Goldcorp Inc. (USA) (GG): Will This Gold Stock Disappoint Investors?

After Pueblo Viejo the next big driver for Goldcorp is its Cerro Negro mine in Argentina. The company expects the mine to start producing later this year and be up to 100% capacity (525,000 ounces) by 2015. With several other projects beginning to produce over the next few years, it’s easy to see a bright future for the company.

What investors need to do is see past one quarter’s earnings and look at the big picture when it comes to gold mining stocks. Production growth from new mines coming on line will drive earnings over the long term as long as the price of gold stays above the company’s cost of production. Which is not always easy as Barrick Gold Corporation (USA) (NYSE:ABX) investors have learned as the company ran into a water problem in bringing its Pascua-Lama mine in Chile on line, which has added to its costs and delayed the project. As long as Goldcorp Inc. (USA) (NYSE:GG) can avoid similar problems, and the price of gold stays well above its production costs, the company should be able to meet its growth targets

Final Foolish thoughts
Just don’t expect a stellar quarter from Goldcorp because the record plunge in gold won’t put a shine on its results this time around. Investors need to be thankful that, as a low-cost producer, Goldcorp Inc. (USA) (NYSE:GG) can profit even as prices plunge. This is why it’s always best to have a long-term outlook and see Goldcorp for what it is, a company with a very visible path to long-term growth.

The article Will This Gold Stock Disappoint Investors? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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