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Goldcorp (GG) Attains Significant Milestones in Key Projects

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Goldcorp Inc. announced significant progress in major permitting and project milestones. The development will contribute to its five-year 20/20/20 plan for increasing gold production and reserves by 20% along with decreasing all-in sustaining costs per ounce by 20%.

Key Highlights

Borden Project: Ramp development on schedule as the project continues to advance. In August, bulk sample extraction was started, which is two months ahead of schedule. The company expects operating permits in fourth-quarter 2018. Meanwhile, the electrification process of the mine is under progress and commercial production is on track for the second half of 2019.

Century Project: The prefeasibility study is scheduled to complete in the fourth quarter of 2018, while the feasibility study by the first quarter of 2020. The company also submitted its associated Project Description in accordance with the Canadian Environmental Assessment Agency (CEAA) 2012 requirements.

Coffee Project: In August 2018, the project completed the adequacy review phase of the permitting process with Yukon Environmental and Socio-economic Assessment Board (YESAB). Although, the project is undergoing a 30-60 day public comment period, Goldcorp expects production to start in 2021.

Pyrite Leach Project: The Penasquito-based project has completed construction. Moreover, commissioning accelerated in the third quarter of 2018, well-ahead of schedule. The company expects first gold and commercial production in fourth-quarter 2018.

Shares of Goldcorp have lost 28% in the past three months, compared with the industry’s decline of roughly 20%.



Goldcorp, in second-quarter earnings call, said that it continues to expect gold production of 2.5 million ounces (+/- 5%) for 2018, unchanged from the previous guidance. All-in sustaining costs is projected to be roughly $800 per ounce (+/- 5%), in line with the prior forecast. Goldcorp stated that it successfully executed its program of sustainable annual efficiencies worth $250 million. It has raised the target by another $100 million.  

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the basic materials space are Ingevity Corporation (NGVT - Free Report) , Huntsman Corporation (HUN - Free Report) and Celanese Corporation (CE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected long-term earnings growth rate of 12%. Its shares have moved up 61.8% in the past year.

Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 11.7% in a year.

Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 18.6% in the past year.

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