Goldcorp Inc. (GG - Free Report) and IBM Canada have jointly developed an innovative technology product — IBM Exploration with Watson. The product uses artificial intelligence to predict the potential for gold mineralization along with powerful query and search capabilities across an array of exploration datasets. The technology is expected to improve predictability for gold mineralization.
According to Goldcorp, the technology has the potential to radically accelerate exploration target identification. It will significantly improve the hit rates on economic mineralization and drive a change in the pace of value growth in the industry.
IBM Exploration with Watson has been developed using data from Goldcorp's Red Lake Gold Mines in northern Ontario. It leverages machine learning and predictive models and spatial analytics to help explorers locate crucial information and develop geological extrapolations, which is faster and less expensive than traditional methods.
At Red Lake, the solution provided independent support to drill targets planned by geologists through traditional methods. It also proposed new targets that were subsequently verified. Drilling of some of these targets is currently underway.
Goldcorp has also earned the prestigious Ingenious Award from the Information Technology Association of Canada due to the IBM Watson initiative. Notably, this award recognizes excellence in the use of information and communications technology by organizations to solve problems, introduce new services, boost performance as well as grow business.
Shares of Goldcorp have lost 33.3% in the past six months compared with the industry’s 13.7% decline.
Zacks Rank & Stocks to Consider
Goldcorp currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the basic materials space include CF Industries Holdings, Inc. (CF - Free Report) , Methanex Corporation (MEOH - Free Report) and The Mosaic Company (MOS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained 17.2% in the past year.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have moved up 6.6% in a year’s time.
Mosaic has an expected long-term earnings growth rate of 7%. The company’s shares have surged 43.8% in the past year.
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