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Goldcorp Inc.  TICKER: GG-NYSE; G-TSX 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. The Company is in excellent financial condition. It has no debt, a large treasury, strong cash flow and earnings and pays a dividend twelve time per year. Goldcorp is completely unhedged. WEBSITE: http://www.goldcorp.com/ MAX Options Two Properties in British Columbia Premier Announces Annual General Meeting of Shareholders (AGM) to Take Place with Presentation Sched Halo Commences Drilling at West Red Lake The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates. Prices for gold stocks have been moving positively in the past few trading days, but Goldcorp has truly broken out, moving up to a record stock price on Friday, at USD 46.98 a share. Most of Goldcorp's peers are good distances away from that achievement... Goldcorp's magic formula, if that's what it is, appears to be an unerring ability to respond to investor expectations. With 11 key assets and six development projects throughout the Americas, Goldcorp's own corporate description reminds that over 70% of its reserves are situated in NAFTA (North American Free Trade Association) countries. In 2006 Goldcorp doubled its reserves and resources from 5 to 10m ounces of gold through the acquisition of assets from Barrick (acquired via Placer Dome) and Glamis Gold. The group's gold production is forecast to increase by over 50% in the next five years. Goldcorp's current reserves stand at some 43m ounces of gold (with more than 20m additional ounces classified in the resources category). These numbers may seem a little on the light side, when compared to, say, Barrick, with 125m ounces in reserve, and 175m ounces including resources, but this does not appear to worry investors at all... In a recent report on the gold sector's stellar performer, analysts at RBC Capital Markets said they continued to view favourably the strategic positioning of Goldcorp among the Tier I gold producers, as a growth and quality play in the group, with above average production growth potential and a portfolio of lower average cost operations. "In our view," the analysts stated, "Goldcorp should be able to maintain premium trading multiples over its Tier I peer group"." (6/28/08) - Mineweb.com
He pointed out that a wave of acquisitions has given Goldcorp 43% production growth between 2007 and 2012, which ranks as the best among the big producers. On top of that, the company has relatively low cash costs and is in very mining-friendly jurisdictions. "With 74% of its reserves in Canada, the United States, and Mexico, Goldcorp has what we believe to be the lowest political risk profile of the senior global gold producers," he wrote in a note to clients." (6/27/08) - FP Trading Desk
- blogs.barrons.com
- The Gold Report Interview with Bob Quartermain
In case you think I have been fibbing, here are the comparisons of Berkshire and Goldcorp during the past five- and 10-year periods. You can check this in the above five- and 10-year charts of each company. Berkshire vs Goldcorp 1) Five years since March 2003: 90% vs 360% 2) 10 years since early 1998: 65%-75% vs 1,500% If you have been holding on to Berkshire Hathaway for the past five years, you have been rewarded with about a 12% yearly return. Not great, but not bad! But Goldcorp rose 360%, or four times as much. That is pretty impressive. But the 10-year results were stunning. BRK.A, from 1998 until now, has risen less than 75%, or about 5%, yearly – not exactly what I had expected nor something worthy of such adoration and worship. Goldcorp, held by few institutions, has gone up 1,500%, or 20 times as much. Now that is a move worthy of media mention and admiration, but where have we ever seen this mentioned? Even the adoring Berkshire Hathaway holders might wonder why Mr. Buffett, who is known for his uncanny foresight, chose the WMD world of derivatives rather than gold." (6/19/08) - Stockhouse.com
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