(All Amounts in $US unless stated otherwise)
Toronto Stock Exchange:
G
New York Stock Exchange: GG
VANCOUVER, Oct. 25,
2012 /PRNewswire/ - GOLDCORP INC. (TSX: G) (NYSE:
GG) today reported record quarterly revenues of $1.5 billion, generating adjusted net
earnings1 of $441
million, or $0.54 per share,
compared to $450 million, or
$0.56 per share, in the third quarter
of 2011. Reported net earnings were $498 million compared to $336 million in the
third quarter of 2011. Operating cash flow before working
capital changes2 was $687
million.
Third Quarter 2012 Highlights
- Gold production totaled 592,500 ounces, with gold sales of
617,800 ounces.
- Cash costs3 totaled $220 per ounce on a by-product basis and
$660 per ounce on a co-product
basis.
- Operating cash flow before working capital changes totaled $687
million or $0.85 per share.
- Adjusted net earnings were $441
million, or $0.54 per
share.
- Dividends paid amounted to $109 million.
- Quarter-end cash balance of $894
million; net cash position of $32
million4.
- First gold poured at Pueblo Viejo.
- Added to the Dow Jones Sustainability Index North America.
"Operating improvements at Red Lake and
Peñasquito contributed to strong financial results in the third
quarter," said Chuck Jeannes, Goldcorp President and Chief
Executive Officer. "Our priority is on continuing work to maximize
the strong potential at our two largest operations. At
Red Lake, access to several stopes in the High Grade Zone following
the completion of de-stressing work is leading to stronger gold
production in the second half of the year while an important new
discovery adjacent to the High Grade Zone supports the potential
for greater future production flexibility at this prolific
mine. At Peñasquito, water availability remains sufficient to
achieve 2012 guidance, and a study is underway to develop a
long-term water strategy to meet the needs of both Peñasquito and
emerging development opportunities in the Peñasquito district.
"Goldcorp's pipeline of high quality gold
projects comprises the leading growth profile in the sector, and we
are pleased that the first of those new growth projects, Pueblo
Viejo in the Dominican Republic, achieved first gold production
during the third quarter. In Argentina, the Cerro Negro
project is advancing steadily towards first gold production in late
2013. All major mechanical equipment to be imported is now at
the site or in-country, and development of the first three veins is
progressing well. At the Éléonore project in Quebec a
milestone was reached with the completion of the Gaumond
exploration shaft excavation, and at Cochenour in Red Lake, a new
study including an updated development plan will be completed
during the fourth quarter. Both Éléonore and Cochenour remain on
track for first gold production in late 2014. The low capital
cost per ounce of new gold production for these four new projects
creates the opportunity for very strong financial returns for our
shareholders."
Financial Review
Gold sales in the third quarter were 617,800
ounces on production of 592,500 ounces. This compares to
sales of 571,500 ounces on production of 592,100 ounces in the
third quarter of 2011. Silver production totaled 8.5 million ounces
compared to silver production of 6.5 million ounces in the prior
year's third quarter. Total cash costs were $220 per ounce of gold on a by-product basis and
$660 per ounce on a co-product
basis.
Net earnings in the quarter were $498 million compared to $336 million in the third quarter of 2011.
Adjusted net earnings in the third quarter totaled $441 million, or $0.54 per share, compared to $450 million or $0.56 per share, in the third quarter of
2011. Adjusted net earnings in the third quarter of 2012
primarily exclude the gains from the foreign exchange translation
of deferred income tax liabilities, mark-to-market loss on the
conversion feature of convertible senior notes, and the reversal of
impairment charges related to certain of its investments in
associates, but include the impact of non-cash stock-based
compensation expenses which amounted to approximately $22 million or $0.03 per share for the quarter. Operating
cash flow before changes in working capital was $687 million compared to $681 million in last
year's third quarter. The average realized gold price for the
quarter was $1,685 per ounce of gold
sold.
Mexico
Gold and silver production at the Peñasquito
mine in the third quarter totaled 126,000 ounces and 7.0 million
ounces respectively, driven by strong grades in the deeper portions
of the current pit phase. Lead production was 39.4 million
pounds and zinc production was 98.4 million pounds. Strong
by-product metals production contributed to a total cash cost of
negative $608 per ounce of gold on a
by-product basis.
