National News

Goldcorp reports US$181-million Q2 profit

By The Canadian Press

VANCOUVER - Goldcorp Inc. (TSX:G) earned US$181 million in its latest quarter compared with a big loss a year ago when the company wrote down the value of its Penasquito mine and Cerro Blanco project.

The company, which keeps its books in U.S. dollars, said Thursday the profit for the quarter amounted to 22 cents per diluted share for the quarter ended June 30. That compared with a loss of $1.93 billion or $2.38 per diluted share a year ago when it took $2.56 billion in impairment charges related to Mexican mine and the Cerro Blanco project in Central America.

Revenue totalled $906 million, up from $858 million.

Excluding one-time items, Goldcorp said it earned an adjusted profit of $164 million or 20 cents per share for the quarter, compared with an adjusted profit of $117 million or 14 cents per share a year ago.

Gold sales in the second quarter totalled 639,500 ounces on production of 648,700 ounces. That compared with sales of 624,300 ounces on production of 646,000 ounces in the same period a year ago.

Silver production amounted to 9.0 million ounces compared with 7.2 million ounces in the second quarter of 2013.

All-in sustaining costs were $852 per ounce of gold compared with $1,227 per ounce a year ago, while the average realized price was $1,296 in the latest quarter, down from $1,358.

Last week, Goldcorp said it achieved the first gold production from its Cerro Negro mine in Argentina.

The company said the mine is on track for the declaration of commercial production by the end of the year.

"Continued solid production and cost performance across the portfolio contributed to strong financial results in the second quarter," Goldcorp chief executive Chuck Jeannes said in a statement.

"In addition, the three new gold projects under construction that underpin Goldcorp's leading growth profile continued to advance steadily. We were very pleased to announce last week the commencement of gold production at Cerro Negro on schedule and within our capital cost guidance."

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