VANCOUVER - Goldcorp Inc. (TSX:G) reported a US$44 million loss in its latest quarter on Thursday and said it expects gold production for the year to be at the low end of its guidance.
President and CEO Chuck Jeannes said Goldcorp's El Sauzal mine in Mexico has produced less than expected and Goldcorp's overall output this year will be at low end of the 2014 range, which is between 2.95 million and 3.1 million ounces.
Excluding a writedown of El Sauzal and other items Goldcorp reported an adjusted profit of $70 million or nine cents per share, compared with an adjusted profit of $190 million or 23 cents per share a year ago.
The adjusted earnings missed estimates of 19 cents US per share, according to Thomson Reuters data.
Goldcorp stock was down C$1.36 or 5.66 per cent at $22.68 in early trading following the report but the entire gold sector was also down, partly in response to the end of a U.S. economic stimulus program that had supported bullion prices.
The December futures contract was down $20.30 at US$1,204.60 an ounce early Thursday.
Jeannes said the company has been able to do better than expected on the cost side of its business.
"This performance is expected to help drive all-in sustaining costs toward the low end of our guided range of between $950 and $1,000 per ounce for the year," Jeannes said.
"With new project capital spending beginning to wind down, Goldcorp remains well-positioned for sustained growth in free cash flow in 2015 and beyond."
The company, which keeps its books in U.S. dollars, said Thursday it lost US$44 million or five cents per share in its latest quarter compared with a profit of $5 million or a penny per share a year ago.
Revenue totalled $1.09 billion, down from $1.16 billion in the same quarter last year.
Excluding unrealized losses from the foreign exchange translation of deferred income tax assets and liabilities as well as derivatives and the El Sauzal writedown , Goldcorp reported an adjusted profit of $70 million or nine cents per share, compared with an adjusted profit of $190 million or 23 cents per share a year ago.
During the quarter, Goldcorp produced 651,700 ounces of gold, up from 637,100 ounces a year ago.
Goldcorp is one of Canada's largest gold miners with operations in Canada, the U.S., Mexico and Central and South America.