Tags: Goldcorp | gold | miners | costs

Goldcorp Profit Beats Analyst Estimates as Costs Fall

Thursday, 31 Jul 2014 09:34 AM

Goldcorp Inc., the largest gold producer by market value, reported second-quarter earnings that beat analysts’ estimates after costs fell more than expected.

Net income was $181 million, or 22 cents a share, compared with a net loss of $1.93 billion, or $2.38, a year earlier, Vancouver-based Goldcorp said today in a statement. Profit excluding one-time items was 20 cents, beating the 14-cent average of 21 estimates compiled by Bloomberg. Sales rose to $906 million from $858 million, trailing the $1.02 billion average estimate.

Goldcorp, which this month started output at the first of three new mines, is among producers working to reduce costs after the metal’s 28 percent slump last year, the most in more than three decades. The world’s biggest gold miners have cut budgets, sold less-profitable assets and adjusted operating plans to improve efficiencies.

Goldcorp’s average so-called all-in sustaining cost was $852 an ounce of gold, compared with $1,227 a year earlier and the $921 average of three estimates.

The company reported second-quarter gold production of 648,700 ounces, compared with 646,000 ounces a year earlier and the 664,000 average of six estimates.

In April, Goldcorp terminated a hostile C$3.3 billion ($3 billion) bid for Osisko Mining Corp. after Osisko agreed to be bought by two other companies. Goldcorp also expressed interest in buying African gold mines from Newmont Mining Corp. earlier this year during merger talks between Newmont and Barrick, people familiar with the situation said July 18.

Gold averaged $1,290 an ounce on the Comex in New York in the second quarter, 9 percent less than a year earlier and 0.3 percent lower than the first quarter.

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Goldcorp Inc., the largest gold producer by market value, reported second-quarter earnings that beat analysts' estimates after costs fell more than expected.
Goldcorp, gold, miners, costs
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2014-34-31
Thursday, 31 Jul 2014 09:34 AM
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