After Wednesday’s closing bell, Vancouver-based mining giant Goldcorp (TSX:G)(NYSE:GG) reported its results from the third quarter ended September 30, 2017, improving its profitability more than analysts predicted, even though revenue and gold production slipped.
For the quarter, net earnings totaled $111 million, or 13 cents per share, an 88% jump versus net profit of only $59 million, or 7 cents per share in the year prior quarter. Wall Street forecast net earnings of 11 cents per share.
At $866 million, revenue came in down 5.4 percent from Q3 2016, but still $9.1 million higher that analysts estimated.
Operating cash flow for the quarter was $315 million compared to $267 million for the year prior period.
Gold production was on the mind of investors, as the company previously said it has a goal to improve annual production by 20 percent to 3 million ounces over the next five years. It’s early in the three-prong plan of Goldcorp to meet that goal – along with another goal to implement efficiencies to slash all-in sustaining costs (AISC) by 20% in the same time frame. For the quarter, gold production was 633,000 ounces at AISC of $827 per ounce. That compared to 715,000 ounces of gold at AISC of $812 per ounce in the year earlier quarter.
Management confirmed gold production guidance for 2017 of 2.5 million ounces (+/- 5%). Guided AISC for the year are $825 per ounce (+/- 5%), an improvement of $25 per ounce versus previous guidance.
The efficiencies are expected to result in $250 million in annual savings, $200 million of which is expected to be realized this year. Based upon what management is seeing, the company believes that annual savings will be increased in the future.
Goldcorp is holding a conference call and webcast tomorrow at 10:00 AM PST to discuss the quarter.
U.S.-listed shares closed down 0.46% in Wednesday action at $12.88 amid a broad market sell-off. Toronto-listed shares performed better, rising 0.43% to wrap the day at C$16.49.
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