Goldcorp Achieves Record Adjusted Earnings in Third Quarter
Toronto Stock Exchange: G New York Stock Exchange: GG
------------------------------
(All Amounts in $US unless stated otherwise)
VANCOUVER, Oct. 26, 2011 /CNW/ - GOLDCORP INC.
today reported record adjusted net earnings(1) in the quarter increased to $459 million, or $0.57 per share,compared to $244million, or $0.33 per share, in the third quarter of 2010. Net earnings were $336million compared to $721million in the third quarter of 2010. Operating cashflows before working capital changes(2) were $681 million for the third quarter of 2011 based on gold production of 592,100 ounces at a total cash cost(3) of $258 per ounce.Third Quarter 2011 Highlights
-- Revenues increased 48% over the 2010 third quarter, to $1.3
billion, on gold sales of 571,500 ounces.
-- Operating cash flow before working capital changes increased
49% over the 2010 third quarter, to $681 million or $0.84 per
share.
-- Adjusted net earnings increased 88% over the 2010 third
quarter, to $459 million or $0.57 per share.
-- Average realized gold price increased 39% over the 2010 third
quarter, to $1,719 per ounce.
-- Cash costs totaled $258 per ounce on a by-product basis and
$551 per ounce on a co-product basis.
-- Free cash flow generated during the quarter amounted to $224
million5.
-- Dividends paid amounted to $82million.
-- Quarter-end cash balance of $1.5 billion; net cash position of
$614million6.
-- Peñasquito achieves record average throughput of 102,000 tonnes
per day in September.
'Our record third quarter results illustrate the earnings power of sustained high gold prices in combination with Goldcorp's low-cost gold production profile,' said Chuck Jeannes, Goldcorp President and Chief Executive Officer. 'With solid third quarter performance from several key mines and substantially increased production expected in the fourth quarter, we remain on track to achieve our full-year gold production target of between 2.50-2.55 million ounces. A particularly strong performer was Marlin in Guatemala, which had record production in the third quarter. Porcupine in Ontario also exceeded production expectations in addition to continued exploration success. We are also pleased to report that progress at Peñasquito on the supplemental ore feed system and tailings facility improvements remains on track for ramp-up to full 130,000 tonnes per day throughput to resume by the end of this year toward full capacity by the end of the first quarter of 2012.
'Within our industry-best growth project pipeline, the rate of progress has been equally impressive. Cerro Negro in Argentina remains on schedule for first production in 2013 and significant new vein extensions underscores the potential for further expansion of the long-term production profile at this cornerstone asset. Development is also accelerating at our two advanced-stage Canadian gold projects. Éléonore in Quebec is progressing impressively toward first gold production in 2014, and Cochenour in Red Lake is on schedule for a similar 2014 start-up. El Morro in Chile also took a significant step forward with the completion of the technical work on the feasibility study update, confirming the project's potential as an important component of our longer-term growth profile. In the near-term, the Pueblo Viejo joint venture in the Dominican Republic is positioned for first gold production in mid-2012.
'Goldcorp's strong balance sheet and accelerating cash flows leave the Company well-positioned to fund our peer-leading growth profile while also setting the stage for increases in the dividend following completion of our mine planning and budgeting process currently underway. Together with growing, low-cost gold production in areas of low political risk, Goldcorp continues to present a unique value proposition for investors seeking exposure to gold.'
Financial Review
Gold sales in the third quarter were 571,500 ounces on production of 592,100 ounces. This compares to sales of 567,500 ounces on production of 588,600 ounces in the third quarter of 2010. Total cash costs were $258 per ounce of gold on a by-product basis. On a co-product basis, cash costs were $551per ounce.
Net earnings in the quarter were $336million compared to $721million in the third quarter of 2010. Adjusted net earnings in the third quarter totaled $459 million, or $0.57 per share, compared to $244 million or $0.33 per share, in the third quarter of 2010. Adjusted net earnings primarily exclude the losses from the foreign exchange translation of deferred income tax liabilities, mark-to-market gains relating to a term silver sales contract and mark-to-market losses on the conversion feature of convertible senior notes but include the impact of non-cash stock option expenses which amounted to approximately $24million or $0.03 per share for the quarter. Operating cash flow before changes in working capital was $681million compared to $457million in last year's third quarter. With an average realized gold price of $1,719 per ounce for the quarter and total cash costs of $258 per ounce, Goldcorp achieved another quarter of sequential growth in cash margins(4) to $1,461 per ounce of gold sold.
