For Immediate Release
Chicago, IL – January 11, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Goldcorp Inc. (GG), New Gold Inc. (NGD), Barrick Gold Corporation (ABX), Newmont Mining Corporation (NEM) and Saks Inc. (SKS).
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Here are highlights from Friday’s Analyst Blog:
Goldcorp to Acquire Chilean Mine
Goldcorp Inc. (GG), the world’s second-largest gold producer, has announced its plans of acquiring a 70% stake in the EI Morro copper-gold mining project in north-central Chile. Goldcorp plans to advance a loan of $463 million to New Gold Inc. (NGD), which owns 30% of the mine and has a right of first refusal to buy the stake.
With the proceeds of the loan, New Gold will acquire the remaining 70% stake in El Morro from Xstrata PLC. Goldcorp will then buy the entire stake off New Gold for $50 million in cash.
In October last year, Barrick Gold Corporation (ABX), the world’s biggest gold producer, had made a $463 million bid for Xstrata’s interest in the El Morro mine. As a minority stakeholder, New Gold had been granted a January 11 deadline to block the sale.
The El Morro mine contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper. It gives Goldcorp an avenue for growth after it has exhausted the Penasquito mine in Mexico. Goldcorp, which began producing concentrates at Penasquito last year, increased its Mexican gold output forecast from 575,000 ounces in 2009 to 650,000 ounces this year. Goldcorp is also collaborating with Barrick on the Pueblo Viejo mine in the Dominican Republic, which is scheduled to begin producing in 2011.
Goldcorp’s agreement with New Gold follows a bidding competition with a Newmont Mining Corporation (NEM) venture over Canplats Resources Corp., which owns a gold project in Mexico. Gold producers are trying to increase their reserves to benefit from the increasing demand. In El Morro, Goldcorp has identified an ideal project to re-enter one of the best mining jurisdictions in South America.
Saks Reports Higher Sales
Saks Inc. (SKS) reported total sales of $393.6 million for the month of December 2009, which was 11.1% higher than $354.4 million in the same period a year ago. The company’s comparable store sales grew 9.9% for the five weeks ended Jan 2, 2010, as it benefited from a designer clearance event.
During the five week period, the company saw growth in women’s designer and “gold range” apparel, men’s sportswear, women’s shoes, and handbags. According to Saks, the weakest categories for December were fine jewelry, intimate apparel, men’s contemporary apparel, men’s accessories, and cosmetics.
Saks’ sales totaled $638.8 million for the first two months of fiscal fourth quarter. On a quarter-to-date basis, sales were down 6.3% from $681.8 million posted in the comparable period of last fiscal year. Comparable store sales fell 7.3% for the two-month period. This was due to a 26.1% decline in comparable store sales in November, as the company saw weakness in almost all merchandise categories. The company now estimates that comparable store sales will decline in the mid-single digit range for the full quarter.
We are very positive about Google and expect the company to continue moving from one success to another. However, we currently have a neutral recommendation on Google shares.
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