Goldcorp Inc., the world’s third-largest bullion producer by market value, reported a quarterly loss that missed analysts’ estimates as output fell and costs rose more than expected.
The company had a net loss of 9 cents a share, compared with net income of 47 cents a year earlier, Vancouver-based Goldcorp said Wednesday in a statement. The results missed the 3-cent average estimate compiled by Bloomberg.
Goldcorp has been working to cut costs while boosting output and fixing glitches at existing mines. However, several issues hampered that progress in the second quarter, including a slower-than-expected ramp up after a mill shutdown at the Penasquito mine in Mexico, as well as a decision to accelerate job cuts at Cerro Negro in Argentina, both of which had a short-term impact on production, the company said in the statement.
Goldcorp’s 17 percent share gain in the quarter in Toronto lagged those of competitors Barrick Gold Corp., which increased 56 percent, and Newmont Mining Corp.’s 47 percent increase.
The company had average all-in sustaining costs of $1,067 an ounce of gold in the second quarter, compared with the $1,001 average of four estimates compiled by Bloomberg and $853 a year earlier.
Second-quarter gold output was 613,400 ounces, compared with 908,000 a year earlier and the 680,200 average of 10 estimates.
Gold futures rose 5.8 percent from a year earlier to average $1,262 an ounce in the second quarter.
(Goldcorp scheduled a conference call to discuss the results at 1 p.m. New York time Thursday, accessible in the U.S. and Canada at +1-800-355-4959 and for other callers at +1-416-340-2216. The conference ID# is 5644646)