Goldcorp Inc (TSE:G, NYSE: GG) on Thursday reported a bigger than expected loss despite record gold production and reduced costs.
The market punished the Vancouver-based company following the release of third quarter operational and financial results, wiping more than a billion off its market value.
Goldcorp was last trading $13.10 per share in New York, down 10.4% and near its lows for the day affording the company a market capitalization of $11.9 billion. Goldcorp is the world’s most valuable gold producer, but only number four gold mining company in terms of output, behind AngloGold Ashanti.
Goldcorp said it produced 922,200 ounces in the quarter ended September from ten mines, a huge jump of 42% compared to gold production of 651,700 ounces in the third quarter of 2014.
The company stuck to its 2015 forecast for production at the high end of a range between 3.3 million and 3.6 million ounces and all-in sustaining costs of $850 to $900 an ounce. Capital expenditure for the full year should come in at between $1.2 billion and $1.4 billion, also in line with previous guidance.
Goldcorp’s performance on the day was in stark contrast to its peers which released results after the bell on Wednesday. Toronto’s Barrick Gold and Denver-based Newmont Mining, also managed to make strides into the teeth of a sharp drop in the price of gold on Thursday.
Newmont, the world’s number two gold producer in terms of ounces mined after Barrick, jumped nearly 4% for a market cap of $10.1 billion, while Barrick gained 2% and is now worth $8.8 billion in New York. The two majors and Canada’s Agnico Eagle were the only stocks in positive territory among gold’s top tier after a more than 2% drop in the price of gold to $1,145 an ounce, a three-week low.
