Goldcorp Inc., the world’s second- largest producer of the metal by market value, returned to profitability in the second quarter as the price of the metal rose to a record and output climbed.
Net income was $828.3 million, or $1.11 a share, compared with a loss of $231.6 million, or 32 cents, a year earlier, Vancouver-based Goldcorp said today in a statement. Profit excluding one-time items was 27 cents a share, trailing the 29- cent average estimate of 17 analysts surveyed by Bloomberg. Sales rose 34 percent to $844.3 million.
Chief Executive Officer Chuck Jeannes plans to boost the company’s annual gold output 58 percent by 2014 with new mines such as Penasquito in Mexico and the expansion of existing operations, according to the company’s website.
“Goldcorp is bringing its cornerstone asset, Penasquito, into commercial production this summer,” Anita Soni, a Toronto- based analyst with Credit-Suisse Group AG who rates the shares “outperform,” said in a note to clients yesterday. “While this is a time of increased risk, we believe that the project will come on stream with relatively few issues.”
Gold rose to a record $1,266.50 an ounce in New York on June 21.
Goldcorp’s net loss in the second-quarter of 2009 reflected a currency exchange loss on the revaluation of future income-tax liabilities.
Barrick Gold Corp., based in Toronto, is the world’s largest gold miner ranked by market capitalization.