(Source: MARKETWIRE)
Goldcorp Inc. (TSX: G)(NYSE: GG) today reported gold production of
621,100 ounces for the third quarter at a total cash cost of $295 per
ounce. Adjusted net earnings(1) in the third quarter were $140.6
million, or $0.19 per share, while reported net earnings totalled
$114.2 million.
Third Quarter Highlights
- Gold production increased by 11% over the 2008 third quarter, to
621,100 ounces.
- Total cash costs(2) for the quarter were $295 per ounce on a
by-product basis, and $297 per ounce year to date.
- Total cash costs(2) on a co-product basis were $384 per ounce
compared to $380 per ounce year to date.
- Operating cash flows before changes in working capital(3) totaled
$321.1 million or $0.44 per share, a 35% increase over the third
quarter of 2008.
- Dividends paid amounted to $32.9 million.
- Penasquito concentrate production ramp-up on schedule; concentrate
shipments commence.
- Full-year gold production guidance revised upward; cash cost
guidance also improves.
"Consistent with our 2009 theme of execution throughout our
operations, Goldcorp's gold production and cash costs were again very
strong in the third quarter," said Chuck Jeannes, Goldcorp President
and Chief Executive Officer. "Red Lake experienced an outstanding
quarter, driven by excellent results in the High Grade zone and
continued productivity enhancements. Also in Ontario, Porcupine's
quarterly gold production was its best in almost three years. Marlin
in Guatemala and Los Filos in Mexico were also important contributors
to our quarterly results, with the Los Filos open pit operation
achieving record quarterly gold production. We saw continued success
among our next generation of growth drivers as well. At Penasquito, I
am pleased to report that shipments of both lead and zinc
concentrates began this week. Achieving this important milestone
supports our continued confidence in the outlook for this world-class
operation. Also advancing impressively is the Cochenour project in
the Red Lake camp. Development will begin to accelerate, as a plan is
now in place detailing the best way to access the deposit. Cochenour
is a key component of our development plans in the prolific Red Lake
district, and upon completion it will be an important contributor to
our growth profile at Red Lake for many years to come."
"Our strong performance through the first nine months of the year has
led us to revise our production guidance, to approximately 2.4
million gold ounces at a total cash cost of approximately $300 per
ounce on a by-product basis and less than $400 per ounce on a
co-product basis. Gold prices have exhibited continued strength and
sustainability above $1,000 per ounce, and with our production and
cash costs trending positively, the stage is set for continued
strength in cash flow and profitability through the end of the year
and beyond."
Financial Review
Gold sales in the third quarter compared to the third quarter of
2008, increased to 621,100 ounces at a total cash cost of $295 per
ounce on a by-product basis, and $384 per ounce on a co-product
basis. On both a by-product and co-product basis, Goldcorp remains
the lowest cost, highest margin senior gold producer in the industry.
Adjusted net earnings(1) totaled $140.6 million, or $0.19 per share,
compared to $64.7 million or $0.09 per share, in the third quarter of
2008. Adjusted net earnings primarily exclude the effect of a
non-cash foreign exchange loss on revaluation of future income tax
liabilities, but include the impact of non-cash stock option
expenses, which amounted to approximately $0.02 per share for the
quarter. Operating cash flow before non-cash working capital
adjustments(3) increased 35% to $321.1 million compared to $237.3
million in last year's third quarter. Reported net earnings in the
quarter were $114.2 million compared to net earnings of $297.2
million in the third quarter of 2008.
For the nine months ended September 30, 2009, revenues increased 7%
to $1.9 billion, a result of increased realized gold prices and
increased gold sales volumes. On a by-product basis, total cash costs
were $297 per ounce compared to a total cash cost of $298 per ounce
in 2008. Total cash costs on a co-product basis were $380 per ounce
year to date versus $409 per ounce in the 2008 period.
For the first nine months of the year, adjusted net earnings(1)
totaled $405.5 million, or $0.55 per share, compared to $312.6
million, or $0.44 per share, in 2008. Adjusted net earnings primarily
exclude the effect of a non-cash foreign exchange loss on revaluation
of future income tax liabilities and transaction costs for issuance
of convertible debt. Adjusted net earnings for 2008 primarily exclude
the effect of a non-cash foreign exchange gain on revaluation of
future income tax liabilities, the first quarter gain on the sale of
the Silver Wheaton shares, and an unrealized loss on securities. Net
earnings in the nine months ended September 30, 2009 were $173.5
million or $0.24 per share, compared to net earnings of $517.5
million, or $0.73 per share, in 2008. Cash flow from operations
before working capital changes(3) increased 24% to $872.6 million, or
$1.19 per share, from $702.7 million, or $0.99 per share, in the nine
months ended September 30, 2008.
