Goldcorp Inc. (TSX:G) had a solid first quarter despite some setbacks at one of its Canadian mines.
The company reported adjusted net earnings for Q1 2012 of $404 million, compared with $392 million in Q2 2011 – $0.50 per share. Its end of quarter cash balance was $1.4 billion.
Strong performances in the company mines elsewhere in the world, such as Mexico, made up for production delays at the company's Red Lake mine in Ontario.
"Solid operating results throughout most of our mine portfolio were offset by a challenging first quarter at Red Lake," said Goldcorp CEO Chuck Jeannes.
"Adverse ground conditions at Red Lake delayed the development of new mining faces, which, taken together with lower grade in other areas of the mine, led to our slow start to 2012.
"Our Mexican operations were a particular area of strength in the first quarter, highlighted by the successful commissioning of the final component of Peñasquito's processing line, which positions the mine for strong performance over the balance of 2012."
Goldcorp predicts its cost on production of 2.6 million ounces of gold in 2012 will be $250 to $275 per ounce, which makes for a high per-ounce margin for the company at $1,456.
Some highlights from Goldcorp's Q1 financials include:
- 11% increase in revenue to $1.3 billion on gold sales of 545,700 ounces;
- 4% increase of operating cash flow before working capital changes, to $480 million ($0.59 per share);
- $109 million paid in dividends.
