UPDATE 1-Goldcorp cuts dividend, expects improved 2015 output

Thu Jul 30, 2015 8:50am EDT
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(Adds dividend cut, analyst expectations, revenue, forecast, recasts lead)

TORONTO, July 30 (Reuters) - Goldcorp Inc, the world's most valuable gold miner, said on Thursday it would cut its dividend by 60 percent to ensure "financial flexibility," while reporting a better-than-expected profit and improved production and cost forecasts.

To fortify its financial position in a volatile gold market, the Vancouver-based company reduced its dividend to 2 cents per month, following a recent $1 billion credit facility expansion and the sale of its stake in Tahoe Resources.

Goldcorp said it now sees production in 2015 at the high end of its forecast 3.3-3.6 million ounce range, with all-in sustaining costs at $850 to $900 per ounce, down from an earlier estimate of $875 to $950.

Goldcorp reported adjusted earnings of $65 million, or 8 cents a share, for the quarter ended June 30, down from $164 million, or 20 cents a share, in the same period last year.

Analysts expected an adjusted profit of 7 cents a share, on average, according to Thomson Reuters I/B/E/S.

Revenue rose to $1.3 billion from $1.1 billion.

All-in sustaining costs to produce one ounce of gold, a measure that includes sustaining capital, exploration and general expenses, notched down to $846 in the quarter, from $852 last year.

Gold production increased to 908,000 ounces from 648,700 ounces, a quarterly record driven by higher grades at Penasquito in Mexico and an ongoing ramp-up at Cerro Negro in Argentina, but the average realized price dropped to $1,189 per ounce from $1,296 ounce. (Reporting by Susan Taylor; Editing by Bernadette Baum)