Goldcorp Inc., the largest gold miner by market value, reported third-quarter earnings that beat analysts’ estimates after costs rose less than expected.
Net income fell to $5 million, or break even per share, from $498 million, or 61 cents, a year earlier, the Vancouver-based company said today in a statement. Profit excluding one-time items was 23 cents a share, exceeding the 20-cent average of 19 estimates compiled by Bloomberg. Sales declined to $929 million from $1.28 billion.
Goldcorp, which operates mines in North and South America, wrote down the value of its assets by $1.96 billion in July and is slowing some project spending and seeking to cut costs after gold slipped into a bear market in April. The company is building new mines in Canada and Argentina.
Goldcorp’s third-quarter gold production rose to 637,100 ounces from 592,500 ounces a year earlier. Eight analysts estimated an average of 683,100 ounces of output.
The company’s average cost to produce and sell gold, after profiting from sales of silver and other metals, was $551 an ounce, compared with $220 an ounce in the third quarter of 2012 and the $554 average of seven estimates compiled by Bloomberg.
Gold averaged $1,328 on the Comex in New York in the third quarter, 20 percent less than a year earlier and 6.3 percent lower than the second quarter.
Goldcorp fell 1.6 percent to C$26.57 yesterday in Toronto. The shares have declined 27 percent this year.
Toronto-based Barrick Gold Corp. is the world’s biggest gold producer by sales.