Vancouver-based Goldcorp Inc. (TSX: G, NYSE: GG) doubled its earnings in the first quarter of 2011, compared with 2010, thanks in part to high gold prices.
The company is reporting cash flows of $586 million for the first quarter of 2011 and a 108% increase in operating cash flow to $586 million.
Revenue increased 69% over 2010’s first quarter. Net earnings from operations in the first quarter were $651 million compared with $232 million for the same period of 2010. Adjusted net earnings increased 150% over the 2010 first quarter to $397 million or $0.50 per share.
Gold sales in 2011’s first quarter were 627,300 ounces on production of 637,600 ounces. That’s up from last year’s sales of 544,200 ounces on production of 600,100 ounces in the first quarter.
Gold rose above US$1,400 per ounce in the first quarter of 2011.
“Operational strength throughout Goldcorp’s mine portfolio and a record high realized gold price resulted in a strong first quarter and a great start to 2011,” Goldcorp president and CEO Chuck Jeannes said in a company press release.
“Our first-quarter gold production at a cash cost of just $188 per ounce on a by-product basis was driven by continued work on cost containment throughout the organization, in light of inflationary pressures as well as strong byproduct metals prices.”
The company’s Red Lake Mine in Ontario anchored the company’s solid gold production and its Los Filos mine in Mexico saw record performance, the company said.
Nelson Bennett