Toronto Stock Exchange: G New York Stock Exchange: GG
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(All Amounts in $US unless stated otherwise)
VANCOUVER, Feb. 24 /PRNewswire-FirstCall/ - GOLDCORP INC.
(TSX: G) (NYSE: GG) today reported fourth quarter gold production
of 689,600 ounces at a total cash cost(1) of $164 per ounce, leading to record operating cash
flows before working capital changes(2) of $646.1 million. Reported net earnings in the
quarter were $331.8 million compared
to $66.7 million in the fourth
quarter of 2009. Adjusted net earnings(3) were $417.1 million, or $0.57 per share, compared to $182.7 million, or $0.25 per share, in the fourth quarter of
2009.
Fourth Quarter 2010 Highlights
- Revenues increased 70% over the 2009 fourth quarter, to $1,319.4
million, on gold sales of 678,600 ounces.
- Total cash costs decreased to $164 per ounce on a by-product basis.
Co-product cash costs totalled $461 per ounce.
- Operating cash flows before working capital changes totalled $646.1
million or $0.87/share.
- Dividends paid amounted to $55.2 million.
Full-Year 2010 Highlights
- Revenues increased 40% over 2009, to $3.8 billion on gold sales of
2.4 million ounces.
- Total cash costs were $274 per ounce on a by-product basis and $443
per ounce on a co-product basis.
- Operating cash flows before working capital changes totalled $1.7
billion or $2.33/share.
- Dividends paid amounted to $154.4 million.
- Six transactions completed to upgrade quality of asset portfolio.
- Gold reserves increase 23% and 13% on a per share basis, the
Company's seventh consecutive annual increase.
"Goldcorp's record performance in 2010 reflects the consistent
ability of our mine portfolio to deliver growing production amid a
continued strong market for gold," said Chuck Jeannes, Goldcorp President and Chief
Executive Officer. "Another excellent performance from Red Lake in Ontario was the key component of our record
gold production while Penasquito's rapidly growing metals
production in Mexico anchored very
low cash costs of $274 per ounce for
the year and just $164 per ounce in
the fourth quarter. With gold production forecast to grow 60% over
the next five years at very low cash costs, Goldcorp is ideally
positioned to accelerate cash flow and earnings in 2011 and over
the next several years.
"Our strategy remains focused not only on growing gold
production, but also enhancing the overall quality of our gold
ounces, both in production and in the ground. To that end, we
completed six transactions in 2010 that have dramatically upgraded
the overall strength of our gold asset base. Among the
acquisitions, an updated feasibility study at Cerro Negro in
Argentina is analyzing a
throughput increase to 4,000 tonnes per day based on a recently
announced near-doubling of gold resources in 2010 and outstanding
potential for continued exploration success. The El Morro
gold-copper project in Chile adds
to Goldcorp's growing South American presence and fortifies our
production profile beyond 2015 while Camino Rojo in Mexico presents great potential for
substantial supplemental production in the Penasquito district. The
divestitures of non-core assets Escobal, San Dimas and our investment in Terrane Metals
have simplified our asset portfolio while adding over $1.2 billion in cash and marketable securities to
help internally fund our growth profile.
"With the components of our five-year growth profile in place,
our focus in 2011 will be on continued execution at producing mines
and advancing our suite of high quality gold projects. Construction
of the Pueblo Viejo project in the
Dominican Republic is progressing
toward completion ahead of a planned production ramp-up in 2012,
followed by initial production from Cerro Negro in 2013. We are
pleased to announce today updated production details for the
Cochenour and Éléonore projects
that demonstrate their growing potential as linchpins of our
Canadian gold production.
"We expect a strong precious metals market to remain in 2011 and
beyond, driven by central bank buying, growing physical demand in
developing economies around the globe and gold's continued
re-emergence as an essential asset class for investment portfolios.
Goldcorp's strong, low-cost gold production from safe
jurisdictions, combined with our investment grade balance sheet
positions the Company to thrive in any metals price environment and
continues to present a compelling value proposition for investors
seeking gold exposure."
