Goldcorp loses $4 billion Q4 due to charge related to Newmont takeover
VANCOUVER – Goldcorp Inc. lost almost $4 billion in the fourth quarter, owing almost entirely to a non-cash impairment related to its takeover by Newmont Mining Corp.
The Vancouver-based miner said its loss compared with a $242-million profit a year earlier.
The Newmont stock takeover was valued at about $10 billion, but Goldcorp’s book value was worth just $13.9 million.
Excluding one-time items, adjusted earnings dipped almost in half to $61 million or seven cents per share, compared with $116 million or 14 cents per share in the prior year.
Gold production for the period ended Dec. 31 decreased to 630,000 ounces at an all-in sustaining cost of $765 per ounce, from 646,000 ounces at a cost of $870 per ounce in the fourth quarter of 2017. Gold sales were down 5.2 per cent to 600,000 ounces.
For the full year, Goldcorp lost $4.15 billion compared with a $658-million profit in 2017. The adjusted profit plunged to $63 million or seven cents per share, from $360 million or 42 cents per share a year earlier.