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Sell Goldcorp, Deutsche Bank Says

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Sell Goldcorp, Deutsche Bank Says
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Deutsche Bank's Jorge Beristain downgraded the rating for Goldcorp Inc. (USA) (NYSE: GG) from Hold to Sell, while reducing the price target from $15 to $13.50.

Goldcorp reported 4Q15 adjusted diluted EPS of $0.01 and a headline loss of $5.14 per share, which was impacted by a $3.9 billion after-tax impairment charge and forex adjustments, inventory write downs and equity losses worth $0.46 per share.

While the EBITDA at $350 million was largely in-line with expectations, cash costs of $687/oz were higher due to lower byproduct credits and weaker results at Los Filos and Procupine. The company's net debt remained flat q/q at $2.4 billion.

Analyst Jorge Beristain noted that production at Pueblo Viejo was impacted by autoclave setbacks, which were resolved in January. Goldcorp reduced its 2016 production guidance from flat [3.45 million recorded in 2015] to 2.8 million-3.1 million oz due to setbacks in Cochenour and Eleonore.

The company's 2015 gold reserves declined 18 percent to 40.7 million oz implying a 13 year reserve life. "At Los Filos, 5.3m oz reserves were removed and production reduced in 2016 under a revised mine plan. Éléonore ramp issues continue and Cochenour production delayed indefinitely," Beristain wrote.

Latest Ratings for GG

DateFirmActionFromTo
Apr 2018Canaccord GenuityUpgradesHoldBuy
Apr 2018Deutsche BankMaintainsHoldHold
Jan 2018Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for GG
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Jorge BeristainAnalyst Color Short Ideas Downgrades Price Target Analyst Ratings Trading Ideas Best of Benzinga

 

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