October 26, 2011 / 9:19 PM / in 7 years

UPDATE 2-Goldcorp operating profit lifted by gold price

* Q3 adjusted EPS $0.57 vs $0.33 a year earlier

* Q3 EPS from continuing ops $0.41 vs $0.32 a yr earlier

* Q3 revenue up almost 50 pct to $1.31 bln

* Reaffirms 2011 production forecast of 2.50-2.55 mln oz (Adds details on outlook; figures in U.S. dollars)

Oct 26 (Reuters) - Goldcorp Inc (G.TO) said on Wednesday its third-quarter operating earnings rose 10.2 percent, driven largely by a sharp increase in the price of gold.

Goldcorp, one of the world’s top gold miners, said output in the quarter rose slightly as production gains at its Penasquito mine in Mexico and its Marlin mine in Guatemala more than offset the impact of production declines at some of its other operations.

The company said its quarterly earnings from continuing operations rose to $336 million, or 41 cents a share, from $305 million, or 32 cents a share, a year earlier.

Excluding losses from the foreign exchange translation of deferred income tax liabilities and other one-time items, the company said its adjusted earnings in the quarter ended Sept. 30 rose 88 percent to $459 million, or 57 cents a share.

The Vancouver-based company said its average realized gold price in the quarter rose 39 percent to $1,719 an ounce from $1,239 a year earlier.

Quarterly revenue rose nearly 50 percent to $1.31 billion.

On a net basis, the company said earnings fell more than 50 percent, as its year-before results were boosted by large one-time gain from discontinued operations.


Goldcorp reaffirmed its revised 2011 production guidance of between 2.5 million and 2.55 million ounces of gold.

Total cash costs for the year are expected to range between $180 and $220 per ounce on a by-product basis; and between $500 and $550 per ounce on a co-product basis, the company said.

Goldcorp said its strong balance sheet and its increasing cash flows leave it well-positioned to fund projects in its pipeline.

The company also indicated it may boost its dividend after it completes its mine planning and budgeting process, which is currently underway. Goldcorp is developing projects in the Dominican Republic, Argentina, Canada and Chile.

The company said more than 75 percent of the construction work at the the Pueblo Viejo project in the Dominican Republic is complete and first production is now expected in mid-2012. The project is being developed in partnership with Barrick Gold (ABX.TO). (Reporting by Euan Rocha; editing by Peter Galloway)

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