Goldcorp Glitters on Impressive Results

Source: Thinkstock

Goldcorp (NYSE:GG) is one of the world’s fastest-growing senior gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100 percent unhedged. The stock is up about 5 percent since I last highlighted the company. I reiterate that gold and silver equities are a good buy right now, particularly for the long term, as I see gold prices climbing higher due to inflationary pressures rising.

Right now, inflation is at bay – however, it is only a matter of time before inflation picks up, in my opinion. Those holding gold, silver, and stocks in the sector as insurance against inflation will be rewarded in time. But is Goldcorp living up to expectations that I had for it? To address this issue, a review of Goldcorp’s recent performance and prospects moving forward is warranted.

The most recent quarter was actually quite impressive. Gold sales in the first quarter were 684,000 ounces on production of 679,900 ounces. This compares to sales of 595,100 ounces on production of 614,600 ounces in the first quarter of 2013. Silver production totaled 9.6 million ounces, compared to silver production of 5.6 million ounces in the prior year’s first quarter. This is incredible year-over-year growth. What’s more, all-in sustaining costs were $840 per ounce of gold compared to $1,134 per ounce of gold in the first quarter of 2013. That is impressive cost savings.