Financial Review
Gold sales in the fourth quarter were 678,600 ounces on
production of 689,600 ounces. This compares to sales of 573,100
ounces on production of 601,300 ounces in the fourth quarter of
2009. Increased production was driven primarily by Red Lake, Musselwhite and record production at
both Marlin in Guatemala and Los
Filos in Mexico. Low cash costs at
Red Lake and higher by-product
credit sales from Penasquito, Marlin and Alumbrera contributed to
very low total cash costs of $164 per
ounce of gold on a by-product basis. On a co-product basis, cash
costs were $461 per ounce, an
increase of $39 per ounce due
primarily to new Penasquito concentrate production in the fourth
quarter of 2010, the inclusion of the export retention tax, and
higher YMAD net proceeds payments paid at Alumbrera.
Reported net earnings in the quarter were $331.8 million compared to $66.7 million in the fourth quarter of 2009.
Adjusted net earnings in the fourth quarter totaled $417.1 million, or $0.57 per share, compared to $182.7 million or $0.25 per share, in the fourth 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 the loss on the term silver sales contract but include the
impact of non-cash stock option expenses, which amounted to
approximately $19.6 million or
$0.03 per share for the quarter.
Operating cash flows before changes in working capital were a
record $646.1 million compared to
$307.7 million in last year's fourth
quarter. Gold margin was a record $1,214 per ounce of gold sold.
For the twelve months ended December 31,
2010, revenues increased by 40% to $3.8 billion. Total cash costs year to date were
$274 per ounce on a by-product basis
and $443 per ounce on a co-product
basis.
Net earnings in the twelve months ended December 31, 2010 were a record $1.6 billion or $2.14 per share, compared to net earnings of
$240.2 million or $0.33 per share in the same period in 2009.
Adjusted net earnings totaled $1.0
billion, or $1.37 per share,
compared to $588.2 million or
$0.80 per share, in 2009. Cash flow
from operations before changes in working capital increased 45% to
$1.7 billion from $1.2 billion in the twelve months ended
December 31, 2009.
Penasquito and Los Filos Set the Pace for Growing Production in
Mexico
Completing its first full quarter since declaring commercial
production in September, Penasquito continued to meet expectations
in key production metrics including concentrate grade and quality,
mining rates and mill throughput. Gold production totaled 53,900
ounces for the fourth quarter and 168,200 ounces for the year.
Silver production totaled 4,607,600 ounces for the fourth quarter
and 13,952,600 ounces for the year. Lead and zinc production for
the fourth quarter totaled 34.4 million pounds and 54.2 million
pounds, respectively. For the year lead and zinc production totaled
97.4 million pounds and 154.5 million pounds, respectively. Strong
by-product silver, lead and zinc credits contributed to by-product
cash costs during the quarter of negative $1,002 per ounce of gold. During the fourth
quarter, commissioning of the high pressure grinding roll (HPGR)
circuit continued and Penasquito remained on track to reach
designed milling capacity of 130,000 tonnes per day by the end of
the first quarter of 2011. As the mine ramps up to full design
capacity early 2011, full year gold production is expected to be
350,000 ounces.
Drilling of the mantos below and lateral to the planned pit
bottoms continued at Penasquito during the fourth quarter. High
grade intercepts in the second half of 2010 demonstrate substantial
opportunity to expand existing gold, silver, zinc and lead
resources below and outside of the pit shapes, supporting the
potential for a concurrent high-grade underground operation to
further supplement core Penasquito production.
At Los Filos, quarterly record gold production of 84,900 ounces
was 28% higher than in the third quarter of 2010 as higher grades,
tonnage and solution were achieved as the rainy season ended. Total
gold production for the year amounted to 306,100 ounces.
Construction of a fourth stage of the heap leach pad started during
the fourth quarter and is expected to be completed late in the
third quarter of 2011 resulting in increased gold production of
335,000 ounces for 2011.