Record production of gold and other metals at
Peñasquito in the third quarter was achieved despite the continued
impact of water shortages that affected mill throughput. Work
continues on the drilling of additional water wells in the pit
dewatering area as well as the Cedros basin well field. A
water and tailings study to address potential longer-term water
constraints and optimize tailings operations is underway and
expected to be completed in the first half of 2013. Water
availability is expected to be sufficient to achieve guidance of
between 370,000 and 390,000 ounces for 2012.
Gold production at Los Filos in the third
quarter was 79,700 ounces at a total cash cost of $575 per ounce. The 2012 exploration
program has continued to follow up on 2011 success through
exploring the Los Filos pit towards the 4P south area, and the El
Bermejal pit towards the northwest.
Canada
At Red Lake in Ontario, gold production for the
third quarter was 121,200 ounces at a total cash cost of
$535 per ounce. The increase in
production was driven by the completion of de-stressing work on the
45 level in September which, combined with the completion of the 41
level in the second quarter, increased the available number of mine
headings in the High Grade Zone. Mineralization in the
Footwall Zone was as expected. The completion of the 2012
de-stress program provides increased production flexibility for the
remainder of the year and gold production remains on track for
guidance of between 460,000 and 510,000 ounces.
During the third quarter, drilling continued
from the 4199 exploration ramp. New results continue to
confirm the extension of the High Grade Zone at depth, as well as
the existence of additional high grade intercepts down to the 57
level. A new zone known as NXT has been discovered above the 52
level and west of the High Grade Zone. Additional drilling
continues to test and extend the zone between the 47 and 52 levels,
extending the structure up-dip and along strike. An
exploration drift has been collared on the 47 level to provide
closer drill access to develop this new structure.
At Porcupine in Ontario, gold production in the
third quarter decreased to 53,100 ounces at a total cash cost of
$929 per ounce, impacted by mine
sequencing resulting in lower grades in the VAZ Zone. The
Hoyle Pond Deep project continued to advance to access both depth
extensions of current ore bodies and newly-discovered zones and to
enhance operational flexibility and efficiencies throughout the
Hoyle Pond operation. At the Hollinger open pit project,
development has focused on construction of the haul road between
the Hollinger site and the Dome mill. Pending receipt of final
permits, Hollinger is expected to begin production in the fourth
quarter of 2012, providing supplementary gold production and the
remediation of historical subsidence areas.
Underground exploration at Hoyle Pond in the
third quarter of 2012 focused on the growth and delineation of the
TVZ Bulk Zone. Surface drilling continued to follow up on
mineralization intersected north of the Dome Mine, as well as
nearer to Hoyle Pond with tighter spaced drilling around higher
grade intersections in the sediments.
Gold production at Musselwhite totaled 65,500
ounces at a total cash cost of $699
per ounce, driven by a 13% increase in mill throughput.
Exploration in the third quarter continued to focus on the northern
extension of the Lynx Zone from surface and underground, drilling
of the West Limb and the underground extension of the PQ Deeps and
T-Antiform. Surface drilling returned encouraging results on
the Lynx Zone both on the North Shore and from barge drilling.
Additional mineralized shear zones were intersected on the West
Limb. Underground drilling in the PQ Deeps continues to
return positive results north of the 2011 resource boundary.
Guatemala
At Marlin, gold production totaled 47,900 ounces
at a cash cost of $40 per ounce on a
by-product basis. Silver production totaled 1.5 million ounces.
Production decreased over the third quarter of 2011 as expected
following completion of open pit mining operations in the Marlin
pit at the end of 2011. Exploration drilling in the third quarter
continued to focus on near-mine targets including the Coral
mineralization.
Argentina
At Alumbrera, gold and copper production totaled
40,500 ounces and 31.2 million pounds respectively at a total cash
cost of negative $628 per ounce on a
by-product basis. Cash costs were 203% lower than in the
second quarter of 2012 primarily due to higher by-product sales
credits and higher gold sales volume as a result of the resumption
of shipments following the temporary suspension of sales in the
second quarter of 2012. Alumbrera expects to ship the
remaining balance of delayed sales of 38,000 dry metric tonnes over
the balance of 2012.
Dominican Republic
On August 14, 2012
first gold was poured at Pueblo Viejo and commercial production is
expected in December 2012. At
the end of the third quarter of 2012, more than 2.0 million
contained gold ounces were stockpiled. As part of planned
start up activities, the first, second and third autoclaves have
been tested at 50% to 100% of design capacity with results that are
in line with expectations for the initial ramp up period. The
fourth autoclave is currently undergoing pre-commissioning testing,
prior to planned commissioning in the fourth quarter.
