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Shares in Goldcorp Inc. sank more than 18 per cent after the senior gold miner missed the Street’s estimates in the third quarter, cut its production forecast and predicted higher costs.
Canada’s second-biggest gold company by market value reported a net loss of $101-million, or 12 cents a share, for the quarter ended Sept. 30 compared with a profit of $111-million, or 13 cents, a year ago. On an adjusted basis, Goldcorp reported a loss of 8 cents, 5 cents lower than analysts estimated.
Third-quarter production came in weaker than expected, with output and grades falling sharply at its Cerro Negro mine in Argentina. Vancouver-based Goldcorp also struggled with gold recoveries at Penasquito in Mexico, one of its biggest mines.
Production at its Musselwhite mine in Ontario and Pueblo Viejo in Dominican Republic, which it owns alongside Barrick Gold Corp., also fell more than expected. Goldcorp said it expects to produce 2.28 million ounces of gold this year compared with its previous forecast in July of roughly 2.5 million ounces.
The company said its all-in sustaining cost (AISC), which measures all expenses incurred in producing an ounce of gold, will end up being US$850 an ounce for the year, US$50 an ounce higher than previously predicted.
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