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Goldcorp reports US$98 million Q1 profit, revenue down from year ago

VANCOUVER - Goldcorp Inc. (TSX:G) said Thursday it earned US$98 million in its latest quarter as its gold production costs fell sharply compared with a year ago.

"2014 is a year of significant forecast growth for Goldcorp, and solid first quarter production and lower all-in sustaining costs represent a strong start toward the achievement of our guidance," Goldcorp president and chief executive Chuck Jeannes said in a statement.

"Our low-cost production profile will benefit from an infusion of new gold production from our three gold projects, starting with expected first production at Cerro Negro in just a few months. With initial gold production at Eleonore and Cochenour following closely behind, Goldcorp remains well-positioned for accelerating cash flow."

The company's average realized gold price for the first quarter of this year was $1,297 per ounce with an all-in sustaining cash cost of $840 per ounce. A year ago, Goldcorp received an annual realized price of $1,622 per ounce, but paid an all-in sustaining cash cost of $1,134 per ounce.

The lower costs as well as more gold sold helped offset the lower prices as the gold miner, which keeps its books in U.S. dollars, said its profit amounted to 12 cents per diluted share in its latest quarter, down from $309 million or 33 cents per diluted share a year ago.

Excluding one-time items, Goldcorp reported a lower adjusted profit of $209 million or 26 cents per share, compared with an adjusted profit of $253 million or 31 cents per share in the first quarter of 2013.

Revenue totalled $898 million, down from $964 million.

During the quarter, Goldcorp produced 679,900 ounces of gold and sold 684,000 ounces. That compared with production of 614,600 ounces and sales of 595,100 ounces in the first three months of 2013.

In its outlook, the company reconfirmed production guidance for 2014 of between 2.95 and 3.10 million ounces at all-in sustaining costs of between $950 and $1,000 per gold ounce.

Capital spending guidance was also reconfirmed at between $2.3 billion and $2.5 billion for this year.

The company said it hopes for the first gold production at its Cerro Negro project in Argentina to come around the middle of this year and commercial production to begin in the fourth quarter.

Meanwhile, its Eleonore project in Quebec is on track for its first gold production by the end of 2014 and commercial production in the first quarter of next year.

Last week, Goldcorp ended its hostile takeover attempt for Osisko Mining (TSX:OSK) after the smaller company signed a deal to be acquired by Yamana Gold (TSX:YRI) and Agnico Eagle Mines (TSX:AEM).

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