VANCOUVER - Goldcorp Inc. (TSX:G) posted reduced third-quarter net earnings amid lower revenue and declines in the price of gold.
Net earnings fell to US$5 million from US$498 million in the same period last year, while revenue dropped to US$929 million from US$1.3 billion. That amounted to a penny per share for Goldcorp shareholders, compared with 61 cents per share last year.
Gold sales totalled 652,100 ounces on gold production of 637,100 ounces in the third quarter, up from sales of 617,800 ounces on production of 592,500 ounces in the third quarter of 2012.
Costs were $992 per ounce of gold, with an average realized gold price for the quarter of $1,339 per ounce compared to $1,685 per ounce during the year-ago quarter.
The Vancouver-based company also said it was revising the initial cost and schedule at its Cerro Negro project in Argentina, which will affect the outlook for the project next year.
Goldcorp says it has suspended exploration and deferred certain development plans at Cerro Negro amid permitting delays, an unsustainable foreign exchange rate and uncertainty with respect to provincial taxation demands.
The company is revising its guidance for first gold production and capital costs at Cerro Negro, but says it continues to anticipate strong company-wide production growth in 2014 along with reduced all-in sustaining costs.
"Operations throughout our portfolio performed as planned during the third quarter and we remain on track to achieve our annual production and cost guidance," said chief executive Chuck Jeannes.
"Our focus on operational discipline and cost containment delivered positive results. Most of our mines saw meaningful reductions in costs compared to the previous quarter, with particularly impressive improvement at some of our higher-cost operations such as Porcupine in Ontario."
Adjusted net earnings for the quarter amounted to US$190 million, or 23 cents per share, compared to US$441 million, or 54 cents per share, in the third quarter of 2012. The adjusted earnings exclude the retroactive impacts of amendments at Golcorp's Pueblo Viejo project as well as foreign exchange losses. They also include $24 million in non-cash stock-based compensation expenses.
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