The Largest Producer of Canadian Gold
Gold production at Red Lake was
187,000 ounces during the fourth quarter at total cash costs of
$313 per ounce. For 2010 gold
production totaled 703,300 ounces a 13% increase over 2009 a result
of a significant increase in tonnage mined, consistent with the
mine's strategy to fill the mills by utilizing lower grade areas
such as the sulfide zones. With a greater proportion of mined
material from the lower grade zone in 2011, gold production is
expected to total 665,000 ounces in 2011. The completion of the
interconnection drift between the Red
Lake and Campbell complexes and continued development of the
4199 exploration ramp during 2010 enabled accelerated exploration
drilling on the High Grade Zone. This development success led to a
net increase in gold reserves in the High Grade Zone of nearly
300,000 ounces and contributed to a strong overall gold reserve
increase at Red Lake.
At Porcupine in Ontario, gold
production during the fourth quarter totaled 67,900 ounces at a
total cash cost of $656 per ounce.
The Hoyle Pond Deep project continued to progress, which will
access recently-discovered zones of gold mineralization and enhance
operational flexibility and efficiencies throughout the Hoyle Pond
underground complex. Drilling focused on lateral and depth
extension of current mineralized zones, as well as testing for
additional mineralized areas. The TVZ deposit, encountered during
depth extension of the current mineralization, has been
successfully extended up-dip and remains open both up and down dip
and to the east. There are currently three surface diamond drills
testing the projection of this deposit to surface.
Driven by 12% higher throughput, Musselwhite in Ontario turned in record quarterly gold
production of 79,900 ounces. Surface exploration drilling in 2011
will target both the recently discovered Lynx and West Limb
targets, while underground drilling will focus on further defining
the Lynx and PQ Deeps resources at depth. Stronger grade in the PQ
Deeps and initial mining of the Lynx zone is expected to contribute
to increased production of 265,000 ounces during 2011.
Commitment to Sustainable Prosperity Continues in Guatemala
A record quarter was reported at Marlin in Guatemala for production of both gold and
silver and total cash costs. Gold production was 92,300 ounces at
total cash costs of negative $224 per
ounce, including silver production of 2,156,500 ounces. The
increase in production from the third quarter of 2010 was due to
41% and 45% higher gold and silver grades, respectively, and
additional tonnes processed as planned. Gold production at Marlin
in 2011 is expected to total approximately 400,000 ounces as the
final, higher grade portion of the open pit is mined.
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's responses to the IACHR expressly confirm that studies
conducted by the Ministry of Energy and Mines, the Ministry of
Health and Social Welfare, and the Ministry of Environment and
Natural Resources in Guatemala
demonstrate there is no evidence of pollution or ill effects to
public health or the environment as a result of operations at
Marlin. The Government of Guatemala also stated that an assessment by
the Ministry of Health and Social Welfare did not detect any
disease linked to alleged contamination. While the government's
administrative process is underway, the Company expects normal
operations at the Marlin mine to continue.
Project Pipeline Advances
Goldcorp today released results of updated economic studies for
its Canadian growth projects Cochenour near Red
Lake and Éléonore in Quebec. The release announcing the successful
progress can be found at www.goldcorp.com.
Construction of Pueblo Viejo in
the Dominican Republic continues
advancing with first production expected in the first quarter of
2012. In December, the Environmental Impact Assessment for the 240
kV power transmission line was approved allowing associated
construction activities to commence. Alternative temporary power
sources are being secured which will allow project commissioning in
the fourth quarter of 2011. Overall construction is nearly 50%
complete, approximately 75% of the capital has been committed and
all four autoclaves are on site and have been placed on their
foundations. Work continues toward achieving key milestones
including the connection of power to the site. Pre-production
capital estimate is now expected to be $3.3-$3.5 billion (100% basis) (Goldcorp share
$1.3 - $1.4 billion) a 10-15%
increase from the previous estimate largely due to higher labor,
power supply, freight and steel product related costs as well as
general inflation.
At the Cerro Negro project in Argentina, the recently announced successful
growth of the total gold resource to over 5 million ounces forms
the basis of an updated feasibility study to analyze an increase in
throughput to approximately 4,000 tonnes per day. The update,
expected to be completed at the end of the first quarter 2011, is
incorporating recent drilling success of the high grade Marianas
and San Marcos veins, which remain
open along strike. The Company is deploying ten exploration drill
rigs to further delineate and extend these large new vein zones and
test new vein targets in an effort to further expand overall gold
resources in 2011.
