Toronto Stock Exchange: G New York Stock Exchange: GG
-------------------------------------------------------------------------
(All Amounts in $US unless stated otherwise)
VANCOUVER, Oct. 27 /PRNewswire-FirstCall/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported third quarter gold production of
596,200 ounces and lower cash costs of production, leading to
record operating cash flows before working capital changes(1) of
$470.6 million. Reported net earnings
in the quarter were $466.5 million
compared to $114.2 million in the
third quarter of 2009. Adjusted net earnings(2) were $231.5 million, or $0.31 per share, compared to $140.6 million, or $0.19 per share, in the third quarter of
2009.
Quarter Highlights
- Revenues increased 28% over the 2009 third quarter, to
$885.8 million, on gold sales of 568,100 ounces.
- Total cash costs(3) for the quarter were $260 per ounce on a by-
product basis and $429 per ounce on a co-product basis.
- Operating cash flows before working capital changes totalled
$470.6 million.
- Commercial production declared at Penasquito; successful ramp-up
continues with mechanical completion of high pressure grinding roll
circuit.
- Andean Resources acquisition to add high quality gold production
growth.
- San Dimas and Terrane divestitures further focus portfolio and
enhance balance sheet.
- Dividends paid amounted to $33.2 million.
- Dividend increased 100% to $0.36 per share ($0.03 per month).
"Continued strong gold demand in the third quarter, along with
Goldcorp's lowest quarterly cash costs in over two years resulted
in record cash margins(4) of $979 per
ounce, generating significant growth in both cash flow and
earnings," said Chuck Jeannes,
Goldcorp President and Chief Executive Officer. "Our peer-leading
cash cost profile will remain supported over time by low-cost gold
production from cornerstone mines including Red Lake and Penasquito. Penasquito's ability
to contribute meaningfully to our third quarter earnings and record
cash flows in just its first month in commercial production is
indicative of its emerging position as a powerful driver of
financial performance. We have begun commissioning of the high
pressure grinding roll circuit, representing the completion of
Penasquito construction and the final component of designed 130,000
tonne throughput capacity, which we expect to reach early in
2011.
"Our focus on investing for the future resulted in third quarter
progress on a number of advanced stage gold projects. By the end of
2010, we expect to complete scoping or pre-feasibility studies for
the Éléonore project in Quebec,
Noche Buena near Penasquito and
Cochenour in Red Lake, as well as an updated feasibility
study for our El Morro copper-gold project in Chile. The expected December 2010 completion of the Andean Resources
acquisition will add Cerro Negro,
another large, high quality gold asset in Argentina. Our overall financial strength
continues to improve with accelerating cash flows and available
liquidity of approximately $2.2
billion comprised of cash and our undrawn credit facility.
With an additional $1.7 billion of
approximate current value in marketable securities and investments,
our strong financial position clearly provides the flexibility to
fund this exceptional growth profile without diluting our
shareholders. Our confidence in the Company's financial position
and ability to generate strong future cash flows led us to announce
a 100% increase in our dividend to $0.36 per share."
Outlook
The Company has reaffirmed 2010 production guidance of
approximately 2.55 million ounces of gold. Cost performance
Company-wide remains very strong, with total cash costs for the
year now expected at below previous guidance of approximately
$350 on a by-product basis and
$450 on a co-product basis.
Financial Review
Gold sales in the third quarter were 568,100 ounces on
production of 596,200 ounces. This compares to sales of 601,500
ounces on production of 621,100 ounces in the third quarter of
2009. Lower production reflected the impact of the third quarter
disposition of the San Dimas mine and decreased production at Los
Filos due to heavy rains. Continued excellent performance at
Red Lake largely offset lower than
planned production at Alumbrera and Marigold. Low cash costs at
Red Lake and higher by-product
credit sales from Penasquito contributed to very low total cash
costs of $260 per ounce of gold on a
by-product basis. On a co-product basis, cash costs were
$429 per ounce.
