at Benzinga.com (Fri, 11:03AM)
at CNBC.com (Mon, 12:46PM)
at Nasdaq.com (Dec 19, 2014)
at Zacks.com (Dec 19, 2014)
at Nasdaq.com (Dec 11, 2014)
at Nasdaq.com (Dec 8, 2014)
at CNBC.com (Dec 3, 2014)
at Nasdaq.com (Dec 3, 2014)
at Nasdaq.com (Dec 1, 2014)
at CNBC.com (Dec 1, 2014)
- Goldcorp’s output will have to pick up to reach its annual goals.
- The changes in its all-in sustaining costs could impact its profitability.
- Falling gold prices will reduce its profit margins in the fourth quarter.
Goldcorp: A Gold Producer For A Potential Gold Rebound
- Goldcorp is a mid-tier Canadian gold miner operating a total of 12 mines and four development projects throughout the American continent.
- The company is well-managed and will post an AISC under $1,000/oz in 2014.
- GG offers a 3.2% per annum dividend and presents a good growth prospect for 2015, with two new mines: Éléonore and Cerro Negro.
- Goldcorp's production issues will weigh on its financial performance.
- However, Goldcorp is bringing new mines online in order to mitigate some of the impact.
- Goldcorp's debt is a concern.
- Goldcorp generates strong free cash flow, which might improve further as gold pricing improves.
- Goldcorp is expected to deliver bottom-line growth in the next half decade as compared to a loss in the last five years.
Update: Goldcorp Announces December Dividends--A Holiday Surprise
- Goldcorp announced its December dividend of $0.05.
- I predicted the dividend would be maintained despite the high cash burn rate in Q3.
- I remain resolute in my call to own some gold exposure at these levels and think Goldcorp is still best-in-breed.
Update: Goldcorp Signs An Agreement With 4 First Nations Communities In Timmins, Ontario
- Goldcorp has signed an agreement with four first nations communities in Timmins, Ontario with respect to its Porcupine Project.
- I had not anticipated this in my previous articles.
- This is an bullish development for an important yet less well-known of Goldcorp's Projects, although I continue to avoid the stock at current valuations.
Update: Goldcorp Signs Agreement With The First Nations - Reducing Political Risk Goes A Long Way
- Goldcorp announced that its Porcupine Gold Mines had signed a Resource Development Agreement with four First Nation communities in Canada.
- I previously wrote about the political risk of being a miner but did not see this agreement coming despite years of negotiations.
- Reducing political risk is bullish and in this case means that the Porcupine Mines can continue its long running production history without worry from the First Nations.
- Goldcorp's Chuck Jeannes speaks with Henry Bonner at Sprott Global and hints that the company is looking for acquisitions.
- Investors interested in the gold mining space will find that Goldcorp is overvalued, but that there are opportunities among potential acquisition targets.
- I name 4 that Goldcorp may be interested in and that investors may want to consider as well.
- Goldcorp recently withdrew its environmental impact study for El Morro copper-gold project in Chile.
- Goldcorp has good growth coming from Cerro Negro and Éléonore, and near-term gold production from Cochenour.
- Camino Rojo is advancing to the pre-feasibility stage, and that should be complete early 2016.
Update: Goldcorp Announces Dividend - The Significance To Shareholders
- Goldcorp has just announced its latest dividend of $0.05, in-line with its prior payout.
- As I predicted the dividend was maintained despite the serious cash burn in Q3.
- The commitment to the dividend is significant for shareholders who have suffered over the last few years and I maintain that we should do some buying as others panic.
Update: Goldcorp Withdraws Its Environmental Impact Study For El Morro
- Goldcorp just announced that it has withdrawn its EIS for El Morro as the company was not able to get government approval with the current plan.
- This should come as no surprise and I expressed concerns over this project in my recent article.
- Goldcorp has no near-term growth projects after Eleonore and Cerro Negro reach full production and shares remain overvalued.
Goldcorp Sinks To 6-Year Lows; Buying Opportunity On Tax Loss Selling
- Impairment charges at its Peñasquito and El Sauzal Mexican gold mines negatively affected earnings growth.
- Cerro Negro and Éléonore will play a big role in helping Goldcorp achieve its fourth quarter, and full-year production forecast.
- Tax loss related selling in December could provide an ample buying opportunity for those who want to own a gold, dividend paying stock.
What It Really Costs To Mine Gold: The Goldcorp Third Quarter Edition
- Goldcorp’s costs on both a core and a core non-tax basis rose significantly on a year-over year basis.
