Goldcorp Reports 2Q Loss Due To Foreign-Exchange Loss
(Kitco News) - Goldcorp Inc. (TSX: G, NYSE: GG) late Wednesday reported a net loss in the second quarter that was largely the result of a non-cash foreign-exchange loss, although output also fell from a year ago.
The mining giant reported a net loss of $131 million, or 15 cents a share, compared to a profit of $135 million, or 16 cents, in the second quarter of 2017.
The company listed a non-cash foreign-exchange loss of $178 million, or 20 cents a share. Otherwise, operating cash flow remained at $158 million, the same as a year-ago.
Gold production was listed at 571,000 ounces at all-in sustaining costs of $850 each, compared to 635,000 ounces at AISC of $800 in the year-ago period. The decline in output was primarily due to planned mine sequencing at Peñasquito, Goldcorp said. Silver production fell to 6.1 million ounces from 7.4 million. The company also produces base metals.
“Ramp-up of sustainable capacity at Éléonore and Cerro Negro continued and are expected to be key contributors to increasing production in the second half of the year,” Goldcorp said. Full-year 2018 gold-production guidance was reconfirmed at 2.5 million gold ounces with AISC of $800 per ounce.
The company provided updates on key projects. Construction has been completed on the Peñasquito Pyrite leach project, with commissioning accelerated to the third quarter. The project is now two quarters ahead of schedule, Goldcorp said. Meanwhile, the Musselwhite materials handling project is 76% completed, on schedule and 10% below budget.
Goldcorp said it achieved its target of $250 million in “sustainable efficiencies” and extended the program, targeting an additional $100 million by the end of 2019.