Exploration and development work continued at Camino Rojo and
Noche Buena, two advanced-stage
satellite exploration projects near Penasquito. At Camino Rojo,
exploration activities have commenced with drilling and airborne
geophysics now underway. At Noche
Buena, drilling will continue during 2011 with the objective
of adding further oxide resources and expanding the understanding
of the sulphide zones. A new scoping study will be updated during
2011 to incorporate the results of high-grade structure definition
drilling.
At the El Morro project, approval of the Environmental Impact
Assessment (EIA) is anticipated in the first quarter of 2011. Once
the EIA has been approved, condemnation drilling will commence,
focusing on selected areas of plant, mine waste, tailing and camp.
Subsequent exploration drilling will concentrate on in-fill
drilling and sampling for metallurgical and geo-technical data. A
further update to the feasibility study is expected in the third
quarter of 2011.
Corporate Responsibility, Safety & Health
During the fourth quarter both the Porcupine Mine and Red Lake
Gold Mines in Canada 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"), becoming Goldcorp's sixth and seventh mines
to be certified. All of the Company's nominated mines are now
compliant. Goldcorp is also pleased to announce the 2010 recipients
of Company's two highest awards for safety. Los Filos mine retains
the Best Overall Safety honor for the second consecutive year while
Musselwhite mine has been honored for Most Improved Safety
Performance.
This release should be read in conjunction with Goldcorp's 2010
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 February 25, 2011 at 10:00
a.m. (PDT) to discuss the fourth 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 March 28, 2011 by dialing 1-800-408-3053 or
1-416-695-5800 for calls outside Canada and the US. Pass code: 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) 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 44 of the
2010 annual MD&A for a reconciliation of total cash costs to reported
operating expenses.
(2) 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 $676.8 million and $1,787.3 million in the fourth quarter
and twelve months ended December 31, 2010, respectively.
(3) 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 45 of
the 2010 annual MD&A for a reconciliation of adjusted earnings to
reported net earnings.
(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.
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(in $ millions, except where noted) Q4'10
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Revenues per Financial Statements $1,319.4
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Treatment and refining charges on concentrate sales 31.3
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By-product silver and copper sales and other (415.5)
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Gold revenues 935.2
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Divided by ounces of gold sold 678,600
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Realized gold price per ounce 1,378
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Deduct total cash costs per ounce of gold sold(1) 164
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Margin per gold ounce $1,214
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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, 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. 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
December 31
2010 2009
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Gold produced (ounces) 689,600 601,300
Gold sold (ounces) 678,600 573,100
Copper produced (thousands of pounds) 27,700 32,400
Copper sold (thousands of pounds) 27,000 31,300
Silver produced (ounces) 6,764,100 2,605,900
Silver sold (ounces) 7,161,900 2,535,500
Average realized gold price (per ounce) $1,378 $1,107
Average London spot gold price (per ounce) $1,367 $1,100
Average realized copper price (per pound) $4.84 $3.69
Average London spot copper price (per pound) $3.92 $3.01
Average realized silver price (per ounce) $23.92 $10.84
Average London spot silver price (per ounce) $26.43 $17.57
Total cash costs - by-product (per gold ounce) $164 $289
