Goldcorp Reports Q1 Net Earnings of US$170 Million
VANCOUVER, April 26, 2017 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) today reported its first quarter 2017 results.
First Quarter Highlights
- Net earnings for the first quarter were $170 million, or $0.20 per share, compared to net earnings of $80 million, or $0.10 per share, for the first quarter of 2016.
- First quarter operating cash flows were $227 million and adjusted operating cash flows(1,2) were $269 million, of which $74 million was used to fund the growth pipeline, $65 million was used to repurchase a gold stream on the Company's NuevaUnión project and $15 million was used to pay dividends. Available liquidity at March 31, 2017 stood at $3.1 billion.
- Gold production of 655,000 ounces at low all-in sustaining costs (1) ("AISC") of $800 per ounce, compared to 784,000 ounces at AISC of $836 per ounce for the first quarter of 2016. 2017 guidance reconfirmed for gold production of approximately 2.5 million ounces (+/- 5%) at AISC of approximately $850 per ounce (+/- 5%).
- Portfolio optimization continues to drive increasing net asset value ("NAV") per share. The Company continued to upgrade its portfolio with the announcement of a 50/50 joint venture with Barrick in the Maricunga district in Chile, and the completion of approximately $500 million in divestitures of non-core assets. Targeted annual sustainable efficiencies of $250 million and advancing our robust project pipeline are on track to deliver a 20% increase in gold production, a 20% increase in gold reserves and a 20% reduction in AISC over the next five years.
"Strong first quarter results were driven by solid production and low all-in sustaining costs, with our $250 million annual sustainable efficiency program well advanced and already benefitting the bottom line," said David Garofalo, President and Chief Executive Officer. "To deliver on the 20/20/20 growth plan we are maintaining a laser focus on execution, while simultaneously optimizing our asset portfolio and driving down costs. In addition, we continue to enhance the strongest growth pipeline in the gold industry with the planned 60 million ounce joint venture in the Maricunga District in Chile, financed by the sale of non-core assets. This transaction underlies our strategy of growing net asset value per share by delivering three to four million ounces of sustainable, annual gold production from six to eight core camps."
FINANCIAL AND OPERATING RESULTS
|($ millions, except where indicated)||Three months ended
March 31, 2017
|Three months ended
March 31, 2016
|Gold production1 (ounces)||655,000||784,000|
|Gold sales1 (ounces)||646,000||799,000|
|Operating cash flows||$227||$59|
|Adjusted operating cash flows1,2||$269||$89|
|Net earnings (per share)||$0.20||$0.10|
|By-product cash costs1,3 (per ounce)||$540||$557|
|AISC1,3 (per ounce)||$800||$836|
Net earnings and net earnings per share for the first quarter of 2017 were affected by, among other things, the following non-cash or other items that management believes are not reflective of the performance of the underlying operations (items are denoted as (increases)/decreases to net income and net income per share):
|($ millions, except where indicated)||Pre-tax||After-tax||$/share|
|Positive deferred tax effects of foreign
exchange on tax assets and liabilities and
|Reduction in the Company's obligation to
fund its share of Alumbrera's reclamation
Total cash costs on a by-product basis for the first quarter of 2017 were $540 per ounce, compared to $557 per ounce for the first quarter of 2016. AISC for the first quarter of 2017 were $800 per ounce, compared to $836 per ounce in the first quarter of 2016. The decrease in AISC was primarily due to the Company's focus on cost containment with lower corporate administration and sustaining capital costs, higher realized by-product prices at Peñasquito, partially offset by lower sales volumes.
As of March 31, 2017, the Company had total liquidity of approximately $3.1 billion, including $0.2 billion in cash, cash equivalents and short term investments and $2.9 billion available on its credit facility.
Please refer to the Company's financial statements, related notes and accompanying Management Discussion and Analysis ("MD&A") for a full review of its operations and projects. This can be accessed by clicking on this link: MDA_Financials.
Goldcorp is a senior gold producer focused on responsible mining practices with safe, low-cost production from a high-quality portfolio of mines.
Conference Call and Webcast
|Date:||Thursday, April 27, 2017|
|Time:||10:00 a.m. (PST)|
|Dial-in:||1-800-355-4959 (toll-free) or
1-416-340-2216 (outside Canada and the US)
or 1-905-694-9451 (outside Canada and the US)
|Replay end date:||May 28, 2017|
|Replay Passcode:||Conference ID#: 2296992|
A live and archived webcast will also be available.