Goldcorp Inc. (TSX:G) has acquired the remaining stake in two Ontario gold mines from Kinross Gold for US$200 million and a 50% stake in Goldcorp's La Coipa silver-gold mine in Chile.
Goldcorp will acquire full ownership of the Porcupine gold mines in northeastern Ontario and the Musselwhite gold mine in northwestern Ontario. Last year, Goldcorp had secured a 51% stake in Porcupine and a 68% stake in Musselwhite.
The trade of mines is part of Goldcorp's plan to simplify its asset portfolio and focus its attention on core operating districts in North America. In the past year, it has sold mines in Australia and South America.
Despite a 15% increase in revenue, Goldcorp suffered a significant drop in net income for its second quarter ending June 30. While revenue rose to US$567 million from $491.5 million, net income fell to $2.9 million from $190.4 million in the second quarter of 2006.
A US$102.9 million foreign exchange loss along with losses from non-hedged derivatives were cited as the main reason for the drop in quarterly profits.
Goldcorp's share price range during the past week: between $29.34 and $30.36; 52-week high: $35.89; 52-week low: $22.40.