< Return to Bulls pageRecent Sale of SLW shares
Goldcorp's recent sale of its SLW shares have deposited nearly $1.5B USD onto their books. This was almost entirely profit as the original SLW shares cost was estimated at around $50M. Wall Street never seemed to give GG much credit for holding 49% of SLW even though SLW is a huge cash making machine. Goldcorps acquisition of (or by) GLG in 2006 has left GG holding some very, very impressive mines that have consistently improving drill results. The P&P reserves at Penasquito jumped by almost 40% last year when one takes into account the Silver and Lead. Gold alone jumped over 30%.
So with the sale of SLW by GG they now have an ability to retire a nice chunk of debt they had acquired to facilitate the merger and build out the mines as well as hold onto substantial amounts of cash to finalize the build out for several projects. Penasquito has been referred to as one of the most, if not the most, robust development projects of any of the major producers. Red Lake (now combined with Campbell)will produce close to 1 million ounces of gold in 2008 at a cost well below $300 per. That one mine should net GG a profit close to half a billion dollars in 2008. With almost all of GG's mines located in North America politics will not impede the ability to mine profits from the holdings.
