TORONTO (miningweekly.com) – Canadian miner Goldcorp on Thursday announced first-quarter earnings declined by 37% to $253-million or $0.31 a share, compared with $404-million or $0.50 a share in the first quarter of 2012, owing to lower metals prices and sharply higher costs.

Net earnings in the quarter were 35.5% lower at $309-million, compared with $479-million in the first quarter of 2012.

Analysts had on average expected adjusted earnings, which exclude once-off items, of $0.41 a share, based on revenue of $1.37-billion.

Revenue for the first three months of the year ended March 31, declined 16% to $1.01-billion; however, gold sales in the period were 13.5% higher at 595 100 oz when compared with the 545 700 oz sold in the same period of 2012.

The average realised price for gold was 5% lower at $1 622/oz, compared with $1 707/oz.

Gold production for the quarter was 17% more at 614 600 oz, compared with 524 700 oz a year earlier; however, total cash costs on a by-product basis were $565/oz, up 125% when compared with the $251/oz it cost to produce gold a year earlier. All-in costs for the quarter were $1 135/oz.

Goldcorp said it expected to produce between 2.55-million and 2.8-million ounces of gold at total cash costs of between $1 000/oz and $1 100/oz on an all-in sustaining cost basis and at a by-product cost of $525/oz to $575/oz of gold.

The company would be engaged with construction of three mines until 2015, and had reiterated its capital spending guidance of $2.8-billion for this year. The company was busy constructing its next generation of gold projects, which included Cerro Negro in Argentina, Éléonore in Quebec and Cochenour in Ontario.

Goldcorp did, however, note that it had completed a review of capital spending, exploration and general and administrative costs and had formulated a contingency plan that would defer spending should market conditions warrant.

It also noted it had received a permit for construction of the power line to connect the Cerro Negro project to the grid later than expected, which added to the potential that initial gold production would be deferred until the first quarter of 2014.

Goldcorp shares listed on the TSX were down 1.44% at C$28.65 apiece on Thursday morning.