Goldcorp becomes the favourite of analysts on better prospects ahead
On a positive note, despite slashing capital expenditure for exploration and mine development, gold production increased for the same period by 11% year-over-year to 646,000 ounces of gold.
Image Courtesy of FreeDigitalPhotos.net
Gold Corp Inc (NYSE:GG,TSX:G) has produced a disappointing second quarter result but so did many other miners on bearish gold prices but many analysts are upbeat on the prospects of Gold Corp Inc.
Chris Mancini, Research Analyst at Gabelli Gold Fund points out that the company is on a spending spree right now but it has a neutral balance sheet. The work going on in Cerro Negro and expansion of Red Lake Mine in Ontario should push cash flows of the company.
According to Goldcorp, its 2013 production and cost guidance remains unaffected. This leaves it on track to produce 2.5 to 2.8 million ounces of gold at an all in sustaining cost of $1,000 to $1,100 per ounce. When this is considered in conjunction with the recent spike in the gold price to $1,376 per ounce, Goldcorp’s profitability is expected to improve significantly, Matt Smith writes in Motley Fool.
On a positive note, despite slashing capital expenditure for exploration and mine development, gold production increased for the same period by 11% year-over-year to 646,000 ounces of gold. This increase in production positions Goldcorp to take advantage of the recent spike in gold prices and should assist profitability. News & Stock updateShare prices of Goldcorp Inc has climbed from a low of $27.45 to $31.10 but still a bit weak on Wednesday trading.
Goldcorp Inc. (GG) has signed the Obishikokaang Collaboration Agreement with Lac Seul First Nation to set the foundation for continued consultation and support for current and future operations of Red Lake Gold Mines. The deal was signed on Aug 16 in the Municipality of Red Lake, Ontario.
The collaboration will define long-term economic benefits for the Lac Seul First Nation. It will also bring recognition for the 3,200 First Nation band members who have significant historical ties for the development of the Red Lake gold camp. Many band members also stay within the Municipality of Red Lake. Barry Allan, Mackie Research Capital (7/26/13) "Goldcorp Inc. remains our top senior pick with an attractive growth profile. Compared to the peer group, the company has low operating costs and is expected to grow production from 2.4 Moz gold in 2012 to 3.85 Moz in 2016. . .we reiterate our Buy recommendation."