February 25, 2016 / 11:25 PM / in 2 years

UPDATE 1-Goldcorp sees lower output in 2016, cuts dividend

(Adds details, background)

Feb 25 (Reuters) - Goldcorp Inc, the world’s largest gold producer by market value, forecast 2016 gold production of 2.8-3.1 million ounces, lower than its 2015 output, and reduced its dividend.

The Vancouver-based miner said it would now pay out its dividend on a quarterly basis and lowered its annual dividend to 8 cents per share.

The company earlier this month declared its second monthly dividend payment for 2016 of 2 cents per share. The company has been paying a monthly dividend since 2003.

Goldcorp, which has operations in Canada, the United States, Mexico, and Central and South America, said it expects to produce 2.8 million to 3.1 million ounces of gold in 2016. The company produced 3.5 million ounces in 2015.

Gold production increased to 909,400 ounces in the fourth quarter, from 890,900 a year earlier.

All-in sustaining costs to produce an ounce of gold fell to $977 from $1,035. This measure, which producers adopted in 2013, includes sustaining capital, exploration costs and general expenses.

Goldcorp forecast 2016 all-in sustaining costs of between $850 and $925 an ounce. All-in sustaining costs were $894 per ounce in 2015.

Spot gold was up 0.6 percent at $1,235.70 an ounce at 3:13 p.m. ET.

The company’s net loss widened to $4.27 billion, or $5.14 per share, in the fourth quarter ended Dec. 31, from $2.4 billion, or $2.94 per share, a year earlier.

Adjusted loss more than doubled to $128 million, or 15 cents per share, from $55 million, or 7 cents per share.

Analysts on average had expected the company to break even, according to Thomson Reuters I/B/E/S.

Up to Thursday’s close of $21.54, the company’s shares had risen nearly 35 percent this year, outperforming a 2 percent fall in the Toronto Stock Exchange. (Reporting by Narottam Medhora in Bengaluru; Editing by Sriraj Kalluvila)

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