Goldcorp Earnings Exceed Estimates as Costs Decline

Goldcorp Inc., which failed in its hostile bid for Osisko Mining Corp. last month, reported first-quarter earnings that beat analysts’ estimates as costs declined more than it forecast.

Net income fell to 12 cents a share from 33 cents a year earlier, the Vancouver-based company said today in a statement. Profit excluding one-time items was 26 cents, beating the 14-cent average of 19 estimates compiled by Bloomberg.

Goldcorp, the second-largest gold company by market value, is among producers working to enhance mining efficiencies after the metal’s 28 percent slump last year. Barrick Gold Corp., its largest competitor, yesterday reported better-than-expected earnings as costs declined after it fired workers and sold some less-profitable mines.

While watching its margins, Goldcorp still plans to increase output by about 50 percent over the next two years as it starts up new mines in Canada and Argentina.

The company, led by Chief Executive Officer Chuck Jeannes, had sought to acquire Osisko to gain control of its Canadian Malartic mine in Quebec. Goldcorp terminated its C$3.26 billion ($3 billion) bid for Montreal-based Osisko on April 22 after Canadian rivals Yamana Gold Inc. and Agnico Eagle Mines Ltd. reached a friendly takeover deal.

All-in sustaining costs were $840 an ounce, compared with $1,134 a year earlier. Goldcorp said April 9 it expected first-quarter all-in sustaining costs of about $875 an ounce.

Gold averaged $1,292 an ounce in the first quarter, 21 percent less than a year earlier.

(Goldcorp scheduled a conference call to discuss the results at 1 p.m. New York time, accessible in North America at 1-866-223-7781 and for other callers at 1-416-340-2216. The company will hold its annual shareholders’ meeting in Vancouver at 5 p.m. New York time.)

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