Yahoo Finance Goldcorp (GG) Announces Preliminary Q4 and FY17 Numbers
Goldcorp Inc. GG reported preliminary results for the fourth quarter and full-year 2017.
The company produced 646,000 and 2,569,000 ounces of gold during fourth quarter and full year 2017, respectively. The annual figure exceeded the midpoint of its gold production guidance of 2,500,000 ounces.
Goldcorp expects all-in sustaining costs (AISC) for the full year to be in line with the midpoint guidance of $825 per ounce.
The company expects to produce 2.5 million ounces (+/- 5%) of gold in 2018, which is in line with its earlier guidance. Goldcorp expects AISC to decline further to roughly $800 per ounce (+/- 5%), as it continues to realize savings from its program targeting $250 million of annual sustainable efficiencies.
The company’s 2018 guidance is in line with its 20/20/20 plan, under which AISC are expected to decrease by 20% to roughly $700 per ounce by 2021, gold production is expected to increase 20% to 3 million ounces and gold reserves are expected to increase by 20% to 60 million ounces over the same period on the back of ongoing programs and exploration potential at Coffee, Norte Abierto (formerly known as Cerro Casale/Caspiche), Pueblo Viejo and Cerro Negro.
According to Goldcorp, the company remains on track with its 5-year plan of growing gold production, reducing AISC and increasing gold reserves. The company is making an initial investment of $100 million in its long-term portfolio ‘Beyond 20/20’.
Goldcorp stated that along with an enhanced exploration budget of $125 million, the objective of Beyond 20/20 is to maximize the net asset value of existing projects and mines by continuing to grow low-cost gold production from its growing gold reserves.
Shares of Goldcorp have moved up 17.1% in the last three months, outperforming the industry’s 1.9% gain.
Zacks Rank & Stocks to Consider
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Methanex Corporation MEOH, Huntsman Corporation HUN and Kronos Worldwide Inc. KRO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have soared 34.3% over a year.
Huntsman has an expected long-term earnings growth rate of 8%. Its shares rallied 69.2% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have surged a whopping 112.2% in a year’s time.
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