Goldcorp Q3 profit jumps 88% despite decline in gold production

Goldcorp (TSX:G) has reported a remarkable 88% rise in quarterly profit, primarily thanks to a rise in the gold mining major’s income tax recovery and higher earnings from its Peñasquito mine in Mexico.

The company’s net earnings during Q3 of 2017 equated to US$111 million or 13 cents per share, a close to 90% jump on earnings made in the corresponding quarter of 2016.

However, Goldcorp’s output actually fell during the last quarter to 633,000 ounces down from 715,000 ounces a year ago, but the firm’s income tax gain of $19 million far outweighed the effects of its reduced production performance.

“We have delivered another quarter of on target gold production at low costs, led by a strong operating performance at Peñasquito and Cerro Negro,” said president and chief executive officer David Garofalo.

“With the optimisation of our portfolio now complete, we have a full and robust pipeline of development projects poised to deliver value growth in the short, medium and long-term.”

Goldcorp also revealed a 26% increase in total mineral reserves to 53.5 million ounces, due to the conversion of 4.7 million ounces into reserves at its Porcupine mine in Canada, and reaffirmed its gold production outlook for 2017 at 2.5 million ounces.