In the video below, Motley Fool materials analyst Taylor Muckerman takes a look at some potential red flags for Goldcorp (NYSE: GG ) .
The company has unsettled issues with the governments of Argentina and Chile concerning repatriation and environmental issues. These problems are faced by many miners, but currently Goldcorp is dealing with these two governments regarding important plays.
Goldcorp is also vulnerable to "act of god" issues that could force it to halt production. It's had water supply problems in one of its mines. It's also experienced increased seismic activity at its Red Lake mine in Canada that could add to production delays.
Lastly, worldwide demand for several of its byproduct metals, such as copper, lead, and zinc has fallen. This could start to affect the company's margins and hamper its bottom-line growth.
Despite these potential red flags, Goldcorp is one of the leading players in the gold mining market. For the last several years, investors have been the beneficiaries of several successful acquisitions and strong organic growth. Goldcorp's low-cost production of one of the most sought-after metals in the world continues to make it an attractive choice for long-term investors. Click here for our detailed report to discover more about this mining specialist.