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Goldcorp???s Offer to Buy Exeter Shares Approved, Term Extended
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Goldcorp Inc. declared that the offer to acquire all issued and outstanding shares of Exeter Resource Corporation has been accepted by the shareholders of the latter representing around 80.5% of total outstanding shares or 74,992,886 Exeter Shares.
The company has also extended the period during which Exeter Shares may be deposited under the offer. Shareholders of Exeter are now required to deposit their shares under the offer on or before Jun 20, which is the mandatory extension period, unless further extended.
On Apr 20, Goldcorp declared that it has commenced an offer, supported by the board of Exeter, to purchase all the issued and outstanding shares of Exeter. Shareholders will be entitled to receive 0.12 of a common share of Goldcorp for each Exeter common share held, representing a premium of 67% based on Goldcorp's and Exeter's closing prices on the Toronto Stock Exchange as of Mar 27.
The total consideration being offered for the issued and outstanding shares of Exeter is around $247 million (fully diluted basis). Following the payment and take up, Goldcorp will own and control the 74,992,886 Exeter Shares, representing around 80.5% of the issued and outstanding shares, on a non-diluted basis. Prior to this payment, Goldcorp did not own any Exeter Shares.
Goldcorp’s shares have lost around 4.2% in the last three months, underperforming the Zacks categorized Mining–Gold industry’s 12.2% gain.
Goldcorp expects 2017 gold production to be around 2.5 million ounces (+/- 5%), which remains unchanged from the previous guidance. The company expects all in sustaining costs (AISC) to be roughly $850 per ounce (+/- 5%), while total cash costs on a by-product basis are anticipated to be $500 per ounce (+/- 5%). The company expects sustaining capital expenditures to be around $700 million (+/- 5%) and expansionary capital to be roughly $600 million, which will be mainly spent on Musselwhite's Materials Handling Project, Penasquito's Pyrite Leach Project, Coffee, Borden, NuevaUnion and Cochenour.
The company remains focused on execution, cost reduction and optimization of asset portfolio. It has a planned joint venture (JV) in the Maricunga District in Chile, which is expected to produce 60 million ounces of gold, which will be financed by the sale of non-core assets. The JV is in line with the strategy of growing net asset value per share by delivering 3–4 million ounces of sustainable gold production from 6–8 core camps annually.
Kronos has expected long-term earnings growth rate of 5%.
Huntsman has expected long-term earnings growth rate of 7%.
Chemours has expected long-term earnings growth rate of 15.5%.
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Goldcorp???s Offer to Buy Exeter Shares Approved, Term Extended
Goldcorp Inc. declared that the offer to acquire all issued and outstanding shares of Exeter Resource Corporation has been accepted by the shareholders of the latter representing around 80.5% of total outstanding shares or 74,992,886 Exeter Shares.
The company has also extended the period during which Exeter Shares may be deposited under the offer. Shareholders of Exeter are now required to deposit their shares under the offer on or before Jun 20, which is the mandatory extension period, unless further extended.
On Apr 20, Goldcorp declared that it has commenced an offer, supported by the board of Exeter, to purchase all the issued and outstanding shares of Exeter. Shareholders will be entitled to receive 0.12 of a common share of Goldcorp for each Exeter common share held, representing a premium of 67% based on Goldcorp's and Exeter's closing prices on the Toronto Stock Exchange as of Mar 27.
The total consideration being offered for the issued and outstanding shares of Exeter is around $247 million (fully diluted basis). Following the payment and take up, Goldcorp will own and control the 74,992,886 Exeter Shares, representing around 80.5% of the issued and outstanding shares, on a non-diluted basis. Prior to this payment, Goldcorp did not own any Exeter Shares.
Goldcorp’s shares have lost around 4.2% in the last three months, underperforming the Zacks categorized Mining–Gold industry’s 12.2% gain.
Goldcorp expects 2017 gold production to be around 2.5 million ounces (+/- 5%), which remains unchanged from the previous guidance. The company expects all in sustaining costs (AISC) to be roughly $850 per ounce (+/- 5%), while total cash costs on a by-product basis are anticipated to be $500 per ounce (+/- 5%). The company expects sustaining capital expenditures to be around $700 million (+/- 5%) and expansionary capital to be roughly $600 million, which will be mainly spent on Musselwhite's Materials Handling Project, Penasquito's Pyrite Leach Project, Coffee, Borden, NuevaUnion and Cochenour.
The company remains focused on execution, cost reduction and optimization of asset portfolio. It has a planned joint venture (JV) in the Maricunga District in Chile, which is expected to produce 60 million ounces of gold, which will be financed by the sale of non-core assets. The JV is in line with the strategy of growing net asset value per share by delivering 3–4 million ounces of sustainable gold production from 6–8 core camps annually.
Goldcorp Inc. Price and Consensus
Goldcorp Inc. Price and Consensus | Goldcorp Inc. Quote
Goldcorp currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some top-ranked companies in the basic materials space include Kronos Worldwide Inc (KRO - Free Report) , Huntsman Corporation (HUN - Free Report) and The Chemours Company (CC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Kronos has expected long-term earnings growth rate of 5%.
Huntsman has expected long-term earnings growth rate of 7%.
Chemours has expected long-term earnings growth rate of 15.5%.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>