Mexico
Gold and silver production at Peñasquito was 55,800 and 4,203,200 ounces, respectively, for the third quarter. Lead and zinc production totaled 33.6 million pounds and 66.4 million pounds, respectively. Total cash costs amounted to negative $796 per ounce of gold.
Lower production was experienced during July and August as sulphide plant modifications and tests were completed. Normal operating conditions in September led to record weekly and monthly plant throughput in excess of 100,000 tonnes per day.
Progress continued on the supplemental ore feed system in order to ensure a sufficient quantity of pebble feed to the high pressure grinding roll (HPGR) circuit. This project is on track to be completed by the end of 2011. An additional project underway to enhance the tailings dam facility is ahead of schedule. In conjunction with this project, additional water supplies have been added to eliminate current and future shortfalls from water retention issues. Following completion of these projects by year-end, 130,000 tonne per day design throughput is expected to be achieved by the end of the first quarter of 2012.
Total material mined in the third quarter decreased by 12% in comparison to the second quarter 2011 due to increased waste haul volumes and distances involved in hauling mine waste rock to the tailings storage facility to supplement the tailings dam wall construction. Oxide ore gold production amounted to 13,000 ounces in the third quarter which was 15% lower than the second quarter of 2011. Ancillary oxide ore quantities in the Penasco pit declined consistent with the mine plan as mining transitions further into the heart of the sulphide ore body.
Exploration activities in the third quarter of 2011 focused on drilling of manto deposits below and to the east of the Peñasco pit. The project is evaluating the potential for a future high grade underground operation concurrent with existing mine plans. Third quarter drilling activities included 59 RAB drill holes totaling 2,491 metres in near-pit targets and six diamond drill holes totaling 6,186 metres in the deep manto deposits.
Gold production at Los Filos increased 10% to 73,200 ounces at a total cash cost of $490 per ounce, driven by gold grades and recoveries. Higher grades were primarily attributable to a 24% increase in high grade ore processed through the crushing and agglomeration plant. The carbon plant capacity expansion completed last quarter provided an increase in pregnant solution processing capacity of 14%, which contributed to the increase in metal production. The 2011 exploration program continues to progress with the objective of proving the extension of the Los Filos deposit towards the 4P area and El Bermejal to the south and west. Results to date are positive in support for both extensions to be included in reserves at year-end.
Canada
At Red Lake in Ontario, third quarter gold production was 127,000 ounces at a total cash cost of $405 per ounce. Production was affected by lower grades that were realized from the High Grade Zone as a result of intersecting a lower grade section of the ore body. The focus continues to be on development of the Footwall Zones as planned, resulting in fewer tonnes mined from the sulphide zones and Campbell Complex. Accelerated diamond drilling activities continued throughout the quarter from the 4199 ramp and the interconnection drift. Results continue to be favorable in a number of exploration targets. Consistent with the prior quarter, exploration and development work continued to advance the Upper Red Lake Complex, the Far East Zone and the Footwall Zones into sustained production. Results from recent surface drilling will be used to evaluate bulk underground mining options.
At Porcupine in Ontario, gold production during the third quarter increased 11% to 76,300 ounces at a total cash cost of $614 per ounce, driven by higher gold grade in the VAZ zone of the Hoyle Pond underground operation. The Hoyle Pond Deep project continued to advance during the third quarter as preparation progressed toward shaft sinking in the first quarter of 2012. Exploration at Hoyle Pond focused on lateral and depth extension of current mineralized zones, as well as expansion of the TVZ zone. This zone has been successfully extended up-dip and remains open both down-dip and to the east. Seven drills on the surface continued to intercept mineralized zones similar to those found at depth and positive results continue.
Gold production at Musselwhite during the third quarter totaled 59,700 ounces at a total cash cost of $778 per ounce. Exploration continued to focus on the underground extension of the Lynx zone and PQ Deeps resources. The Lynx resource discovery has been extended 200 metres north of the resource boundary, with mineralization open along strike and up- and down-dip. Underground drilling in the PQ Deeps extended the resource 125 metres north of the resource boundary and remains open along strike. Surface drilling on the north shore of Opapamiskin Lake continues to investigate the projection of the Lynx zone.
