Goldcorp reports $87 million loss for Q1
Goldcorp has reported sales of 827,500 gold ounces resulting in adjusted operating cash flow of $366 million for the first quarter of 2015, compared to adjusted operating cash flow of $281 million for the first quarter of 2014. Adjusted quarterly revenues were $1.27 billion, generating adjusted net earnings of $12 million, or $0.01 per share, compared to adjusted net earnings of $209 million, or $0.26 per share, for the first quarter of 2014.
Reported net loss for the quarter was $87 million, or ($0.11) per share, compared to net earnings of $98 million, or $0.12 per share, for the first quarter of 2014.
“We are pleased to begin 2015 with strong cash flow performance,” said Chuck Jeannes, Goldcorp president and CEO. “Our primary focus in 2015 is on safely executing our plans and forecasts. Delivering on those expectations, coupled with significantly lower capital spending compared to prior years, positions Goldcorp for a sustained period of strong cash flow. This financial strength provides Goldcorp the flexibility to fund the next generation of growth projects. Growing gold reserves is also a key priority in 2015, and positive exploration results at many of our operations, including Cerro Negro in Argentina and the HG Young discovery at Red Lake, support the potential for success in this objective.”
At Red Lake in Ontario, gold production for the first quarter was 107,400 ounces at an all-in sustaining cost of $799 per ounce. Higher mined grades were offset by lower tonnage from the Campbell Complex where remnant mining is being phased out during 2015. Exploration efforts remain focused on the HG Young discovery. Rehabilitation of nearby underground headings in the Campbell Complex has been completed, enabling further mine development and drilling to commence from underground. Drilling also continued during the first quarter of 2015 on a number of other underground exploration projects at Red Lake including the High Grade Zone.
At the Cochenour project in Red Lake, the development decline was 82 per cent complete at the end of the first quarter. Processing of mill feed from the first stopes at Cochenour remains on track for the third quarter of 2015. Exploration drilling continues to ramp up with twelve drills on site and results to date are consistent with expectations. Drilling commenced in the upper levels during the first quarter with two drills operating and several more platforms ready for new drills. Drilling is expected to commence in the second quarter in the hanging wall of the deposit to assess the deeper portions of the Cochenour deposit.
At Porcupine in Timmins, gold production for the first quarter was 56,000 ounces at an all-in sustaining cost of $1,175 per ounce. Production decreased over the prior quarter due to lower grades and lower tonnage, primarily due to cold weather conditions which impacted stockpile and mill operations. The Hoyle Deep project continued to progress successfully toward expected completion in the first quarter of 2016.
Overburden and pre-stripping activities continued at the Hollinger project with approximately 1.3 million tonnes on the Environmental Control Berm at the end of the quarter. Mining operations are expected to commence 24 hours a day upon expected completion of the berm in the third quarter of 2015. The closing of the Probe Mines acquisition and its primary asset, the Borden Gold project, in mid-March is expected to provide a new source of low-cost, high quality gold production for Porcupine, thereby leveraging the important investments already made in people, infrastructure and stakeholder partnerships.