Operations Review
Goldcorp's cornerstone asset delivered a strong performance in the
third quarter. Gold production at Red Lake totalled 178,800 ounces at
a total cash cost of $255 per ounce compared to gold production of
160,100 ounces at a total cash cost of $297 in the third quarter of
2008. Exploration drilling from the 4199 drift is advancing well with
three drills off the platform: two drilling the High Grade zone and
one drilling targets in the high-potential Party Wall area.
Also in the Red Lake district, dewatering of the Cochenour shaft
continued in the third quarter with completion expected during the
first quarter of 2010. The Company has completed a study to determine
the best way to access and develop the Cochenour ore body. The study
indicates that the best method of developing the Cochenour/Bruce
Channel deposit is to enlarge and upgrade the existing Cochenour
shaft and construct a 5 kilometer high speed tram on the 5400 Level
connecting to the Red Lake mine. This will enable the Bruce Channel
deposit ore to be hauled directly to the Red Lake mine and processed
at the existing mill facility. Preparatory work for the haulage drift
project has commenced.
A 31% increase in gold production at Porcupine in Ontario over the
2008 third quarter highlights the strong pattern of sequential
improvement over the last year. Gold production at Porcupine totalled
90,600 ounces-its best performance in almost three years-while cash
costs fell to $406 per ounce. Grade continued to improve through
mining in higher grade stopes and through the development of the new
higher grade VAZ zone.
At Los Filos, gold production was 60,200 ounces, driven by its best
performance yet in the open pit operations. El Sauzal's production of
45,500 ounces was in line with the forecast production decrease
consistent with its declining mine life. At San Dimas, higher grades
in the Roberta, Robertita and Marina veins drove a strong improvement
in production versus the prior year third quarter. Gold production
was 27,500 ounces in the third quarter at a total cash cost of $313
per ounce. At the Marlin mine in Guatemala, quarterly gold and silver
production increased both from the second quarter of 2009 and the
year-ago quarter, with production of 68,800 ounces of gold and
1,083,200 ounces of silver. These production increases were largely
attributable to process enhancements leading to both gold and silver
recovery improvements.
Project Update
Positive exploration drilling continued at Eleonore in Quebec. Strong
assay results in the deep mineralized zone to the north continued to
support ongoing work on an internal prefeasibility study planned for
the end of 2009. The study is evaluating the best options for
accessing the deep high grade in the north while simultaneously
ramping up gold production from the Roberto Zone. Environmental and
social impact assessment work is continuing.
In the Dominican Republic, development of the Pueblo Viejo project
continued to track on budget and on schedule for initial gold
production in the fourth quarter of 2011. Construction of the
autoclave and related structures is now well advanced, and the mills
have now arrived in the Dominican Republic. Goldcorp's 40% share of
gold production in the first five full years of the mine's life is
expected to average approximately 400,000 ounces at total cash costs
of between $275 and $300 per ounce. Goldcorp's share of proven and
probable gold reserves at Pueblo Viejo amounts to nearly 9 million
ounces.
Penasquito Update
Since achieving mechanical completion during the third quarter, full
commissioning of the first sulphide process line (Line 1) has
steadily advanced at Penasquito. On November 2nd, the Company began
dispatching the first lead and zinc concentrates from the mine site.
The initial lead concentrate shipments are being sold to Industrias
Penoles' Met-Mex subsidiary in Torreon, Mexico, while initial zinc
concentrates are being trucked to the port of Manzanillo in
preparation for shipment to Korea Zinc Co. Ltd. Preliminary metals
grades, recoveries and concentrate quality have met or exceeded
expectations.
Construction of the second sulphide process line (Line 2) is well
underway and progressing toward planned start-up in the third quarter
of 2010. Completion of construction of the high pressure grinding
rolls circuit is expected in the fourth quarter of 2010, allowing for
a ramp-up to the mill's full 130,000 tonnes per day capacity in early
2011. For the latest photographs from the site, please visit
www.goldcorp.com and click on Operations/Penasquito. Mining
activities continue to provide sulphide ore for the start-up of the
Line 1 plant with rates in excess of 500,000 tonnes per day. Initial
pre-stripping has uncovered more sulphide ore than was modeled, and
the resulting ore stockpile has added a significant degree of ore
feed flexibility. At September 30, 2009, 6.2 million tonnes of ore
were stockpiled and an additional 2 million tonnes were exposed in
the pit and available for mining.