Reported net earnings in the quarter were $466.5 million compared to $114.2 million in the third quarter of 2009.
Adjusted net earnings in the third quarter totaled $231.5 million, or $0.31 per share, compared to $140.6 million or $0.19 per share, in the third quarter of 2009.
Adjusted net earnings primarily exclude the effect of a non-cash
foreign exchange loss on translation of future income tax
liabilities and the net gain on dispositions of mining interests,
and include the impact of non-cash stock option expenses, which
amounted to approximately $18.4
million or $0.02 per share for
the quarter. Operating cash flows before changes in working capital
were a record $470.6 million compared
to $322.1 million in last year's
third quarter. Gold margin was a record $979 per ounce of gold sold. In light of
confidence in the strength of future cash flows, the Company
announced today a 100% increase in the dividend to $0.36 per share payable to shareholders of record
as of November 12, 2010.
For the nine months ended September 30,
2010, revenues increased by 28% to $2,480.4 million. Total cash costs year to date
were $317 per ounce on a by-product
basis and $435 per ounce on a
co-product basis.
Reported net earnings of Goldcorp in the nine months ended
September 30, 2010 were $1,242.5 million or $1.69 per share, compared to net earnings of
$173.5 million or $0.24 per share in the same period in 2009.
Adjusted net earnings totaled $593.4
million, or $0.81 per share,
compared to $405.5 million or
$0.55 per share, in 2009. Cash flow
from operations before changes in working capital increased 22% to
$1,070.5 million from $875.7 million in the nine months ended
September 30, 2009.
Growth Profile Builds in Mexico
During the third quarter, commercial production was declared at
Penasquito effective as of September 1,
2010, with proceeds from concentrate sales and heap leach
production recognized as revenue as of that date. Gold production
volumes and operating expenses for the month of September were well
within expectations for the ramp-up period. Cash costs during the
month were negative $577 per ounce of
gold, a result of strong by-product silver, lead and zinc sales.
Penasquito also continued to meet or exceed expectations in key
production metrics including concentrate grade, quality, mining
rates and mill throughput for the third consecutive quarter. Gold
production totaled 44,500 ounces, remaining on track toward
previously issued 2010 guidance of 180,000 ounces. Silver
production totaled 4,068,000 ounces. Lead and zinc production
totaled 29.0 million pounds and 48.3 million pounds respectively in
the third quarter.
Mechanical completion of the high pressure grinding roll (HPGR)
circuit was achieved on October 19th
and commissioning of the circuit is underway. Following a ramp-up
period, Penasquito is expected to reach its full processing
capacity of 130,000 tonnes per day in early 2011.
Deep drilling at Penasquito has recently intersected a new
sulphide manto deposit on the east side of the Penasco pit that demonstrates similar
characteristics to existing high grade manto resources on the west
side of the pit. The results continue to support the potential for
a future underground operation with an opportunity to further
supplement core Penasquito production.
At Los Filos in Guerrero state,
third quarter gold production was 19% lower than the second quarter
of 2010 due primarily to heavy seasonal rainfall which diluted the
leaching process. Fourth quarter production is expected to recover
the majority of the ounces in solution not processed in the third
quarter. The 2010 exploration program continued to progress with
successful results in relation to the extension of the El Bermejal
pit to the north and the continuity of the Los Filos ore body
towards the 4P area.
The Largest Producer of Canadian Gold
Gold production at Red Lake was
176,100 ounces at a total cash cost of $268 per ounce. Higher tonnage and lower grades
were consistent with the 2010 mine plan which includes mining of
additional material in the lower grade sulphide zones to utilize
the spare mill capacity. Recent investments in development
infrastructure at Red Lake
continued to yield positive results. Drilling continued in the
lower High Grade zone from both the 4499 exploration ramp and the
connection drift between the Campbell and Red Lake complexes, with the goal of extending
reserves in the High Grade zone to the 52 Level by year-end.
