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The Gold Sector's Greatest Comeback Tale

Canadian heavyweight Goldcorp Inc. (NYSE: GG) has consistently been one of the most innovative "thinkers" in the global mining business.

In March 2000, for instance, the miner employed an early version of what we now know as "crowdsourcing" to identify the best places to drill. The "Goldcorp Challenge," as the company called it, broke with the secretive practices of the mining industry and provided public access to the miner's geologic data - awarding $575,000 in prizes to those offering the best recommendations.

As we detailed in our most recent "Stock Talks" video, the payoff was huge: In 1996, Goldcorp's Red Lake Mine was producing at an annual rate of 53,000 ounces at $360 an ounce. By 2001, the mine was producing 504,000 ounces at $59 an ounce.

Well, the "free thinkers" at Goldcorp are at it again - and once again have broken with the mining industry's stultifying thinking. And once again, the gloom-and-doomers are saying Goldcorp has it all wrong - and have pummeled the miner's shares to punctuate their point.

Goldcorp's latest move - coupled with this dour response from the hater traders - has opened the door to a pretty great opportunity.

Let me take a few minutes to tell you all about it...

  1. John Potter | April 1, 2017

    GOOD ON GG I LIKE TO LIKE THIS ONE A LOT MAY IT GO TO 50. JP

    • William Patalon III | April 3, 2017

      Dear John:

      Thanks so much for the note. It's a really interesting play, and I like the strategy here. Having covered public companies now for many, many years, I can tell you that among the many corporate cultures, there are two that are polar opposites – those that think short-term (quarter to quarter) and those that think long term.

      They're interesting to watch … and your wise and welcomed comment has inspired me to do a follow upon this. Thank you for that, and may your positive comments, helpfulness and constructive contributions here be repaid ten times over.

      Cheers, sir!

      Respectfully yours…

      Bill Patalon

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