Tyler Colley
Profile – Goldcorp Inc. claims it is one of the world’s lowest cost and fastest growing multi-million ounce gold producers. Headquartered in Vancouver, British Columbia, Canada, Goldcorp has 16 operations and development projects in 6 countries across the Americas. Goldcorp also claims it has one of the industry's strongest production growth profiles with an anticipated increase in gold production of over 50% over the next five years. Source www.wikipedia.com
Major Products & Services – Goldcorp is involved in finding, extracting, processing, reclaiming, and developing precious metals. It produces: ™ Gold ™ Silver ™ Copper ™ Lead ™ Zinc
Key Locations –
Goldcorp operations include: ™ Red Lake mine (Canada) ™ Porcupine mine (Canada) ™ Musselwhite mine (Canada) ™ Wharf mine (USA) ™ Marigold mine (67%) (USA) ™ El Sauzal mine (Mexico) ™ Los Filos mine (Mexico) ™ San Dimas mine (Mexico) ™ Peñasquito mine (Mexico) ™ Marlin mine (Guatemala) ™ San Martin mine (Honduras) ™ Alumbrera mine (37.5%) (Argentina) Source: www.wikipedia.com
Key Competitors – ™ Eldorado Gold Corp ™ Barrick Gold Corporation ™ Newmont Mining Corporation ™ New Gold Inc. ™ Northgate Minerals Corporation ™ AngloGold Ashanti Limited ™ Kinross Gold
Source: www.datamonitor.com
Company History – ™ Goldcorp was incorporated in 1994. ™ In 2003 – The company purchased interest in American Bonanza Gold Mining. – Goldcorp also acquired interest in Madison Enterprises and Planet Exploration.
™ In 2004 – Goldcorp sold its interest in Madison Enterprises – Purchased interests in White Knight Resources and BioteQ Environmental Technologies. Source: Datamonitor
Company History – ™ In 2005 – They acquired 82% of Wheaton River common shares and merged by the end of the year – They also acquired the Bermejal Gold Deposit in Mexico
™ In 2006 – Goldcorp acquired Eleonore gold project and Virginia Gold Mines. Along with Glamis Gold. – The company also acquired an additional 2,250,000 commonshares of American Gold Capital Source: Datamonitor
Company History – ™ In 2007, – The company sold its San Martin operations to Starcore International Ventures. – Goldcorp sold its Amapari mine and Peak mine to Peak Gold. – In the same year, the company sold 25% of the life-of-mine silver produced from its Penasquito project to Silver Wheaton. – Goldcorp acquired Kinross Gold’s 49% share of the Porcupine gold mines in north-eastern Ontario and its 32% share of the Musselwhite gold mine in north-western Ontario, in 2007. Source: Datamonitor
Company History – ™ In 2008 – The company disposed of its remaining interest in Silver Wheaton. – The company acquired Gold Eagle Mines in 2008. – Charles Jeannes was appointed as the President and Chief Executive Officer of the company.
™ In July 2009 – Goldcorp completed the construction of the first sulphide process line at its Penasquito mine in, Mexico. – The company also acquired 8,462,500 common shares of the Osisko Mining Corporation and 4,271,500 common share purchase warrants of Osisko on the TSX. Source: Datamonitor
Company History – ™ In November 2009 – The company signed an agreement to acquire all of the outstanding common shares of Canplats Resources. – Goldcorp's subsidiary company, Desarrollos Mineros San Luis, entered into an agreement with Newstrike Capital for the sale of DMSL’s 21.2% interest in the Morelos gold project in Mexico in December 2009.
Source: Datamonitor
Company History – ™ In January 2010 – Goldcorp signed an agreement with New Gold to acquire Xstrata’s 70% interest in the El Morro Project. – In February, the company completed the acquisition of Canplats Resources. – Goldcorp completed the acquisition of 70% interest in El Morro Project also in February.
Source: Datamonitor
Company History – ™ In May 2010 – Goldcorp subsidiaries sold the Escobal silver deposit in Guatemala to Tahoe Resources. – In the following month they sold the San Dimas goldsilver mine in Mexico to Mala Noche Resources.
