- Goldcorp (GG -6.4%) is sharply lower despite beating Q2 earnings expectations, as production at some mines fell short of analyst forecasts.
- GG reports Q2 gold production totaled 635K oz. at $800/oz., compared with 613K oz. at a cost of $1,067/oz. in the year-ago quarter.
- GG reaffirms its guidance for 2017 gold production of 2.5M oz. while reducing its forecast for all-in sustaining costs to $825/oz. from $850/oz., which it says reflects progress on its initiative to realize $250M in sustainable annual efficiencies by mid-2018.
- Raymond James analyst Farooq Hamed expects that H1 operating performance should allow GG to meet its annual forecast, but continues to have some concern for the balance sheet that added ~$75M of net debt Q/Q, implying a net debt/EBITDA of ~1.6x.
- Jefferies analyst Christopher LaFemina maintains his Hold rating on the shares despite better than expected Q2, citing GG’s project development risk and premium valuation.
- Also, CFO Russell Ball is leaving the company, to be succeeded by senior VP of corporate development and strategy Jason Attew as "part of a planned succession."
- Now read: Announcing The Launch Of The Stock & Gold Market Report
Original article