This tells it all"With bullion currently over $420 an ounce, Goldcorp continues to hold back production, expecting prices to go higher over the next six years."
https://www.mytelus.com/news/article.do?pageID=cp_business_home&articleID=1744942
Wednesday, Oct 20, 2004 Email this to a friend
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Investment losses cut Goldcorp Q3 net 58% to US$9.9M despite gold price rise
TORONTO (CP) - Investment declines and its policy of withholding much of its gold production from the market cut Goldcorp Inc.'s third-quarter net income by 58 per cent to $9.9 million US.
The company, which reports in American dollars, said Wednesday that three-month revenue was $50.4 million, compared with $55.8 million in the year-ago quarter. The $9.9-million profit, worth five cents per share, was down from $23.7 million or 13 cents per share. In the latest quarter Goldcorp recorded a loss on marketable securities of $5.6 million versus a year-ago gain of $7.8 million.
July-September gold production was 163,807 ounces at a cash cost of $121 per ounce, compared with 161,459 ounces at $116 a year earlier.
Goldcorp's realized price during the quarter was $399 per ounce, up from $364 in the third quarter of 2003.
With bullion currently over $420 an ounce, Goldcorp continues to hold back production, expecting prices to go higher over the next six years.
After withholding 31 per cent of the past quarter's production, up from 13 per cent a year ago, Goldcorp holds 168,723 ounces of gold - 5.2 tonnes with a market value of $70.1 million.
The company (TSX:G) remains debt-free and ended the quarter with cash of $315.6 million and marketable securities worth $34.3 million.
© The Canadian Press, 2004