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UPDATE 1-Goldcorp cuts dividend, expects improved 2015 output

Published 2015-07-30, 08:50 a/m
UPDATE 1-Goldcorp cuts dividend, expects improved 2015 output
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(Adds dividend cut, analyst expectations, revenue, forecast,
recasts lead)
TORONTO, July 30 (Reuters) - Goldcorp Inc G.TO , the
world's most valuable gold miner, said on Thursday it would cut
its dividend by 60 percent to ensure "financial flexibility,"
while reporting a better-than-expected profit and improved
production and cost forecasts.
To fortify its financial position in a volatile gold market,
the Vancouver-based company reduced its dividend to 2 cents per
month, following a recent $1 billion credit facility expansion
and the sale of its stake in Tahoe Resources.
Goldcorp said it now sees production in 2015 at the high end
of its forecast 3.3-3.6 million ounce range, with all-in
sustaining costs at $850 to $900 per ounce, down from an earlier
estimate of $875 to $950.
Goldcorp reported adjusted earnings of $65 million, or 8
cents a share, for the quarter ended June 30, down from $164
million, or 20 cents a share, in the same period last year.
Analysts expected an adjusted profit of 7 cents a share, on
average, according to Thomson Reuters I/B/E/S.
Revenue rose to $1.3 billion from $1.1 billion.
All-in sustaining costs to produce one ounce of gold, a
measure that includes sustaining capital, exploration and
general expenses, notched down to $846 in the quarter, from $852
last year.
Gold production increased to 908,000 ounces from 648,700
ounces, a quarterly record driven by higher grades at Penasquito
in Mexico and an ongoing ramp-up at Cerro Negro in Argentina,
but the average realized price dropped to $1,189 per ounce from
$1,296 ounce.

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