- This rise was due to increasing costs and lower gold-equivalent production due to operating issues at some of the company's mines.
- We expect production to rise again in upcoming quarters and capital spending to decrease into 2015.
- For gold investors, the fact that costs are well above the current gold price suggest that the current gold price is too low to be sustainable in the long-term.
- Goldcorp’s output slightly increased despite the lower-than-expected production at El Sauzal.
- Higher all-in sustaining cost slashed its profitability.
- The company will have to show a sharp rise in production to reach its annual production guidance.
- Goldcorp missed production and earnings estimates in Q3.
- Goldcorp has over 54 million ounces of gold reserves and over 800 million ounces of silver reserves.
- The stock appears expensive when compared to other big cap gold stocks based on its gold and silver reserves.
Alan Greenspan Is Bullish On Gold - Could Goldcorp Be The Opportunity?
- Greenspan argues gold is a good investment with QE coming to an end.
- Goldcorp shares tank after Q3 earnings disappointment.
- My assumptions in the Levered Returns valuation models yield a fair value per share of $22, 20% above GG’s October 31st closing price of $18.61.
- Goldcorp reports weak results and is free cash flow negative.
- This is a negative surprise as I was aiming for the company to be FCF positive this year.
- 2014 will be a ‘lost year’ for Goldcorp, but fortunately the capex will start to decrease from next year on.
Update: Goldcorp Drops 10% On Weak Q3 Earnings, But Shares Are Way Oversold
- Goldcorp has reported poor Q3 earnings with higher than expected cash costs.
- The company lost $.05 per share or $44 million, with all-in costs coming in at $1,066 an ounce.
- Still, the company reported adjusted net earnings of $70 million and operating cash flows of $192 million.
- With a 10% drop in share price, I think the market has overreacted as results weren't nearly that bad.
- Goldcorp (GG) just reported its third quarter results which missed estimates on earnings but saw revenues climb year-over-year.
- I discuss the production results and costs.
- What is going on with cash?
- Is the dividend secure?
Yesterday, 3:34 PM
- Spurred by hopes China's efforts to relax lending rules are a sign that broader (inflation-boosting) stimulus efforts are on tap, gold and silver prices are rallying, and taking the shares of miners up with them. COMEX gold is up 1.8% to $1,194.50/oz., and COMEX silver is up 2.5% to $16.11/oz. GLD +1.7%. SLV +2.2%.
- Gold stocks: AUY +3%. GG +4.6%. AGI +4.1%. ABX +3.4%. KGC +3.7%. GFI +3.7%.
- Silver stocks: SLW +2.3%. SSRI +6.9%. PAAS +1.9%. AG +3.6%. CDE +4.1%. HL +4.2%. SVM +6.8%. EXK +5.4%. TAHO +5.3%.
- Like many other commodities names, the group was hit hard a month ago when crude prices plunged in response to OPEC's decision to leave oil production unchanged.
- ETFs: AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, DGZ, DGLD, AGOL, TBAR, USV, UBG, GLDE, BAR, GYEN, GEUR, BARS, GGBP
Wed, Dec. 3, 4:45 PM
- Goldcorp (NYSE:GG) says it will examine its future investment plans in Guatemala following the country's move to raise mining royalties to 10% from 1%.
- GG, which operates the Marlin mine - Guatemala's largest - says it will need to take a closer look at its future investment in the country as a result of the new measures.
- The Marlin mine is expected to produce up to 185K oz. of gold this year but is nearing the end of its life, so GG says the new measures would have a limited impact on its overall financials.
- Tahoe Resources (NYSE:TAHO) also is seen as threatened by the mining royalty hike.
Mon, Dec. 1, 4:45 PM
- Gold futures surged 3.6% to reclaim the $1,200 level for the first time since late October, sparked in part by the downgrade of Japan’s sovereign debt rating and a retreat in the dollar, as well as India easing its import restrictions and some short covering.
- Gold had sold off initially amid news that Swiss voters rejected a referendum to force the Swiss National Bank to hold 20% of its reserves in gold, slumping to overnight lows near $1,140/oz. before rallying to settle at $1,218.
- As a result, gold miners were among the strongest sectors, with the Market Vectors Gold Miners ETF (NYSEARCA:GDX) finishing 7.7% higher; investors also may have reacted to takeover speculation, as weekend reports said Paramount Gold (NYSEMKT:PZG) was is in talks to be acquired by Coeur Mining (NYSE:CDE).