"The rate of progress we continue to make at Penasquito remains
consistent with our ramp-up schedule," added Jeannes. "The team there
continues to exceed our expectations as the transition from project
to world-class mine remains well on track. This ongoing success
supports our expectation that Penasquito will contribute to our
five-year 50% growth profile just as we anticipated. Upon completion
of the updated Penasquito mine plan, the data will be integrated into
our 2010 corporate budget and specific full-year expectations
disclosed in January 2010."
Corporate Social Responsibility Update
During the third quarter, Marlin mine in Guatemala became Goldcorp's
third gold mine to be fully certified under the International Cyanide
Management Code for the Manufacture, Transport and Use of Cyanide in
the Production of Gold. Marlin's achievement makes it the first mine
in Central America to be so certified, following Marigold mine as the
first-ever gold mining operation to be certified and El Sauzal as the
first-ever mine in Mexico to be certified. Goldcorp is an industry
leader in its commitment to the safe handling and use of cyanide in
applicable mining operations.
2009 Outlook
In light of continued strength in production at many of its key gold
mines, the Company today revised operating guidance for the 2009
year. Gold production guidance has been increased from 2.3 million
ounces to approximately 2.4 million ounces. Guidance on total cash
costs has also changed in light of the Company's stronger operating
performance. Total cash costs for 2009 are now expected to be
approximately $300 per ounce of gold on a by-product basis compared
to previous guidance of $365 per ounce. On a co-product basis, total
cash costs are now expected to be less than $400 per ounce compared
to previous guidance of $400 per ounce. Price assumptions used in the
calculation of these new estimates for the fourth quarter are $15
silver, $2.75 copper, $75 per barrel oil, and US Dollar exchange
rates of $1.10 Canadian Dollars and $12.50 Mexican pesos.
This release should be read in conjunction with Goldcorp's third
quarter 2009 unaudited MD&A report on the Company's website,
www.goldcorp.com, in the "Investors" section under "Financials".
A conference call will be held on November 5, 2009 at 10:00 a.m.
(PDT) to discuss the third quarter results. Participants may join the
call by dialing toll free 888-300-0053 or 647-427-3420 for calls from
outside Canada and the US. A recorded playback of the call can be
accessed after the event until December 5, 2009 by dialing
800-642-1687 or 706-645-9291 for calls outside Canada and the US.
Passcode: 34518604. A live and archived audio webcast will also be
available at www.goldcorp.com.
Goldcorp is the lowest-cost and fastest growing multi-million ounce
gold producer with operations throughout the Americas. Its gold
production remains 100% unhedged.
(1) Adjusted net earnings is a non-GAAP measure. The Company believes
that, in addition to conventional measures prepared in accordance
with GAAP, the Company and certain investors use this information to
evaluate the Company's performance. Accordingly, it is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with GAAP. Refer to page 34 of the 2009 third quarter MD&A
for a reconciliation of adjusted earnings to reported net earnings.
(2) The Company has included a non-GAAP performance measure, total
cash cost per gold ounce, throughout this document. The Company
reports total cash costs on a sales basis. In the gold mining
industry, this is a common performance measure but does not have any
standardized meaning, and is a non-GAAP measure. The Company follows
the recommendations of the Gold Institute standard. The Company
believes that, in addition to conventional measures, prepared in
accordance with GAAP, certain investors use this information to
evaluate the Company's performance and ability to generate cash flow.
Accordingly, it is intended to provide additional information and
should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with GAAP. Refer to page 33 of
the 2009 third quarter MD&A for a reconciliation of total cash costs
to reported operating expenses.
