Van Sun/wire say Goldcorp boss sees $1,500 gold

2008-09-11 09:30 ET - In the News

The Vancouver Sun reports in a Bloomberg dispatch that Goldcorp said it has $1.2-billion in cash and no debt, putting it in a good position to make acquisitions amid a collapse in mining stocks. Bloomberg's Stewart Bailey writes the Vancouver company will look mainly in Mexico and Canada, where its largest operations are located, chief executive officer Kevin McArthur said at the Denver Gold Forum. At the same time, Goldcorp will push ahead, exploring for new sources of ore near its existing mines and developing new deposits, he said. Mr. McArthur believes the forced sale of assets by hedge funds is the cause of bullion's plunge by almost 25 per cent since touching a record in March. For smaller miners, the effect of lower metal prices has been made worse by the continuing credit crisis. "When sentiment is bad, and if you believe in the premise that we're in a long-term bull market, this is good time to knock on a few doors and take advantage," he said. "We're looking at another couple of possibilities here and there that look attractive for us." Mr. McArthur predicts gold prices, depressed by a "fire sale" of assets by hedge funds, could double to $1,500 an ounce in 18 months.