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Goldcorp (GG) Closes Camino Rojo Oxide Project Stake Sale

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Goldcorp Inc. (GG - Free Report) completed the earlier announced sale of its interest in the Camino Rojo oxide project, located in Zacatecas, Mexico, to Orla Mining Limited following the receipt of Mexican anti-trust approval and satisfying the customary closing conditions for the transaction.

Pursuant to an asset purchase deal between Goldcorp and Orla, the former indirectly acquired 31,860,141 common shares (representing roughly 19.9% of issued and outstanding common shares) of the latter, following the deal closure.

According to Goldcorp, Orla’s shares are presently held by the company for investment purposes. The company may purchase additional securities, dispose of some or all of the existing or additional securities or continue to hold the securities of Orla, subject to the terms of an investor rights agreement.

Goldcorp’s shares have moved up 4.2% in the past three months, outperforming the industry’s 1.2% decline.

Goldcorp reported net earnings of $111 million or 13 cents per share for third-quarter 2017, compared with $59 million or 7 cents recorded a year ago. Barring one-time items, adjusted earnings for the quarter was 9 cents per share, which was in line with the Zacks Consensus Estimate.

Goldcorp recorded revenues of $866 million in the reported quarter, narrowly missing the Zacks Consensus Estimate of $868 million.

The company expects gold production of 2.5 million ounces (+/- 5%) for 2017, unchanged from previous guidance. All-in sustaining costs for 2017 has been projected at $825 per ounce (+/- 5%), down from $850 per ounce expected earlier.

Goldcorp has reduced sustaining capital expenditure guidance by $100 million to $600 million for 2017 due to the company’s focus on capital management discipline as part of its $250 million annual sustainable efficiency program.  

Goldcorp Inc. Price and Consensus

Goldcorp Inc. Price and Consensus | Goldcorp Inc. Quote

Zacks Rank & Stocks to Consider

Goldcorp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Sociedad Quimica y Minera S.A. (SQM - Free Report) , BHP Billiton PLC (BBL - Free Report) and Westlake Chemical Corp. (WLK - 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.

Sociedad Quimica has an expected long-term earnings growth rate of 32.5%.

BHP Billiton has an expected long-term earnings growth rate of 5.3%.

Westlake Chemical has an expected long-term earnings growth rate of 8.4%.

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