(3) Operating cash flows before working capital changes and operating
cash flows before working capital changes per share are non-GAAP
measures which the Company believes provides a better indicator of
the Company's ability to generate cash flow from its mining
operations. Cash provided by operating activities reported in
accordance with GAAP was $341.9 million and $903.7 million,
respectively for the three months and nine months ended September 30,
2009.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation, concerning
the business, operations and financial performance and condition of
Goldcorp Inc. ("Goldcorp"). Forward-looking statements include, but
are not limited to, statements with respect to the future price of
gold, silver, copper, lead and zinc, the estimation of mineral
reserves and resources, the realization of mineral reserve estimates,
the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the development
of new deposits, success of exploration activities, permitting time
lines, hedging practices, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses,
timing and possible outcome of pending litigation, title disputes or
claims and limitations on insurance coverage. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"believes" or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Goldcorp to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of
acquisitions; risks related to international operations; risks
related to joint venture operations; actual results of current
exploration activities; actual results of current reclamation
activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold,
silver, copper, lead and zinc; possible variations in ore reserves,
grade or recovery rates; failure of plant, equipment or processes to
operate as anticipated; accidents, labour disputes; delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities and other risks of the mining
industry, as well as those factors discussed in the section entitled
"Description of the Business - Risk Factors" in Goldcorp's annual
information form for the year ended December 31, 2008 available at
www.sedar.com.
Although Goldcorp has attempted to identify important factors that
could cause actual results to differ materially from those contained
in forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Goldcorp does not
undertake to update any forward-looking statements that are included
in this document, except in accordance with applicable securities
laws.
FINANCIAL STATEMENTS TO FOLLOW
SUMMARIZED FINANCIAL AND OPERATIONAL HIGHLIGHTS
(in millions of United States dollars, except per share and per ounce
amounts)
Three Months Ended
September 30
2009 2008
---------------------------------------------------------------------------
Gold produced (ounces) 621,100 557,400
Gold sold (ounces) 601,500 550,500
Copper produced (thousands of pounds) 22,700 28,600
Copper sold (thousands of pounds) 24,300 26,400
Silver produced (ounces) 2,975,000 2,267,600
Silver sold (ounces) 2,386,900 1,722,000
Average realized gold price (per ounce) $ 968 $ 865
Average London spot gold price (per ounce) $ 960 $ 872
Average realized copper price (per pound) $ 3.63 $ 2.48Average London spot copper price (per pound) $ 2.65 $ 3.49
Average realized silver price (per ounce) $ 9.30 $ 7.64
Average London spot silver price (per ounce) $ 4.69 $ 15.09
Total cash costs - by-product (per gold ounce) $ 295 $ 346
Total cash costs - co-product (per gold ounce) $ 384 $ 398
---------------------------------------------------------------------------
Production Data:
Red Lake gold mines: Tonnes of ore milled 194,400 198,800
Average mill head grade
(grams per tonne) 30 26
Gold ounces produced 178,800 160,100
Total cash cost per ounce
- by product $ 255 $ 297
Porcupine mine: Tonnes of ore milled 1,013,900 921,700
Average mill head grade
(grams per tonne) 2.90 2.64
Gold ounces produced 90,600 69,000
Total cash cost per ounce
- by product $ 406 $ 583
Musselwhite mine: Tonnes of ore milled 291,800 316,600
Average mill head grade
(grams per tonne) 5.51 5.60
Gold ounces produced 49,800 52,300
Total cash cost per ounce
- by product $ 737 $ 597
San Dimas mine: Tonnes of ore milled 170,800 161,300
Average mill head grade
(grams per tonne) - gold 5.13 3.78
Average mill head grade
(grams per tonne) - silver 237 234
Gold ounces produced 27,500 19,000
Silver ounces produced 1,231,800 1,132,600
Total cash cost per ounce
- by product $ 313 $ 436
Total cash cost per ounce
- co product $ 313 $ 436
Los Filos mine: Tonnes of ore mined 6,040,000 5,361,300
Tonnes of waste removed 7,062,100 5,694,900
Tonnes of ore processed 6,135,200 5,429,300
Average grade processed
(grams per tonne) 0.63 0.61
