Goldcorp Lists $101 Million 3Q Loss; Output Falls
(Kitco News) - Goldcorp Inc. (TSX: G, NYSE: GG) late Wednesday reported a net loss for the third quarter as production declined from the same period a year ago, although it is expected to improve in the current quarter.
The net loss was listed at $101 million, or 12 cents per share. In the same period a year ago, the company listed a profit of $111 million, or 13 cents. The July-September results included a non-cash foreign currency translation loss of 4 cents per share.
Operating results were impacted mainly by lower production at the Peñasquito mine due to lower throughput and planned lower grades from stockpiles during the commissioning of the now fully constructed Peñasquito pyrite leach project, Goldcorp said.
Consolidated output was 503,000 ounces, compared to 633,000 in the year-ago period. All-in sustaining costs rose to $999 an ounce from $827 a year ago.
Goldcorp said it looks for production in the fourth quarter to rise to approximately 620,000 ounces of gold, while AISC fall to around $750 per ounce.
“The commissioning of the PLP at Peñasquito, ongoing development of the materials-handling system at Musselwhite and the near completion of the ramp-up at both Cerro Negro and Éléonore are expected to lead to significantly improved gold production and costs in the fourth quarter of 2018,” said David Garofalo, president and chief executive officer. "At the same time, with our renewed focus on exploration, we essentially replaced gold reserve depletion across our operating assets, establishing a strong foundation to achieve our gold reserve target of 60 million ounces by 2021."
Meanwhile, Goldcorp reported that its estimate of proven and probable mineral reserves stood at 52.8 million ounces of gold as of June 30, compared to 53.5 million as of the same date in 2017. Goldcorp said reserves increased at Musselwhite and Cerro Negro.
The company said it achieved an additional $30 million of “sustainable annual efficiencies,” bringing Goldcorp closer to its goal $350 million by the end of 2019.