Goldcorp Inc is not ruling out new takeovers and might even take a look at the big, capital-intensive gold-mining projects most likely to alarm investors, Chief Executive Chuck Jeannes told Reuters on Monday, outlining a stance that puts the company at odds with many of its competitors.
A drop in precious metal prices and a spike in costs is weighing on cash flow at Goldcorp, as with other gold producers, but the company has largely avoided the excesses of the last round of mining deals, maintaining a relatively strong balance sheet.
"Growth isn't a dirty word - a lot of the peer companies are acting like it is," Jeannes said. He said Goldcorp's primary focus is on building three existing projects that will boost gold production over the next five years, but added that the company is also looking for new opportunities.
"Perhaps if our peers are not looking at things, that gives us a better opportunity," he said.
Goldcorp has had some operational problems at its Peñasquito mine in Mexico, and in 2012 permitting issues forced it to suspend its El Morro project in Chile. But the Vancouver-based company has surpassed Barrick's market capitalization, even though it produces less gold.
Jeannes acknowledged that investors are wary of projects with big capital requirements, but he said Goldcorp is looking for quality assets that offer good returns, and it considers cost, size, mine life and location in its assessments.
Source: Reuters
