Goldcorp's ‘Miserable Quarter’ Sends Shares to 16-Year Low
(Bloomberg) -- Goldcorp Inc. tumbled to the lowest since 2002, the steepest decline among senior gold producers, a day after reporting a worse-than-expected third-quarter loss.
The Vancouver-based miner posted a net loss of 12 cents a share, wider than the average analyst estimate for a loss of 10 cents. Operating results were hurt by lower output of all metals from the company’s Peñasquito mine, while costs climbed.
The results were a “clear disappointment” and the company will have to deliver on its fourth-quarter guidance of 620,000 ounces to prove to investors it is at an inflection point, Andrew Kaip, an analyst at BMO Capital Markets, said in a note.
“We knew this would be a miserable quarter,” Michael Siperco, an analyst at Macquarie Group Ltd., said in a telephone interview. “It was a little bit weaker than most expected.”
The shares slumped 18 percent to close at C$11.09 in Toronto, the biggest one-day decline in a decade. That made it the worst performer among 15 senior gold miners tracked by Bloomberg Intelligence. The plunge wiped out C$2.18 billion ($1.66 billion) of the company’s value, and bumped it out of the top three North American gold miners after it was surpassed by Agnico Eagle Mines Ltd.
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