In times when most miners are reporting profit below estimates, Goldcorp (TSX:G)(NYSE:GG), posted better-than-expected third quarter results on Thursday as it benefited from operating improvements at Red Lake and Peñasquito, its two flagship operations.
The Vancouver-based gold giant, which keeps its books in U.S. dollars, posted adjusted earnings of $441 million, or $0.54 per share, surpassing analysts’ estimate of $0.46. Revenue reached a quarterly record of $1.5-billion.
The news surprised a few as the company lowered its production guidance earlier this year due to ongoing operating problems. Goldcorp was having difficulties reaching a high-grade zone at Red Lake in Ontario, and had water shortage issues at its Peñasquito mine in Mexico.
However, the miner said gold production more than doubled at Peñasquito mainly thanks to stronger grades.
Gold sales in the quarter totalled 617,800 ounces up from 571,500 a year ago. Production amounted to 592,500 ounces compared with 592,100 ounces in the third quarter of 2011.
Silver production amounted to 8.5 million ounces, up from 6.5 million a year ago.
In August the company, Canada's second-largest gold miner, announced the first gold production from the Pueblo Viejo mine in which it holds a 40%. Fellow miner Barrick Gold Corp. owns the remaining 60% and is the mine operator.
The Canadian miner has three new mines set to start production next year: the Cerro Negro project in Argentina, Eleonore in Quebec, and Cochenour in Red Lake, Canada.