Total cash costs - co-product (per gold ounce) $461 $422
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Three Months Ended
December 31
Production Data: 2010 2009
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Red Lake gold mines : Tonnes of ore milled 224,700 197,700
Average mill head grade
(grams per tonne) 26 27
Gold ounces produced 187,000 156,300
Total cash cost per ounce -
by-product $313 $317
Porcupine mine : Tonnes of ore milled 1,037,600 1,005,100
Average mill head grade
(grams per tonne) 2.10 2.40
Gold ounces produced 67,900 71,700
Total cash cost per ounce -
by-product $656 $509
Musselwhite mine : Tonnes of ore milled 405,700 337,000
Average mill head grade
(grams per tonne) 6.20 5.49
Gold ounces produced 79,900 56,300
Total cash cost per ounce -
by-product $572 $605
Los Filos mine : Tonnes of ore mined 7,304,200 6,747,300
Tonnes of waste removed 7,587,200 7,184,800
Tonnes of ore processed 7,403,500 6,839,100
Average grade processed
(grams per tonne) 0.70 0.69
Gold ounces produced 84,900 60,100
Total cash cost per ounce -
by-product $400 $444
El Sauzal mine : Tonnes of ore mined 645,200 592,600
Tonnes of waste removed 752,400 1,766,700
Tonnes of ore milled 527,500 507,000
Average mill head grade
(grams per tonne) 2.39 2.25
Gold ounces produced 38,500 34,200
Total cash cost per ounce -
by-product $303 $371
Marlin mine : Tonnes of ore milled 380,500 552,400
Average mill head grade
(grams per tonne) - gold 7.81 4.83
Average mill head grade
(grams per tonne) - silver 193 99
Gold ounces produced 92,300 78,600
Silver ounces produced 2,156,500 1,331,200
Total cash cost per ounce -
by-product ($224) $129
Total cash cost per ounce -
co-product $280 $336
Alumbrera mine(1) : Tonnes of ore mined 1,940,200 3,557,400
Tonnes of waste removed 5,270,500 5,199,900
Tonned of ore milled 3,479,900 3,556,600
Average mill head grade
(grams per tonne) - gold 0.50 0.43
Average mill head grade (%)
- copper 0.45% 0.48%
Gold ounces produced 42,200 34,600
Copper (thousands of pounds)
produced 27,700 32,400
Total cash cost per ounce -
by-product ($1,002) ($1,333)
Total cash cost per ounce -
co-product $673 $519
Marigold mine(2) : Tonnes of ore mined 1,805,100 2,051,800
Tonnes of waste removed 7,313,300 5,077,300
Tonnes of ore processed 1,805,100 2,051,800
Average grade processed
(grams per tonne) 0.66 0.84
Gold ounces produced 27,000 31,900
Total cash cost per ounce -
by-product $787 $482
Wharf mine : Tonnes of ore mined 815,800 815,900
Tonnes of ore processed 726,900 756,900
Average grade processed
(grams per tonne) 0.63 0.82
Gold ounces produced 16,000 16,400
Total cash cost per ounce -
by-product $788 $805
Penasquito mine : Tonnes of ore mined 12,360,800 -
Tonnes of waste removed 34,970,900 -
Tonnes of ore milled 7,635,600 -
Average mill head grade
(grams per tonne) - gold 0.30 -
Average mill head grade
(grams per tonne) - silver 26.14 -
Average mill head grade (%)
- lead 0.35% -
Average mill head grade (%)
- zinc 0.56% -
Gold ounces produced 53,900 -
Silver ounces produced 4,607,600 -
Lead (thousands of pounds)
produced 34,400 -
Zinc (thousands of pounds)
produced 54,200 -
Total cash cost per ounce -
by-product ($1,002) -
Total cash cost per ounce -
co-product $655 -
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(1) Goldcorp's interest - 37.5%
(2) Goldcorp's interest - 66.67%
Three Months Ended
December 31
Financial Data: 2010 2009
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Cash flow from operating activities (before changes
in non-cash working capital) $646.1 $308.6
Net earnings attributable to shareholders of
Goldcorp $331.8 $66.7
Earnings per share - basic $0.45 $0.09
Adjusted net earnings $417.1 $182.7
Weighted average number of shares outstanding
(000's) 736,620 733,079
CONSOLIDATED STATEMENTS OF EARNINGS
(United States dollars in millions, except for share and per share
amounts - Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
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2010 2009 2010 2009
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Revenues $ 1,319.4 $ 778.3 $ 3,799.8 $ 2,723.6
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Operating expenses (498.1) (321.8) (1,478.4) (1,187.3)
