Goldcorp Inc. (GG - Free Report) has declared a controlled shutdown of operations at its Penasquito mine in Mexico. The shutdown was implemented following an illegal blockade by a trucking contractor that commenced on Sep 26, 2016.
Goldcorp noted that it remains committed to negotiate with the trucking contractor's representatives and has taken all required legal steps, including filing criminal charges against the protest leaders. The company is waiting for legal enforcement to ensure a swift and orderly end to the illegal blockade.
A complete contingency plan is in place during this shutdown of operations that will allow mining and processing to be restarted immediately following resolution of the matter. Goldcorp has secured recognition for its responsible mining practices in Mexico and the safety of people and protection of the environment remain its top priorities.
The gold miner does not expect this to impact overall production and cost guidance for 2016. For 2016, Goldcorp expects gold production in the range of 2.8 to 3.1 million ounces at all-in sustaining costs (AISC) between $850 and $925 per ounce.
At the Penasquito mine, gold production was 36,000 ounces in second-quarter 2016, a year-over-year decrease of around 87.9%. Production declined due to lower ore grade and recovery from the upper transitional ore and low grade stockpiles. Production was also down due to a 10-day shutdown for plant maintenance and a longer-than-expected period to ramp up the plant to full production owing to a number of restart issues.
Goldcorp's shares fell roughly 4.5% to close at $15.78 on Oct 3.
Goldcorp currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the mining space include AngloGold Ashanti Ltd. (AU - Free Report) , New Gold Inc. (NGD - Free Report) and Barrick Gold Corporation (ABX - Free Report) all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AngloGold Ashanti has an expected earnings growth rate of 368% for the current year.
New Gold has an expected earnings growth rate of 491.7% for the current year.
Barrick has an expected earnings growth rate of 118.8% for the current year.
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