Monday, March 15, 2010

Goldcorp (NYSE:GG) Still Looking Good

Goldcorp Controlling Costs

Goldcorp (NYSE:GG) has been dismissed lately based on the assumption they're fully valued with nowhere to go. That seems to be an incorrect way to view the company, as they seemed poise to contiue on strong in the ongoing bull gold market.

While the price of gold isn't the only factor in determining the share price movement of a gold company, as evidenced today with mixed results from the market even though gold solidified.

One key strength of Goldcorp, similar to Yamana Gold (NYSE:AUY), is it has among the lowest costs among the major gold mining companies, which allows them a lot more room for things like currency fluctuations and temporary price swings in the price gold, among other factors.

In spite of numerous factors, including the currency issue, which hammered Goldcorp last year, the company still was able to pay about $132 million in dividends. That's not easy to do in the climate they operated under, even with gold prices rising.

Again, it's the control of its operational costs which gives the company the ability to be much more flexible than most of its key rivals. That not only allows the company to share the wealth, but also provides them with liquidity to make key acquisitions that may become available to them.

The bottom line of controlling costs for Goldcorp is the flexibility it offers. That and rising gold prices, even with the risk of currency exchanges, makes them a solid gold company for those willing to invest in them.

Goldcorp Controlling Costs

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