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Goldcorp Inc. (GG)

  • Wed, Sep. 2, 5:48 PM
    • Lower copper prices could mean trouble for some gold miners, including Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), New Gold (NYSEMKT:NGD) and Buenaventura (NYSE:BVN), J.P. Morgan analysts warn.
    • Gold has been under pressure but nevertheless shows relative strength, the firm says, while "perversely, copper had its own semi-investment demand when it was used for collateral lending, but if this category of demand falls away, prices could be weaker."
    • JPM likes Goldcorp (NYSE:GG) and Agnico Eagle Mines (NYSE:AEM) for their production pipeline, but it cuts targets for ABX, NEM and BVN by a respective 14%, 15% and 20% due in part to their exposure to copper by-product credits.
    | Wed, Sep. 2, 5:48 PM | 9 Comments
  • Thu, Aug. 27, 9:17 AM
    • Goldcorp (NYSE:GG) and Teck Resources (NYSE:TCK) say they are forming a joint venture to combine and develop neighboring projects in Chile, in an effort to cut development costs as metal prices languish at multi-year lows.
    • Based on a preliminary economic assessment, the JV plans a conveyor to transport ore from GG's El Morro gold and copper project to a single line mill at TCK's Relincho copper and molybdenum project.
    • An initial capital cost target of $3.5B to bring the two projects into production compares to previous estimates of $3.9B for El Morro and $4.5B for Relincho.
    • GG also agrees to acquire New Gold's (NYSEMKT:NGD) 30% interest in El Morro for $90M plus a 4% gold stream on future gold production from the property.
    | Thu, Aug. 27, 9:17 AM | 16 Comments
  • Thu, Aug. 20, 2:29 PM
    • Alongside interest rate sensitive names, the gold miners are well-bid as the major averages tumble.
    • The yellow metal itself is higher by 2.15% to $1,152 per ounce.
    • Gold Fields (GFI +15.1%), AngloGold Ashanti (AU +11.2%), Sibanye Gold (SBGL +11.3%), Alamos Gold (AGI +9.7%), IAMGOLD (IAG +6.1%), Randgold (GOLD +5.6%), Barrick (ABX +4.9%), Newmont (NEM +3.7%), Kincross (KGC +2.6%), Goldcorp (GG +3.2%).
    | Thu, Aug. 20, 2:29 PM | 20 Comments
  • Thu, Aug. 13, 2:58 PM
    • Goldcorp (GG -5.2%) is well positioned to identify strategic M&A opportunities following strong Q2 results with further improvement expected, proceeds from the Tahoe sale, an expanded credit facility and additional capital after its dividend cut, RBC analyst Steven Walker says.
    • Walker expects GG to identify its non-core mines that could be spun out like Tahoe and higher-quality new mines and projects identified for the portfolio; candidates for non-core assets include the Los Filos and Porcupine mines, each forecast to produce 275K-300K oz./year of gold, or 8%-9% of the production profile, so any acquisition should contribute at least 10% to production.
    • Walker has a Sector Perform rating on GG and a $21 price target.
    | Thu, Aug. 13, 2:58 PM | 10 Comments
  • Wed, Aug. 12, 3:46 PM
    • China's moves to devalue the yuan and the potential for further devaluation have favorably shifted the risk/reward for stocks of precious metal miners, Deutsche Bank says as it upgrades Newmont Mining (NEM +6.1%) and Barrick Gold (ABX +5.2%) to Buy from Hold, citing improving balance sheets and share pullbacks the firm views as overdone compared to the move in gold prices.
    • The firm notes 82% of ABX's and NEM's estimated 2016 revenues come from gold; Kinross Gold (KGC +2.8%) and Goldcorp (GG +4.9%) derive a respective 97% and 73% of their expected 2016 revenues from gold.
    • Among silver miners, Deutsche Bank upgrades Pan American Silver (PAAS +6.1%) and Hecla Mining (HL +7.6%) to Buy from Hold, citing their cost exposures outside the U.S. and their respective 26% and 38% gold exposure.
    | Wed, Aug. 12, 3:46 PM | 11 Comments
  • Mon, Aug. 10, 12:27 PM
    • Goldcorp (NYSE:GG) declares $0.02/share monthly dividend, -60% decrease from prior dividend of $0.05.
    • Forward yield 1.69%
    • Payable Aug. 28; for shareholders of record Aug. 20; ex-div Aug. 18.
    | Mon, Aug. 10, 12:27 PM | 5 Comments
  • Thu, Jul. 30, 9:59 AM
    • Goldcorp (GG -2.1%) opens lower after saying it will cut its dividend by 60% even though it has a strong balance sheet compared to many of its peers, while reporting slightly better than expected Q2 earnings as well as improved production and cost forecasts.
    • GG says its move to cut the cut the monthly payout to US$0.02/share from $0.05 will save nearly $300M/year.
    • Q2 gold sales totaled 903K oz. on production of 908K oz., vs. sales of 639.5K oz. on production of 648.7K oz. in the year-ago quarter; the quarterly record was driven by higher grades at Penasquito in Mexico and an ongoing ramp-up at Cerro Negro in Argentina, but the average realized price dropped to $1,189/oz. from $1,296/oz.
    • Q2 all-in sustaining costs were $846/oz. of gold compared to $852/oz. in the year-ago quarter.
    • GG says it sees 2015 production at the high end of its forecast of 3.3M-3.6M oz., with all-in sustaining costs at $850-$900/oz., down from an earlier estimate of $875-$950/oz.
