Here’s Why Goldcorp Looks Promising
As bullish as I am on the gold price, I think substantially more money can be made by purchasing well-run gold mining companies. Prudent investors should consider going through the rubble of the gold mining sector in order to find companies that have the following qualities:
- Relatively low production costs
- Meaningful foreseeable growth
- A proven track-record of value creation
- A strong balance sheet
One company that satisfies these criteria is Goldcorp (NYSE:GG). Goldcorp started as a junior mining company that was developed by former CEO Rob McEwen into a multibillion dollar juggernaut that at one point in 2013 traded with the highest market capitalization of any company in its sector. The company is now run by a very capable management team led by Charles A. Jeannes, who has been with the company since 2006.