| Goldcorp (GG) Announces Divestiture of Wharf Mine to Coeur - Analyst Blog | |
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Gold mining giant Goldcorp Inc. (GG) has announced that one of its subsidiaries has inked an agreement for selling its 100% interest in Wharf Mine at Lead, SD, to Coeur Mining, Inc. (CDE). Goldcorp will receive $105 million in cash from the sale, subject to specific closing adjustments.
Shares of Goldcorp fell roughly 5% yesterday following the announcement to close the day at $20.35.
The divestiture will provide additional value to the shareholders of Goldcorp and help the company to focus only on core assets. The deal, which is anticipated to close by the end of the first quarter of 2015, still awaits U.S. antitrust approval and related closing conditions.
The Wharf mine is situated in the Black Hills mining district in Lead, SD. Expected production capacity for the mine in 2015 is 85,000–90,000 ounces of gold at an all-in sustaining cost ranging between $800 and $875 per gold ounce. The mine is expected to reduce the consolidated unit costs of Coeur and add a consistent source of production to its portfolio.
Thus, the divestiture is beneficial for both the companies. It boosts Goldcorp’s financial profile, adding to its liquidity and, on the other hand, it helps Coeur to achieve its production stability.
Goldcorp is one of the rapidly growing low-cost gold producers in the Americas with 100% of its output unhedged.
Goldcorp currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the gold mining space include Golden Star Resources, Ltd. (GSS) and Rubicon Minerals Corp. (RBY), both carrying a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GOLDCORP INC (GG): Free Stock Analysis Report COEUR MINING (CDE): Free Stock Analysis Report GOLDEN STAR RES (GSS): Free Stock Analysis Report RUBICON MNRLS (RBY): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research
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Rubicon Minerals Corp.
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EXPLORATION STAGE |
CODE : RBY |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Rubicon Min. is a gold exploration company based in Canada. Rubicon Min. holds various exploration projects in Canada. Its main exploration properties are RED LAKE MCCUAIG, RED LAKE EAST BAY, RED LAKE NORTH, MCCUAIG, RED LAKE SLATE BAY, RED LAKE DMC, RED LAKE ADAMS LAKE, RED LAKE HUMLIN and RED LAKE PHOENIX GOLD in Canada. Rubicon Min. is listed in Canada and in United States of America. Its market capitalisation is US$ 64.4 millions as of today (€ 56.9 millions). Its stock quote reached its highest recent level on December 03, 2010 at US$ 6.34, and its lowest recent point on January 11, 2016 at US$ 0.03. Rubicon Min. has 65 719 527 shares outstanding. |