Goldcorp Inc. G 2009 Operating Results and 5-Year Mineplan

admin — Tue, 12 Jan 2010 21:52:39 +0000

Goldcorp Inc. (G) – $42.45 – 2009 Operating Results and 5-Year Mineplan
Outperform, Average Risk, Price Target: $48.00 (prev $50.00)
Goldcorp provided preliminary operating results for 2009 and production guidance for 2010 to 2014. 2009 Operating Results: 2.3MMoz of gold was in line with RBC CM’ estimate, but cash costs of $390/oz are slightly higher than its $365/oz estimate. 2010 Guidance: 2.6MMoz is in line with RBC CM’ estimate, however co-product cash costs of $450/oz are 13% higher than its estimate of just under $400/oz. 5-Year Forecast – gold output in line with RBC CM’ estimates for 2010 and 2011, but light some 300Koz/yr for 2012 and 2013. 2014 guidance of 3.8MMoz just under RBC CM’ 3.9MMoz estimate. Guidance for higher operating costs and corporate expenses (exploration, G&A, etc.) for 2010 negatively impacts RBC CM’ EPS/CFPS estimates for Goldcorp. Higher cash costs and lower gold production guidance for 2012-2014 negatively impacts our NAV for the company. As a result, RBC CM is lowering its 12-month target price from $50 to $48 per share.

TSX Commentary » Goldcorp Inc.

Goldcorp Inc. G 2009 Operating Results and 5-Year Mineplan