Goldcorp announces significant increase of its first-quarter profit

Goldcorp Inc. (TSX: G, NYSE: GG), one of the world’s largest gold mining companies, has reported significant increase of its first-quarter profit.

According to the leading analyst estimates, the increase constituted 84 percent. The rise was boosted by dropped bullion prices and by the company’s transaction to sell its stake in Silver Wheaton Corp.

The company announced that its net income nearly doubled growing from $124.9 million, or 18 cents, a year earlier up to $229.5 million, or 32 cents a share. Sales went up 32 percent to $626.7 million.

Goldcorp’s stake in Silver Wheaton was 48 percent. The profit from the transaction will be used to help finance a $4 billion expansion. Thus the company plans to boost production and to exploit record bullion prices against a weak dollar.

Goldcorp has 12 operations and 6 development projects in the Americas. The company claims a commitment to "high standards and sustainable practices through (its) project developments, mining operations and reclamation process"; however, it faces public criticism over its human rights and environmental record, especially with respect to its operations in the Siria Valley (Honduras) and San Marcos (Guatemala).