Goldcorp Inc. TICKER: NYSE:GG; TSX:G DESCRIPTION: Goldcorp is now the world's lowest-cost, million-ounce gold producer. The acquisition of Wheaton River Minerals Ltd. has increased gold production, gold reserves and resources and given the company one of the fastest growth curves in the industry. It has strengthened Goldcorp's already solid balance sheet and lowered production costs per ounce even further. Goldcorp is in excellent financial condition. It has no debt, a large treasury, strong cash flow and earnings and pays a dividend 12 times per year. Goldcorp is completely unhedged.
"Goldcorp dipped after reporting Q210 adjusted-diluted EPS that fell slightly short of analysts' expectations. Q2 EPS came in at US$0.26 compared to Canaccord Genuity's US$0.29 estimate and US$0.28 consensus. The shortfall. . .was due to a lower realized copper price (negative settlement adjustments from provisionally priced Alumbrera concentrate from Q1) and higher depreciation expense. While operating cash flow of US$387.9M was better than [our] US$360M estimate due to lower cash taxes. Commercial production was 570,400 oz. (excluding 39,100 oz. pre-commercial production at Peñasquito) with sales of 598,000 oz. at cash costs of US$363/oz. vs. estimate of 606,000 oz. at US$339/oz. The production miss was driven by lower-than-expected production at Red Lake and San Dimas due to lower grades and throughput. However, gold sales exceeded production at Red Lake and Alumbrera by 12,000 oz. and 13,000 oz., respectively, reversing the trend that negatively impacted Q1 results."
The Gold Report Interview with Chris & Michael Berry (07/14/10)
Tanya Jakusconek, National Bank Financial
(07/15/10)
"We are expecting production of 612 Moz. gold at total cash costs of $340/oz. (byproduct), with costs impacted by negative copper pricing adjustments. In addition, we are forecasting 5.5 Moz. silver, 28 Mlbs. copper, 34 Mlbs. zinc and 20 Mlbs. lead production (this includes non-commercial production at Peñasquito). We expect Goldcorp to provide an update on Peñasquito ramp-up with the project on target for commercial startup in Q3. We anticipate an update on underground development at Red Lake (no exploration results), progress of the Cochenour exploration drift and also a general update on Pueblo Viejo. We are not expecting an exploration update, although we anticipate a general review on Éléonore progress as a construction decision is expected at year-end. We also expect the company to provide an update on Marlin with the recent recommendation by IACHR (Inter-American Commission on Human Rights)."
Chip Brian, SmarTrend (08/16/10)
"When Goldcorp reported earnings 16 days ago on July 28, 2010, analysts, on average, expected the company to report earnings of $0.29 on sales of $916M. The company actually reported EPS of $0.25 on sales of $844M, missing EPS estimates by $0.04 and missing revenues estimates by $72M. Since the company's report, shares of Goldcorp have risen from $38.91–$39.68, representing a gain of 1.98% in the past 16 days."
Adrian Day, Adrian Day's Global Analyst
(08/19/10)
"Best of the major producers, with low costs and risk, growth potential Goldcorp is our only traditional gold miner—the best of the senior producers with strong operations, a solid pipeline, low political risk and low costs. Its latest mine, Peñasquito in Mexico, is ramping up with operations going very well. Goldcorp has several major mines in the development stage, including its JV with Barrick in the Dominican Republic, Pueblo Viejo; and Eleonore, the Quebec property it acquired from Virginia, which continues to grow."
Goldcorp Inc. 
PRINT THIS PAGE
EMAIL THIS PAGE
