Markets

Goldcorp Inc. Peñasquito Mine Re-Opened

Goldcorp Inc. ( GG ) ( G ) announced that the illegal blockade of the access to the Peñasquito mine made by the trucking contractor on Sept. -6 has been removed so the Canadian miner can recommence mining activities as planned already during this weekend.

The dialogue opened with the representatives of people who were protesting for wage demands and environmental reasons, as well as the intention to take action against the protesters who were illegally blocking access to the mineral deposit did work out successfully without the intervention of the Mexican government. Therefore, the continuation of mining activities at Penasquito is guaranteed.

Penasquito is the largest gold producer in Mexico and it consists of two open pits: Penasco and Chile Colorado. The mineral deposit also contains silver, lead and zinc. It is located in the northeastern part of the State of Zacatecas in north-central Mexico, approximately 8.7 miles east of the town of Mazapil.

Goldcorp does not expect that the shutdown of operations will negatively impact the overall production and cost guidance for -…-6. As a matter of fact, the gold producer reconfirmed expectations on its overall production and cost guidance for -…-6 being between -.8 million and '.- million ounces of gold at AISC between $85… per ounce and $9-5 per ounce.

In fiscal year -…-5, the Penasquito mine generated revenue of $-.65 million, approximately '8% of total revenues and produced 86…,'…… ounces of gold, approximately -5% of the total gold production, at an AISC of $544 per ounce.

The stock gained -9% year to date, but lost -8% since the beginning of the third quarter of -…-6, exacerbated by the news on Penasquito.

Last Friday Oct. 8, Goldcorp closed at $-4.-… per share, down - cents (or -….-4%) from the previous trading day and ---% from Oct. ', -…-6, when the news on the illegal blockade at Penasquito was released.

The news of the re-open of Penasquito is expected to resume Goldcorp Inc. on the stock market as well.

The Enterprise value/EBITDA is -….'4 and the price/book (mrq) is ….9'.

Disclosure: I have no positions in Goldcorp Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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