Depreciation and depletion (201.4) (141.4) (623.0) (526.2)
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Earnings from mine
operations 619.9 315.1 1,698.4 1,010.1
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Corporate administration(1) (54.9) (38.9) (177.1) (133.1)
Exploration (8.9) (9.1) (51.8) (31.8)
Write-down of mining
interests - (24.0) - (24.0)
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Earnings from operations 556.1 243.1 1,469.5 821.2
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Other income (expenses)
Interest and other
expenses (21.3) (13.6) (46.3) (19.2)
Interest expense and
finance fees (13.1) (22.0) (52.3) (59.0)
Share of losses of
equity investees (5.1) - (8.1) -
Gains (losses) on non-
hedge derivatives, net (60.8) (5.7) (61.8) 3.6
Gains on securities, net 0.8 44.6 0.5 50.2
Gains on dispositions of
mining interests - 20.1 780.5 20.1
Losses on foreign
exchange, net (219.6) (128.2) (355.4) (363.7)
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(319.1) (104.8) 257.1 (368.0)
-------------------------------------------------------------------------
Earnings from continuing
operations before taxes 237.0 138.3 1,726.6 453.2
Income and mining taxes (119.4) (70.6) (346.0) (209.1)
-------------------------------------------------------------------------
Earnings from continuing
operations 117.6 67.7 1,380.6 244.1
Earnings (loss) from
discontinued operation,
net of tax 210.1 (1.9) 185.5 (5.9)
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Net earnings $ 327.7 $ 65.8 $ 1,566.1 $ 238.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings from continuing
operations attributable
to:
Shareholders of
Goldcorp Inc. $ 117.6 $ 66.7 $ 1,380.5 $ 244.1
Non-controlling
interests - - 0.1 -
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$ 117.6 $ 66.7 $ 1,380.6 $ 244.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Shareholders of
Goldcorp Inc. $ 331.8 $ 66.7 $ 1,574.3 $ 240.2
Non-controlling
interests (4.1) (0.9) (8.2) (2.0)
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$ 327.7 $ 65.8 $ 1,566.1 $ 238.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Stock based compensation
expense (non-cash item)
included in corporate
administration $ 19.6 $ 10.5 $ 63.2 $ 45.1
Earnings from continuing
operations per share
Basic $ 0.16 $ 0.09 $ 1.88 $ 0.33
Diluted 0.16 0.09 1.87 0.33
Net earnings per share
Basic $ 0.45 $ 0.09 $ 2.14 $ 0.33
Diluted 0.44 0.09 2.13 0.33
Weighted-average number
of shares outstanding
(000's)
Basic 736,620 733,079 735,337 731,306
Diluted 740,123 737,318 738,236 734,564
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31
(United States dollars in millions - Unaudited)
2010 2009
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Assets
Cash and cash equivalents $ 556.2 $ 874.6
Marketable securities 39.9 24.9
Accounts receivable 443.8 278.8
Income and mining taxes receivable 36.9 38.4
Inventories and stockpiled ore 396.8 349.4
Notes receivable 64.1 -
Other 84.1 35.4
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Current assets 1,621.8 1,601.5
Mining interests 25,316.3 18,001.3
Deposits on mining interest expenditures 6.4 86.9
Goodwill 761.8 761.8
Stockpiled ore 82.3 93.6
Investments 930.6 390.3
Note receivable 47.5 -
Other 42.4 13.3
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$ 28,809.1 $ 20,948.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Accounts payable and accrued liabilities $ 586.5 $ 416.4
Income and mining taxes payable 217.8 182.6
Current debt - 16.7
Future income and mining taxes payable 174.6 107.9
Current derivative liabilities 55.1 11.4
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Current liabilities 1,034.0 735.0
Income and mining taxes payable 125.1 65.4
Long-term debt 747.1 719.0
Future income and mining taxes payable 6,082.0 3,575.2
Non-current derivative liability 95.4 -
Reclamation and closure cost obligations 276.2 282.0
Other 41.9 27.8
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8,401.7 5,404.4
-------------------------------------------------------------------------
Equity
Common shares, share purchase warrants,
stock options, restricted share units and
equity component of convertible senior notes 15,853.0 12,908.9
Retained earnings 3,779.3 2,345.5
Accumulated other comprehensive income 561.9 238.8
