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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:

Haywood Securities (8/28/15)
"Goldcorp Inc. and Teck Resources announced a joint venture partnership whereby neighboring projects in Chile will be combined, which will likely see significant lower development costs. The two projects, El Morro (Goldcorp) and Relincho (Teck), will be a 50/50 venture. . .meanwhile, Goldcorp signed an agreement to acquire New Gold's 30% interest in the El Morro copper-gold project in Chile."

Andrew Kaip, BMO Capital Markets (8/27/15)
"Goldcorp Inc. announced that it has entered into an agreement to combine its El Morro project with Teck Resources Ltd.'s Relincho project. The combined project, a 50/50 joint venture located in the Huasco province in the Atacama region of Chile, has tentatively been named Project Corridor. . .the move to combine the two projects appears prudent, allowing both companies to diversify development risk and potentially realize cost savings due to synergies associated with shared infrastructure."

"Our favorite large-cap name is Goldcorp Inc. because it's a lower-cost producer with a reasonable balance sheet and decent production growth, which is unusual among the large producers. It's now trading at a valuation that is probably less than $0.50 on the dollar vis-à-vis its NAV using even $1,300/oz gold. The whole group looks cheap; you could almost throw a dart among the large-cap producers because on the low recently, we got to 70% of book value. To put that in perspective, the lowest we had seen in many years was the 2008 low where the large-cap producers as a group stopped at book value. There has to be cheap names in the junior space, too, because the TSX Venture Exchange, our Canadian proxy for small-cap resource companies, just made an all-time low—lower than when it started in 2001. . .[the ramping up of the Éléonore gold mine in Québec] Goldcorp has incurred start-up issues since the launch of the mine in the spring so it's a slower start than expected, but this particular mine should still hit the low end of the expected production range for the full year. And, regardless, the company is now guiding to the high end of its overall previous production guidance. . .all-in sustaining costs are around sub-$900/oz, so it still a decent margin." read more >

Barry Allan, Mackie Research Capital (7/31/15)
"Goldcorp Inc. reported Q2/15 production of 908 Koz. . .we had expected more like 810 Koz. . .the production beat was entirely due to the Penasquito mine, where quarterly output was 298 Koz, 130 Koz more than what we had forecast. . .EPS (adjusted) of $0.08 was reported, and cash flow was $0.40, both in line with our forecasts and consensus."

David Haughton, CIBC World Markets (7/31/15)
"Goldcorp Inc. reported Q2/15 adjusted earnings of $0.08/share, essentially in line with consensus of $0.08/share and our forecast of $0.09/share. Q2/15 production of 908 Koz beat our forecast of 822 Koz. . .the company reported a solid Q2/15 and indicated a positive operating outlook for the rest of 2015."

Josh Wolfson, Dundee Capital Markets (7/30/15)
"Goldcorp Inc. reported Q2/15 adjusted EPS of $0.08, above our estimate and consensus of $0.07. . .production results exceeded expectations. . .production surpassed expectations due primarily to significantly higher Penasquito gold grades (1.31 g/t versus our 0.72 g/t estimate) as well as better grades at Cerro Negro. . .at June 30, the company had $940M in cash."

More Expert Comments

Experts Commenting on This Company

Randall Abramson, Fund Manager – Trapeze Asset Management
Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Barry Allan, Vice Chair of Mining Group, and Senior Mining Analyst – Mackie Research Capital
Sam Crittenden, Research Analyst – RBC Capital Markets
Adrian Day, Founder – Adrian Day Asset Management
Michael Gray, Analyst – Macquarie Capital Markets
Richard Gray, Analyst – Cormark Securities
Jeb Handwerger, Author Gold Stock Trades
David Haughton – BMO Capital Markets
Louis James, Analyst – Casey Research
Andrew Kaip, Analyst – BMO Capital Markets
John Kaiser, Editor and Publisher – Kaiser Research Online
Alec Kodatsky – CIBC World Markets
Tony Lesiak – Canaccord Genuity
Kevin MacKenzie, Analyst – Salman Partners
Chris Mancini, Research Analyst – Gabelli Gold Fund
David Morgan, Publisher – Silver Investor
Phil Russo, Research Associate – Raymond James
Chris Thompson, Mining Analyst – Raymond James
Josh Wolfson, VP, Senior Analyst Gold & Precious Metals – Dundee Capital Markets

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
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