Goldcorp cuts dividend, lowers production guidance for next three years

Goldcorp Inc. slashed its dividend and lowered its production guidance for the next three years on Thursday as the company tries to maintain a strong balance sheet and faces unexpected problems at an Ontario project.

The Vancouver-based mining giant moved from a monthly dividend of US2 cents a share to a quarterly dividend at the same level, effectively reducing the annual payout by two thirds. Goldcorp said this lowered dividend still offers a “competitive” yield, while allowing the company to invest in its growth projects. One of those growth projects is already facing major challenges. Goldcorp removed the Cochenour project from its production guidance for the next three years and said the project is re-entering the “advanced exploration” phase.

With Cochenour out of production guidance, it was not surprising that the overall forecast dropped. Goldcorp said it expects to produce between 2.8 and 3.1 million ounces of gold a year in each of the next three years. Previously, the company forecast up to 3.6 million ounces in 2016, up to 3.7 million in 2017, and up to 3.4 million in 2018.

Read more at Financial Post