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4,341.2 2,584.3
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Shareholders' equity 20,194.2 15,493.2
Non-controlling interests 213.2 51.1
-------------------------------------------------------------------------
20,407.4 15,544.3
-------------------------------------------------------------------------
$ 28,809.1 $ 20,948.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States dollars in millions - Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------------------------------------------------------------
2010 2009 2010 2009
-------------------------------------------------------------------------
Operating Activities
Net earnings from
continuing operations $ 117.6 $ 67.7 $ 1,380.6 $ 244.1
Reclamation expenditures (2.4) (7.6) (15.6) (26.5)
Transaction costs on
convertible senior notes
expensed - (0.1) - 18.5
Gain on securities, net (0.8) (44.6) (0.5) (50.2)
Gains on dispositions of
mining interests - (20.1) (780.5) (20.1)
Current income tax expense
on disposition of San
Dimas Assets - - 145.6 -
Items not affecting cash
Depreciation and
depletion 201.4 141.4 623.0 526.2
Stock based compensation
expense 19.6 10.5 63.2 45.1
Write-down of mining
interests - 24.0 - 24.0
Accretion on Primero
promissory and
convertible notes
receivable (0.5) - (0.5) -
Accretion on convertible
senior notes 7.1 6.8 28.0 15.6
Share of losses of equity
investees 5.1 - 8.1 -
Unrealized loss on non-
hedge derivatives, net 61.0 6.1 68.0 3.3
Future income and mining
taxes 21.3 (0.6) (163.0) 57.4
Unrealized loss on foreign
exchange and other 216.7 125.1 362.0 346.9
Change in non-cash working
capital 30.7 59.3 68.9 90.8
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Cash provided by operating
activities of continuing
operations 676.8 367.9 1,787.3 1,275.1
-------------------------------------------------------------------------
Cash used in operating
activities of
discontinued operation (7.3) (1.4) (15.3) (4.9)
-------------------------------------------------------------------------
Investing Activities
Acquisitions, net of cash
acquired (522.2) - (1,317.5) -
Investment in common shares
of Tahoe (143.7) - (143.7) -
Repayment of capital
invested in Pueblo Viejo - - 192.0 -
Expenditures on mining
interests (368.6) (216.4) (1,186.3) (1,007.1)
Deposits on mining interest
expenditures (5.5) (101.7) (42.0) (341.4)
Proceeds on dispositions of
mining interests, net - 14.0 476.7 14.0
Income taxes paid on
disposition of San Dimas
Assets (12.4) - (57.9) -
Income taxes paid on
disposition of Silver
Wheaton shares - - (148.7) -
Purchases of securities (0.3) (26.2) (19.4) (181.9)
Proceeds from sales of
securities - 65.2 - 65.2
Other (1.5) (1.2) (2.0) 0.4
-------------------------------------------------------------------------
Cash used in investing
activities of continuing
operations (1,054.2) (266.3) (2,248.8) (1,450.8)
-------------------------------------------------------------------------
Cash provided by (used
in) investing activities
of discontinued
operation 242.6 (0.6) 170.0 (7.9)
-------------------------------------------------------------------------
Financing Activities
Debt borrowings 350.0 1.0 1,120.0 1,323.4
Debt repayments (350.0) - (1,120.0) (460.0)
Transaction costs on
convertible senior notes - 0.1 - (22.7)
Common shares issued, net 27.0 18.1 95.8 79.1
Dividends paid to common
shareholders (55.2) (33.0) (154.4) (131.7)
Other 0.3 - - -
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Cash provided by (used in)
financing activities of
continuing operations (27.9) (13.8) (58.6) 788.1
-------------------------------------------------------------------------
Cash provided by
financing activities of
discontinued operation 0.5 2.6 49.5 11.1
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents (6.3) 0.9 (2.5) 1.6
-------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents (175.8) 89.3 (318.4) 612.3
Cash and cash equivalents,
beginning of year 732.0 785.3 874.6 262.3
-------------------------------------------------------------------------
Cash and cash equivalents,
end of year $ 556.2 $ 874.6 $ 556.2 $ 874.6
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SOURCE Goldcorp Inc.
Copyright . 24 PR Newswire