Drilling as high as the 32 level of the High Grade zone is
extending gold mineralization in lateral hanging wall
structures.
At Porcupine, gold production during the third quarter was
68,900 ounces at a total cash cost of $526 per ounce. Work continued on lateral
development underground, surface infrastructure upgrades and
procurement of key equipment for the Hoyle Pond Deep project. The
project is being advanced in order to access newly-discovered zones
of gold mineralization and to enhance operational flexibility and
efficiencies throughout the Hoyle Pond underground complex. A key
component of the project is construction of a new 5.5 meter
diameter deep winze (shaft) commencing on the 355 meter level and
extending to a depth of 2,200 meters below surface. The planned
capital investments of approximately $150
million will be incurred over the next four years. Shaft
sinking below the 440-meter level will commence mid-2011 with first
production expected in late 2014. Exploration during the third
quarter focused on the Hoyle Pond underground mine. Drilling
focused on lateral and depth extension of current mineralization
zones, as well as expansion of the recently discovered zones.
Also in Ontario, gold
production at Musselwhite was 58,100 ounces. Successful exploration
drilling has resulted in the discovery of a new ore body, the Lynx
zone, located above the PQ Deeps structure. This new zone has the
potential to significantly contribute to 2010 reserves and enhance
long term production. Drilling during the fourth quarter of 2010
will focus on further defining the Lynx zone and extending the PQ
Deeps and T-Antiform North mineralization. With significantly
enhanced production prospects at Musselwhite, engineering is
underway on a new shaft and development to accommodate higher
production rates.
Commitment to Sustainable Prosperity Continues in Guatemala
At Marlin in Guatemala, gold
production was 63,400 ounces at a total cash cost of $52 per ounce. Silver production was 1,410,700
ounces, driven by all-time high silver recoveries of 91%. Higher
grades and lower tonnage were consistent with the modified mine
plan.
Operations at Marlin continue normally while the administrative
process by the Guatemalan government is underway. The process is in
response to precautionary measures issued by the Inter-American
Commission on Human Rights (IACHR) which included a recommendation
to suspend operations at Marlin. Goldcorp strongly believes the
IACHR's action is based on environmental allegations that are
demonstrably without merit. On October
25, the IACHR held a public audience at which
representatives of the Municipality of Sipacapa and the government
of Guatemala appeared. The
government provided an update on its implementation of the
precautionary measures. Following the public audience, the IACHR
held a meeting at which Goldcorp and Montana Exploradora had their
first opportunity to present information related to the petition to
the IACHR. Goldcorp and Montana Exploradora will submit additional
information to the IACHR in response to the Commissioners'
requests.
Human Rights Assessment Update
In 2008, Goldcorp, working with a group of socially responsible
shareholders, initiated an independent Human Rights Assessment
(HRA) process to gauge the effects that Marlin mine has had on
human rights, and whether the Company has in place and is
implementing effective policies and procedures to mitigate the
risks of potential conflicts with international human rights
standards. On October 18, Goldcorp
provided the first in a series of regular updates to its initial
responses describing the progress, challenges, and future
expectations as the Company implements the recommendations
presented in the HRA. Goldcorp invites the constructive
participation of all its shareholders and other stakeholders in
this transparent and collaborative process. To access the full
update, Please visit
http://www.goldcorp.com/operations/marlin/hria/ and click on
"Goldcorp's First Update to the Marlin Mine Human Rights Assessment
Report".
Project Pipeline Advances
Construction of Pueblo Viejo in
the Dominican Republic remains on
schedule for first production in Q4 2011 although timing delays
principally associated with the issuance of certain approvals
related to power supply may result in first production occurring in
the first quarter of 2012. At the end of the third quarter, overall
construction was nearly 40% complete, approximately 75% of the
capital has been committed, engineering and procurement by major
EPCM contractors was about 95% complete and approximately 65% of
the concrete has been poured. During the third quarter of 2010,
major equipment was installed and two of the four autoclaves have
been placed on their footings. Work continues toward achieving key
milestones including the connection of power to the site, which is
necessary to commence commissioning activities in the fourth
quarter of 2011.