Construction of the starter dam for the Pueblo Viejo tailings
facility was essentially completed in the third quarter of 2012 to
the designed height of 182.5 metres and the oxygen plant has been
commissioned.
Goldcorp's share of gold production for 2012 is
expected to be approximately 53,000 ounces. In the first full five
years of operation, Goldcorp's share of gold production is
anticipated to be between 415,000 to 450,000 ounces at total cash
costs of less than $350 per
ounce6.
Advancing the Project Pipeline
Project Studies Progressing
The company is evaluating internal studies
related to a number of its growth projects. At Cochenour, a
study is under review that will include updated project costs and
timing of first gold. Conclusions of this study will be included in
the Company's annual guidance release in early January, 2013.
A study for the Camino Rojo project near Peñasquito was completed
in the third quarter that contemplates a heap leach facility to
process near-surface oxide and transition mineralization. The
study has demonstrated strong financial returns but does not
reflect recent positive exploration results in the sulphide
portions of the deposit. Work will continue to
focus on permitting and other site development activities.
Also in the Peñasquito District, a study of Noche Buena has
indicated that the project currently does not reach the economic
parameter requirements of the Company. The
feasibility study for the Cerro Blanco project in Guatemala remains
underway and is now expected to be completed in early 2013.
Work is currently focused on updating the geologic model and
additional drilling for possible reserves enhancement.
At the Cerro Negro project in Argentina,
infrastructure, construction, mine development and exploration
activities at site continued to advance the project. During the
quarter all major mechanical equipment to be imported was secured
or en-route to site.
The development plan calls for concurrent mining
from multiple veins, with initial mining to take place in the
Eureka, Mariana Central and Mariana Norte veins. Total
underground ramp development for the Eureka vein advanced to 1,962
metres of the total 3,900 metres planned. The Eureka
stockpile now contains an estimated 25,150 tonnes at an expected
grade of 10.79 g/t gold and 225 g/t silver. Work on the ramps
continues to progress at Mariana Central and Mariana Norte.
Overall Engineering, Procurement and Construction Management was
46% complete at the end of the third quarter of 2012.
An aggressive exploration program continued in
the third quarter, with eight surface diamond drill rigs completing
154 holes. The annual drill program at the mine was completed in
October 2012 as planned.
Drilling focused on in-fill holes in the Mariana Central, Mariana
Norte and San Marcos resource areas, various peripheral exploration
targets, and condemnation drilling of the permanent camp
site. District geologic mapping resumed in September in the
central portions of the Cerro Negro concession area.
Preparations advanced for the start-up of exploration drilling to
occur in the fourth quarter at the La Esperanza project, located
south of Cerro Negro.
At the Éléonore project in Quebec, several major
engineering projects were completed, including the superstructure
of the concentrator building, the modular building for the
permanent camp, the industrialized wastewater treatment plant
equipment, conveyor and transformers. Engineering of the
permanent infrastructure and mill has reached a cumulative progress
of approximately 31%.
The Gaumond exploration shaft reached its final
depth and excavation is now complete. The shaft is now
transitioning from sinking mode to normal operating mode with the
installation of a skip-cage assembly and commissioning of the
loading pocket. Underground exploration drilling from the
Gaumond shaft was temporarily suspended at the end of the third
quarter to accommodate the shaft change from sinking to production
mode.
The exploration ramp excavation continued to
progress and has now reached over 2,000 metres in length, which
corresponds to a vertical depth of 300 metres below surface.
Currently, two diamond drills are performing definition drilling
from strategic working platforms in the ramp. During the fourth
quarter, two more rigs will be added for a total of four active
diamond drills in the ramp focused on definition drilling.
Construction of the production shaft and
associated surface infrastructure continued in the third quarter of
2012 and has progressed with full face shaft sinking expected
by the end of the year. Concurrent with the construction of
the production shaft infrastructure, collaring of the underground
portion of the shaft also progressed.
At the Cochenour project in Ontario, widening of
the historical Cochenour shaft continued to advance, with 80 metres
completed to a total depth of 423 metres. The Cochenour-Red
Lake haulage drift that will transport ore from Cochenour to
existing Red Lake processing facilities advanced to 60% of
completion. Exploration drilling from the haulage drift is
continuing with two drills in operation. Diamond drilling
with two drills at surface is underway to define the top portion of
the Bruce Channel deposit and additional resources at
Cochenour.
