UPDATE 2-Goldcorp profit surges on high gold prices

Wed May 4, 2011 6:03pm EDT

* EPS cont ops $0.82 v EPS cont ops $0.32 year-ago

* Revenues up 69 percent at $1.2 billion

(In U.S. dollars unless noted)

TORONTO, May 4 (Reuters) - Goldcorp (G.TO) reported a higher first-quarter profit on Wednesday, as record realized gold prices and the gold miner's strong production boosted revenue by 69 percent.

Net earnings from continuing operations rose to $651 million, or 82 cents a share, from $232 million, or 32 cents, in the first quarter of 2010.

Adjusted net earnings from continuing operations for Canada's second largest gold producer more than doubled to $397 million, or 50 cents a share, compared with $159 million, or 22 cents.

On that basis, analysts had expected earnings of 47 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose to $1.2 billion from $718 million in the same period in 2010.

The average realized gold price for the quarter rose 26 percent to $1,694 an ounce. Cash costs, including a by-product credit, were $188 an ounce.

Goldcorp said in a release it is delivering the strongest margins in the industry.

The company, which sold its 10.1 percent stake in Osisko Mining OSK.TO in February, said gold and silver accounted for 86 percent of first-quarter revenue.

Gold production climbed to 637,600 ounces, up 17 percent over the same period a year earlier, while gold sales were 627,300 ounces.

Goldcorp stood by its production outlook for the year, with output expected to be in a range of 2.65 million to 2.75 million ounces, but the company said it may revisit its cash cost guidance if an "improving trend" continues.

The Vancouver-based company, which has development projects across the Americas, plans to expand production by 60 percent to 4 million ounces in 2015.

(Reporting by Julie Gordon; editing by Frank McGurty)

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