Shares in Goldcorp Inc (NYSE:GG)(TSX:G) dropped sharply Thursday after the company reported first quarter results that surprised to the upside in terms of profits, but fell well short of expectations for gold production.
Vancouver-based Goldcorp ended the day more than 5% lower in New York for a market capitalization of $11.8 billion after reporting a 122% jump in earnings to $170m or $0.20 per share against forecasts of $0.08.
Investors were unhappy about the fall in gold production however with output going from 799koz during Q1 2016 to 646koz in the same period this year leading to 6.6% fall in revenues for the quarter to $882 million.
The output drop came mainly on the back of lower production at Cerro Negro in Argentina and the Red Lake mine in Ontario, Canada. The world’s number four gold miner in terms of output kept its outlook for the year the same despite the decline. Full year 2017 gold production of roughly 2.5 million ounces is forecast.
Total cash costs on a by-product basis for the first quarter of 2017 were $540 per ounce, compared to $557 per ounce for the first quarter of 2016.
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