Big 3Q profit increase for Goldcorp - but...

Although Goldcorp reported almost quadrupled 3Q profits, the majority was through a$240 million exchange gain without which there would have been a decline in earnings.

OTTAWA (Reuters) - 

Goldcorp said on Friday its third-quarter profit nearly quadrupled on a big foreign exchange gain and stronger gold prices, but without the one-time lift earnings declined.

The gold miner, with operations in Canada and throughout Latin America, earned $297 million, or 42 cents a share, in the quarter ended Sept. 30. That compared with a profit of $75.8 million, or 11 cents a share, in the year-before period.

Excluding a $240 million foreign exchange gain on a revaluation of future income tax liabilities, profit fell to $64.7 million, or 9 cents a share, from $82.3 million, or 12 cents a share.

Revenue increased 5 percent to $552 million as production rose to 557,400 ounces.

Cash costs per ounce were $346, up from $160 in the same period last year, with a realized gold price of $865 per ounce.

Goldcorp repeated that it expects to produce between 2.3 million and 2.4 million ounces this year, while cash costs per ounce were seen at just under $300.

The Vancouver, British Columbia-based miner also said it will be disciplined in its spending and focus on completing its Penasquito project.

($1=$1.23 Canadian) (Reporting by Susan Taylor; editing by Jeffrey Benkoe)

© Thomson Reuters 2008 All rights reserved

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