Goldcorp says "no" to dilution and debt...
>>>posted by Tigersea @ iV<<<
TORONTO, Sept 16 (Reuters) - Goldcorp (G.TO) will not follow the lead of other gold producers who have issued stock or debt to take advantage of resurgent demand for precious metal assets, the company's chief executive said on Wednesday.
"I will say before anyone asks, we're not going to follow suit and do any big equity or debt deals, or even a small equity or or debt deal," Goldcorp CEO Chuck Jeannes said via webcast at the Denver Gold Forum.
"We have all the cash we need to go forward with our program," he added.
Goldcorp had $866 million in cash and equivalents as of June 30.
Goldcorp rivals Barrick (ABX.TO), Kinross (K.TO), Yamana (YRI.TO), and Eldorado (ELD.TO) have all sold stock this year as gold has remained at or near historically high levels while other resource assets plunged last year and have only partially recovered.
Spot gold XAU= was at $1,016 an ounce on Wednesday.
While funds raised through an equity sale allow a company to acquire assets and build pricey mines, analysts and investors often complain that the share dilution pressures stock prices.
The company's main development project is the Penasquito gold and silver deposit in Mexico.
Jeannes said Penasquito, which is eventually expected to produce 500,000 ounces of gold and 30 million ounces of silver annually, is on budget and on track for commercial production next year. |
