Gold mining giant Goldcorp Inc. (GG - Free Report) has signed the Obishikokaang Collaboration Agreement with Lac Seul First Nation to set the foundation for continued consultation and support for current and future operations of Red Lake Gold Mines. The deal was signed on Aug 16 in the Municipality of Red Lake, Ontario.
The collaboration will define long-term economic benefits for the Lac Seul First Nation. It will also bring recognition for the 3,200 First Nation band members who have significant historical ties for the development of the Red Lake gold camp. Many band members also stay within the Municipality of Red Lake.
Pursuant to the agreement, Lac Seul First Nation will get future benefits in the form of training and employment opportunities, business and contracting opportunities, and a framework for consultation on regulatory permitting and will also include Goldcorp's future financial contributions in support of community development.
The deal builds on the long-standing relationship between Goldcorp and Lac Seul First Nation. The local consultations given within both Ontario and Manitoba communities generated broad support for the deal.
Goldcorp’s Red Lake Gold Mines yielded 507,700 ounces in 2012. The company is looking forward to develop its Cochenour Project, which is expected to begin its operations in 2015.
Goldcorp will also extend additional funds for the Lac Seul Training Centre of Excellence that was founded last year and the Lac Seul First Nation Business Equity Fund. The Lac Seul Training Centre gives quality, certified training programs and workshops to members of the community and the region.
Goldcorp, which is a prominent player in the gold-mining industry along with Barrick Gold (ABX - Free Report) , Newmont Mining (NEM - Free Report) and Kinross Gold (KGC - Free Report) , posted its second-quarter 2013 results on Jul 25. The company’s adjusted earnings (barring one-time items) of 14 cents a share missed the Zacks Consensus Estimate of 28 cents and was well below 41 cents a share earned in the year-ago quarter.
On a reported basis, Goldcorp logged a net loss of $1.93 billion in the second quarter as against net earnings of $268 million in the prior-year quarter. Goldcorp posted revenues of $889 million in the quarter, down roughly 18% year over year. It missed the Zacks Consensus Estimate of $1,194 million.
Goldcorp currently carries a Zacks Rank #4 (Sell).