VANCOUVER – Goldcorp Inc. (TSX:G) has reported a drop in first-quarter profits compared with a year ago as the price of gold slipped and costs rose.
The gold miner, which keeps its books in U.S. dollars, said Thursday that it earned US$309 million or 33 cents per diluted share in the quarter, down from $479 million or 51 cents per diluted share a year ago.
Revenue fell to $1.02 billion from $1.21 billion in the first quarter of 2012.
“We expect gold production to increase throughout the year with a corresponding decrease in operating costs as we work through planned lower grades at Penasquito and Alumbrera, and benefit from the ramp-up of production at Pueblo Viejo,” Goldcorp chief executive Chuck Jeannes said in a statement.
“Based on this start, we remain quite comfortable with our annual guidance for both gold production and operating costs.”
The company reported adjusted net earnings for the first quarter of $253 million, or 31 cents per share, down from $404 million or 50 cents per share in the first quarter of 2012.
Goldcorp produced 614,600 ounces of gold in the quarter, up from 524,700 a year ago, while gold sales increased to 595,100 ounces, up from 545,7000.
The average realized gold price fell to $1,622 per ounce, down from $1,707 in the first quarter last year, while total cash costs on a byproduct basis increased to $565 per ounce from $251 a year ago.
Goldcorp is one of Canada’s largest gold companies, with operations in Canada, the United States, Mexico and Central and South America.