With gold prices up nearly a percent and a quarter on Thursday, Vancouver-based Canada-based Goldcorp (GG) , the world’s largest gold miner by market-cap, was having an excellent day after releasing its earnings statement from the recently-ended third quarter.
The earnings report showed the company’s net income for Q3 at $493 million, for an adjusted $0.23 per share, on revenue of $929 million, against the prior-year period during which the company netted $498 million, or $0.61 per share on revenue of $1.28 billion. Despite the yearly decline, the company came in ahead of consensus estimates for EPS of $0.20 on while revenues were substantially short of the average of expectations of $1.07 billion.
Furthermore, the company said that there would be a delay in bringing its new Cerro Negro mine in Argentina online, while the costs to see it through could rise some $500 million from the previous January estimate of $1.35 billion.
With gold in a bear market since earlier in the year, investors were happy with the admittedly slight earnings beat, as Goldcorp’s production cost per ounce of $551 was more than double what it was at the same time last year, but still shy of expectations putting that figure at $554. Sales during the period, however, were up 5.5 percent to 652,100 ounces.
Furthermore, the company tightened forward guidance for output, to between 2.6 and 2.7 million ounces at $1,050-$1,100 per ounces, compared to prior estimates of 2.55 to 2.8 million ounces at $1,000 to $1,100 per ounces.
Shares were up over 4 percent heading towards the closing bell, at $26.67.
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