) has notified Premier Gold Mines Limited its plans to acquire a
51% interest in the Broulan Reef Project. The Broulan Reef
Project is located adjacent to Goldcorp's Bruce Channel deposit
and Premier and Goldcorp's Rahill-Bonanza Joint Venture.
Premier, on Feb 25, agreed to acquire the Broulan Reef Project
from Cypress Development Corp. and Skyharbour Resources Ltd. Per
the terms of the Rahill-Bonanza Joint Venture Agreement between
Premier and Goldcorp, Goldcorp has a 30-day right to acquire a
51% interest in the Broulan Reef Project and fund 51% of
Premier is a North American exploration and development company
with multiple gold projects located in the heart of proven mining
districts in North America. The company holds an unrivalled
strategic property portfolio with core projects that are all
potential "company-makers" in their own right.
Few days ago, Goldcorp released its fourth-quarter 2012
results. The company's fourth-quarter adjusted earnings
(excluding one-time items other than stock-based compensation
expenses) of 42 cents a share missed the Zacks Consensus Estimate
of 54 cents and were well below 66 cents a share earned in the
year-ago quarter. Earnings, as reported, were 47 cents per share
compared with 39 cents in the year-ago quarter.
Revenues decreased 5.3% year over year to $1.43 billion in the
quarter, missing the Zacks Consensus Estimate of $1.63 billion.
For the full year, sales increased 1.4% to $5.43 billion, also
missing the Zacks Consensus Estimate of $5.89 billion.
Gold sales fell 5.8% year over year to 645,100 ounces in the
reported quarter and production inched up 1.8% to 700,400 ounces.
Total cash costs were $360 per ounce of gold on a by-product
basis and $621 per ounce on a co-product basis.
Goldcorp is adopting an all-in sustaining cash cost measure
this year, which include by-product cash costs, sustaining
capital, corporate general and administrative expenses,
exploration expense and reclamation cost accretion.
Currently, Goldcorp retains Zacks Rank #5 (Strong Sell).
Other companies in the gold mining industry having favorable
Zacks Rank are
Sandstorm Gold Ltd.
Seabridge Gold Inc.
). All these companies hold a Zacks Rank #2 (Buy).
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