Gold ounces produced 60,200 47,400
Total cash cost per ounce
- by product 455 391
El Sauzal mine: Tonnes of ore mined 586,400 630,200
Tonnes of waste removed 1,110,100 990,800
Tonnes of ore milled 530,600 524,400
Average mill head grade
(grams per tonne) 2.86 4.75
Gold ounces produced 45,500 76,200
Total cash cost per ounce
- by product $ 220 $ 147
Marlin mine: Tonnes of ore milled 536,300 387,700
Average mill head grade
(grams per tonne) - gold 4.29 4.86
Average mill head grade
(grams per tonne) - silver 92 98
Gold ounces produced 68,800 51,000
Silver ounces produced 1,083,200 699,600
Total cash cost per ounce
- by product $ 185 $ 304
Total cash cost per ounce
- co product $ 347 $ 400
Alumbrera mine: Tonnes of ore mined 2,301,800 3,960,500
Tonnes of waste removed 5,491,700 6,562,100
Tonned of ore milled 3,424,100 3,361,900
Average mill head grade
(grams per tonne) - gold 0.39 0.44
Average mill head grade (%)
- copper 0.38 0.46
Gold ounces produced 29,500 34,400
Copper (thousands of pounds)
produced 22,700 28,600
Total cash cost per ounce
- by product $ (823) $ (112)
Total cash cost per ounce
- co product $ 475 $ 511
Marigold mine: Tonnes of ore mined 2,624,200 1,514,500
Tonnes of waste removed 4,261,400 3,435,400
Tonnes of ore processed 2,624,200 1,514,500
Average grade processed
(grams per tonne) 0.64 0.57
Gold ounces produced 29,900 21,800
Total cash per ounce
- by product $ 542 $ 693
Wharf mine: Tonnes of ore mined 681,900 824,800
Tonnes of ore processed 804,500 906,500
Average grade processed
(grams per tonne) 0.87 0.72
Gold ounces produced 17,300 15,900
Total cash per ounce -
by product $ 665 $ 408
---------------------------------------------------------------------------
Financial Data:
Cash flow from operating activities (before changes
in non-cash working capital) $ 321.1 $ 237.3
Net earnings $ 114.2 $ 297.2
Earnings per share - basic $ 0.16 $ 0.42
Adjusted net earnings per share - basic $ 0.19 $ 0.09
Weighted average number of shares outstanding
(000's) 731,815 713,718
---------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF EARNINGS
(US dollars in millions, except for share and per share amounts - Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2009 2008 2009 2008
---------------------------------------------------------------------------
Revenues $ 691.9 $ 552.2 $ 1,945.3 $ 1,810.6
---------------------------------------------------------------------------
Operating expenses 303.4 279.1 865.5 856.5
Depreciation and depletion 130.7 122.8 384.8 353.9
---------------------------------------------------------------------------
Earnings from mine operations 257.8 150.3 695.0 600.2
---------------------------------------------------------------------------
Corporate administration (1) 31.2 33.5 96.7 100.0
Exploration 8.7 17.4 23.3 45.2
---------------------------------------------------------------------------
Earnings from operations 217.9 99.4 575.0 455.0
---------------------------------------------------------------------------
Other income (expenses)
Interest and other income
(expenses) (0.6) 8.8 (5.6) 27.6
Interest expense and finance
fees (12.5) (0.9) (37.0) (7.1)
Share of income of equity
investee - - - 3.9
Gain (loss) on foreign
exchange (28.1) 253.7 (237.7) 95.9
Gain (loss) on non-hedge
derivatives, net (0.4) 15.9 9.3 (16.4)
Gain (loss) on securities,
net 5.2 (23.5) 5.6 (25.0)
Gain on disposition of Silver
Wheaton shares - - - 292.5
Dilution gains (loss) - 0.5 (0.7) 1.9
---------------------------------------------------------------------------
(36.4) 254.5 (266.1) 373.3
Earnings before taxes and
non-controlling interests 181.5 353.9 308.9 828.3
Income and mining taxes (67.9) (57.2) (136.5) (302.4)
Non-controlling interests 0.6 0.5 1.1 (8.4)
---------------------------------------------------------------------------
Net earnings $ 114.2 $ 297.2 $ 173.5 $ 517.5
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Stock based compensation
expense (non-cash item)
included in corporate
administration $ 12.7 $ 11.0 $ 34.6 $ 30.7
Net earnings per share
Basic $ 0.16 $ 0.42 $ 0.24 $ 0.73
Diluted $ 0.16 $ 0.42 $ 0.24 $ 0.72
Weighted average number of
shares outstanding (000's) Basic 731,815 713,718 730,709 710,936
Diluted 735,808 717,913 734,066 715,415
CONSOLIDATED BALANCE SHEETS
(US dollars in millions - Unaudited)
September 30 December 31
2009 2008
---------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 785.3 $ 262.3
Marketable securities 17.0 10.1
Accounts receivable 209.0 178.6
Income and mining taxes receivable 50.7 15.6
Future income and mining taxes 4.5 3.3
Inventories and stockpiled ore 294.4 226.2
Other 67.9 66.2
---------------------------------------------------------------------------
