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Work Resumes at Goldcorp's (GG) Cerro Negro Mine

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Goldcorp Inc.GG said that work has resumed at its Cerro Negro mine in Argentina, following the declaration of a mandatory 15-day conciliation period by the Santa Cruz Provincial Secretariat of Labor. All the workers have begun working and the mine is fully operational.

The miners, represented by the Asociacion Obrera Minera Argentina union, stopped work at the Cerro Negro mine on Sep 30. The company kept a contingency plan in place so that mining and processing can be restarted immediately once the employees returned. During the conciliation period, Goldcorp remained committed to working with employee representatives and government officials to reach a fair and equitable resolution.

Goldcorp, which is among the top gold producers along with Barrick Gold ABX , Newmont NEM and Kinross Gold KGC , posted second-quarter 2015 adjusted earnings (excluding one-time items) of $65 million or 8 cents per share, down from $164 million or 20 cents per share recorded in the year-ago quarter. The decline was due to lower realized margins on gold and by-product metal sales given lower realized prices, higher production costs resulting from the slower ramp-up at Eleonore and increased depreciation and depletion cost. Earnings, however, surpassed the Zacks Consensus Estimate of 7 cents.

The company posted revenues of $1,188 million in the reported quarter, up around 34% year over year. Revenues also surpassed the Zacks Consensus Estimate of $1,104 million. Average realized gold price for the quarter declined 0.3% to $1,189 per ounce from $1,296 per ounce in the prior-year quarter.

Gold sales increased around 41.2% year over year to 903,000 ounces in the reported quarter, while production increased 40% to 908,000 ounces. All-in sustaining costs were $846 per gold ounce (down 0.7% year over year), while cash cost totaled $547 per ounce on a by-product basis (up 14.1%) and $656 per ounce (up 2%) on a co-product basis.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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