between $875/oz and $950/oz of gold.
Capital expenditures for the year was forecast at between $1.2-billion and $1.4-billion, down from $2.13-billion in 2014. Capital allocated included about $235-million at Cerro Negro, $215-million at Peñasquito, $115-million at Éléonore and $95-million at Cochenour.
"Expected production growth of an additional 20% in 2015, coupled with rapidly declining capital expenditures provides a clear path to achieving significant free cash flow this year. Coupled with our investment-grade balance sheet, Goldcorp possesses the flexibility to pursue growth opportunities that will further support our future success,” Goldcorp president and CEO Chuck Jeannes said.
Indeed so, as the company had agreed last month to buy Probe Mines in an all-stock deal that valued the metals exploration company at C$526-million, in a proposition to gain control of the Borden Gold project, in northern Ontario.