Exploration and development work continued at Noche Buena and Camino Rojo, two advanced
stage satellite exploration projects near Penasquito. At
Noche Buena, the scoping study
advanced with completion of drilling in August 2010, initiation of column leach
metallurgical tests, completion of an environmental base-line
study, and advancement of new estimates of oxide and sulphide
resources. At Camino Rojo negotiations with local communities for
surface rights and exploration continued and remain positive.
At Cochenour near Red Lake construction progressed to an overall
completion level of 16% on the 5-kilometer high speed haulage drift
that will connect the Cochenour
shaft with the Red Lake mine.
Exploration drilling continued during the third quarter, with
drilling from the old underground workings at the 2050' Level. A
scoping study is on track to be completed by year-end, which will
include details on grade, initial capital costs, mining rates and
operating costs.
At Éléonore in Quebec, work
progressed on updating the pre-feasibility study, which will
include production rates reflective of the larger 2010 gold
resource. Project permitting activities progressed and a project
construction permit is expected to be in place at the end of the
second quarter of 2011 as planned. During the third quarter of
2010, another milestone was reached with the delivery of grid power
to the site, significantly reducing power costs. A surface
exploration program was undertaken in the third quarter of 2010
with the objective of identifying new drill targets on the Éléonore
concession outside of the main Roberto ore body.
At El Morro, in Chile approval
of the Environmental Impact Assessment (EIA) necessary for the
project permitting to proceed is anticipated for approval in late
2010. An update to the feasibility study at El Morro in
Chile remains on track for
completion by year-end.
Corporate Responsibility, Safety & Health
Goldcorp is pleased to announce that Los Filos Underground Mine
has won the Mexican Mining Chamber Safety Award for achieving the
best safety record in 2009. During the third quarter the Los Filos
mine in Mexico became fully
certified under the International Cyanide Management Code for the
Manufacture, Transport and Use of Cyanide in the Production of Gold
("the Cyanide Code"). Los Filos is Goldcorp's fifth gold mine to
receive full certification. On October
20, Porcupine mine in Ontario became Goldcorp's sixth mine to be
fully certified under the Cyanide Code.
This release should be read in conjunction with Goldcorp's third
quarter 2010 unaudited financial statements and MD&A report on
the Company's website, www.goldcorp.com, in the "Investors" section
under "Financials".
A conference call will be held on October
28, 2010 at 10:00 a.m. (PDT)
to discuss the first quarter results. Participants may join the
call by dialing toll free 1-866-223-7781 or 1-416-340-8018 for
calls from outside Canada and the
US. A recorded playback of the call can be accessed after the event
until November 28, 2010 by dialing
1-800-408-3053 or 1-416-695-5800 for calls outside Canada and the US. Passcode: 3536617. A live
and archived audio webcast will 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) Operating cash flow 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 $408.6 million and $1,109.7 million in the third quarter and
nine months ended September 30, 2010, respectively.
(2) 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 2010 third quarter MD&A for a reconciliation of adjusted earnings
to reported net earnings.
(3) 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 39 of the
2010 third quarter MD&A for a reconciliation of total cash costs to
reported operating expenses.
(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) Q3'10
-------------------------------------------------------------------------
Revenues per Financial Statements $885.8
-------------------------------------------------------------------------
Treatment and refining charges on concentrate sales 12.0
-------------------------------------------------------------------------
By-product silver and copper sales and other (194.6)
-------------------------------------------------------------------------
Gold revenues $703.2
-------------------------------------------------------------------------
Divided by ounces of gold sold 568,100
-------------------------------------------------------------------------
Realized gold price per ounce $1,239
-------------------------------------------------------------------------
Deduct total cash costs per ounce of gold sold(2) (260)
-------------------------------------------------------------------------
Margin per gold ounce $979
-------------------------------------------------------------------------
-----------
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. 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
the negative connotation thereof 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. All forward-looking
statements are developed based on assumptions about such risks,
uncertainties and other factors set at herein. 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, 2009 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. The
forward-looking statements contained in this press release are made
as of the date of this press release 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 Goldcorp's 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.