Source: Datamonitor
2010 Stock Chart – 70% Acquired interest in El Morro Project
Sold the San Dimas goldsilver mine
Gold prices spiked Sold the Escobal silver deposit
Source: Yahoo Finance
SWOT Analysis – Strengths (Internal)
Opportunities (External)
• Low production costs ($295 per oz.) • Zero net debt • Low political risk (NAFTA) • Multiple sites • Rising price of gold • Meets International Cyanide Code
Threats (External)
• Strong Competition • Exchange rate of the Canadian dollar (tax liabilities)
Weaknesses (Internal)
• Non-renewable resource • Gold “bubble”
Gold miners oppose rules on overseas operations
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™ Bill C – 300 – A private members bill – Introduced by Liberal MP John McKay – Concerns regulating corporate activities in developing countries – Would disqualify companies from government support if found violating environmental or human rights regulations
Source: CBC News – Thursday November 26, 2009
Gold miners oppose rules on overseas operations
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™ Opposed by Goldcorp Inc, Barrick Gold and Kinross Gold – “unnecessary and damaging to Canadian business.” – Goldcorp Rep. – Would damage competitiveness – Damage reputations – Get in the way of their ability to be socially responsible – Discourage the investment of multinational companies in Canada Source: CBC News – Thursday November 26, 2009
Gold miners oppose rules on overseas operations
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A young child exposed to water near the Marlin mine, run by Canada's Goldcorp, in Guatemala
After big deals, Goldcorp profit dips almost out of sight
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™ Large increase in Goldcorps output ™ Sharp fall in profit from 49 cents per share a year earlier to almost zero cents a share – Largely due to mines purchased from Glamis gold and Placer Dome mines
™ It also lost: – $104.4 million on future income tax liabilities – $41.2 million increase in depreciation and depletion expenses – $18.5 million in stock options expenses Source: CBC News – Thursday August 9th, 2007
After big deals, Goldcorp profit dips almost out of sight
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™ While gaining: – $567 million in revenue up 15 percent from second quarter – Gold production was up 43 percent – Cash cost per Oz. was $133 compared to sell prices of $665 per Oz.
™ CEO Kevin McArthur expects cash costs to remain below $150 ™ Short-term challenges at three mines – Slow start-up of heap leaching at Los Filos – Grade issues at Marigold mine and San Dimas Source: CBC News – Thursday August 9th, 2007
After big deals, Goldcorp profit dips almost out of sight
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™ “Shares fell 82 cents to close at $26.30 on the TSX”
What’s next in e-commerce
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™ Businesses now can't do without an internet presence, even if they don’t actually transact online. ™ People need a place to get your information quickly. ™ Soon some kind of holographic visualization — will enable us to try a product out before we order, without leaving home. ™ Goldcorp Inc publishing all its geological data on its property in Red Lake, offering $575,000 for the best proposal for mining the site. ™ the "Goldcorp challenge" proved to be a runaway success. ™ The $575,000 in prize money it used to entice amateur geologists was easily paid for out of $3 billion worth of gold it found as a result.
Source: CBC News – December 9th, 2009
Three-Phase Mining Effluent Treatment Plant to Meet Stringent Standards
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™ An advanced cyanide and metals removal system is currently nearing completion at the Marlin gold mine, located in the western highlands of Guatemala. ™ The tailings and water generated from this facility are treated with an SO2 air cyanide removal technology. ™ The treatment plant will have three specific phases of treatment: cyanide oxidation, clarification and carbon adsorption.
Three-Phase Mining Effluent Treatment Plant to Meet Stringent Standards
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™ Cyanide Oxidation Phase – This phase will reduce the cyanide to acceptable levels and remove mercury.
™ Clarification Phase – This metals and sediments will be carried out by Actiflo high-rate, sand-ballasted flocculation and settling technology.
™ Carbon Adsorption Phase – The final water is pumped through columns containing activated carbon, accumulating substances in the filter.
Three-Phase Mining Effluent Treatment Plant to Meet Stringent Standards
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™ Building a new water treatment plant exclusively for the treatment of water discharge from tailings impoundment. ™ In fact, Goldcorp has taken extra precautions beyond that which is legally required.
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