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Goldcorp Inc.

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.

Expert Comments:

"Our favorite in the large-cap gold space is Goldcorp Inc. because it is one of the lowest-cost producers, has years of significant growth ahead, has a solid balance sheet, and trades at a reasonable valuation below its NAV. We think we're getting a margin of safety, not just from the price to our appraised value but within the underlying aspects of the business, the fundamentals. . the reserves should lift nicely this year and projects not in the official pipeline yet could come to the fore with the potential to add millions of ounces. But the key catalyst is the price of gold itself because Goldcorp needs to make, like all others, a higher operating profit per ounce for the market to get excited. Part of that should come from a decline in the U.S. dollar, however, the U.S. dollar continues to show remarkable strength. To have this kind of move in a currency, especially in the world's reserve currency, in such a short period, is not normal." read more >

Phil Russo, Raymond James (4/13/15)
"Goldcorp Inc. hosted an investor day in Toronto on Thursday, April 9. We are maintaining our Strong Buy rating. . .we believe the stock's relative underperformance year-to-date can in part be attributed to the market's aversion for ramp-up risk at its key growth projects in 2015—Cerro Negro and Éléonore. We continue to view the quarter-over-quarter profile for these mines as attainable, with Q1/15 production results an encouraging start to the year, and anticipate the stock to unhinge from current levels as this risk outlook diminishes. . .we believe investors will be rewarded. . .as the company's asset base generates increasing cash flow throughout the year."

Josh Wolfson, Dundee Capital Markets (4/10/15)
"On April 9, Goldcorp Inc. hosted an investor day. . .the company's current 5-year production outlook outlines peak production in 2017 of 3.55 Moz. . .management reiterated a commitment to its dividend. . .management reiterated its objective to generate free cash flow after dividends in 2015 (at $1,200/oz)."

Michael Gray, Macquarie Capital Markets (4/7/15)
"We reiterate our Outperform recommendation and price target of $34.00 for Goldcorp Inc. We would be buyers of the company's stock ahead of its Investor Day later this week as there could be needle-moving updates on the Penasquito expansion projects as well as clarity on the prospects of HG Young. Goldcorp is our top pick among the senior producers."

Phil Russo, Raymond James (4/1/15)
"Goldcorp Inc. declared commercial production at its Éléonore mine as of April 1, 2015, in line with expectations. The company's second growth project, Éléonore, is set to ramp up alongside Cerro Negro in 2015, underpinning this year's growth and resulting in a back-end weighted production curve in 2015. . .we continue to recommend investors accumulate shares of Goldcorp at current levels."

"Goldcorp Inc.'s bid for Osisko Mining ran the risk of buying a great company at the wrong price, so I'm glad that CEO Chuck Jeannes walked away. Since it announced its takeover attempt of Osisko, Goldcorp has sold its Wharf mine in South Dakota to Coeur Mining and its Marigold mine in Nevada to Silver Standard Resources. . .Goldcorp has done a really good job of capital allocation. It looks at the cash that it's generating, and it looks at how to maximize the assets on its balance sheet. It created Silver Wheaton and Tahoe Resources out of existing assets. It helped create Primero Mining. So I give it kudos. It is a little bit undervalued on our models but not terribly." read more >

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