Cash Costs

Goldcorp Doubles Dividend Payments

Goldcorp Doubles Dividend Payments

Canadian gold miner Goldcorp (NYSE: GG ) increased the company’s dividend payment for the first time ever as third-quarter profits surged. The company reported net earnings in the third quarter attributable to the shareholders of $466.5 million (or $0.63 per share), an increase of 309% from $114.2 million (or $0.16 per share) in the third quarter of 2009. Adjusted net earnings were $231.5 million (or $0.31 per share), compared to $140.6 million (or $0.19 per share) in the third quarter of 2009. Revenues increased 28% to $885.8 million, from $691.9 million in the same quarter last year. As a result Goldcorp increased their annual dividend from $0.18 per share (or $0.015 monthly dividend) to $0.36 per share (or $0.03 monthly dividend). Goldcorp’s President and CEO commented on the third-quarter results saying, “Continued strong gold demand in the third quarter, along with Goldcorp’s lowest quarterly cash costs in over two years resulted in record cash margins of $979 per ounce, generating significant growth in both cash flow and earnings.” The company also reaffirmed 2010 production guidance of approximately 2.55 million ounces of gold. Despite the jump in dividend payment, Goldcorp remains one of the lowest-paying dividend gold stocks on the market. In my recent report for Wealth Daily, titled The Definitive Guide to Gold Dividend Stocks , I give investors a current perspective of gold dividend stocks and reveal the top three highest-yielding gold dividend stocks on the market today. You can read this report right now for free by clicking here or copying and pasting the following link into your internet browser’s address bar: http://www.wealthdaily.com/articles/the-definitive-guide-to-gold-dividend-stocks/2788 Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits Goldcorp Doubles Dividend Payments originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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India’s Gold Bull Market

India’s Gold Bull Market

Due to a sharp decrease in foreign exchange reserves following the Indo-China War in 1962, the government of India enacted the Gold Control Act. This legislation made the private ownership of gold bullion illegal and created a huge black market for the yellow metal. The Gold Control Act was repealed in 1992 after Indian government needed to sell 40 tonnes of the country’s gold reserves to deal with more forex problems that had the country on the verge of default. What happened next would change the gold market forever… Advertisement The next big play of North America’s Oil Comeback Breakthrough drilling technology has turned an abandoned Alberta oil field into the hottest energy territory in the Western Hemisphere … And one $4-a-share company is positioned for the lion’s share of the spoils. Click here for the on-site proof that 1,239% gains await early investors . How India became the world’s #1 gold consumer Following the repeal of the Gold Control Act, the demand for gold in India began to sharply rise. Indian gold demand immediately shot up 75% in the year after the Gold Control Act was terminated. Overall, gold demand in India increased 174% from 260 tonnes in 1991 to 713 tonnes in 2008. Top 5 Gold Consumers in 2009 India – 480 tonnes China – 428 tonnes USA – 263 tonnes Germany – 134 tonnes Turkey – 107 tonnes Total gold demand in India fell 33% last year as global consumer spending dried up in the face of the worldwide financial recession. Nevertheless, India is still the world’s largest consumer of gold in terms of both tonnage and value. Last year, India alone accounted for 20% of the global consumer demand for gold. This includes 24% of global demand for gold jewelry, which is has traditionally been one of India’s strongest markets. The Indian jewelry market is one of the largest in the world, with a market size of $13 billion. It is second only to the U.S. market of $40 billion. Two Key Facts about India’s Gold Markets Half of India’s annual gold consumption is contributed by demand in just four states: Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh. India’s gold market is estimated to have more than 300,000 jewelers – mostly small, family-run businesses. Gold jewelry forms around 80% of the Indian jewelry market. And during the first half of this year, the volume of growth increased 67% to 273 tonnes. In terms of value, gold jewelry demand increased 94% to $10 billion. Indians traditionally invest in gold by buying gold jewelry. But other gold investments— including gold exchange-traded funds (ETFs) — are rapidly gaining in popularity as investors seek a safe haven and become more aware of the benefits of investing in gold in a non-material form as opposed to holding it as jewelry. The eight gold ETFs that trade on the Bombay Stock Exchange have nearly doubled their bullion holdings in the past year to 11 tonnes. The volume of gold for investment in India grew by 264% to 93 tonnes during the first half of 2010. In value terms, Indian gold investments accounted for over $3 billion — an increase of 300%. Overall, total Indian gold demand in terms of tonnage nearly doubled, increasing 94% to 365 tonnes. Worth over $13 billion, the value of India’s gold demand increased 122% during 1H 2010. Indian gold demand in the second half of 2010 is likely to be at least 25% higher. Analysts at China’s National Spot Exchange recently published a report predicting gold imports to …

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The World’s Hottest Region for Gold Exploration

The World’s Hottest Region for Gold Exploration

When junior mining companies make a big gold discovery, shareholders often see double- and triple-digit investment gains. Of course, gold is very rare and making a significant discovery isn’t easy. But ask any geologist… The best place to find large deposits of gold is close to where other major deposits have already been discovered. That’s why I’ve recently been looking to invest in a region that many consider one of the best places in the world for gold exploration. Advertisement Breakthroughs Nowhere Near This Big Have Paid Investors Over 10x Gains Our resident biotech expert just came across a tiny company that can make the human immune system 1 000 times more effective against dozens of deadly diseases — including the major cancers: Prostate, lung, breast, cervical, and more… Here’s how their revolutionary “cell-shock” technology could hand you as much as 1000 times your money as it saves tens of millions worldwide. Just 300 miles north of Las Vegas Nevada is one of the largest sources of gold in the world. By itself, the state contributes over 7% of total world gold production, making it the fourth largest producer in the world behind, China, South Africa, and Australia. The majority of Nevada’s vast gold resources is contained in the second largest economic gold anomaly in the world— second only to South Africa — called the Carlin Trend . Ancient geologic forces induced high temperatures and pressure that produced numerous hot springs along an area about 5 miles wide and 40 miles long, known today as the Carlin Trend. These hot springs brought an abundance of dissolved minerals toward the surface; among these minerals was a fortune of gold. In the past two decades alone, over 200 million ounces of gold have been discovered… And over 70 million ounces (worth $84 billion today) were produced from the Carlin Trend. Some of today’s major gold production companies like Barrick Gold (NYSE: ABX ) and Newmont Mining (NYSE: NEM ) directly owe their success to this exceptionally rich belt of gold deposits. Similar gold trends surround the Carlin Trend, where other major multi-billion-dollar gold discoveries have been made: the Battle Mountain-Eureka Trend the Getchell Trend the Independence Group the Alligator Ridge Group In these surrounding trends, world-class multi-million ounce gold deposits…

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Goldcorp’s (NYSE:GG) Solid Low-cost Strategy

Goldcorp’s (NYSE:GG) (TSE:G) continues to work on positioning itself as one of the low-cost leaders in the gold mining industry, setting themselves up be profitable in any economic condition. One of the strategies the company is using to meet those goals is to divest of non-core assets. This is good foresight by Goldcorp leadership, as the recent findings of the Fortis Bank Nederland/VM Group:

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