Goldcorp stock slumps on loss driven by writedown, prices

Thu Oct 29, 2015 2:54pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Susan Taylor

TORONTO (Reuters) - Goldcorp Inc (G.TO: Quote) (GG.N: Quote) shares tumbled 10 percent on Thursday while stocks of several top gold miners made gains, after the world's most valuable bullion producer posted a surprise loss on an inventory writedown and declining prices.

The Vancouver-based company was overshadowed by better quarterly results from the world's largest gold producer, Barrick (ABX.TO: Quote), whose stock rose 1.9 percent; Newmont (NEM.N: Quote), up 4.1 percent; and Agnico-Eagle AEM.TO, whose shares rose 0.7 percent.

"When companies are delivering good results, their share prices are reflecting it," said Dundee Capital Markets analyst Josh Wolfson. "Investors are looking for tangible results."

Goldcorp reported an adjusted loss of $37 million, or 4 cents a share, which included a writedown on stockpiles of $40 million, or 5 cents a share.

Analysts, on average, expected an adjusted profit of 4 cents, according to Thomson Reuters I/B/E/S.

Production and development challenges also raised concerns.

An issue with iron sulfides at the Eleonore mine impacted third-quarter recoveries. Combined with a previous problem, that could hurt its 2015 output forecast of 250,000-270,000 ounces of gold, said Chief Operating Officer George Burns.

Last month, Goldcorp trimmed Eleonore's full-year output estimate due to lower gold grades from unexpected folds and faults in the ore body.   Continued...

 
A worker inspects the tyre of a mining truck at the open pit gold mine of Goldcorp in Penasquito September 18, 2012.  REUTERS/Jean Luis Arce