March 11th, 2009:
GoldCorp Inc (GG)
Current Price: $28.05
www.goldcorp.com
GG is one of the world's largest gold mining companies with the strongest production growth profile among all senior gold producers. GG's 16 operations and development projects are located throughout the Americas including the prolific Red Lake mine in Canada and the Peñasquito project in Mexico. Over 70% of GG's reserves are in low political risk NAFTA countries.
With a talented management team, strong balance sheet and a world-class asset base, GG is well positioned to deliver sustained, industry leading growth and performance to shareholders. Over the next five years GG’s production is expected to increase by over 50%. Gold production for 2009 is estimated at 2.3 million ounces at a total cash cost of $365 per ounce, the lowest cost among GG’s peer group.
To view all of GG’s projects please go to - http://www.goldcorp.com/operations/
GG recently reported record gold production of 691,800 ounces for the quarter ended December 31, 2008. Net earnings amounted to $958.1 million in the quarter, or $1.31 per share, which includes a non-cash foreign exchange gain on the revaluation of future income tax liabilities. Adjusted net earnings for the quarter were $84.4 million, or $0.12 per share. GG also announced that total proven and probable reserves increased 7% to 46.3 million ounces, their fifth consecutive annual reserves increase! Proven and probable silver reserves increased 17% to 1,247.3 million ounces!
For the twelve months ended December 31, 2008, revenues increased by 10% to $2.42 billion compared to $2.20 billion in 2007. Gold production in 2008 totaled 2.32 million ounces at a total cash cost of $305 per gold ounce compared to 2.29 million ounces at a total cash cost of $163 per gold ounce in 2007.
GG ended 2008 with strong performance at every mine in their portfolio. Decreasing cash costs enabled them to capture greater margins in a rising gold price environment, contributing to 2008 margins of $563 per ounce of gold sold. We feel that Gold is getting ready to rally back north of $1,000 an ounce which could add to these margins significantly in 2009.
GG has over $2.4 Billion in revenue, over $272.4 Million in cash, and only $5 Million in debt! GG has been paying a monthly dividend of $0.015 per share to shareholders.
We feel that GG is one of the strongest gold/silver mining companies in the market right now. GG could be a very solid opportunity to capitalize significantly on the upcoming boom in gold and silver due to hyperinflation.
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