Goldcorp Inc. reported much weaker-than-expected first quarter results on Thursday as it faced shrinking margins, higher depreciation and depletion expenses, and a higher effective tax rate.
However, the company maintained its production and cost guidance for the year and said production should increase over the course of 2015 due to higher output from the Penasquito, Cerro Negro and Eleonore operations.
Adjusted profit was just US$12 million, or a penny a share. That is below even the lowest analyst estimates. The Vancouver-based company had an overall net loss of US$87 million after factoring in one-time items.
Goldcorp, the world’s biggest gold miner by market value, is the third major gold company to report disappointing earnings this week. Barrick Gold Corp. and Yamana Gold Inc.’s results were also below expectations.
Goldcorp’s average gold sale price in the first quarter was US$1,217 an ounce, well down from US$1,297 in the same period a year ago. All-in sustaining costs were US$885 an ounce, up US$40 year-over-year.
Original Article: http://business.financialpost.com/news/mining/goldcorp-inc-earnings-below-expectations-as-margins-shrink