FINANCIAL STATEMENTS TO FOLLOW
SUMMARIZED FINANCIAL RESULTS
(in millions of United States dollars, except
per share and per ounce amounts)
Three Months Ended
September 30(1)
2010 2009
-------------------------------------------------------------------------
Revenues $885.8 $691.9
Gold produced (ounces) 596,200 621,100
Gold sold (ounces) 568,100 601,500
Copper produced (thousands of pounds) 25,000 22,700
Copper sold (thousands of pounds) 23,100 24,300
Silver produced (ounces) 5,908,600 2,975,000
Silver sold (ounces) 3,220,400 2,386,900
Lead produced (thousands of pounds) 29,000 -
Lead sold (thousands of pounds) 10,700 -
Zinc produced (thousands of pounds) 48,300 -
Zinc sold (thousands of pounds) 13,200 -
Average realized gold price (per ounce) $1,239 $968
Average London spot gold price (per ounce) $1,227 $960
Average realized copper price (per pound) $4.38 $3.63
Average London spot copper price (per pound) $3.29 $2.65
Average realized silver price (per ounce) $19.15 $9.30
Average London spot silver price (per ounce) $18.97 $14.69
Average realized lead price (per ounce) $1.07 -
Average London spot lead price (per ounce) $0.91 -
Average realized zinc price (per ounce) $1.05 -
Average London spot zinc price (per ounce) $0.92 -
Total cash costs - by-product (per gold ounce) $260 $295
Total cash costs - co-product (per gold ounce) $429 $384
-------------------------------------------------------------------------
Production Data:
Red Lake gold mines : Tonnes of ore milled 218,500 194,400
Average mill head grade
(grams per tonne) 26 30
Gold ounces produced 176,100 178,800
Total cash cost per ounce -
by-product $268 $255
Porcupine mines : Tonnes of ore milled 1,043,500 1,013,900
Average mill head grade
(grams per tonne) 2.31 2.90
Gold ounces produced 68,900 90,600
Total cash cost per ounce -
by-product $526 $406
Musselwhite mine : Tonnes of ore milled 348,700 291,800
Average mill head grade
(grams per tonne) 5.64 5.51
Gold ounces produced 58,100 49,800
Total cash cost per ounce -
by-product $632 $737
(1) Penasquito information included is for the 1 month ended
September 30, 2010.
