Target Price Lowered on Goldcorp to Reflect Updated Model

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At a March 11 research note, analyst Anita Soni noted that CIBC lowered its price target on Goldcorp Inc. (G:TSX; GG:NYSE) into US$12 percent share in US$12.50 (present share price is roughly US$10.93) after adjusting its version on the major “to signify 2019 guidance, year-end outcome and technical reports. ”
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CIBC expects Goldcorp shares to become range-bound “awaiting the final outcome of the proposed acquisition by Newmont. ”
Resource: Streetwise Reports   03/14/2019
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By The Gold Report

The consequence of CIBC’s new financial model on the gold miner lowered the net current value 5 percent (NPV5) by roughly 4 percent. As such, the lender trimmed its target price on Goldcorp. It does, however, keep its Neutral evaluation.
A CIBC report resisted the revisions and noticed their cumulative impact.

A second model revision included raising prices and all-in sustaining price (AISC) to $503 per oz ($503/oz) and $886/oz, respectively, up from $490/oz and $858/oz. Spurring this change, Soni suggested, were actual Q4/18 figures, 2019 guidance and recently got technical reports on Éléonore and Red Lake. CIBC’s new quotes are greater than Goldcorp’s projected ranges of 400 –500/oz for real expenses and $750–850/oz for AISC.
Recipients of the report are advised that any or all the foregoing arrangements, in addition to more specific disclosures set forth below, will sometimes give rise to possible conflicts of interest.

Analyst Certification:
In one, the analyst uttered, CIBC lowered its estimated 2019 total production to 2.279 million oz (2.279 Moz) from 2.324 Moz because of Goldcorp planning to lower output in Cerro Negro, Musselwhite and Porcupine. CIBC’s corrected figure nevertheless falls over the miner’therefore advice of 2.2–2.4 Moz of production in 2019.
Third, CIBC raised its 2019 capex quote on Goldcorp, to $936 million in $803 million to reflect increases at Cerro Negro and Peñasquito, Soni clarified. Unlike the previous, the newest dollar number falls over Goldcorp’s advice of $865–975 million.

Disclosures out of CIBC, Goldcorp Inc., March 11, 2019
Soni noted CIBC made three modifications to its standalone version of Goldcorp and explained what they had been.
CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own1percent or even more of a class of equity securities issued by Goldcorp Inc..