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Goldcorp (GG) Restarts Mining Operations at Penasquito

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Goldcorp Inc. has resumed its mining operations at the Penasquito mine in Mexico following the removal of an illegal blockade which started on Sep 26, 2016. The company declared a controlled shutdown of operations at the mine on Oct 3.

Goldcorp anticipates meeting its overall gold production guidance for 2016 which it expects in the range of 2.8 and 3.1 million ounces at all-in sustaining costs of $850 to $925 per ounce.

At the Penasquito mine, gold production was 36,000 ounces in second-quarter 2016, a year-over-year decrease of around 87.9%. Production declined due to lower ore grade and recovery from the upper transitional ore and low grade stockpiles. Production was also down due to a 10-day shutdown for plant maintenance and a longer-than-expected period to ramp up the plant to full production owing to a number of restart issues.

Goldcorp reported a net loss of $78 million or 9 cents per share for second-quarter 2016 versus net earnings of $392 million or 47 cents per share logged a year ago. Second-quarter 2016 earnings were hurt by lower production, partly offset by higher realized gold price.

Barring one-time items, net loss was a penny per share for the reported quarter, missing the Zacks Consensus Estimate of earnings of 4 cents.
Goldcorp's shares rose roughly 0.4% to close at $14.16 on Oct 10.

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

Stocks to Consider

Some better-ranked companies in the mining space include Newmont Mining Corporation (NEM - Free Report) , New Gold Inc. (NGD - Free Report) and Gold Fields Ltd. (GFI - Free Report) all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Newmont has an expected earnings growth rate of 89.5% for the current year.

New Gold has an expected earnings growth rate of 475% for the current year.

Gold Fields has an expected earnings growth rate of 433.3% for the current year.

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