Goldcorp Reports on Fourth Quarter 2018 and Full Year Results
Goldcorp released its final stand alone Fourth Quarter and full year results for 2018. The Canadian gold mining giant was purchased by Newmont Gold of Denver, Colorado in December, 2018.
The results show that Goldcorp had significant losses during the 4th Quarter and full year 2018 compared to 2017.
As a result of the previously announced acquisition of the company by Newmont Mining Corporation (Newmont) for approximately $10 billion, Goldcorp recognized a non-cash impairment of $3,879 million (net of tax) representing the difference between the book value of the Company's shareholder's equity and the Newmont offer. Accordingly, the net loss for the fourth quarter of 2018 was $3,984 million or $4.58 per share, compared to net earnings of $242 million or $0.28 per share, for the fourth quarter of 2017.
Adjusted net earnings(1)(2) were $61 million, or $0.07 per share, for the fourth quarter of 2018, compared to $116 million, or $0.14 per share, for the fourth quarter of 2017.
Gold production during the fourth quarter of 2018 of 630,000 ounces at an all-in sustaining costs(1)(3) ("AISC") of $765 per ounce, compared to 646,000 ounces at an AISC of $870 per ounce for the fourth quarter of 2017.
Significant project milestones were achieved during the quarter. Peñasquito's Pyrite Leach Project achieved its first gold pour in November and commercial production in December; Porcupine's Borden Project achieved permitting milestones as it advances towards commercial production, expected in the second half of 2019; the Coffee Project advanced to the late stages of permitting and project engineering.
Ramp ups of Cerro Negro and Éléonore completed during the fourth quarter. Cerro Negro exited the year at 4,000 tonnes of ore mined per day, completing the ramp up of mine to nameplate capacity, while Éléonore exited the year at 6,600 tonnes of ore mined per day and 35,000 ounces per month, in line with targeted annual gold production of 400,000 ounces.
At Éléonore and Red Lake, the estimated fair values were negatively impacted following a decrease in Mineral Reserves and Mineral Resources from June 30, 2017, to June 30, 2018 at each mine site; as well as a decrease the estimated mineralization not yet classified as reserves, which reduced the expected future cash flows. As a result, the Company recognized an impairment expense of $1,633 million ($1,369 million, net of tax) and $664 million ($774 million, net of tax), respectively, against the carrying values of the Éléonore and Red Lake at December 31, 2018.
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