Record Performance
At Marlin in Guatemala, both gold and silver production achieved quarterly records. Gold production increased 50% to 95,000 ounces at a total cash cost of negative $347 per ounce while silver production increased 62% to 2,291,100 ounces. Increases in production were driven by higher gold and silver grades and an 11% increase in tonnes milled. The increased head grades resulted from higher grades at the pit bottom, in line with the mine plan. Mining operations at Marlin will transition to exclusively underground mining as mining in the pit concludes during 2012. Exploration success continues at the Delmy vein discovery adjacent to current underground mining operations. Access to the vein has been developed at three levels and two ventilation raises to the surface have been completed. Mining from this zone will occur during the fourth quarter.
Advancing the Project Pipeline
At the Pueblo Viejo project in the Dominican Republic, overall construction is now more than 75% complete. A major rainfall event that occurred in May required remediation of damage to the partially constructed starter tailings dam facility and as a result, first production is now anticipated in mid-2012. Goldcorp's share of annual gold production in the first full five years of operation is expected to average 415,000-450,000 ounces at total cash costs of between $275 and $300 per ounce(7).
At the end of the third quarter of 2011, brick lining of all four autoclaves was completed. During the third quarter, remediation of the starter tailings dam progressed with the joint venture in receipt of all necessary approvals to allow construction of the dam to its full height. Work continues toward achieving key milestones, including the connection of power to the site.
As part of a longer-term, optimized power solution for Pueblo Viejo, a plan is underway to construct a dual fuel power plant at an additional gross cost of approximately $300 million (100%), or $120 million (Goldcorp's 40% share). The new plant is expected to provide lower cost, longer term power to the project.
At the Cerro Negro project in Argentina, the Eureka decline continues to advance, reaching a length of 1,432 metres toward a total extent of 3,900 metres. The first vertical ventilation shaft was completed and a second, larger vertical vent raise progressed to a depth of approximately 155 meters with completion expected by the end of October. An amended Environmental Impact Assessment was submitted to Provincial authorities which, once approved, will permit plant throughput to be increased from 1,850 to 4,000 tonnes per day and; mining to occur from three separate underground mines concurrently, rather than just the Eureka vein. Earth works in and around the plant area and access road upgrades also continued during the quarter.
Exploration drilling focused on in-fill and extensional drilling at existing vein resources. Drilling in the third quarter of 2011 with a total of 48,263 metres of core completed compared to 39,823 metres drilled during the second quarter. Eight surface drills are now focused on expansion of the Mariana Central, Mariana Norte and San Marcos veins, where drilling is extending the veins mainly to the east and at depth. Reserve additions from these three veins have the potential to augment the near-term production profile at Cerro Negro. A regional exploration team is being developed that will allow exploration outside of the core Cerro Negro vein areas later in 2011 and throughout 2012.
At the Éléonore project in Quebec, 36,000 metres of in-fill surface diamond drilling has been completed year-to-date. Drilling is focused primarily in a zone between 450 metres and 800 metres below surface, significantly increasing the level of confidence in the geologic model and mineral resources. An additional 9,000 metres of drilling is planned for the next quarter to continue defining the central portion of the ore body and to test high-grade results to the north.
The exploration ramp has now advanced 500 metres in length. The ramp will provide drilling locations for further resource definition and will access the exploration shaft at the 650-metre level. The exploration shaft reached a depth of 500 metres with completion to full 725 metre depth targeted for the second quarter of 2012.
Detailed engineering of the production shaft and related infrastructure has progressed during the quarter. Long-lead time delivery equipment is being ordered. The Environmental and Social Impact Assessment permit for full construction is expected to be received in the fourth quarter of 2011.
At Cochenour in Ontario, the new 5.5 metre diameter Cochenour shaft commenced to the 150 level. Construction of surface facilities also progressed, including completion of headframe steel erection and collar house, pumping and electrical distribution equipment. The Cochenour-Red Lake Haulage Drift advanced to 35% of completion at quarter-end, with the two drills now testing the exploration potential of this underexplored area in the heart of the Red Lake district.
Successful exploration and development work continued at Camino Rojo, an advanced-stage district project near Peñasquito. A total of 18,767 metres were drilled in the third quarter, including 44 resource expansion and in-fill core holes, plus 10 condemnation holes in anticipation of site facilities. Bulk samples have been shipped to Peñasquito for metallurgical column tests. Geologic modeling has begun for completion of an updated resource block model at year-end. At Noche Buena another advanced-stage district project near Peñasquito, new exploration drilling has confirmed structurally controlled higher grade mineralization trends within the resource envelope. Follow-up drilling has been planned to in-fill the oxide portion of these trends.
