Goldcorp CEO quashes prospects of mega takeovers
TORONTO (Reuters) - Canadian miner Goldcorp G.TO would consider acquiring early stage gold projects to boost its reserve base, but the country's No. 2 gold miner has no real interest in buying producing assets that generate little value for its shareholders, Chief Executive Chuck Jeannes said on Tuesday.
"It is very hard to add significant value for your own shareholders when you buy a producing asset," said Jeannes. "You are just usually trading dollars for future production."
Vancouver-based Goldcorp, which is already on-track to boost its production by 70 percent over the next few years, has been touted by some bankers and analysts as a potential acquirer of Kinross Gold (K.TO: Quote) and Agnico-Eagle (AEM.TO: Quote), two of its smaller rivals that have seen their share prices tumble in the face of major operational setbacks at certain mines.
Jeannes, who declined to comment on the speculation, argued that Goldcorp would rather buy an early stage asset, grow it through exploration and build it.
"All of the value that gets created through this process, I want for our shareholders, rather than having someone else achieve all that value," he said, while speaking at the Reuters Mining Summit in Toronto.
"We don't see that the pendulum has swung to where it makes sense to buy production rather than to buy development assets, you just have to be careful to buy the right development asset."
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(Reporting By Euan Rocha)
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