Goldcorp Inc. Reports Net Income, Production Remains Strong
On Wednesday, October 26, Goldcorp Inc. (NYSE:GG, TSE:G) reported net income of $59.0 million, or $0.07 per share, in the third quarter of 2016, ending on September 30. It also reaffirmed guidance.
Headquartered in Toronto, Canada, Goldcorp’s earnings, due to fluctuations in gold prices, have been volatile. The company reported a net loss of $192.0 million, or $0.23 per share, in the third quarter of 2015. (Source: “Goldcorp Reports Third Quarter 2016 Results and Reconfirms Production and Cost Guidance,” Goldcorp Inc., October 26, 2016.)
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The company sold 686,000 ounces of gold in the third quarter. Its revenue amounted to $915.0 million, and its mine operating expenses were $790.0 million.
Goldcorp produced 715,000 ounces of gold at all-in sustaining costs of $812.00 per ounce. In the same period a year ago, production was 922,000 ounces and all-in sustaining costs were $858.00 per ounce. Year-over-year, this represents a decline of 22.45% in production and a decline of 5.36% in all-in sustaining costs.
Regarding the company’s operations, President and CEO David Garofalo said, “Improved performance from our flagship Peñasquito mine and low all-in sustaining costs drove a third quarter that generated solid financial results, as we begin to see the benefits to the bottom line of our program to realize $250 million in sustainable annual efficiencies from our existing business.” (Source: Ibid.)
Regarding Goldcorp’s future and quality of property, Garofalo added that, “The value of our diversified portfolio in prolific mining camps was also evident with the definition of the new 5.4 million ounce Dome Century open pit resource in our 105 year-old Porcupine mining camp, which has the potential to substantially grow gold production.” (Source: Ibid.)
Its liquidity situation remains sufficient, and the company is paying off debt. In the third quarter, Goldcorp’s adjusted cash flow from operations amounted to $341.0 million. The company used $226.0 million to repay debt, $56.0 million was used to fund the growth pipeline, and $14.0 million was paid in dividends.
As per its guidance, Goldcorp reaffirmed that it is on track to produce gold in the range of 2.8 million and 3.1 million ounces at all-in sustaining between $580.00 and $925.00 per ounce.
At the time of writing, Goldcorp stock was trading at $14.82 in New York, and CA$19.87 in Toronto. Over the years, GG stock has suffered massive losses. Back in 2011, Goldcorp’s stock traded as high as $50.00.