At the El Morro project in Chile, the project
has been suspended since April 30,
2012 pending the correction by the Chilean environmental
permitting authority (the Servicio de Evaluación Ambiental or SEA)
of certain permitting deficiencies specifically identified by a
decision of the Antofogasta Court of Appeals. On June 22, 2012, the SEA initiated the
administrative process to address the issues identified by the
Court, which is focused on consulting with local indigenous
communities. The Company continues to work with the Chilean
authorities and local communities to establish the consultation
process. Other project activities are focused on gathering
information to support permit applications to be submitted
following the completion of the administrative process and
optimization of the project economics inclusive of such things as
long term power supply solutions.
Guidance
The Company today reconfirmed guidance for 2012
of between 2.35 - 2.45 million ounces at total cash costs of
between $310 to $340 per ounce of
gold on a by-product basis and $625 and
$650 per ounce on a co-product basis. In conjunction with
the Company's annual planning and budgeting process, and in view of
industry-wide capital cost escalation, the Company is currently
updating capital cost estimates for its projects and will provide
updated cost information early in 2013.
Corporate Responsibility, Safety &
Health
Goldcorp is pleased to announce its inclusion in
the Dow Jones Sustainability Index North America, highlighting its
commitment to corporate responsibility. Goldcorp was named to
the DJSI North America for the first time in 2010.
This release should be read in conjunction with
Goldcorp's third quarter 2012 interim consolidated financial
statements and MD&A report on the Company's website, in the
"Investor Resources - Reports & Filings" section under
"Quarterly Reports".
A conference call will be held on October 25, 2012 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 25, 2012 by dialing
1-800-408-3053 or 1-905-694-9451 for calls outside Canada and the
US. Pass code: 5331726. 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) |
Adjusted net earnings and adjusted net earnings per share are
non-GAAP performance 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 42 of the 2012 third quarter MD&A for
a reconciliation of adjusted earnings to reported net earnings
attributable to shareholders of Goldcorp. |
(2) |
Operating cash flows before working capital changes is a
non-GAAP performance measure which the Company believes provides
additional information about the Company's ability to generate cash
flows from its mining operations. |
|
Cash provided by operating activities reported in accordance
with GAAP was $434 million for the three months ended September 30,
2012. |
(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, the Company and 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. The budget metal prices used in the
calculation of co-product total cash costs for 2012 were $1,600 per
ounce of gold, $34 per ounce of silver, $3.50 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 $670 per gold ounce for
the three months ending September 30, 2012. Refer to page 41 of the
2012 third quarter MD&A for a reconciliation of total cash
costs to reported production costs. |
(4) |
Net cash position is the quarter-end cash balance less the face
value of the convertible debenture of $862.5 million which includes
the liability and equity components. |
(5) |
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, the
Company and 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 -
Unaudited) |
Q3'12 |
Revenues per Financial Statements |
1,538 |
Treatment and refining charges on concentrate
sales |
54 |
By-product silver, copper, lead and zinc
sales |
(551) |
Gold revenues |
1,041 |
Divided by ounces of gold sold |
617,800 |
Realized gold price per ounce |
1,685 |
Deduct total cash costs per ounce of gold
sold3 |
220 |
Margin per gold ounce |
1,465 |
(6) |
Based on gold price and oil price assumptions of $1,300 per
ounce and $90 per barrel, respectively, and does not include
escalation for future inflation. |
|
|
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, 2011
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.
