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Goldcorp (GG) Attains '18 Production and Cost Estimates

Zacks Equity Research

Goldcorp Inc. GG recently announced that it has achieved its 2018 production and cost guidance.

The company reported gold production of 630,000 ounces for the fourth quarter of 2018, which was 25% higher sequentially and also surpassed the company’s previously announced expectations. Gold production for the full year was around 2.29 million ounces, which was higher than previous guidance of 2.28 million ounces.

All-in sustaining costs (AISC) for 2018 are projected to be at the revised guidance of $850 per ounce. The company is slated to release complete 2018 financial results on Feb 13, 2019.

Additionally, the company stated that the Pyrite Leach Project has achieved commercial production during December 2018. It was completed ahead of schedule and under budget. It was one the first major projects completed by employing the Investment Framework.

Shares of Goldcorp have lost 30.6% in the past year compared with the industry’s 16.1% decline.

Notably, Newmont Mining Corporation NEM and Goldcorp have entered into a definitive deal that enables Newmont to acquire all of the outstanding common shares of the latter in a stock-for-stock transaction valued at $10 billion.

Per the deal terms, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share. The deal combines two industry leaders into Newmont Goldcorp, creating an unparalleled portfolio of projects, operations, reserves and exploration opportunities in the gold mining sector. The new entity is expected to generate annual pre-tax synergies worth up to $100 million along with additional cost and efficiency opportunities.

The deal has been unanimously approved by the boards of the companies and is expected to close in the second quarter of 2019. However, the deal closure is subject to approval by shareholders of the companies as well as other regulatory approvals and customary closing conditions.

Goldcorp Inc. Price and Consensus


Goldcorp Inc. Price and Consensus | Goldcorp Inc. Quote


Zacks Rank & Key Picks

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

A few better-ranked stocks in the basic materials space are Ingevity Corporation NGVT and Cameco Corporation CCJ. While Ingevity sports a Zacks Rank #1 (Strong Buy), Cameco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected earnings growth rate of 21.5% for 2019. The company’s shares have gained 15.5% in the past year.

Cameco has an expected earnings growth rate of 20% for 2019. Its shares have rallied 27.7% in a year’s time.

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