Goldcorp Inc. reported a loss in the third quarter as it dealt with weak gold prices and struggled to ramp up production at the new Eleonore mine in Quebec.
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However, the Vancouver-based miner maintained its production and cost guidance and said it generated a healthy US$168 million of free cash flow despite low gold prices.
Adjusted net loss for the quarter was $37 million or $0.04 per share, compared to adjusted net earnings of $70 million or $0.09 per share in the prior-year quarter.
The adjusted loss included a reduction in the carrying values of inventory stockpiles amounting to 5 cents a share, as well as noncash stock-based compensation expenses totaling 2 cents a share, Goldcorp said.
Silver production increased to 11.3 million ounces from 7.8 million ounces in the same period a year ago, as its realized average price fell from $15.71 per ounce to $13.01 per ounce. That compared with output of 651,700 ounces and costs of $1,066 an ounce a year earlier. Goldcorp is among the lowest-cost senior gold producers.
GG sees FY 2015 production at the high end of a range of 3.3M-3.6M oz. of gold, all-in sustaining costs of $850-$900/oz. and capital spending of $1.2B-$1.4B.
Goldcorp chose to cut its dividend by 60 percent, it said in July, to fortify its financial position in a volatile gold market.
Late Wednesday, larger rival Barrick Gold Corp. said it had a loss in the third quarter and improved its cost performance.
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Analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share on revenues of $1.05 billion.
