Buy Goldcorp (GG)

12/30/2008 10:10 pm EST


Jim Jubak

Founder and Editor,

Goldcorp has got the two qualities that you're looking for in a gold mining company and its stock. First, it's a low-cost producer, in fact, by my calculations, the low cost producer among big gold companies. For the third quarter of 2007, cash production costs fell to $312 an ounce--not bad when gold is selling for $1000 an ounce. What was highly unusual about this number is that it represented a decline and most gold mining companies are seeing climbing costs on soaring prices for fuel, mining equipment and other production essentials. Second, gold production at Goldcorp is climbing. Production is projected to climb by 30% in 2008 by Canaccord Adams, and to increase further in 2010 as other new mines go into production or older mines expand.
  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STOCKS

Keyword Image
Retail Sector is a Short
03/21/2019 6:00 am EST

The December retail sales report was a disaster, notes Landon Whaley, who recommends shorting the SP...

Keyword Image
2 Ways to Bet on BDCs
03/21/2019 5:00 am EST

Business development companies (BDCs) lend money to private companies in the form of fixed and varia...