UPDATE 2-Goldcorp profit drops more sharply than expected

Thu May 2, 2013 11:00am EDT
 
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* Earnings of $0.31 per share before items miss Wall Street view

* Revenue down 16 percent at $1 billion

* Spending reviewed; company pushes ahead on capital projects

* Shares down 2.1 percent in Toronto

By Julie Gordon

TORONTO, May 2 (Reuters) - Miner Goldcorp Inc said on Thursday that its first-quarter profit dropped by a steeper-than-expected 35 percent as lower metal prices and higher costs outweighed a boost in gold sales.

Shares of the world's largest gold miner by market capitalization fell 2.1 percent to C$28.46 on the Toronto Stock Exchange.

Even though gold prices have plunged recently, the Vancouver-based miner said it was still committed to spending $2.8 billion this year as it brings three new mines into production through 2015.

With those new mines in Canada and Argentina, Goldcorp plans to boost its output by about 50 percent by 2017. That bucks a trend among many of the top gold miners of scrapping new projects to return cash to shareholders.   Continued...