(Reuters) - Shares of Goldcorp Inc (G.TO) fell more than 10 percent on Wednesday, a day after Canada’s second largest gold miner cut its 2012 production outlook on operational issues at its two largest mines.
Goldcorp said late on Tuesday that it now expects to produce 2.35 million to 2.45 million ounces of gold in 2012, down from a previous estimate of 2.6 million ounces.
The company cited operational issues at its Red Lake mine in Ontario and Penasquito mine in Mexico for the lower production targets.
Goldcorp’s shares were down 10.6 percent at C$33.64 on the Toronto Stock Exchange on Wednesday afternoon. The stock has fallen more than 25 percent so far this year, in line with its competitors Barrick Gold Corp (ABX.TO) and Newmont Mining Corp (NEM.N).
“We view this announcement as negative for the next quarter or two until the market resolves the uncertainty surrounding the production profile at Red Lake and Peñasquito,” RBC Capital Markets analyst Stephen Walker wrote in a note to clients.
Walker lowered his price target for the miner to $52 from a previous estimate of $62, but maintained his “outperformed” rating on the gold miner. (Reporting by Julie Gordon)