Goldcorp shares rise with focus on accounting change

Tue Jan 8, 2013 3:47pm EST
 
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* New metric to make clear "true cost" of mining

* Part of drive to narrow share price/gold price gap

* Miner cuts 2013 output targets, boosts capital costs

* Shares up 2.88 pct at C$35.69 after early drop

By Julie Gordon

TORONTO, Jan 8 (Reuters) - Investors in Goldcorp Inc, Canada's second largest gold miner, shrugged off the company's lowered production outlook on Tuesday and took heart from its decision to bring more transparency to how it will report mining costs, sending its shares up.

Responding to intense market concerns over the industry's skyrocketing production costs, Goldcorp said it would introduce "all-in cash costs," a new metric designed to reflect more accurately the spread between costs and realized bullion prices.

The company, the first major producer in the industry to report all-in costs, said the calculation would make the true costs of doing business clearer to the market.

"I'm glad to see they are leading the industry with this," said George Topping, an analyst with Stifel Nicolaus.   Continued...