Buy Goldcorp (GG)

12/30/2008 10:10 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

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.

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