Penasquito :(1) Tonnes of ore mined 2,417,600 -
Tonnes of waste removed 11,934,000 -
Tonnes of ore milled 2,214,200 -
Average head grade (grams
per tonne) - gold 0.29 -
Average head grade (grams
per tonne) - silver 28.7 -
Average head grade (%) -
lead 0.40 -
Average head grade (%) -
zinc 0.70 -
Gold ounces produced 17,300 -
Silver ounces produced 1,530,500 -
Lead (thousands of pounds)
produced 11,300 -
Zinc (thousands of pounds)
produced 18,800 -
Total cash cost per ounce -
by-product ($577) -
Total cash cost per ounce -
co-product $499 -
Los Filos mine : Tonnes of ore mined 6,734,700 6,040,000
Tonnes of waste removed 6,837,300 7,062,000
Tonnes of ore processed 6,846,700 6,135,200
Average grade processed
(grams per tonne) 0.67 0.63
Gold ounces produced 66,500 60,200
Total cash cost per ounce -
by-product $438 $455
El Sauzal mine : Tonnes of ore mined 584,700 586,400
Tonnes of waste removed 842,600 1,110,100
Tonnes of ore milled 523,500 530,600
Average mill head grade
(grams per tonne) 2.55 2.86
Gold ounces produced 40,600 45,500
Total cash cost per ounce -
by-product $258 $220
Marlin mine : Tonnes of ore milled 373,900 536,300
Average mill head grade
(grams per tonne) - gold 5.52 4.29
Average mill head grade
(grams per tonne) - silver 133 92
Gold ounces produced 63,400 68,800
Silver ounces produced 1,410,700 1,083,200
Total cash cost per ounce -
by-product $52 $185
Total cash cost per ounce -
co-product $367 $347
Alumbrera mine :(2) Tonnes of ore mined 2,244,100 2,301,800
Tonnes of waste removed 5,587,800 5,491,700
Tonned of ore milled 3,493,800 3,424,100
Average mill head grade
(grams per tonne) - gold 0.42 0.39
Average mill head grade (%)
- copper 0.40% 0.38%
Gold ounces produced 34,100 29,500
Copper (thousands of pounds)
produced 25,000 22,700
Total cash cost per ounce -
by-product ($896) ($823)
Total cash cost per ounce -
co-product $651 $475
(1) Penasquito information included is for the 1 month ended
September 30, 2010.
(2) Goldcorp's interest - 37.5%
Marigold mine :(2) Tonnes of ore mined 1,736,300 2,624,200
Tonnes of waste removed 6,678,800 4,261,400
Tonnes of ore processed 1,736,300 2,624,200
Average grade processed
(grams per tonne) 0.55 0.64
Gold ounces produced 16,800 29,900
Total cash cost per ounce -
by-product $817 $542
Wharf mine : Tonnes of ore mined 991,700 681,900
Tonnes of ore processed 876,500 804,500
Average grade processed
(grams per tonne) 0.62 0.87
Gold ounces produced 19,600 17,300
Total cash cost per ounce -
by-product $679 $665
-------------------------------------------------------------------------
Financial Data:
Cash provided by operating activities of continuing
operations $408.6 $343.1
Earnings from continuing operations attributable to
shareholders of Goldcorp Inc. $484.0 $115.3
Net earnings attributable to shareholders of Goldcorp
Inc. $466.5 $114.2
Earnings from continuing operations per share - basic $0.66 $0.16
Net earnings (loss) per share - basic $0.63 $0.16
Adjusted net earnings per share - basic $0.31 $0.19
Weighted average number of shares outstanding
(000's) 736,136 731,815
-------------------------------------------------------------------------
(1) Penasquito information included is for the 1 month ended
September 30, 2010.
(2) Goldcorp's interest - 66.67%
CONSOLIDATED STATEMENT OF EARNINGS
(United States dollars in millions, except for share and per share
amounts - Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2010 2009 2010 2009
-------------------------------------------------------------------------
Revenues $ 885.8 $ 691.9 $ 2,480.4 $ 1,945.3
-------------------------------------------------------------------------
Operating expenses (335.0) (303.4) (980.3) (865.5)
Depreciation and depletion (152.5) (130.7) (421.6) (384.8)
-------------------------------------------------------------------------
Earnings from mine
operations 398.3 257.8 1,078.5 695.0
-------------------------------------------------------------------------
Corporate administration(1) (42.1) (30.4) (122.2) (94.2)
Exploration (14.0) (8.5) (42.9) (22.7)
