In the video below, Fool analyst Taylor Muckerman talks about Goldcorp (NYSE:GG) and offers investors a few reasons to consider the stock.
Goldcorp has been wildly successful in developing new mines over the past few years, and investors can look for that to increase moving out into 2013. The company enjoys low costs of production due to some competitive scale advantages. Its mines also produce lead, zinc, and copper, which Goldcorp sells in addition to its biggest products, gold and silver.
When it comes to gross margins, Goldcorp has the third largest in the industry, behind only Yamana Gold (NYSE:AUY) and Eldorado Gold (NYSE:EGO). And in net income margins, Goldcorp leads its group. The company also has a long and successful history of mergers and acquisitions. Investors can expect Goldcorp to absorb some smaller mining companies as a way to grow without the risk of developing new mines itself.