Gold mining giant
) is hosting its annual Investor Day today. The company also
declared its first-quarter 2014 gold production, preliminary
all-in sustaining costs and revised gold production outlook for
Goldcorp, at the meet, will also highlight details of the
projects and operating mines that are expected to drive
high-quality, low-cost production growth over the next several
Gold production for the first quarter totaled 680,000 ounces
and the all-in sustaining costs for the same period are expected
to be roughly $875 per ounce. However, the final calculation of
capital and operating costs has not been completed yet.
Goldcorp also revised its gold production outlook for 2014 and
expects it to lie between 2.95 million ounces and 3.1 million
ounces. It anticipates all-in sustaining costs to remain within
the range of $950 and $1,000 per ounce of gold. The revision in
the 2014 outlook was due to the sale of the Marigold joint
Goldcorp closed the sale of its 66.7% interest in the Marigold
mine in Nevada to
Silver Standard Resources Inc.
) on April 4, 2014. Marigold was jointly owned by Goldcorp and
Barrick Gold Corp.
), where the latter held a 33.3% stake. A total consideration of
$275 million was paid to these parties at the close of this
Goldcorp and Barrick announced in Feb 2014 that they will sell
their respective stakes in the Marigold mine. The proceeds to
Barrick have been adjusted to reflect Goldcorp's position as the
manager and majority owner of the joint venture.
Goldcorp's divestment of its interest in the Marigold mine is
in line with its strategy of focusing on core assets, thereby
creating value for shareholders. On the other hand, Barrick sold
its respective stake as part of its ongoing effort to shed some
higher-cost assets, thereby reducing its debt burden. This
acquisition will help Silver Standard to add an operating mine in
a well-established and low-risk mining jurisdiction.
Goldcorp, which currently carries a Zacks Rank #3 (Hold), will
release its full first-quarter 2014 results on May 1.
A better-ranked stock in the gold mining industry is
AngloGold Ashanti Ltd.
), carrying a Zacks Rank #1 (Strong Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLDCORP INC (GG): Free Stock Analysis Report
SILVER STD RES (SSRI): Free Stock Analysis
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