Goldcorp Reports 2012 First Quarter Results

VANCOUVER - GOLDCORP INC. (TSX: G), (NYSE: GG) is the fastest-growing, lowest-cost senior gold producer, with operations and development projects in politically stable jurisdictions throughout the Americas. Goldcorp’s current 2012 gold production guidance is 2.6 million ounces at total cash costs of $250 to $275 per ounce of gold on a by-product basis and $550 to $600 per ounce of gold on a co-product basis.

Goldcorp reported that adjusted net earnings¹ in the quarter increased to $404 million, or $0.50 per share, compared to $392 million, or $0.49 per share, in the first quarter of 2011.  Reported net earnings were $479 million compared to $651 million in the first quarter of 2011.  Operating cash flows before working capital changes² were $480 million.  Gold production totaled 524,700 ounces at a total cash cost³ of $251 per ounce.

First Quarter 2012 Highlights

• Revenues increased 11% to $1.3 billion on gold sales of 545,700 ounces.
• Operating cash flow before working capital changes increased 4% to $480 million or $0.59 per share.
• Adjusted net earnings increased 3% over the 2011 first quarter, to $404 million or $0.50 per share.
• Cash costs totaled $251 per ounce on a by-product basis and $648 per ounce on a co-product basis.
• Dividends paid amounted to $109 million.
• Quarter-end cash balance of $1.4 billion; net cash position of $0.5 billion⁴.
• High Pressure Grinding Roll (“HPGR”) supplemental feed system commissioned at Peñasquito.

“Solid operating results throughout most of our mine portfolio were offset by a challenging first quarter at Red Lake,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer.  “Our Mexican operations were a particular area of strength in the first quarter, highlighted by the successful commissioning of the final component of Peñasquito’s processing line which positions the mine for strong performance over the balance of 2012.”

“The Pueblo Viejo joint venture in the Dominican Republic is nearing completion and set to be our next source of new gold production in mid-2012. The Cerro Negro project in Argentina continues to progress toward expected initial gold production in the second half of 2013, and ongoing exploration success there is enhancing the prospects for additional gold reserve growth.  In Canada, construction remains on track at Éléonore for late 2014, which is expected to become one of the country’s largest new underground gold mines. The 2014 planned completion of the Cochenour project in Red Lake, Ontario will supplement Red Lake’s production profile with sustained, low-cost production and the potential for new exploration success in this world-class camp.”

Financial Review

• Gold sales in the first quarter were 545,700 ounces on production of 524,700 ounces.  This compares to sales of 627,300 ounces on production of 637,600 ounces in the first quarter of 2011.
• Silver production totaled 6.6 million ounces compared to silver production of 6.1 million ounces in the prior year’s first quarter.  Total cash costs were $251 per ounce of gold on a by-product basis.  On a co-product basis, cash costs were $648 per ounce, impacted primarily by lower overall gold production.
• Net earnings in the quarter were $479 million compared to $651 million in the first quarter of 2011. Adjusted net earnings in the first quarter totaled $404 million, or $0.50 per share, compared to $392 million or $0.49 per share, in the first quarter of 2011.
• Operating cash flow before changes in working capital was $480 million compared to $463 million in last year’s first quarter.  An average realized gold price of $1,707 per ounce for the quarter and total cash costs of $251 per ounce resulted in a gold margin⁵ of $1,456 per ounce of gold sold. 

Mexico

Gold and silver production at Peñasquito in the first quarter was 68,600 and 4,955,400 ounces respectively while lead and zinc production totaled 39.2 million pounds and 63.8 million pounds, respectively.  Strong by-product production contributed to total cash costs of negative $751 per ounce of gold.

The mine remains on track to achieve estimated 2012 production guidance of 425,000 ounces of gold.  Activities at Peñasquito over the balance of 2012 will focus on further optimization of the processing plant as well as commissioning of the Waste Rock Overland Conveyor system expected in the second half of this year.

Gold production at Los Filos in the first quarter was 82,700 ounces at a total cash cost of $521 per ounce.  The construction of new phases of the heap leach pad facility is progressing well and is on track for completion late in the second quarter of 2012.

Canada

At Red Lake in Ontario, first quarter gold production was 114,200 ounces at a total cash cost of $523 per ounce. At Porcupine in Ontario, gold production during the first quarter increased to 60,700 ounces at a total cash cost of $786 per ounce, driven by higher throughput. Gold production at Musselwhite during the first quarter totaled 53,200 ounces at a total cash cost of $844 per ounce.

Guatemala

At Marlin in Guatemala, gold and silver production decreased 32% and 6% from the first quarter 2011 to a total of 53,200 ounces and 1,663,100 ounces respectively.  Cash costs totaled negative $187 per ounce. 

Advancing the Project Pipeline

At the Pueblo Viejo project in the Dominican Republic, overall construction is approximately 93% complete, with initial production expected in mid-2012. At the end of the first quarter, about 15 million tonnes of ore were stockpiled; representing approximately 1.7 million contained gold ounces. 

As part of a longer-term, optimized power solution for Pueblo Viejo, the Company is advancing a plan to construct a dual fuel power plant at an estimated incremental cost of approximately $300 million (100% basis) or$120 million (Goldcorp’s share), of which 90% is committed.  The new plant is expected to provide lower cost, long-term power to the project. Earth work for the new power plant has commenced.

At the Cerro Negro project in Argentina, activities at site continued to advance the project in the overall categories of infrastructure and construction, mine development and exploration. The development plan calls for concurrent mining from multiple veins, with initial mining to take place in the Eureka, Mariana Central and Mariana Norte veins.  Total underground ramp development for the Eureka vein remained at 1,621 metres of the total 3,900 metres planned, while drifts were driven into the Eureka vein on the 476 and 450 levels. While certain delays have been experienced, construction currently remains on schedule for initial gold production in the second half of 2013.

At the Éléonore project in Quebec, construction activities continued to advance on the dual shaft mine design that is expected to feed the 7,000 tonne-per-day plant.  The production shaft has been collared and construction of associated infrastructure continued to progress well.  The Gaumond exploration shaft reached a depth of 691 metres with completion to full 718 metre depth on track for the second quarter of 2012. 

FULL REPORT: [ goldcorp.com ]

This release should be read in conjunction with Goldcorp’s first quarter 2012 financial statements and MD&A report on the Company’s website, www.goldcorp.com, in the “Investor Resources – Reports & Filings” section under “Quarterly Reports”.

A conference call will be held on April 26, 2012 at 10:00 a.m. (PDT) to discuss the first quarter results. Participants may join the call by dialing toll free 1-800-355-4959 or 1-416-695-6617 for calls from outside Canada and the US.  A recorded playback of the call can be accessed after the event until May 27, 2012 by dialing 1-800-408-3053 or 1-905-694-9451 for calls outside Canada and the US.  Pass code: 6608575.  A live and archived audio webcast also be available at www.goldcorp.com.

Short URL: http://woodlawnpost.com/?p=47147

Posted by WoodlawnPost on Apr 26 2012. Filed under Investments, Mining, N. America, S. America. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.