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Goldcorp Inc. reported a loss in the third quarter as it dealt with weak gold prices and struggled to ramp up production at the new Eleonore mine in Quebec.
However, the Vancouver-based miner maintained its production and cost guidance and said it generated a healthy US$168 million of free cash flow despite low gold prices.
Goldcorp said it had an adjusted loss of US$37 million in the quarter, or four cents a share. After stripping out one-time items (including stock-based compensation charges), Goldcorp had a profit of three cents a share, which was still below the average analyst estimate of four cents. It earned nine cents a share (on an adjusted basis) in the same quarter a year ago.
Production from Eleonore reached 86,700 ounces in the quarter. That was double the result in the second quarter, but was still lower than expected as Goldcorp continues to have some challenges with gold recoveries. On the other hand, the company delivered solid results from its Penasquito, Cerro Negro and Musselwhite operations.
“Our third quarter results highlight the essence of Goldcorp’s investment proposition: growing gold production, declining all-in sustaining costs and decreasing capital spending resulting in strong, sustained free cash flow, despite lower metal prices,” chief executive Chuck Jeannes said in a statement.
Gold production reached 922,200 ounces in the third quarter, and Goldcorp said it is on track to meet the upper end of its 2015 production guidance of 3.3 to 3.6 million ounces.
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