- Among the top precious metals miners: ABX +4.3%, AEM +6.9%, AU +9.1%, GG +8.2%, GFI +9.2%, SLW +7.2%, NEM +6.8%, AGI +7.7%, IAG +11.3%, AUY +7.4%, KGC +8.5%, NGD +13.7%, GOLD +6.4%, RGLD +7%.
- Other ETFs: NUGT, DUST, SIL, GLDX, SLVP, RING, SGDM, PSAU
Mon, Dec. 1, 12:14 PM
Fri, Nov. 28, 1:21 PM
- Already hit hard over the last two years by declining prices, gold and silver miners saw more pain today as commodity stocks in general got hammered thanks to OPEC's decision not to slash crude production.
- Decliners: ABX -8%. GG -6.1%. AUY -9.8%. KGC -8.2%. GFI -9.9%. SLW -7%. NEM -5.8%. AGI -6.9%. PAAS -9%. AG -15.4%. SSRI -11.6%. CDE -11.4%. HL -8.8%. TAHO -7.8%.
- Previous: Precious metals slide alongside oil; Swiss vote ahead
Tue, Nov. 25, 9:17 AM
- Goldcorp (NYSE:GG) signs a resource development agreement with four First Nation communities in the area of its Porcupine Gold Mines operation in Ontario and establishes a framework for continued consultation on existing and future operations.
- Under the agreement, GG recognizes and respects Aboriginal rights and interests, and the four First Nation communities recognize and support GG’s rights and interests in the operation and future development of the mine.
Tue, Nov. 18, 3:59 PM
- Gold prices jumped 1.2% to settle just shy of $1,200/oz. as the dollar eased against major currencies amid tensions in eastern Europe and the Middle East, and some observers are starting to ask if gold mining and production stocks (GDX +4.8%) have finally found a bottom.
- 24/7's Chris Lange thinks gold giants may have hit their lows on Nov. 5, followed by an impressive recovery since that date with gold fundamentals apparently not changing drastically.
- Major precious metals miners are strong across the board: ABX +6.5%, AEM +4.4%, AU +6.2%, GG +3.7%, GFI +7.6%, SLW +3.6%, NEM +3.4%, AGI +4.9%, IAG +6.6%, AUY +6.8%, KGC +9.2%, NGD +2.8%, GOLD +1.9%, RGLD +3.7%.
- Other ETFs: GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PSAU
Fri, Nov. 14, 10:58 AM
- The gold market will enter deficit by 2016 as producers cut capex, resulting in reduced supply in the medium- to long-term, Credit Suisse analyst Anita Soni writes, seeing 2014 as a likely plateau for supply (Briefing.com).
- Agnico Eagle Mines (AEM +2.6%) and Eldorado Gold (EGO +4.5%) are the firm's top picks among gold miners under coverage.
- Other Outperform rated gold companies are GG, KGC, AUY, AUQ, FNV, GSS and IAG; rated Neutral are ABX, NEM, NGD and AGI.
Mon, Nov. 10, 6:46 PM
- With gold trading down as low as $1,131/oz., precious metals miners were hit hard again today, with the Market Vectors Gold Miners ETF (NYSEARCA:GDX) tumbling 6.3% and now 17% lower YTD.
- Barrick Gold (NYSE:ABX), which fell 6.7% today, was the subject of negative comments from Deutsche Bank, which said, “Management’s target net debt of $7B, conveyed on its 3Q14 earnings conference call, is a tall order without a combination of a higher gold price and asset sales.”
- Mining companies at least can look forward to the modest consolation prize of weaker local currencies and falling oil prices that will help trim their costs; for example, Agnico Eagle Mines (NYSE:AEM) estimates local currency declines could reduce its U.S. dollar-denominated cash production costs by 5%-6%.
- Also today: AU -9.8%, GG -4.8%, GFI -4.6%, SLW -4.7%, NEM -5.9%, AGI -6.8%, IAG -6.1%, AUY -6.6%, KGC -6.4%, NGD -7.2%, GOLD -5.1%, RGLD -5.3%.
- Other ETFs: GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PSAU
Mon, Nov. 10, 11:49 AM
Fri, Nov. 7, 2:49 PM
- Goldcorp (GG +5.5%) says it has withdrawn the environmental impact study for its El Morro gold and copper mine in Chile after the country's Supreme Court halted development last month.
- GG says a project team has begun new studies to determine an optimal development plan for the $3.9B project that meets the company's investment return criteria.
- As of Dec. 31, El Morro on a 70% basis contains proven and probable gold reserves of 6.73M oz. and proven and probable copper reserves of 4.89B lbs.
