Goldcorp reports US$2.71bn net loss in 2013 on impairment charges, Mexico taxes

Thursday, February 13, 2014

Vancouver-based Goldcorp (TSX: G, NYSE: GG) reported a net loss attributable to shareholders of US2.71bn in 2013 compared to US$1.75bn net earnings the previous year, impacted by impairment charges and higher taxes, according to the company's annual results statement.

Goldcorp reported US$2.65bn in impairment of mining interests and goodwill during the year.

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In addition to the US$1.96bn impairment charges reported in the second quarter, primarily related to the impact of lower metals prices at the Peñasquito mine in Mexico, the company was also hit by US$516mn in deferred tax charges resulting from a new 7.5% mining tax in Mexico, calculated on sales minus certain deductions, in the fourth quarter.

The cancelation of a previously planned reduction in corporation tax in the country from 30% to 28% - another part of Mexico's tax reform - had an additional negative impact of US$148mn on the company's financial performance.

In Q4 Goldcorp also announced further impairment charges of US$443mn, more than half (US$276mn) of which relates to the Alumbrera mine in Argentina, affected by gold prices, while changes in financial reporting items in Guatemala and Argentina had a negative impact totaling US$99mn in the quarter.

Revenues for the year were US$3.69bn, down from US$4.66bn in 2012, on higher gold production of 2.67Moz, up from 2.4Moz, while production costs were almost unchanged at US$1.99bn (2012 US$1.96bn).

All-in sustaining costs during the year were US$1,031/oz gold.

During Q4, revenues were US$970mn, down from US$1.2bn in the same period of 2012, with a net loss attributable to shareholders of US$1.09bn compared to 4Q12 net earnings of US$504mn.

All-in sustaining costs for the quarter were US$810/oz.


In 2014, Goldcorp expects to increase gold output by 13-18% from last year to 3-3.15Moz, with capex expected at US$2.3bn-2.5bn.

All-in costs for the year are forecast at US$950-1,000/oz gold.

Goldcorp has mines and projects in Mexico, Argentina, Chile, the Dominican Republic, Guatemala, the US and Canada.