Goldcorp reports $1.1B Q4 loss, sales decline
A Goldcorp sign is pictured at the Goldcorp annual general meeting in Toronto on May 2, 2013. THE CANADIAN PRESS/Aaron Vincent Elkaim
Published Thursday, February 13, 2014 10:17AM EST
THE CANADIAN PRESS
VANCOUVER -- Goldcorp Inc. (TSX:G) reported a US$1.1-billion loss in the fourth quarter due to a big tax charge in Mexico and other one-time charges.
The Vancouver-based gold miner, which keeps its books in U.S. dollars, said the loss amounted to $1.34 per share compared with a profit of $504 million or 62 cents per share a year ago.
Revenue fell to $1.2 billion, down from $1.4 billion.
During the fourth quarter, the Goldcorp took $763 million in tax charges due primarily to changes to Mexico's income tax laws. The company also took $443 million in other impairment charges.
Excluding the one-time items, Goldcorp said it earned an adjusted profit of $74 million or nine cents per share compared with $465 million or 57 cents per share a year ago.
Goldcorp produced 768,900 ounces of gold in the fourth quarter compared with 700,400 a year earlier. Gold sales totalled 725,700 ounces, up from 645,100 ounces.
The company's average realized price was $1,254 per ounce for the quarter, down from $1,692 a ounce in the last three months of 2012.
Goldcorp also reported probable gold mineral reserves of 54 million ounces for Dec. 31, 2013, down from 63.9 million ounces at the start of last year.
The 15 per cent decrease in reserves announced Thursday was driven by mining and a lower assumed price for gold, which has lost value as a safe asset as the U.S. dollar and American economy strengthen.
Goldcorp has made a C$2.6-billion hostile takeover bid for Osisko Mining Corp. (TSX:OSK), which rejected the offer as inadequate.
Osisko shares have traded well above the $5.95 implied value of the Goldcorp offer since the stock-and-cash proposal was first announced in January.
Analysts have suggested that Goldcorp (TSX:G) will have to raise its offer if it wants to close the deal.
Osisko's main asset is the Canadian Malartic gold mine in northern Quebec where it has been ramping up operations since its first commercial production in May 2011.
Goldcorp chief executive Chuck Jeannes has said Canadian Malartic would rank among his companies' best operations if the takeover is successful.
Earlier this month, Goldcorp and Barrick announced a deal to sell the Marigold mine in Nevada to Silver Standard Resources Inc. (TSX:SSO) for a total of US$275 million cash.
Goldcorp owns two-thirds of Marigold, while Barrick Gold Corp. (TSX:ABX) owns the remaining third of the open pit mine.