At the El Morro project in Chile, technical work on the update to the 2008 feasibility study was completed during the quarter and is now under management review. The results have indicated first gold production approximately five to six years from project approval date with a capital cost anticipated to be $3.9 billion. Condemnation drilling continues with two rigs on site, operating in the future mine waste deposit area, with an additional two rigs planned for the fourth quarter.
Outlook
The Company has reaffirmed revised 2011 production guidance of between 2.50-2.55 million ounces of gold. Total cash costs for the year are expected to be between $180 to $220 per ounce on a by-product basis and between $500-$550 per ounce on a co-product basis.
This release should be read in conjunction with Goldcorp's third quarter 2011 financial statements and MD&A report on the Company's website, www.goldcorp.com, in the 'Investor Resources - Reports & Filings' section under 'Quarterly Reports'.
A conference call will be held on October 27, 2011 at 10:00 a.m. (PDT) to discuss the third quarter results. Participants may join the call by dialing toll free 1-800-355-4959 or 1-416-695-6617 for calls from outside Canada and the US. A recorded playback of the call can be accessed after the event until November 27, 2011 by dialing 1-800-408-3053 or 1-905-694-9451 for calls outside Canada and the US. Pass code: 6608575. A live and archived audio webcast also be available at www.goldcorp.com.
Goldcorp is one of the world's fastest growing senior gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.
(1) Adjusted net earnings and adjusted net earnings per share are
non-GAAP measures. 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 40 of the 2011
third quarter MD&A for a reconciliation of adjusted earnings
to reported net earnings.
(2) Operating cash flows before working capital changes is a
non-GAAP performance measure which the Company believes
provides a better indicator of the Company's ability to
generate cash flows from its mining operations.
Cash provided by operating activities reported in accordance
with GAAP was $723 million and $1,639 million for the three
and nine months ended September 30, 2011, respectively.
(3) The Company has included non-GAAP performance measures, total
cash costs, by-product and co-product, 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. The Company follows the recommendations of the Gold
Institute Production Cost 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.
Total cash costs on a by-product basis are calculated by
deducting by-product copper, silver, lead and zinc sales
revenues from production cash costs.
Commencing in 2011, production costs are allocated to each
co-product based on the ratio of actual sales volumes
multiplied by budget metals prices of $1,250 per ounce of
gold, $20 per ounce of silver, $3.25 per pound of copper,
$0.90 per pound of lead and $0.90 per pound of zinc, rather
than realized sales prices. Using actual realized sales
prices, the co-product total cash costs would be $561 per gold
ounce for the three months ending September 30, 2011. Refer to
page 39 of the 2011 third quarter MD&A for a reconciliation of
total cash costs to reported production costs.
(4) The Company has included a non-GAAP performance measure,
margin per gold ounce, throughout this document. The Company
reports margin on a sales basis. 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.
(in $ millions, except where noted) Q3'11
Revenues per Financial Statements $1,308
Treatment and refining charges on concentrate 32
sales
By-product silver and copper sales and other (358)
Gold revenues 982
Divided by ounces of gold sold 571,500
Realized gold price per ounce $1,719
Deduct total cash costs per ounce of gold sold3 $258
Margin per gold ounce $1,461
(5) Free cash flows is a non-GAAP performance measure which 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. Free cash flows are calculated by deducting
expenditures on mining interests, deposits on mining interest
expenditures and capitalized interest paid from net cash
provided by operating activities of continuing operations.
Refer to page 40 of the 2011 third quarter MD&A for a
reconciliation of free cash flows to reported net cash
provided by operating activities of continuing operations.
(6) Net cash position is the quarter-end cash balance less the
face value of the convertible debenture of $862 million which
includes the liability and equity components.
(7) Based on gold price and oil assumptions of $1,300/oz and
$90/bbl, respectively.
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', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', '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' or the negative connotation thereof.
