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David Garofalo never reached have a honeymoon period.
He became leader of Goldcorp Inc. on Feb. 29. Just four days earlier, the Vancouver-based company cut its dividend and slashed its production outlook for the following 3 years. The stock dropped 13 percent.
Now Garofalo has got the challenging job of rebuilding investor confidence in the company. He did note that meetings with institutional shareholders go well so far.
“[The stock sell-off] was humbling, however it was corresponding to the performance recently,” he said inside a roundtable with reporters. “And we be responsible for that and we’ll take responsibility for ensuring it does not happen again.”
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Garofalo also discussed M&A. Goldcorp has been a very active acquirer through the past decade, but he earned it clear the company sees more value in its organic growth projects right now than external ones.
“I would say that good opportunities are the ones we already own,” he explained.
He added that Goldcorp wants shovel-ready projects with five million ounces of reserves or more, and those “just don’t exist in the jurisdictions we’re interested in.”
Garofalo’s prior employers, HudBay Minerals Inc. and Agnico Eagle Mines Ltd., both invested in junior companies to obtain early exposure to good gold projects. He plans to apply the same strategy at Goldcorp.
