VANCOUVER (miningweekly.com) – Canadian mining major Goldcorp has reported a sharp drop in first-quarter profit, as higher gold prices failed to offset lower production, sales and rising costs.
The Vancouver-based miner reported profit of $67-million, or $0.08 a share, which was far removed from the $170-million, or $$0.20 a share, the company reported in the same period a year earlier. Analysts had, on average, expected earnings of $0.11 a share, according to Thomson Reuters data.
Goldcorp said revenues fell 4% year-on-year to $846-million, mainly owing to decreases in gold and silver sales volumes of 14% and 11%, to 466 000 oz and six-million ounces, respectively, and an 8% lower average realised silver price of $14.21/oz.
Goldcorp advised that these decreases were offset partially by a 30% increase in zinc revenues, driven by a 14% increase in the average realised price and lower treatment and refining charges, and an 8% increase in the average realised price of gold to $1 334/oz.
The lower gold sales were mainly attributable to the impacts of the sale of Los Filos, in April 2017, and closure of the Marlin mine in the second quarter of last year.
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