Gold miner Goldcorp Inc. (GG - Analyst Report) 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 communities.
Goldcorp's shares were up roughly 1.2% in the trading session following the announcement. The stock has gained around 16% so far this year.
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 quarter.
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 gold prices.
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. (AU - Snapshot Report), Lake Shore Gold Corp. (LSG) and Gold Fields Ltd. (GFI - Snapshot Report), all carrying a Zacks Rank #1 (Strong Buy).