Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Despite reporting adjusted net earnings in the quarter of $332 million ($0.41 per share) compared to the $413 ($0.52 per share) in the second quarters of 2011, Goldcorp has enjoyed a $1.20 rise in share price.
Also in Goldcorp’s report was the total revenue from its sale of 532,000 ounces of gold ($1.1 billion), payment of $110 million in dividends and the Ontario Superior Court ruling assuring the Goldcorp’s ownership to the El Morro gold and copper project.
“The previously-announced production shortfall at Red Lake negatively impacted our results in the second quarter,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer in the report.
“Peñasquito had been delivering a good second quarter until encountering water availability issues that limited plant throughput in June. Operations at the rest of the mine portfolio remained solid, with particular strength at Porcupine and Los Filos.”
The company’s gold sales dropped from 606,400 ounces on production of 597,100 ounces in the second quarter of 2011 to 532,000 ounces on production of 578,600 ounces.
However, the report isn’t all bad. Goldcorp outlined increased silver production from 6.5 million ounces in last year’s Q2 to 8.2 million ounces this year.
Read more on the company’s full report here >>
(Image, Chuck Jeannes, Goldcorp CEO; YouTube)
