October 26, 2016 / 10:17 PM / 2 years ago

UPDATE 1-Miner Goldcorp earnings in line, production, costs fall

(Recasts with analyst forecasts, adds outlook, production data)

Oct 26 (Reuters) - Canadian gold producer Goldcorp Inc reported a quarterly profit on Wednesday that met market expectations but its production fell due to continued lower gold grades, throughput and recoveries at its flagship Penasquito mine in Mexico.

Goldcorp, the world’s third-biggest gold producer by market value, reported net earnings of $59 million, or 7 cents a share, in the three months to end-September. That compared with a loss of $192 million, or 23 cents per share, a year earlier.

After adjusting for non-cash and other items, Goldcorp said earnings were 11 cents a share, in line with analysts’ expectations, according to Thomson Reuters I/B/E/S.

The Vancouver-based miner said it still expects to produce between 2.8 million and 3.1 million ounces of gold this year at all-in sustaining costs, the industry cost benchmark, of between $850 and $925 an ounce.

Gold production at Goldcorp, which has operations in Canada, the United States and Mexico, fell to 715,000 ounces in the third quarter from 922,000 ounces a year earlier.

All-in sustaining costs to produce an ounce of gold, however, fell to $812 in the quarter from $858 a year ago.

Goldcorp temporarily shut down its Penasquito mine, its biggest operation, for five days this month due to a week-long blockade by a trucking contractor. (Reporting by Nicole Mordant in Vancouver; Editing by James Dalgleish)

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