Current assets 1,428.8 762.3
Mining interests 17,776.3 17,062.5
Deposits on mining interest expenditures 168.0 229.3
Goodwill 761.8 761.8
Stockpiled ore 93.5 92.6
Investments 369.7 71.9
Other 26.2 28.4
---------------------------------------------------------------------------
$ 20,624.3 $ 19,008.8
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities
Accounts payable and accrued liabilities $ 347.0 $ 294.0
Income and mining taxes payable 203.2 -
Future income and mining taxes 74.5 181.5
Current portion of long-term debt 15.4 -
---------------------------------------------------------------------------
Current liabilities 640.1 475.5
Income and mining taxes payable 10.4 28.0
Future income and mining taxes 3,497.2 3,203.9
Long-term debt 712.2 5.3
Reclamation and closure cost obligations 274.1 273.1
Other 25.4 12.7
---------------------------------------------------------------------------
5,159.4 3,998.5
---------------------------------------------------------------------------
Non-controlling interests 49.7 51.2
---------------------------------------------------------------------------
Shareholders' Equity
Common shares, share purchase warrants, stock options
and convertible senior notes 12,878.4 12,625.2
Retained earnings 2,311.8 2,237.0
Accumulated other comprehensive income 225.0 96.9
---------------------------------------------------------------------------
2,536.8 2,333.9
---------------------------------------------------------------------------
15,415.2 14,959.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$ 20,624.3 $ 19,008.8
---------------------------------------------------------------------------
---------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(US dollars in millions - Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2009 2008 2009 2008
---------------------------------------------------------------------------
Operating Activities
Net earnings $ 114.2 $ 297.2 $ 173.5 $ 517.5
Reclamation expenditures (8.2) (6.5) (18.9) (15.0)
Items not affecting cash
Depreciation and depletion 130.7 122.8 384.8 353.9
Accretion on convertible
senior notes 6.8 - 8.8 -
Stock based compensation
expense 12.7 11.0 34.6 30.7
Share of income of equity
investee - - - (3.9)
Unrealized loss (gain) on
non-hedge derivatives 4.0 (22.5) (2.8) (8.8)
Loss (gain) on securities,
net (5.2) 0.6 (5.6) 1.6
Gain on disposition of
Silver Wheaton shares - - - (292.5)
Dilution loss (gains) - (0.5) 0.7 (1.9)
Future income and mining
taxes 48.5 52.5 56.0 178.9
Non-controlling interests (0.6) (0.5) (1.1) 8.4
Transaction costs on
convertible senior notes
expensed - - 18.6 -
Unrealized loss (gain) on
foreign exchange and other 18.2 (216.8) 224.0 (66.2)
Change in non-cash working
capital 20.8 (20.2) 31.1 (84.6)
---------------------------------------------------------------------------
Cash provided by operating
activities 341.9 217.1 903.7 618.1
---------------------------------------------------------------------------
Investing Activities
Acquisition of Gold Eagle,
net of cash acquired - (553.0) - (553.0)
Expenditures on mining
interests (277.8) (291.6) (798.0) (739.2)
Deposits on mining interest
expenditures (54.1) (47.3) (239.7) (222.0)
Proceeds from disposition of
Silver Wheaton shares, net - - - 1,505.1
Purchase of securities (88.0) (20.4) (155.7) (20.4)
Proceeds from sale of
securities - 0.2 - 0.2
Other - 1.0 1.6 (2.6)
---------------------------------------------------------------------------
Cash used in investing
activities (419.9) (911.1) (1,191.8) (31.9)
---------------------------------------------------------------------------
Financing Activities
Debt borrowings 1.8 156.1 1,330.9 156.1
Debt repayments - (150.0) (460.0) (795.0)
Transaction costs on
convertible senior notes - - (22.8) -
Common shares issued, net 28.8 14.9 61.0 94.7
Shares issued by subsidiaries
to non-controlling interests - 3.8 - 3.8
Dividends paid to common
shareholders (32.9) (32.1) (98.7) (96.0)
---------------------------------------------------------------------------
Cash provided by (used in)
financing activities (2.3) (7.3) 810.4 (636.4)
---------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents (0.4) (5.6) 0.7 (6.7)
---------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents (80.7) (706.9) 523.0 (56.9)
Cash and cash equivalents,
beginning of period 866.0 1,160.8 262.3 510.8
---------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 785.3 $ 453.9 $ 785.3 $ 453.9
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Contacts:
Goldcorp Inc.
Jeff Wilhoit
Vice President, Investor Relations
(604) 696-3074
(604) 696-3001 (FAX)
info@goldcorp.com
www.goldcorp.com
SOURCE: Goldcorp Inc.
A service of YellowBrix, Inc.
