PRECIOUS METAL PRODUCERS

[NYBob]

Source: Canaccord March 12, 2013

Goldcorp (GG : NYSE, G : TSX | BUY, Target US$51.00)
Investor Day highlights solid development pipeline and strong
exploration upside

We reiterate our BUY rating on Goldcorp following the company’s
Annual Investor Day held in Boston on March 8, 2013.
Goldcorp shares continue to offer growth at a reasonable price,
in our opinion.
Goldcorp remains our preferred senior producer based on its
superior high-grade, low-cost growth profile, supported by the
ramp-up of Pueblo Viejo and new production from Cerro Negro,
Eleonore and Cochenour.

Investment highlights
Management remains comfortable with its guidance for 2013,
i.e., 2.55-2.8 Moz at by-product cash costs of $525-$575/oz.
Costs are higher in 2013 due largely to lowgrade phases at
Penasquito and Alumbrera and the start-up year at Pueblo Viejo.

Beyond Pueblo Viejo (now in production), the three development
projects fuelling the production growth over the next few years
include Cerro Negro, Eleonore, and Cochenour.

Goldcorp remains focused on quality growth, low political risk and
maintaining a strong balance sheet. On this front, Goldcorp filed
on SEDAR a Short Form Base Shelf Prospectus dated March 7, 2013,
for the issuance of up to $1.5 billion in debt securities
within 25 months.

We have reviewed our valuation profile of Pueblo Viejo and have made
changes to our assumptions;
namely reconciling cash costs closer to guidance, adjusting our
long term operational cost estimates and the inclusion of copper in
our profile (a byproduct credit of approximately $60/oz).
Our valuation of Pueblo Viejo has declined by
approximately $1/sh, offset by other model changes.
Our 2013 EPS estimate has been revised to $2.19 from $2.14.

Valuation

Our target price remains unchanged at US$51.00 based on 1.0x
our 5%/peak NAVPS estimate of US$50.46 (from US$50.62).

Upcoming potential catalysts
Final permit and first production from Hollinger open pit (Q1/13E)
Cerro Blanco feasibility study (H1/13E)
First gold production from Cerro Negro (Q4/13E)
Completion of the Red Lake – Cochenour haulage drift (Q1/14E)
First gold production from Eleonore (Q4/14E)
First gold production from Cochenour (H2/15E)

Investment risks
The typical risks associated with any mining investment include
commodity and exchange rate risk, permitting and technical
(development/operating) risk.
Investors considering an investment in Goldcorp should consider the
risks associated with the ramp-up of Penasquito and development of
Pueblo Viejo, Cerro Negro, Eleonore and other development projects
in the company's portfolio. ## end copy ---