On the back of newfound production at the Red Lake mine in northwestern Ontario,
Earnings in the three months ended March 31 topped US$14.7 million (18 per share) on revenue of US$48.3 million, compared with US$12,000 on US$10.4 million in the corresponding period last year. Cash flow jumped to US$28.4 million from US$7.2 million.
The improvement reflects the startup of the Red Lake mine, which poured its first commercial gold bar at the year’s start. Combined with output from the Wharf open-pit mine in North Dakota, Goldcorp cranked out 172,784 oz. during the quarter; more than 80% of that total came from Red Lake.
Cash costs averaged US$78 per oz., appreciably lower than original estimates of US$88 per oz.
By year-end, Red Lake is expected to have poured 400,000 oz. at US$75 per oz. This is significantly better than feasibility predictions, reflecting higher grades, lower mining costs and increased recovery rates.
At Red Lake, Goldcorp has budgeted US$8 million for mine site exploration and $3 million for regional exploration. Efforts are currently focused on expanding the High Grade zone, which extends from 4,400 to 5,700 ft. below surface.
The first semi-annual dividend of 5 per share was paid during the quarter; another will be paid in September.
On March 31, Goldcorp had US$42.1 million in working capital and no debt.
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