We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Goldcorp (GG) Wraps Up Sale of Cerro Blanco to Bluestone
Read MoreHide Full Article
Goldcorp Inc. declared that it has closed the sale of its 100% interest in Cerro Blanco gold-silver project, located in Guatemala, to Bluestone Resources Inc.
Per the terms of the deal, Goldcorp received around $18 million in cash, 1% Net Smelter Return royalty on production, the right to receive 4.9% stake in Bluestone’s outstanding common shares and 258,805 common share warrants.
Moreover, Goldcorp will receive an additional $15 million in cash within six months after commercial production begins at the Cerro Blanco facility. Bluestone was also granted a right of first refusal to the purchase of certain equipment and assets at the Marlin mine, which is also based in Guatemala. Goldcorp also received non-refundable deposits worth $2 million from Bluestone, applicable against future purchases.
Goldcorp’s shares have lost around 13% in the last three months, underperforming the Zacks categorized Mining–Gold industry’s 1.1% loss.
Goldcorp reported net earnings of $170 million or 20 cents per share for first-quarter 2017, compared with $80 million or 10 cents per share a year ago. Earnings per share beat the Zacks Consensus Estimate of 9 cents.
Goldcorp expects 2017 gold production to be 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 to be around $700 million (+/- 5%) and expansionary capital to be roughly $600 million, which will be mainly spent on Musselwhite's Materials Handling Project, Penasquito's Pyrite Leach Project, Coffee, Borden, NuevaUnion and Cochenour.
The company remains focused on execution, cost reduction and optimization of asset portfolio. It has a planned joint venture (JV) in the Maricunga District in Chile, which is expected to produce 60 million ounces of gold, which will be financed by the sale of non-core assets. The JV is in line with the strategy of growing net asset value per share by delivering 3–4 million ounces of sustainable gold production from 6–8 core camps annually.
Huntsman has expected long-term earnings growth rate of 7%.
ArcelorMittal has expected long-term earnings growth rate of 11.4%.
Chemours has expected long-term earnings growth rate of 15.5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Goldcorp (GG) Wraps Up Sale of Cerro Blanco to Bluestone
Goldcorp Inc. declared that it has closed the sale of its 100% interest in Cerro Blanco gold-silver project, located in Guatemala, to Bluestone Resources Inc.
Per the terms of the deal, Goldcorp received around $18 million in cash, 1% Net Smelter Return royalty on production, the right to receive 4.9% stake in Bluestone’s outstanding common shares and 258,805 common share warrants.
Moreover, Goldcorp will receive an additional $15 million in cash within six months after commercial production begins at the Cerro Blanco facility. Bluestone was also granted a right of first refusal to the purchase of certain equipment and assets at the Marlin mine, which is also based in Guatemala. Goldcorp also received non-refundable deposits worth $2 million from Bluestone, applicable against future purchases.
Goldcorp’s shares have lost around 13% in the last three months, underperforming the Zacks categorized Mining–Gold industry’s 1.1% loss.
Goldcorp reported net earnings of $170 million or 20 cents per share for first-quarter 2017, compared with $80 million or 10 cents per share a year ago. Earnings per share beat the Zacks Consensus Estimate of 9 cents.
Goldcorp expects 2017 gold production to be 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 to be around $700 million (+/- 5%) and expansionary capital to be roughly $600 million, which will be mainly spent on Musselwhite's Materials Handling Project, Penasquito's Pyrite Leach Project, Coffee, Borden, NuevaUnion and Cochenour.
The company remains focused on execution, cost reduction and optimization of asset portfolio. It has a planned joint venture (JV) in the Maricunga District in Chile, which is expected to produce 60 million ounces of gold, which will be financed by the sale of non-core assets. The JV is in line with the strategy of growing net asset value per share by delivering 3–4 million ounces of sustainable gold production from 6–8 core camps annually.
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 Huntsman Corporation (HUN - Free Report) , ArcelorMittal (MT - Free Report) and The Chemours Company (CC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Huntsman has expected long-term earnings growth rate of 7%.
ArcelorMittal has expected long-term earnings growth rate of 11.4%.
Chemours has expected long-term earnings growth rate of 15.5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>