Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7385
    -0.0002 (-0.02%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • Bitcoin CAD

    94,927.63
    -833.80 (-0.87%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,379.46
    -20.06 (-0.12%)
     
  • VOLATILITY

    13.01
    0.00 (0.00%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • CAD/EUR

    0.6836
    -0.0007 (-0.10%)
     

Miner Goldcorp reports loss as output falls by a third

A mine of Canadian mining giant Goldcorp (top) is seen near the village of Carrizalillo, Mexico, November 12, 2015. REUTERS/Henry Romero (Reuters)

(Reuters) - Goldcorp Inc on Wednesday posted a far bigger second-quarter net loss than expected as production fell by almost one-third and costs rose partly due to a maintenance shutdown and slow restart of its biggest mine. Goldcorp, the world's third-biggest gold producer by market value, also said it would go ahead with plans to expand its Penasquito mine in Mexico and Musselwhite mine in Canada. Production at Vancouver-based Goldcorp, which operates only in the Americas, plunged to 613,400 ounces in the quarter from 908,000 ounces in the year-ago period. Goldcorp said it had expected gold production to decline mainly due to lower ore grades and a 10-day mill shutdown for maintenance at Penasquito. Operations resumed more slowly than had been expected. The exhaustion of surface stockpiles at its Cerro Negro mine in Argentina, as well as a decision to lay off workers at the site, also reduced output. All-in sustaining costs to produce an ounce of gold, an industry cost benchmark, rose to $1,067 from $853 a year ago in the quarter. Most other gold miners' costs have been falling. Goldcorp reported a net loss of $78 million, or 9 cents a share, in the three months to end-June. That compared with net earnings of $392 million, or 47 cents per share, a year earlier. Analysts, on average, had expected earnings of 3 cents a share, according to Thomson Reuters I/B/E/S. Goldcorp affirmed its 2016 gold production forecast of 2.8 million to 3.1 million ounces at all-in sustaining costs of $850 to $925 per ounce. (Reporting by Nicole Mordant in Vancouver; Editing by Chris Reese and Richard Chang)