TORONTO, April 25 (Reuters) – Canadian miner Goldcorp Inc
reported only a slight increase in quarterly operating
profit on Wednesday, despite gains from a sharp increase in
bullion prices, as one of its biggest mines was hit by
operational problems.
Vancouver-based Goldcorp said adverse ground conditions at
its Red Lake mine in northern Ontario delayed the development of
new mining faces in the mine’s high-grade zone. That, together
with lower grade in other areas of the mine, led to a slow start
to 2012.
Excluding an impairment charge related to certain equity
investments and other one-time items, first-quarter earnings
rose to $404 million, or 50 cents a share, from a year-earlier
profit of $392 million, or 49 cents.
Net earnings dropped to $479 million, or 51 cents a share,
from $651 million, or 81 cents, a year earlier.
The company sold 545,700 ounces of gold in the quarter on
production of 524,700 ounces. That compared with sales of
627,300 ounces on production of 637,600 ounces in the same
period last year.
“Solid operating results throughout most of our mine
portfolio were offset by a challenging first quarter at Red
Lake,” Chief Executive Chuck Jeannes said in a statement.
Jeannes added that development work at most of the company’s
projects is running on schedule, and the Pueblo Viejo project in
the Dominican Republic is expected to begin initial production
in mid 2012. The project is being developed in partnership with
the world’s top gold miner, Barrick Gold.