-------------------------------------------------------------------------
Earnings from operations 342.2 218.9 913.4 578.1
-------------------------------------------------------------------------
Other income (expenses)
Interest income and
other expenses, net (7.2) (0.6) (25.0) (5.6)
Interest expense and
finance fees (15.5) (12.5) (39.2) (37.0)
Share of loss of equity
investee (3.0) - (3.0) -
Gain (loss) on non-hedge
derivatives, net (17.6) (0.4) (1.0) 9.3
Gain (loss) on
securities, net 0.2 5.2 (0.3) 5.6
Gain on dispositions of
mining interests, net 373.2 - 780.5 -
Loss on foreign exchange,
net (119.2) (27.6) (135.8) (235.5)
-------------------------------------------------------------------------
210.9 (35.9) 576.2 (263.2)
-------------------------------------------------------------------------
Earnings from continuing
operations before taxes 553.1 183.0 1,489.6 314.9
Income and mining taxes (69.1) (67.7) (226.6) (138.5)
-------------------------------------------------------------------------
Earnings from continuing
operations 484.0 115.3 1,263.0 176.4
Loss from discontinued
operation, net of tax (19.6) (1.7) (24.6) (4.0)
-------------------------------------------------------------------------
Net earnings $ 464.4 $ 113.6 $ 1,238.4 $ 172.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings from continuing
operations attributable
to:
Shareholders of Goldcorp
Inc. 484.0 115.3 1,263.0 176.4
Non-controlling
interests - - - -
-------------------------------------------------------------------------
$ 484.0 $ 115.3 $ 1,263.0 $ 176.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings attributable
to:
Shareholders of Goldcorp
Inc. 466.5 114.2 1,242.5 173.5
Non-controlling
interests (2.1) (0.6) (4.1) (1.1)
-------------------------------------------------------------------------
$ 464.4 $ 113.6 $ 1,238.4 $ 172.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Stock based compensation
expense (non-cash item)
included in corporate
administration $ 18.4 $ 12.7 $ 43.6 $ 34.6
Earnings from continuing
operations per share
Basic $ 0.66 $ 0.16 $ 1.72 $ 0.24
Diluted $ 0.65 $ 0.16 $ 1.71 $ 0.24
Net earnings per share
Basic $ 0.63 $ 0.16 $ 1.69 $ 0.24
Diluted $ 0.63 $ 0.16 $ 1.68 $ 0.24
Weighted average number
of shares outstanding
(000's)
Basic 736,136 731,815 734,905 730,709
Diluted 757,422 735,808 755,982 734,066
CONSOLIDATED BALANCE SHEETS
(United States dollars in millions - Unaudited)
September 30 December 31
2010 2009
-------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 732.0 $ 874.6
Marketable securities 29.2 24.9
Accounts receivable 337.6 232.6
Income and mining taxes receivable 7.2 38.4
Future income and mining taxes 1.1 3.6
Inventories and stockpiled ore 395.6 349.4
Current derivative assets 12.8 8.1
Assets held for sale 288.2 -
Other 88.5 69.9
-------------------------------------------------------------------------
Current assets 1,892.2 1,601.5
Mining interests 19,876.2 18,001.3
Deposits on mining interest expenditures 7.4 86.9
Goodwill 761.8 761.8
Stockpiled ore 86.3 93.6
Investments 672.6 390.3
Other 82.5 13.3
-------------------------------------------------------------------------
$ 23,379.0 $ 20,948.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Accounts payable and accrued liabilities $ 420.9 $ 416.4
Income and mining taxes payable 193.0 182.6
Current debt - 16.7
Future income and mining taxes 100.1 107.9
Current derivative liabilities 26.3 11.4
Liabilities held for sale 68.6 -
-------------------------------------------------------------------------
Current liabilities 808.9 735.0
Income and mining taxes payable 113.9 65.4
Long term debt 739.8 719.0
Future income and mining taxes 4,014.7 3,575.2
Non-current derivative liabilities 73.0 -
Reclamation and closure cost obligations 285.3 282.0
Other 36.5 27.8
-------------------------------------------------------------------------
6,072.1 5,404.4
-------------------------------------------------------------------------
Equity
Common shares, share purchase warrants, stock
options, restricted share units and equity
portion of convertible senior notes 13,021.7 12,908.9
