Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Oct 25 (Reuters) – Canadian gold producer Goldcorp Inc reported an 88 percent rise in quarterly profit on Wednesday, helped by an increase in the company’s income tax recovery and higher earnings from its Peñasquito mine in Mexico.
The company produced 633,000 ounces of gold in the third quarter, down from 715,000 ounces it produced, a year earlier.
All-in sustaining costs to produce an ounce of gold in the quarter was $827, compared to $812 a year ago.
Goldcorp’s net earnings rose to $111 million, or 13 cents per share, in the quarter ended Sept. 30, from $59 million, or 7 cents per share, a year earlier.
The miner had an income tax gain of $19 million in the reported quarter, compared with an expense of $30 million, last year.
The company reaffirmed its gold production outlook for 2017 at 2.5 million ounces.
(Reporting by Taenaz Shakir in Bengaluru; Editing by Shounak Dasgupta).
