Goldcorp set to recover from loss

Heafty unusual costs pulled Goldcorp (G-T) deep into the red last year. The losses totalled $19.3 million (or 24 per share) on revenue of $61.3 million, compared with earnings of $10.6 million (14 per share) on $51.7 million in 1999.

Both periods were skewed by extraordinary items, and revenue from the industrial minerals division was more than halved, owing to the sale of Havelock Lime.

Gold production rose to 178,929 oz. from 107,221 oz., which reflects the resurrection of the Red Lake mine last fall. About US$6 million was spent to settle a strike that had forced the mine’s closure in 1996.

Situated in northwestern Ontario, Red Lake is expected to produce 350,000 oz. in 2001. Cash costs are projected to ring in south of US$88 per oz.

At the Wharf mine, in South Dakota, cash costs rose to US$207 from US$186 per oz. and total operating costs climbed to US$241 from US$220 per oz. Lower output is to blame. Goldcorp has reduced Warf’s carrying value by $7.8 million to reflect current gold prices. Also, the reclamation liability was increased by $6.5 million.

Goldcorp has declared an annual dividend of 10 per share, payable in March and September.

On Dec. 31, Goldcorp had a working capital of $19.2 million. The company is debt-free.