Upcoming AWS Coverage on Franco-Nevada Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 4, 2017 / Active Wall St. announces its post-earnings coverage on Goldcorp Inc. (NYSE: GG). The Company announced its first quarter fiscal 2017 results on April 26, 2017. The world's fourth-largest gold producer by market value surpassed earnings expectations. Register with us now for your free membership at:

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One of Goldcorp's competitors within the Gold space, Franco-Nevada Corp. (NYSE: FNV), announced on April 18, 2017, that it will release its Q1 results on May 09, 2017, after market close. A conference call and webcast will be available on May 10, 2017, at 8:30 am ET. AWS will be initiating a research report on Franco-Nevada in the coming days.

Today, AWS is promoting its earnings coverage on GG; touching on FNV. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended March 31, 2017, Goldcorp posted revenue of $882 million, down 7% compared to revenue of $944 million. The decline in the Company's revenues was attributed to decreases in gold and silver sales volumes of 18% and 11%, respectively, partially offset by higher zinc sales volumes of 21% and higher realized prices for gold, silver, and zinc of 3%, 14%, and 66%, respectively. Goldcorp's revenue numbers came in below analysts' consensus of $929.9 million.

For Q1 2017, Goldcorp reported gold production of 655,000 ounces at low all-in sustaining costs (AISC) of $800 per ounce compared to 784,000 ounces at AISC of $836 per ounce for Q1 2016. The decrease in AISC was primarily due to the Company's focus on cost containment with lower corporate administration and sustaining capital costs, higher realized by-product prices at Peñasquito, partially offset by lower sales volumes. The Company's total cash costs on a by-product basis for the reported quarter were $540 per ounce compared to $557 per ounce for the year earlier same quarter.

Goldcorp's net earnings for Q1 2017 were $170 million, or $0.20 per share, compared to net earnings of $80 million, or $0.10 per share, for Q1 2016. The increase in net earnings was primarily due to higher realized metal prices, lower depreciation and depletion as a result of the lower sales volumes, lower corporate administration, and restructuring costs and a $33 million reduction in a provision to fund the Company's 37.5% share of Alumbrera's reclamation costs, partially offset by lower sales volumes. On an adjusted basis, the Company reported earnings of $0.10 per share, ahead of Wall Street's estimates of $0.08 per share.

"Strong first quarter results were driven by solid production and low all-in sustaining costs, with our $250 million annual sustainable efficiency program well advanced and already benefitting the bottom line," said David Garofalo, President and Chief Executive Officer, "To deliver on the 20/20/20 growth plan we are maintaining a laser focus on execution, while simultaneously optimizing our asset portfolio and driving down costs. In addition, we continue to enhance the strongest growth pipeline in the gold industry with the planned 60-million-ounce joint venture in the Maricunga District in Chile, financed by the sale of non-core assets."

Cash Flow

For Q1 2017, Goldcorp reported operating cash flows of $227 million and adjusted operating cash flows of $269 million, of which $74 million was used to fund the growth pipeline, $65 million was used to repurchase a gold stream on the Company's NuevaUnión project and $15 million was used to pay dividends. As of March 31, 2017, the Company had total liquidity of approximately $3.1 billion, including $0.2 billion in cash, cash equivalents, and short-term investments and $2.9 billion available on its credit facility.

Outlook

For fiscal 2017, Goldcorp is forecasting gold production to be 2.5 million ounces (+/- 5%), in-line with earlier announced guidance. AISC are expected to be approximately $850 per ounce (+/- 5%). Goldcorp is projecting total cash costs on a by-product basis to be $500 per ounce (+/- 5%) Sustaining capital expenditures are forecasted to be $700 million (+/- 5%). Company-wide exploration expenditures in FY17 are expected to total $100 million. Depreciation and depletion expense is expected to be $435 per ounce.

Stock Performance

At the close of trading session on Wednesday, May 03, 2017, Goldcorp's stock price slipped 1.53% to end the day at $13.53. A total volume of 7.19 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 46.34 and have a dividend yield of 0.59%. The stock currently has a market cap of $11.55 billion.

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SOURCE: Active Wall Street