    • In addition to the dividend cut, GG has taken a couple of other measures in recent weeks to improve its liquidity: It sold its take in Tahoe Resources for nearly $1B, and expanded a credit facility by $1B.
    | Thu, Jul. 30, 9:59 AM | 7 Comments
  • Thu, Jul. 30, 8:02 AM
    • Goldcorp (NYSE:GG): Q2 EPS of $0.08 beats by $0.01.
    • Revenue of $1.3B (+43.5% Y/Y) beats by $240M.
    • Press Release
    | Thu, Jul. 30, 8:02 AM | 10 Comments
  • Wed, Jul. 29, 5:30 PM
  • Fri, Jul. 24, 5:40 PM
    • Top gainers, as of 5.25 p.m.: CZR +6.8%. BBG +6.3%. PX +4.9%. IXYS +4.8%. SFUN +4.3%.
    • Top losers, as of 5.25p.m.: GG -3.3%. CENX -3.1%. FNV -3.1%. CLD -2.5%. CDE -2.4%.
    | Fri, Jul. 24, 5:40 PM | 7 Comments
  • Tue, Jul. 21, 6:58 PM
    • Gold prices at five-year lows adds more pressure on an already stressed gold mining industry but mine closures are not expected to happen quickly as operators instead try to continue cutting costs, even as industry all-in costs already are expected to fall to an average of ~$1,335/oz. this year, down from nearly $1,700 in 2012.
    • Some significant mine closures could occur over time if gold stays near its current $1,100/oz. - as ~76% of producing gold mines are in the red at that price - but Goldcorp (NYSE:GG) CEO Chuck Jeannes says "I always warn people that [closures] are not going to happen as fast as you think they might because mine general managers are really good at keeping their mines alive."
    • With Newmont Mining (NYSE:NEM) kicking off earnings season for precious metals miners tomorrow, the current five-year compound return for mining equities is the lowest since the early 1980s; analysts are watching for potential dividend cuts at GG, Barrick Gold (NYSE:ABX), Centerra Gold (OTCPK:CAGDF) and Yamana Gold (NYSE:AUY).
    • Plenty of analysts are predicting further declines in gold's price; Goldman Sachs' Jeffrey Currie says the worst is yet to come, and that prices could fall below $1,000 for the first time since 2009.
    | Tue, Jul. 21, 6:58 PM | 40 Comments
  • Mon, Jul. 20, 10:39 AM
    | Mon, Jul. 20, 10:39 AM | 128 Comments
  • Mon, Jul. 20, 9:14 AM
    | Mon, Jul. 20, 9:14 AM | 17 Comments
  • Fri, Jul. 17, 2:58 PM
    • Barrick Gold (ABX -4.9%) sinks to 24-year lows in Toronto trading, leading a rout among bullion miners as the yellow metal extends its selloff to five-year lows.
    • ABX is under particular pressure, as the fall in gold casts doubt on the company’s strategy of shedding assets to pay down its $12.9B debt, as it "becomes harder and harder to sell those assets at any kind of reasonable value if metal prices are unwinding," Macquarie analyst Ron Stewart says.
    • ABX reportedly is nearing a deal to sell its Zaldivar copper mine in Chile, and is looking for buyers for its 50% stake in its Kalgoorlie mine, among other properties.
    • NEM -2.6%, GG -5.7%, GFI -1.1%, KGC -5.2%, AEM -5.1%, NG -2.2%, AGI -6.6%, AU -5.7%, GOLD -2.5%, SBGL -4.2%, BTG -6.4%, IAG -7.6%, EGO -7.6%, HL -3.5%, NGD -8.4%, AUY -2.9%, RGLD -2.9%, FNV -3.6%, SLW -3.3%.
    | Fri, Jul. 17, 2:58 PM | 112 Comments
  • Tue, Jul. 7, 7:15 PM
    • Goldcorp (NYSE:GG) is upgraded to Overweight from Equal Weight with a $25.50 price target at Morgan Stanley, which says the miner offers 20% Y/Y output growth, with costs declining 14%, free cash flow turning positive in H2 - all at a compelling stock valuation.
    • GG typically trades at premium multiples but now trades below its peers on price/NAV (1.1x vs. 1.3x for peers) and in line with peers on EV/EBITDA and price/CFPS.
    • At the same time, Stanley downgrades New Gold (NYSEMKT:NGD) to Equal Weight from Overweight and cuts its price target to $4 from $5.25, expecting shares will continue to trade at discounted multiples as mid-tiers with large development projects and free cash flow further out remain out of favor.
    | Tue, Jul. 7, 7:15 PM | Comment!
  • Mon, Jul. 6, 6:13 PM
    • Goldcorp (NYSE:GG) is started with an Outperform rating and $24 price target at Credit Suisse, which says it is better positioned to generate free cash than competitors Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX).
    • The firm thinks GG’s sale of its Tahoe stake for gross proceeds of ~C$1B adds liquidity to the balance sheet, which remains the strongest among the senior producers; it estimates GG will end Q2 with ~$1B in cash, with the increase over Q1′s $365M allowing the miner to bridge the dividend funding gap while assets continue to ramp up.
    • Credit Suisse says GG’s improving free cash flow profile is driven by higher by-product production at Penasquito, the ramp up of Cerro Negro and Eleonore, and lower taxes at Pueblo Viejo beginning in 2017.
    • Gold mining stocks generally finished higher in today's trade due to increased Greece jitters: GG +3.1%, NEM +0.8%, ABX +2.6%.
    | Mon, Jul. 6, 6:13 PM | 6 Comments
Company Description
Goldcorp Inc is a gold producer. The Company is engaged in the operation, exploration, development, and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America.
Industry: Gold
Country: Canada