Goldcorp Inc. (TSX:G; NYSE: GG) reported a bigger than expected loss Thursday (October 29) despite record gold production and reduced costs.
The market punished the Vancouver-based company following the release of third quarter operational and financial results, wiping more than a billion off its market value.
Goldcorp was last trading $13.10 per share in New York, down 10.4% and near its lows for the day affording the company a market capitalization of $11.9 billion. Goldcorp is the world's most valuable gold producer, but only the No. 4 gold mining company in terms of output, behind AngloGold Ashanti.
Goldcorp said it produced 922,200 ounces in the quarter ended September from ten mines, a huge jump of 42% compared to gold production of 651,700 ounces in the third quarter of 2014.
But losses reached $192 million compared with $44 million during the same period a year ago.
The company stuck to its 2015 forecast for production at the high end of a range between 3.3 million and 3.6 million ounces and all-in sustaining costs of $850 to $900 an ounce. Capital expenditure for the full year should come in at between $1.2 billion and $1.4 billion, also in line with previous guidance.
Goldcorp's performance on the day was in stark contrast to its peers, which released results after the bell Wednesday. Toronto's Barrick Gold (TSX:ABX) and Denver-based Newmont Mining, also managed to make strides into the teeth of a sharp drop in the price of gold on Thursday.
Newmont, the world's No. 2 gold producer in terms of ounces mined after Barrick, jumped nearly 4% for a market cap of $10.1 billion, while Barrick gained 2% and is now worth $8.8 billion in New York. The two majors and Canada's Agnico Eagle were the only stocks in positive territory among gold's top tier after a more than 2% drop in the price of gold to $1,145 an ounce, a three-week low.