FINANCIAL STATEMENTS TO FOLLOW
SUMMARIZED FINANCIAL
RESULTS
(in millions of United States dollars, except per share amounts and
where noted) |
|
|
Three
Months Ended
September 30 |
|
2012 |
2011 |
Revenues |
$1,538 |
$1,308 |
Gold produced (ounces) |
592,500 |
592,100 |
Gold sold (ounces) |
617,800 |
571,500 |
Copper produced (thousands of
pounds) |
31,200 |
28,600 |
Copper sold (thousands of
pounds) |
44,300 |
23,700 |
Silver produced (ounces) |
8,509,300 |
6,494,300 |
Silver sold (ounces) |
9,050,300 |
5,821,800 |
Lead produced (thousands of
pounds) |
39,400 |
33,600 |
Lead sold (thousands of
pounds) |
41,700 |
29,200 |
Zinc produced (thousands of
pounds) |
98,400 |
66,400 |
Zinc sold (thousands of
pounds) |
96,600 |
67,400 |
Average realized gold price
(per ounce) |
$1,685 |
$1,719 |
Average London spot gold price
(per ounce) |
$1,652 |
$1,702 |
Average realized copper price
(per pound) |
$3.62 |
$2.61 |
Average London spot copper
price (per pound) |
$3.50 |
$4.07 |
Average realized silver price
(per ounce) |
$27.06 |
$32.49 |
Average London spot silver
price (per ounce) |
$29.80 |
$38.80 |
Average realized lead price
(per ounce) |
$1.04 |
$1.00 |
Average London spot lead price
(per ounce) |
$0.90 |
$1.12 |
Average realized zinc price
(per ounce) |
$0.92 |
$0.93 |
Average London spot zinc price
(per ounce) |
$0.86 |
$1.01 |
Total cash costs - by-product
(per gold ounce) |
$220 |
$258 |
Total cash costs - co-product
(per gold ounce) |
$660 |
$551 |
|
|
|
|
Production Data: |
|
|
|
Red Lake gold mines : |
Tonnes of ore milled |
208,000 |
201,200 |
|
Average mill head grade (grams per tonne) |
19.18 |
19.95 |
|
Gold ounces produced |
121,200 |
127,000 |
|
Total cash cost per ounce - by-product |
$535 |
$405 |
Porcupine mines : |
Tonnes of ore milled |
1,037,300 |
1,010,100 |
|
Average mill head grade (grams per tonne) |
1.67 |
2.57 |
|
Gold ounces produced |
53,100 |
76,300 |
|
Total cash cost per ounce - by-product |
$929 |
$614 |
Musselwhite mine : |
Tonnes of ore milled |
339,500 |
301,200 |
|
Average mill head grade (grams per tonne) |
6.15 |
6.25 |
|
Gold ounces produced |
65,500 |
59,700 |
|
Total cash cost per ounce - by-product |
$699 |
$778 |
SUMMARIZED FINANCIAL RESULTS
(Cont.)
(in millions of United States dollars, except per share amounts and
where noted) |
|
|
|
Three Months Ended
September 30 |
|
|
2012 |
2011 |
Production Data (Cont.): |
|
|
|
Peñasquito : |
Tonnes of ore mined |
11,463,600 |
8,690,400 |
|
Tonnes of waste removed |
28,044,500 |
26,074,600 |
|
Tonnes of ore milled |
9,339,800 |
7,084,500 |
|
Average head grade (grams per tonne) - gold |
0.60 |
0.36 |
|
Average head grade (grams per tonne) - silver |
31.71 |
25.27 |
|
Average head grade (%) - lead |
0.26 |
0.33 |
|
Average head grade (%) - zinc |
0.70 |
0.63 |
|
Gold ounces produced |
126,000 |
55,800 |
|
Silver ounces produced |
6,978,400 |
4,203,200 |
|
Lead (thousands of pounds) produced |
39,400 |
33,600 |
|
Zinc (thousands of pounds) produced |
98,400 |
66,400 |
|
Total cash cost per ounce - by-product |
($608) |
($796) |
|
Total cash cost per ounce - co-product |
$625 |
$862 |
Los Filos mine : |
Tonnes of ore mined |
7,030,400 |
6,639,200 |
|
Tonnes of waste removed |
10,564,100 |
12,327,500 |
|
Tonnes of ore processed |
7,066,600 |
6,684,100 |
|
Average grade processed (grams per tonne) |
0.65 |
0.74 |
|
Gold ounces produced |
79,700 |
73,200 |
|
Total cash cost per ounce - by-product |
$575 |
$490 |
El Sauzal mine : |
Tonnes of ore mined |
529,300 |
555,300 |
|
Tonnes of waste removed |
2,776,300 |
1,017,900 |
|
Tonnes of ore milled |
464,600 |
526,400 |
|
Average mill head grade (grams per tonne) |
1.11 |
1.63 |
|
Gold ounces produced |
15,500 |
26,100 |
|
Total cash cost per ounce - by-product |
$806 |
$475 |
Marlin mine : |
Tonnes of ore milled |
489,100 |
415,900 |
|
Average mill head grade (grams per tonne) -
gold |
3.25 |
7.62 |
|
Average mill head grade (grams per tonne) -
silver |
111 |
188 |
|
Gold ounces produced |
47,900 |
95,000 |
|
Silver ounces produced |
1,523,300 |
2,291,100 |
|
Total cash cost per ounce - by-product |
$40 |
($347) |
|
Total cash cost per ounce - co-product |
$597 |
$345 |
Alumbrera mine : (1) |
Tonnes of ore mined |
3,252,900 |
2,320,900 |
|
Tonnes of waste removed |
6,853,000 |
4,954,900 |
|
Tonnes of ore milled |
3,815,200 |
3,718,900 |
|
Average mill head grade (grams per tonne) -
gold |
0.45 |
0.44 |
|
Average mill head grade (%) - copper |
0.44 |
0.44 |
|
Gold ounces produced |
40,500 |
38,200 |
|
Copper (thousands of pounds) produced |
31,200 |
28,600 |
|
Total cash cost per ounce - by-product |
($628) |
($45) |
|
Total cash cost per ounce - co-product |
$814 |
$646 |
(1) |
Shown at Goldcorp's interest - 37.5% |
|
|
|
|
|
|
SUMMARIZED FINANCIAL RESULTS
(Cont.)
