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UPDATE 1-Goldcorp adjusted profit misses expectations as output slips

Published 2018-07-25, 06:17 p/m
© Reuters.  UPDATE 1-Goldcorp adjusted profit misses expectations as output slips
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By Ernest Scheyder

July 25 (Reuters) - Canadian miner Goldcorp Inc G.TO posted a lower-than-expected adjusted quarterly profit on Wednesday, as its gold production dropped and foreign exchange currency costs spiked.

The company, the world's fifth-biggest gold miner by market value, posted a net loss of $131 million, or 15 cents per share, compared with a net profit of $135 million, or 16 cents per share, in the year-ago period.

Goldcorp lost $178 million during the quarter on forex charges linked to deferred taxes.

Excluding that and other one-time items, the company earned 2 cent per share. By that measure, analysts expected earnings of 7 cents per share, according to Thomson Reuters I/B/E/S.

The Vancouver-based miner, which has operations in North and South America, said it produced 571,000 ounces of gold in the second quarter, down from 590,000 ounces in the first quarter and 635,000 ounces in the year-ago quarter.

Goldcorp reiterated its full-year 2018 production forecast of 2.5 million ounces, at an all-in-sustaining cost of $800 per ounce.

The all-in sustaining costs to produce an ounce of gold, a key industry benchmark, rose to $850 from $800 in the year-ago period.

The company said it had reached its target of $250 million in sustainable annual efficiencies and was increasing that target by $100 million, hoping to hit the new goal by the end of next year.

Chief Executive David Garofalo targets 20 percent production and reserve growth by 2021 alongside a 20 percent cost reduction.

Goldcorp executives plan to hold a conference call to discuss quarterly results on Thursday morning.

The company's New York-listed shares closed up slightly on Wednesday to close at $13.36.

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