Goldcorp takes forex loss, maintains guidance

Wed Jul 29, 2009 9:35pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

TORONTO (Reuters) - Goldcorp fell to a steep accounting loss in the second quarter on a non-cash foreign exchange charge, the company said on Wednesday, but its core earnings met expectations and the company maintained its 2009 production forecast.

Canada's No. 2 gold producer lost a net $231.6 million, or 32 cents a share, in the quarter ended June 30. That compared with a year-earlier loss of $9.2 million, or 1 cent a share, when the company took a smaller foreign exchange loss.

Stripping out the charge, which was related to the recent weakness in the U.S. dollar and came in the wake of foreign exchange gains in the second half of last year, Goldcorp earned 14 cents a share.

Analysts polled by Reuters Estimates had expected, on average, a profit of 15 cents a share, before exceptional items.

Cash flow during the quarter rose 22 percent to $276.6 million.

Gold production rose 5.6 percent to 582,400 ounces, while cash costs, when factoring in base metal and silver income as an offset, rose to $310 an ounce from $308.

For the first six months, cash costs were $299 an ounce, well below the 2009 full-year expectation of $345 an ounce.

The Vancouver, British Columbia-based company maintained its full-year production forecast of 2.3 million ounces.

Goldcorp has mines in Canada and throughout Latin America. Its key development projects are the Penasquito property in Mexico, which is due to begin commercial production next year, and its 40 percent share of the Pueblo Viejo joint venture in the Dominican Republic.   Continued...