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Goldcorp to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Goldcorp will operate in the future, including the price of gold, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, among others, gold price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks, litigation risks, regulatory restrictions (including environmental regulatory restrictions and liability), activities by governmental authorities (including changes in taxation), currency fluctuations, the speculative nature of gold exploration, the global economic climate, dilution, share price volatility, competition, loss of key employees, additional funding requirements and defective title to mineral claims or property. Although Goldcorp has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important 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, including economical and political instability in foreign jurisdictions in which Goldcorp operates; risks related to current global financial conditions; risks related to joint venture operations; actual results of current exploration activities; environmental risks; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; mine development and operating risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; risks related to indebtedness and the service of such indebtedness, 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, 2010available 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. Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Goldcorp, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
SUMMARIZED FINANCIAL RESULTS
(in millions of United States dollars, except per
share and per ounce amounts)
Three Months Ended
September 30
2011 2010(1)
Revenues $1,308 $885
Gold produced (ounces) 592,100 588,600
Gold sold (ounces) 571,500 567,500
Copper produced(thousands of pounds) 28,600 25,000
Copper sold(thousands of pounds) 23,700 23,100
Silver produced (ounces) 6,494,300 2,941,200
Silver sold (ounces) 5,821,800 3,179,000
Lead produced(thousands of pounds) 33,600 11,300
Lead sold(thousands of pounds) 29,200 10,700
Zinc produced(thousands of pounds) 66,400 18,800
Zinc sold(thousands of pounds) 67,400 13,200
Average realized gold price(per ounce) $1,719 $1,239
Average London spot gold price(per ounce) $1,702 $1,227
Average realized copper price(per pound) $2.61 $4.38
Average London spot copper price(per pound) $4.07 $3.29
Average realized silver price(per ounce) $32.49 $19.34
Average London spot silver price(per ounce) $38.80 $18.97
Average realized lead price(per ounce) $1.00 $1.07
Average London spot lead price(per ounce) $1.12 $0.92
Average realized zinc price(per ounce) $0.93 $1.05
Average London spot zinc price(per ounce) $1.01 $0.91
Total cash costs - by-product(per gold ounce) $258 $260
Total cash costs - co-product(per gold ounce) $551 $435
Production Data:
Red Lake gold mines : Tonnes of ore milled 201,200 218,500
Average mill head grade 19.95 26.16
(grams per tonne)
Gold ounces produced 127,000 176,100
Total cash cost per ounce - $405 $268
by-product
Porcupine mines : Tonnes of ore milled 1,010,100 1,043,500
Average mill head grade 2.57 2.31
(grams per tonne)
Gold ounces produced 76,300 68,900
Total cash cost per ounce - $614 $526
by-product
Musselwhite mine : Tonnes of ore milled 301,200 348,700
Average mill head grade 6.25 5.64
(grams per tonne)
Gold ounces produced 59,700 58,100
Total cash cost per ounce - $778 $632
by-product
Peñasquito :(1) Tonnes of ore mined 8,690,400 2,417,600
Tonnes of waste removed 26,074,600 11,934,000
Tonnes of ore milled 7,084,500 2,214,200
Average head grade (grams 0.36 0.29
per tonne) - gold
Average head grade (grams 25.27 28.70
per tonne) - silver
Average head grade (%) - 0.33 0.40
lead
Average head grade (%) - 0.63 0.70
zinc
Gold ounces produced 55,800 17,300
Silver ounces produced 4,203,200 1,530,500
Lead (thousands of pounds) 33,600 11,300
produced
Zinc (thousands of pounds) 66,400 18,800
produced
