Goldcorp Inc. (GG – Analyst Report) announced that one of its mines, Minera Penasquito, filed a claim in the First District Court in Zacatecas that resulted in temporary suspension of an agrarian court ruling.
According to the agrarian court ruling, Cerro Gordo Ejido has claimed its rights over 600 hectares of land located in Mazapil, Mexico and also within the confines of the Penasquito mine site which was leased by Goldcorp for the Penasquito mine.
Cerro Gordo Ejido has leveled charges of deception and forgery against Goldcorp. The ruling has ordered Goldcorp to return the land to Cerro Gordo Ejido for the payment of 2.4 million pesos ($181,241) and nullified Goldcorps lease.
Before the construction of the mine, Minera Penasquito had negotiated an agreement for the use of the land, which is fair and based on surface valuations in Mexico, and similar dialogues were held at Penasquito and other mining operations.
Also, Goldcorp intends to seek a constructive dialogue with Cerro Gordo Ejido so that they can reach a mutually beneficial settlement. Goldcrop is using all its legal expertise so that operations at the mine are not disrupted and to protect the company’s mineral concession rights consistent with Mexican law.
Penasquito is the largest gold producer in Mexico. In the first quarter of 2013, gold and silver production at the mine was 60,100 and 3,932,600 ounces, respectively, while lead and zinc production totaled 29.1 million pounds and 52 million pounds, respectively.
Goldcorp is one of the worlds fastest growing senior gold producers, and its strategy is to provide its shareholders with superior returns from high quality assets. Goldcorps first-quarter 2013 adjusted earnings (excluding one-time items) of 31 cents a share missed the Zacks Consensus Estimate of 40 cents and were well below 50 cents a share earned in the year-ago quarter.
Profit, as reported, amounted to $309 million or 33 cents per share in the reported quarter, down roughly 35% from $479 million or 51 cents in the prior-year quarter, hurt by a double-digit decline in sales.
Goldcorp posted revenues of $1.02 billion in the quarter, down roughly 16% year over year. It missed the Zacks Consensus Estimate of $1.39 billion.
