) announced that its Los Filos mine in Guerrero State, Mexico has
resumed operations after reaching a new five-year occupancy
agreement with the Carrizalillo Ejido. The operations at the mine
had been suspended since Apr 2, 2014.
Goldcorp now expects gold production at Los Filos to be at the
low end of the mine's guidance range of 330,000 to 345,000 ounces
due to the suspension of the mine. The Los Filos mine also provides
employment to more than 2,600 people from the neighboring
Goldcorp's shares were up roughly 1.2% in the trading session
following the announcement. The stock has gained around 16% so far
Goldcorp recently released its first-quarter 2014 results. The
company's adjusted earnings (barring one-time items) of 26 cents a
share for the quarter topped the Zacks Consensus Estimate of 14
cents but were down from 31 cents a share earned in the year-ago
Net earnings, as reported in the quarter, were $98 million or 12
cents per share, down 68% from net earnings of $309 million or 38
cents per share, hit by lower
Goldcorp posted revenues (as adjusted) of $1,228 million in the
quarter, up 0.7% year over year. It exceeded the Zacks Consensus
Estimate of $1,017 million. Average realized gold price for the
reported quarter declined 20% to $1,297 per ounce from $1,622 per
ounce in the prior-year quarter.
For 2014, Goldcorp reiterated its production guidance in the
range of 2.95 million and 3.10 million ounces at all-in sustaining
costs between $950 and $1,000 per gold ounce. The company also
reaffirmed its capital spending guidance in the range of $2.3
billion to $2.5 billion for 2014.
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the gold mining industry include
AngloGold Ashanti Ltd.
Lake Shore Gold Corp
Gold Fields Ltd.
), all carrying a Zacks Rank #1 (Strong Buy).
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