Goldcorp Reports $44 Mln 3Q Loss; Peñasquito Dinged The majors are dying, and NES will never build a mine here. Remember the fire sale at Oromin? That's when times were better for gold.
Goldcorp (TSX:
G)(NYSE:
GG) reported a net loss of $44 million, or 5 cents per share, in the third quarter, compared to net earnings of $5 million, or 1 cent per share, in last year’s comparative quarter.
The company’s Mexican-based Peñasquito mine was hit with a $36 million, or 4 cents per share, non-cash reduction on the value of low-grade stockpiles at the mine. The company also absorbed losses of $85 million from foreign exchange translation of deferred income tax assets and liabilities, $14 million in losses on derivatives and $13 million in losses on the impairment against the carrying amount ofEl Sauzalas a result of accelerating closure activities due to previously reported pit wall instability, the company said.
Adjusted net earnings totaled$70 million, or9 centsper share, compared to adjusted net earnings of$190 million, or23 centsper share, this time last year. Adjusted revenues came out at $1.1 billion while adjusted operating cash flow rose to$399 million, or 49 centsper share, compared to$375 million, or46 centsper share in the third quarter of 2013.
The company produced 651,700 ounces of gold in the third quarter at all-in sustaining cash costs of $1,066, with gold sales totaling 641,400 ounces in the quarter. The company maintained their 2014 production guidance of between 2.95 million and 3.1 million ounces, but cautioned the low end of that guidance will likely be met due to stoppages at the company’s El Sauzal and Los Filos mines.