Goldcorp reports bigger loss on writedown, weaker prices

Goldcorp Inc. on Thursday said its loss widened in the third quarter while revenue rose 19% on a 42% increase in gold production.

Net loss attributable to shareholders for the third quarter widened to $192 million or $0.23 per share, from net loss of $44 million or $0.05 per share in the year-ago period.

The adjusted loss was $37-million, or 4 cents a share, compared with an adjusted profit of $70-million, or 9 cents a share. After stripping out one-time items (including stock-based compensation charges), Goldcorp had a profit of three cents a share, which was still below the average analyst estimate of four cents.

The Vancouver-based miner on Thursday also confirmed its 2015 forecast for production at the high end of a range between 3.3 million and 3.6 million ounces of gold, all-in sustaining costs of $850 to $900 an ounce and capital spending of $1.2 billion to $1.4 billion.

Like other gold miners, Goldcorp has been working to bring its costs in line with lower gold prices.

Third-quarter gold sales were 942,600 ounces at an average realized gold price of $1,114 per ounce on production of 922,200 ounces, compared to sales of 641,400 ounces at an average realized gold price of $1,266 per ounce on production of 651,700 ounces. As one of the few senior producers with a healthy balance sheet, Goldcorp is in position to take advantage of weak market conditions and make acquisitions to fill out its project pipeline. A pre-feasibility study on Camino Rojo is expected next year.