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Goldcorp Inc. G-T said selling more gold at higher prices helped boost revenue by 25 per cent in the latest quarter, as the Vancouver-based miner also increased its annual production guidance.

Goldcorp president and chief executive officer Chuck Jeannes said his company's outlook “has never been brighter,” not just due to gold's steady climb — this week in particular — but low operating costs and productivity improvements at its mines.

On Thursday, gold GC-FT closed at a record $1,089 (U.S.) an ounce.

“Gold prices have exhibited continued strength and sustainability above $1,000 per ounce, and with our production and cash costs trending positively, the stage is set for continued strength in cash flow and profitability through the end of the year and beyond,” Mr. Jeannes said.

“No other company can claim our combination of growth, low costs, financial strength and political stability.”

Mr. Jeannes told investors during a conference call Thursday that the company's five-year growth plan remains “intact,” with production expected to hit 2.6 million ounces in 2010.

Goldcorp's goal is to grow by 50 per cent within five years, most of it coming from the Penasquito mine in Mexico which is expected to begin commercial production in early 2010.

Late Wednesday, Goldcorp increased its 2009 production guidance to 2.4 million ounces, up from earlier guidance of 2.3 million ounces.

It also said total cash costs for 2009 are expected to be about $300 per ounce of gold on a by-product basis compared with earlier guidance of $365 per ounce.

For the quarter ended Sept. 30, the company reported a profit of $114.2-million, or 16 cents per share. That compared with a profit of $297.2-million, or 42 cents, a year ago.

Revenue reached $691.9-million, up from $552.2-million.

The year-ago results included a $253.7-million foreign exchange gain, compared with $28.1-million in the latest quarter.

Excluding a non-cash foreign exchange loss on revaluation of future income tax liabilities, the company said it earned 19 cents per share.

The average analyst estimate had been for earnings of 17 cents per share, according to Thomson Reuters.

Gold production in the quarter totalled 621,100 ounces, up from 557,400 ounces a year ago, while the average realized price was $968 per ounce, up from $865.

Total cash costs on a by-product basis averaged $295 per ounce, down from $346 per ounces a year ago.

Mr. Jeannes said the company's Red Lake mine in Ontario performed particularly well in the quarter thanks to continued productivity enhancements. It also said development of the Cochenour project in the Red Lake camp is beginning to accelerate.

“Cochenour is a key component of our development plans ... and upon completion it will be an important contributor to our growth profile at Red Lake for many years to come,” Mr. Jeannes said.

The company also reported “impressive progress” at its 100-per-cent owned Penasquito mine in Mexico.

Earlier this month, Goldcorp said the first lead and zinc concentrates have been produced at Penasquito. The initial concentrates have been produced as a by-product of the commissioning process.

It said the mine remains on track for completion of commissioning for the Line 1 processing circuit by the end of the year.