Total cash cost per ounce - ($796) ($577)
by-product
Total cash cost per ounce - $862 $499
co-product
Los Filos mine : Tonnes of ore mined 6,639,200 6,734,700
Tonnes of waste removed 12,327,500 6,837,300
Tonnes of ore processed 6,684,100 6,846,700
Average grade processed 0.74 0.67
(grams per tonne)
Gold ounces produced 73,200 66,500
Total cash cost per ounce - $490 $438
by-product
El Sauzal mine : Tonnes of ore mined 555,300 584,700
Tonnes of waste removed 1,017,900 842,600
Tonnes of ore milled 526,400 523,500
Average mill head grade 1.63 2.55
(grams per tonne)
Gold ounces produced 26,100 40,600
Total cash cost per ounce - $475 $258
by-product
Marlin mine : Tonnes of ore milled 415,900 373,900
Average mill head grade 7.62 5.52
(grams per tonne) - gold
Average mill head grade 188 133
(grams per tonne) - silver
Gold ounces produced 95,000 63,400
Silver ounces produced 2,291,100 1,410,700
Total cash cost per ounce - ($347) $52
by-product
Total cash cost per ounce - $345 $367
co-product
Alumbrera mine :(2) Tonnes of ore mined 2,320,900 2,244,100
Tonnes of waste removed 4,954,900 5,587,800
Tonned of ore milled 3,718,900 3,493,800
Average mill head grade 0.44 0.42
(grams per tonne) - gold
Average mill head grade (%) 0.44 0.40
- copper
Gold ounces produced 38,200 34,100
Copper (thousands of 28,600 25,000
pounds) produced
Total cash cost per ounce - ($45) ($896)
by-product
Total cash cost per ounce - $646 $769
co-product
Marigold mine :(3) Tonnes of ore mined 2,451,800 1,736,300
Tonnes of waste removed 5,488,100 6,678,800
Tonnes of ore processed 2,451,800 1,736,300
Average grade processed 0.64 0.55
(grams per tonne)
Gold ounces produced 25,600 16,800
Total cash cost per ounce - $788 $817
by-product
Wharf mine : Tonnes of ore mined 1,124,400 991,700
Tonnes of ore processed 897,600 876,500
Average grade processed 1.03 0.62
(grams per tonne)
Gold ounces produced 15,200 19,600
Total cash cost per ounce - $614 $679
by-product
Financial Data:
Cash provided by operating activities of $723 $418
continuing operations
Net earnings from continuing operations $336 $305
attributable to shareholders of Goldcorp Inc.
Net earnings attributable to shareholders of $336 $723
Goldcorp Inc.
Net earnings per share from continuing operations $0.42 $0.41
- basic
Net earnings per share - basic $0.42 $0.98
Adjusted net earnings per share - basic $0.57 $0.33
Weighted average number of shares outstanding 808,575 736,136
(000's)
(1) Peñasquito information included in 2010 is for the 1 month ended September 30, 2010.
(2) Shown at Goldcorp's interest - 37.5%
(3) Shown at Goldcorp's interest - 66.67%
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(In millions of United States dollars, except for per share amounts - Unaudited)
Three Months Nine Months
Ended September 30 Ended September 30
2011 2010 2011 2010
Revenues $ 1,308 $ 885 $ 3,847 $ 2,418
Mine operating costs
Production costs (460) (340)
(1,423) (973)
Depreciation and (163) (149) (505) (408)
depletion
(623) (489) (1,381)
(1,928)
Earnings from 685 396 1,919 1,037
mineoperations
Exploration and (16) (15) (42) (43)
evaluation costs
Share of net losses (6) (3) (12) (3)
of associates
Corporate (53) (53) (172) (135)
administration
Earnings from 610 325 1,693 856
operations and
associates
Gain on disposition - - 320 -
of securities
(Losses) gains on (20) 57 (5) 35
derivatives, net
Gains on - - - 407
dispositions of
mining interests,
net
Finance costs (5) (8) (16)
(21)
Other (expenses) (2) 21
income (13) (18)
Earnings from 572 372 2,013 1,259
continuingoperations
before taxes
Income taxes (236) (67) (537)
(198)
Net earnings from 336 305 1,476 1,061
continuing
operations
Net earnings - 416 - 426
fromdiscontinued
operations
Net earnings $ 336 $ 721 $ 1,476 $ 1,487
Net earnings from
continuing
operations
attributable to:
Shareholders of $ 336 $ 305 $ 1,476 $ 1,061
Goldcorp Inc.
Non-controlling - - - -
interests
$ 336 $ 305 $ 1,476 $ 1,061
Net earnings (loss)
attributable to:
Shareholders of $ 336 $ 723 $ 1,476 $ 1,491
Goldcorp Inc.
