Goldcorp Inc. reported its first profit in three quarters, beating analysts’ estimates, as costs fell more than expected.
First-quarter net income was $80 million, compared with a net loss of $87 million a year earlier, Vancouver-based Goldcorp said Wednesday in a statement. Excluding one-time items, earnings were 10 cents a share, beating the 4-cent average of 18 estimates compiled by Bloomberg.
Like its peers, the world’s third-largest gold producer by market value has been working to strengthen its balance sheet. The company had average all-in sustaining costs of $836 an ounce of gold in the first quarter, compared with $894 for all of 2015 and the $861.50 average of four estimates compiled by Bloomberg.
Sales declined 7.2 percent to $944 million, less than the $984.7 million average estimate, amid lower prices for bullion. While gold futures rose 17 percent in the first quarter, they were still down 2.7 percent in the period compared with a year earlier.
First-quarter gold output rose to 783,700 ounces, compared with 724,800 a year earlier and in line with the 784,000 average of eight estimates. The company confirmed its 2016 production guidance of 2.8 million to 3.1 million ounces despite expecting a drop of about 15 percent in the second quarter.
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