Goldcorp Inc. (GG): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
We are retaining our Neutral recommendation on Goldcorp. The company swung to a loss in the third quarter on lower sales. Both revenues and adjusted earnings missed Zacks Consensus Estimates. The company expects gold production for 2014 to be at the bottom end of its guidance range for the year. Goldcorp is progressing well with its development projects and remains on track to attain its long-term production targets. Moreover, it is still focused on reducing costs and remains committed to returning capital to its shareholders. However, the company faces risks associated with volatile gold prices and geopolitical challenges. Moreover, declining reserves and high debt are other concerns.
Headquartered in Vancouver, Canada, Goldcorp Inc. is a leading gold producer engaged in gold mining and related activities including exploration, extraction, processing and reclamation.
Goldcorp has operations in Canada, the U.S., Mexico and Central and South America. Apart from gold, the company also produces copper and silver. The company's principal producing mining properties are Red Lake, Porcupine and Musselwhite gold mines in Canada the Wharf gold mine in the U.S. the Pueblo Viejo mine (40% interest) in the Dominican Republic the Penasquito gold/silver/zinc/lead mine, and Los Filos and El Sauzal gold mines in Mexico the Marlin gold/silver mine in Guatemala and the Alumbrera gold/copper mine (37.5% interest) in Argentina.
Goldcorp has significant development projects which include the Cerro Negro gold project in Argentina Eleonore and Cochenour gold projects in Canada the El Morro gold/copper project (70% interest) in Chile and the Camino Rojo gold/silver project in Mexico.
Goldcorp also owns a 39.3% equity interest in Tahoe Resources Inc. that owns and operates the Escobal silver project in Guatemala. The company's proven and probable gold mineral reserves decreased 15% year over year to around 54 million ounces in 2013. Gold production rose 11% year over year to roughly 2.7 million ounces in 2013.
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