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.
Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.