Goldcorp Posts Q2 Loss - Quick Facts

(RTTNews) - Goldcorp Inc. (GG, G.TO) reported that its second-quarter net loss was $1.93 billion or $2.38 per share compared to net earnings of $268 million or $0.26 per share in the second quarter of 2012. A non-cash impairment charge, primarily related to exploration potential at Peñasquito, led to a net loss of $1.93 billion, the company said.

In the case of Peñasquito, the market value of exploration potential was established on the balance sheet when the property was acquired in 2006. Due to the decline in market valuations of exploration properties, the value of the Peñasquito cash generating unit has decreased significantly below the accounting book value. As a result, the company recorded an impairment charge of $1.83 billion, net of tax on Peñasquito and a total of $1.96 billion, net of tax, for the three six month ended June 30, 2013.

Adjusted net earnings in the second quarter totaled $117 million, or $0.14 per basic share, compared to $332 million or $0.41 per basic share, in the second quarter of 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues slip to $889 million, from $1.081 billion in the year ago quarter. Six analysts had consensus revenue estimate of $1.16 billion for the quarter.

Gold sales in the second quarter were 624,300 ounces on production of 646,000 ounces, compared to sales of 532,000 ounces on production of 578,600 ounces in the second quarter of 2012. Silver production totaled 7.2 million ounces compared to silver production of 8.2 million ounces in the prior year's second quarter.

The company reconfirmed guidance for 2013 of between 2.55 and 2.80 million ounces at total cash costs of between $1,000 and $1,100 per ounce on an all-in sustaining cost basis; $525 to $575 per ounce on a by-product basis and $700 to $750 per ounce on a co-product basis. As a result of the Company's capital spending changes, 2013 capital spending guidance has decreased to $2.6 billion compared to previous guidance of $2.8 billion.