Thursday, Goldcorp Inc. (GG), disclosed fourth quarter financial results of fiscal year 2008 that indicated a more than threefold growth in net earnings from the comparable quarter last year.
The Vancouver, Canada-based company reported fourth quarter net earnings of $958.1 million or $1.31 per share versus a profit of $256.5 million or $0.36 per share in the same period a year ago.
The quarter's results were favored by a foreign exchange gain of $963.0 million that compares to a gain of just $3.1 million in the similar period last year.
Adjusted net earnings, excluding foreign exchange gains however declined during the quarter and were recorded at $84.4 million or $0.12 per share compared to $178.5 million or $0.25 per share in the fourth quarter of 2007.
On average, 13 analysts polled by Thomson Reuters expected Goldcorp to earn $0.11 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues decreased to $609 million from $679.8 million in the same period a year ago. The decline was primarily attributed to lower realized silver and copper prices. Gold production in the quarter was recorded at 691,800 ounces, an increase of 11% from last year.
Street analysts were anticipating revenues to be approximately $626.93 million for the fourth quarter.
Operating expenses during the period rose to $307.7 million from $286.0 million in the last year.
As of December 31, 2008, the company's total proven and probable gold reserves increased 7% to 46.3 million ounces, its fifth consecutive increase in annual reserves. Proven and probable silver reserves increased 17% to 1,247.3 million ounces.
For the fiscal year 2008, net earnings increased to $1.48 billion, or $2.06 per share, from a profit of $460.1 million or $0.65 per share a year ago. Adjusted net earnings for the year totaled $397.0 million or $0.56 per share, compared to $440.4 million or $0.62 per share in fiscal 2007. Revenues in 2008 witnessed a growth of 9.5% to $2.42 billion from $2.21 billion in the prior year.
For the full year, the company produced 2.32 million ounces of gold at total cash costs of $305 per ounce.
Among Goldcorp's major competitors, Johannesburg, South Africa-based AngloGold Ashanti Ltd. (AU), reported a wider net loss for the fourth quarter, being hurt by write-downs during the period. Looking ahead to 2009, AngloGold Ashanti expects to produce between 4.9M oz and 5.0M oz of gold at total cash costs ranging from $435/oz to $450/oz.
GG is currently trading at $32.26, down 0.92% or $0.30, on a volume of 4.7 million shares on the New York Stock Exchange.
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