Non-controlling - (2) - (4)
interests
$ 336 $ 721 $ 1,476 $ 1,487
Net earnings per
share fromcontinuing
operations
Basic $ 0.42 $ 0.41 $ 1.84 $ 1.44
Diluted 0.41 0.32 1.80 1.38
Net earnings per
share
Basic $ 0.42 $ 0.98 $ 1.84 $ 2.03
Diluted 0.41 0.87 1.80 1.95
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States dollars - Unaudited)
Three MonthsEnded Nine MonthsEnded
September30 September 30
2011 2010 2011 2010
Operating Activities
Net earnings from $ 336 $ 305 $ 1,476 $ 1,061
continuing operations
Adjustments for:
Reclamation expenditures (8) (3) (18) (13)
Gain on disposition of - - (320) -
securities
Gains on dispositions of - - - (407)
mining interests, net
Items not affecting cash
Depreciation and 163 149 505 408
depletion
Share of net losses of 6 3 12 3
associates
Share-based compensation 24 20 77 47
expense
Realized and unrealized 14 (53) (13) (29)
losses (gains) on
derivatives, net
Accretion of reclamation 3 4 10 11
and closure cost
obligations
Deferred income tax 153 33 143 (63)
expense (recovery)
Other (10) (1) (11) 27
Change in working capital 42 (39) (222) 38
Net cash provided by 723 418 1,639 1,083
operating activities of
continuing operations
Net cash provided by - 3 - 24
operating activities of
discontinued operations
Investing Activities
Acquisitions, net of cash - - - (797)
acquired
Expenditures on mining (466) (231) (1,217) (799)
interests
Deposits on mining (25) (12) (39) (37)
interests expenditures
Interest paid (8) (9) (17) (12)
Repayment of capital - - 64 192
investment in Pueblo Viejo
Proceeds from dispositions - - - 267
of mining interests, net
Income taxes paid on - - - (149)
disposition of Silver
Wheaton shares
Proceeds from sale of - - 519 -
securities, net
Purchase of securities and (124) (15) (154) (19)
other investments
Other (1) (1) (6) 2
Net cash used in investing (624) (268) (850) (1,352)
activities of continuing
operations
Net cash provided by (used
in) investing activities
of discontinued
operations - 153 (88) 132
Financing Activities
Debt borrowings - 40 - 770
Debt repayments - (40) - (770)
Common shares issued, net 75 8 470 69
of issue costs
Dividends paid to (82) (33) (239) (99)
shareholders
Other - (1) - (2)
Net cash (used in)
provided by financing
activities of
continuing operations (7) (26) 231 (32)
Net cash provided by - 1 - 49
financing activities of
discontinued operations
Effect of exchange rate 6 5 (12) 4
changes on cash and cash
equivalents
Increase (decrease) incash 98 286 920 (92)
and cash equivalents
Cash and cash equivalents, 1,378 497 556 875
beginning of period
Cash and cash equivalents - (51) - (51)
reclassified as held for
sale
Cash and cashequivalents, $ 1,476 $ 732 $ 1,476 $ 732
end of period
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(In millions of United States dollars - Unaudited)
At September 30 At December 31 At January 1
2011 2010 2010
Assets
Current
assets
Cash and cash $ 1,476 $ $ 875
equivalents 556
Accounts 386 444 279
receivable
Inventories
and 529 397 349
stockpiled
ore
Notes 65 64 -
receivable
Asset held - - 57
for sale
Other 318 115 95
2,774 1,576 1,655
Mining
interests
Owned by 23,906 23,499 16,731
subsidiaries
Investments 1,522 1,251 565
in associates
25,428 24,750 17,296
Goodwill 762 762 762
Investments in 213 924 388
securities
Note receivable 47 47 -
Deposits on
mining 28 6 87
interests
expenditures
Other 152 122 116
Total assets $ 29,404 $ 28,187 $ 20,304
Liabilities
Current
liabilities
Accounts
payable and $ 539 $ 561 $ 392
accrued
liabilities
Income taxes 66 224 184
payable
Derivative 87 97 11
liabilities
Other 35 28 49
727 910 636
Deferred income 6,035 5,978 3,897
taxes
Long-term debt 726 695 656
Derivative 330 328 303
liabilities
Provisions 319 354 298
Income taxes 126 102 48
payable
Other 67 54 40
Total 8,330 8,421 5,878
liabilities
Equity
Shareholders'
equity
Common
shares, stock
options and 16,963 16,407 13,463
restricted
share units
Investment
revaluation (25) 460 137
(deficit)
reserve
Retained 3,923 2,686 775
earnings
20,861 19,553 14,375
Non-controlling 213 213 51
interests
Total equity 21,074 19,766 14,426
Total
liabilities and $ 29,404 $ 28,187 $ 20,304
equity
Goldcorp Inc.
CONTACT: Jeff Wilhoit
Vice President, Investor Relations
(604) 696-3074
Fax: (604) 696-3001
Email: info@goldcorp.com
Website: www.goldcorp.com