Retained earnings 3,504.7 2,345.5
Accumulated other comprehensive income 462.6 238.8
-------------------------------------------------------------------------
3,967.3 2,584.3
-------------------------------------------------------------------------
Shareholders' equity 16,989.0 15,493.2
Non-controlling interests 317.9 51.1
-------------------------------------------------------------------------
17,306.9 15,544.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 23,379.0 $ 20,948.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States dollars in millions - Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2010 2009 2010 2009
-------------------------------------------------------------------------
Operating Activities
Net earnings from
continuing operations $ 484.0 $ 115.3 $ 1,263.0 $ 176.4
Reclamation expenditures (2.6) (8.2) (13.2) (18.9)
Transaction costs on
convertible senior notes
expensed - - - 18.6
Share of loss of equity
investee 3.0 - 3.0 -
Loss (gain) on securities,
net (0.2) (5.2) 0.3 (5.6)
Gain on dispositions of
mining interests, net (373.2) - (780.5) -
Current income tax expense
on disposition of the San
Dimas Assets 145.6 - 145.6 -
Items not affecting cash
Depreciation and
depletion 152.5 130.7 421.6 384.8
Stock based compensation
expense 18.4 12.7 43.6 34.6
Accretion on convertible
senior notes 7.3 6.8 20.9 8.8
Unrealized loss (gain)
on non-hedge
derivatives, net 21.8 4.0 7.0 (2.8)
Future income and mining
taxes (105.8) 48.3 (184.3) 58.0
Unrealized loss on
foreign exchange and
other 119.8 17.7 143.5 221.8
Change in non-cash working
capital (62.0) 21.0 39.2 31.5
-------------------------------------------------------------------------
Cash provided by operating
activities of continuing
operations 408.6 343.1 1,109.7 907.2
-------------------------------------------------------------------------
Cash used in operating
activities of
discontinued operation (3.2) (1.2) (8.0) (3.5)
-------------------------------------------------------------------------
Investing Activities
Acquisitions, net of cash
acquired - - (795.3) -
Expenditures on mining
interests (226.2) (276.9) (817.7) (790.7)
Deposits on mining
interest expenditures (11.9) (54.1) (36.5) (239.7)
Repayment of capital
invested in Pueblo Viejo - - 192.0 -
Proceeds on disposition of
mining interests 209.7 - 476.7 -
Income taxes paid on
disposition of the San
Dimas Assets (45.5) - (45.5) -
Income taxes paid on
disposition of Silver
Wheaton shares - - (148.7) -
Purchase of equity
securities (15.1) (88.0) (19.1) (155.7)
Other (1.4) - 0.3 1.6
-------------------------------------------------------------------------
Cash used in investing
activities of
continuing operations (90.4) (419.0) (1,193.8) (1,184.5)
-------------------------------------------------------------------------
Cash used in investing
activities of
discontinued operation (9.7) (0.9) (21.2) (7.3)
-------------------------------------------------------------------------
Financing Activities
Debt borrowings - - - 1,322.4
Debt repayments - - - (460.0)
Transaction costs on
convertible senior notes - - - (22.8)
Common shares issued, net 8.3 28.8 68.8 61.0
Dividends paid to common
shareholders (33.2) (32.9) (99.2) (98.7)
Other 0.1 - (0.3) -
-------------------------------------------------------------------------
Cash provided by (used in)
financing activities of
continuing operations (24.8) (4.1) (30.7) 801.9
-------------------------------------------------------------------------
Cash provided by
financing activities of
discontinued operation 0.8 1.8 49.0 8.5
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents 4.9 (0.4) 3.8 0.7
-------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents 286.2 (80.7) (91.2) 523.0
Cash and cash equivalents,
beginning of period 497.2 866.0 874.6 262.3
Cash and cash equivalents
reclassified to assets
held for sale (51.4) - (51.4) -
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 732.0 $ 785.3 $ 732.0 $ 785.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SOURCE Goldcorp Inc.
Copyright . 27 PR Newswire