Goldcorp reports more gold production, 34% net earnings increase in 1H

Goldcorp CEO Chuck Jeannes said the company's 2Q results saw growth in all key financial metrics including gold sales, higher gold prices, record cash flow and higher net earnings.

RENO, NV - 

In financial results released Wednesday Vancouver's Goldcorp reported total gold production for the first six months of this year to be 1,234,500 ounces, up from 1,198,900 ounces a year ago.

Gold production for the second quarter was 609,500 ounces, compared to 582,400 in the same quarter of 2009.

Production at the company's flagship Red Lake mine increased 26% to 159,000 during the second quarter of this year, due to higher tonnage and grade. Los Filos reported a 41% increase in gold production to 82,600 ounces during the same period.

At the Marlin mine in Guatemala, second-quarter gold and silver production was 13% and 62% higher, respectively.  Gold production was 71,500 ounces while silver production was 1,437,700 ounces.

The company reported that operations at the controversial Marlin mine continue as the company awaits the beginning of an administrative procedure which the Guatemalan government has agreed to undertake in response to the Inter-American Commission on Human Rights demand that mine operations be suspended.

Goldcorp reported net earnings attributable to shareholders of $776 million or $1.06 per share for the first half of this year, a 34% increase over the net earnings of $59.3 million or eight-cents per share a year ago.

Earnings were bolstered by a $407.3 million net gain from the $495.5 million cash and shares sale of the Escobal silver project, exploration property in Mexico, and other land sales.

Adjusted net earnings for the first six months of this year amounted to $361.9 million or 49-cents per year, compared to $264.9 million or 36-cents/sh for the same period a year ago. Earnings were significantly impacted by higher copper and silver sales volumes, and higher average realized gold, copper and silver prices.

Net earnings attributable to shareholders during the second quarter of this year were $828 million or $1.13/sh compared to a net loss of $231.6 million or 32-cents/sh during the second quarter of 2009. Adjusted net earnings for the second-quarter 2010 were $198.8 million or 27-cents per share, compared to $99.2 million or 14-cents per share in the second quarter of 2009.

"In addition to the operational and developmental achievements in the first half of the year, we announced or completed transactions totaling in excess of $2 billion since late 2009 that have strengthened the overall asset portfolio through the addition of high quality growth projects like El Morro in Chine and Camino Rojo near Peñasquito, and the divestiture of non-core assets such as the Escobal silver deposit, the San Dimas gold-silver mine and our interest in the Mt. Milligan copper-gold project," said Goldcorp CEO Chuck Jeannes.

The company also reported that its project pipeline as of June 30^th include the Peñasquito, Noche Buena and Camino Rojo gold and silver projects in Mexico; the Cochenour, Éléonore and Hollinger gold project in Canada; the Cerro Blanco gold/silver project in Guatemala; the El Morro copper gold project in Chile; and the Pueblo Viejo gold project in the Dominican Republic.

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