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Goldcorp to Sell Minority Interest in San Nicolas Project

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Goldcorp Inc.GG has inked a binding agreement to sell its 21% minority interest in the San Nicolas copper-zinc project, located in Zacatecas, Mexico, to Teck Resources for $50 million in cash.

Goldcorp expects the transaction to complete in the third quarter of 2017, subject to customary closing conditions.

The deal is in sync with the company's strategy to optimize its assets portfolio and add value by monetizing on non-core assets.

Goldcorp's shares have lost around 11.5% in the last three months, underperforming the Zacks categorized Mining-Gold industry's 1.7% decline.

Goldcorp, in Apr 2017, announced that it expects 2017 gold production around 2.5 million ounces (+/- 5%), which remains unchanged from the previous guidance. The company expects all in sustaining costs (AISC) to be roughly $850 per ounce (+/- 5%), while total cash costs on a by-product basis are anticipated to be $500 per ounce (+/- 5%).

The company expects sustaining capital expenditures around $700 million (+/- 5%) and expansionary capital of roughly $600 million, which will be spent on Musselwhite's Materials Handling Project, Penasquito's Pyrite Leach Project, Coffee, Borden, NuevaUnion and Cochenour.

Goldcorp remains focused on execution, cost reduction and optimization of asset portfolio. The company, earlier this month, completed the transactions to form a 50/50 joint venture (JV) with Barrick Gold ABX , for gold projects in the Maricunga District in Chile. Per the terms of JV, both Goldcorp and Barrick will jointly control over 20,000 hectares of mining properties in Maricunga District with the Caspiche and Cerro Casale deposits.

The JV allows both companies to jointly advance the Caspiche and Cerro Casale gold deposits, by consolidating infrastructure. It will also help both companies to reduce operating costs and capital. The JV will also reduce environmental footprint and improve returns, versus two standalone projects.

Goldcorp Inc. Price and Consensus

Goldcorp Inc. Price and Consensus | Goldcorp Inc. Quote

Goldcorp currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked companies in the basic materials space include The Sherwin-Williams Company SHW and The Chemours Company CC . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here .

Sherwin-Williams has expected long-term earnings growth rate of 11.4%.

Chemours has expected long-term earnings growth rate of 15.5%.

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Chemours Company (The) (CC): Free Stock Analysis Report

Barrick Gold Corporation (ABX): Free Stock Analysis Report

Goldcorp Inc. (GG): Free Stock Analysis Report

Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report

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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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