Fri, Oct. 31, 11:35 AM
- Precious metals miners are slammed for a third straight session as gold prices plunged to multiyear lows.
- Japan’s surprise stimulus move is supporting the U.S. dollar and driving the ICE U.S. Dollar index to a four-year high, making gold more expensive to overseas buyers; while the prospect for more monetary stimulus usually increases the lure of gold, the threat of global deflation has withered gold’s appeal as a hedge against rising prices, Barron's Chris Dieterich explains.
- Nearly everyone in the sector is hitting 52-week lows (again): ABX -4.5%, NEM -7.7%, GG -0.5%, SLW -3.6%, AGI -5.8%, AEM -4.1%, AUY -10.6%, IAG -4.6%, KGC -16.2%, NGD -6.1%, AU -2%, GOLD -1.6%.
- Also: GFI -7.4%, RGLD -3.8%.
- ETFs: GDX, GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, RING, SGDM, PSAU
Thu, Oct. 30, 9:17 AM
- Goldcorp (NYSE:GG) -1.7% premarket after reporting Q3 earnings and revenues that fell well short of analyst estimates as costs rose.
- Q3 gold production rose 2% Y/Y to 651.7K oz., but average all-in sustaining cost was $1,066/oz., compared with $995/oz. a year ago and much higher than analysts expected.
- GG says it reduced the carrying value of a low-grade ore stockpile at its Penasquito mine in Mexico, which raised average costs by $64/oz. and negatively affected adjusted earnings by $0.04/share.
- Expects FY 2014 gold output will be at the low end of its forecast range of 2.95M-3.1M oz., citing pit wall instability at El Sauzal and the suspension of activities at Los Filos in Q2; expects all-in sustaining costs at the low end of its guidance range of $950-$1,000/oz.
- Full-year capital spending guidance remains unchanged at $2.3B-$2.4B.
Thu, Oct. 30, 8:03 AM
Wed, Oct. 29, 7:40 PM
- Precious metals miners and the ETFs that track them were slammed today as the Fed moved to end its bond purchase program.
- Today’s 4.3% swoon in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) drives the price below $20 for the first time since Oct. 2008, and the Global X Silver Miners ETF (NYSEARCA:SIL) tumbled 3.5% to its lowest finish since its launch in April 2010.
- The Fed action was expected, but paired with a more upbeat assessment of the U.S. labor market, gold’s appeal is further dampened vs. income generating assets, Barron's Chris Dieterich writes.
- Among individual names today: ABX -5.1%, NEM -4.7%, GG -4.1%, GFI -3.2%, SLW -3.3%, AGI -3.4%, AEM -4.7%, AUY -4.1%, IAG -4.6%, KGC -2.9%, NGD -4.3%, AU -3.3%, RGLD -4.8%, GOLD -2.5%.
- Other ETFs: GLD, SLV, GDXJ, NUGT, AGQ, IAU, DUST, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, DSLV, SLVP, OUNZ, DGL, DBS, SILJ, DGZ, RING, DGLD, AGOL, SGDM, PSAU, USV, UBG, BAR, BARS
Wed, Oct. 29, 5:30 PM
- ABC, ABMD, ACIW, ACOR, ALLE, ALU, AMAG, AMT, ANR, APD, APO, ATK, AUDC, AVP, BCO, BG, BGCP, BLL, BWA, CAH, CARB, CBM, CEVA, CI, CME, CNSL, COP, COR, CRCM, CRNT, CRR, CVI, CVRR, DBD, DFT, DHX, DST, EPD, EXLS, FCH, FCN, FIG, FIS, GBX, GEL, GG, GLOP, GNC, GOV, GTI, GTLS, HAR, HEES, HGG, HST, I, IDA, IDCC, INCY, INGR, IQNT, IRDM, IRM, ITC, IVZ, JCI, K, KCG, KEM, KMT, LAD, LECO, LKQ, LLL, LPLA, LRN, MA, MD, MDC, MDXG, MGM, MMYT, MO, MOD, MOS, MPC, MPLX, MPW, MSCI, MZOR, NEO, NGD, NI, NILE, NOV, NVO, NYT, O, OAK, OCN, ODFL, OXF, PBI, PCRX, PEG, Q, RDEN, RDN, RDS.A, RFP, RGLD, RTIX, SCG, SHOO, SMP, SNAK, SPAR, SSE, STRA, STRZA, SUI, TASR, TEVA, THRM, TRI, TWC, UAN, UPL, USAC, VICL, VNTV, WLT, WST, WWE, XEL
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