Goldcorp Inc. incurred net loss of $131 million or 15 cents per share in second-quarter 2018, against net earnings of $135 million or 16 cents in the prior-year quarter.
Barring one-time items, adjusted earnings came in at 5 cents per share, which missed the Zacks Consensus Estimate of 7 cents.
Goldcorp recorded revenues of $793 million in the quarter, down roughly 3.5% year over year. The figure also missed the Zacks Consensus Estimate of $871.5 million.
Gold sales fell around 13.4% year over year to 562,000 ounces, while production declined 10.1% to 571,000 ounces.
All-in sustaining costs (AISC) were $850 per gold ounce, down roughly 6.3% year over year.
Mining Highlights
At the Penasquito mine, gold production was 73,000 ounces, down 40.7% year over year from 123,000 ounces. AISC was $490 per ounce, up 49.4% from $328 in the year-ago quarter.
At the Cerro Negro in Argentina, gold production rose 15.2% to 129,000 ounces. AISC was $526 per ounce compared with $694 in the year-ago quarter.
At the Pueblo Viejo mine, gold production was 82,000 ounces, down from 115,000 ounces a year ago. AISC was $623 per ounce compared with $440 in the year-ago quarter.
Financial Position
Goldcorp’s cash and cash equivalents rose 47.5% year over year to $118 million. At the end of the second quarter, the company had net debt and adjusted net debt of $2.4 billion and $2.3 billion, respectively.
The company recorded operating cash flow of $158 million in the quarter under review.
Outlook
Goldcorp continues to expect gold production of 2.5 million ounces (+/- 5%) for 2018, unchanged from the previous guidance. AISC is projected at roughly $800 per ounce (+/- 5%), in line with the prior forecast. Goldcorp stated that it successfully executed its program of sustainable annual efficiencies worth $250 million. It has raised the target by another $100 million.
Goldcorp continues to expect sustaining capital expenditure to be $550 million for 2018.
Price Performance
Goldcorp’s shares have lost 6.4% in the last three months compared with the 4.4% decline recorded by its industry.
Zacks Rank & Stocks to Consider
Goldcorp currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space are KMG Chemicals, Inc , Methanex Corporation (MEOH - Free Report) and Celanese Corporation (CE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have returned 41.6% in a year.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have rallied 54.1% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 20.3% in a year.
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Goldcorp Inc. incurred net loss of $131 million or 15 cents per share in second-quarter 2018, against net earnings of $135 million or 16 cents in the prior-year quarter.
Barring one-time items, adjusted earnings came in at 5 cents per share, which missed the Zacks Consensus Estimate of 7 cents.
Goldcorp recorded revenues of $793 million in the quarter, down roughly 3.5% year over year. The figure also missed the Zacks Consensus Estimate of $871.5 million.
Gold sales fell around 13.4% year over year to 562,000 ounces, while production declined 10.1% to 571,000 ounces.
All-in sustaining costs (AISC) were $850 per gold ounce, down roughly 6.3% year over year.
Mining Highlights
At the Penasquito mine, gold production was 73,000 ounces, down 40.7% year over year from 123,000 ounces. AISC was $490 per ounce, up 49.4% from $328 in the year-ago quarter.
At the Cerro Negro in Argentina, gold production rose 15.2% to 129,000 ounces. AISC was $526 per ounce compared with $694 in the year-ago quarter.
At the Pueblo Viejo mine, gold production was 82,000 ounces, down from 115,000 ounces a year ago. AISC was $623 per ounce compared with $440 in the year-ago quarter.
Financial Position
Goldcorp’s cash and cash equivalents rose 47.5% year over year to $118 million. At the end of the second quarter, the company had net debt and adjusted net debt of $2.4 billion and $2.3 billion, respectively.
The company recorded operating cash flow of $158 million in the quarter under review.
Outlook
Goldcorp continues to expect gold production of 2.5 million ounces (+/- 5%) for 2018, unchanged from the previous guidance. AISC is projected at roughly $800 per ounce (+/- 5%), in line with the prior forecast. Goldcorp stated that it successfully executed its program of sustainable annual efficiencies worth $250 million. It has raised the target by another $100 million.
Goldcorp continues to expect sustaining capital expenditure to be $550 million for 2018.
Price Performance
Goldcorp’s shares have lost 6.4% in the last three months compared with the 4.4% decline recorded by its industry.
Zacks Rank & Stocks to Consider
Goldcorp currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space are KMG Chemicals, Inc , Methanex Corporation (MEOH - Free Report) and Celanese Corporation (CE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have returned 41.6% in a year.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have rallied 54.1% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 20.3% in a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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