(in millions of United States dollars, except per share amounts and
where noted) |
|
|
|
Three
Months Ended
September 30 |
|
|
2012 |
2011 |
Production Data (Cont.): |
|
|
|
Marigold mine : (2) |
Tonnes of ore mined |
1,972,800 |
2,451,800 |
|
Tonnes of waste removed |
6,157,000 |
5,488,100 |
|
Tonnes of ore processed |
1,972,900 |
2,451,800 |
|
Average grade processed (grams per tonne) |
0.46 |
0.64 |
|
Gold ounces produced |
22,600 |
25,600 |
|
Total cash cost per ounce - by-product |
$839 |
$788 |
Wharf mine : |
Tonnes of ore mined |
566,100 |
1,124,400 |
|
Tonnes of ore processed |
842,800 |
897,600 |
|
Average grade processed (grams per tonne) |
0.72 |
1.03 |
|
Gold ounces produced |
19,500 |
15,200 |
|
Total cash cost per ounce - by-product |
$595 |
$614 |
|
|
|
Financial Data: |
|
|
Net cash provided by operating
activities |
$434 |
$723 |
Net earnings attributable to
shareholders of Goldcorp Inc. |
$498 |
$336 |
Net earnings per share - basic |
$0.61 |
$0.42 |
Adjusted net earnings per share -
basic |
$0.54 |
$0.56 |
Weighted average shares outstanding
(000's) |
810,696 |
808,575 |
|
(2) Shown at Goldcorp's interest - 66.7% |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
EARNINGS
(In millions of United States dollars, except for per share amounts
- Unaudited)
|
Three Months
Ended September 30 |
Nine Months
Ended September 30 |
|
|
2012 |
2011 |
2012 |
2011 |
Revenues |
|
$ |
1,538 |
$ |
1,308 |
$ |
4,000 |
$ |
3,847 |
Mine
operating costs |
|
|
|
|
|
|
|
|
|
|
Production costs |
|
|
(646) |
|
(460) |
|
(1,670) |
|
(1,423) |
|
Depreciation and
depletion |
|
|
(188) |
|
(163) |
|
(500) |
|
(505) |
|
|
|
(834) |
|
(623) |
|
(2,170) |
|
(1,928) |
Earnings from mine
operations |
|
|
704 |
|
685 |
|
1,830 |
|
1,919 |
Exploration and
evaluation costs |
|
|
(17) |
|
(16) |
|
(52) |
|
(42) |
Share
of net earnings (losses) of associates |
|
|
102 |
|
(6) |
|
63 |
|
(12) |
Corporate
administration |
|
|
(59) |
|
(53) |
|
(188) |
|
(172) |
Earnings from
operations and associates |
|
|
730 |
|
610 |
|
1,653 |
|
1,693 |
Impairment of
available-for-sale securities |
|
|
(6) |
|
- |
|
(68) |
|
(1) |
Gains
on disposition of securities, net |
|
|
1 |
|
- |
|
1 |
|
320 |
(Losses) gains on
derivatives, net |
|
|
(93) |
|
(20) |
|
29 |
|
(5) |
Finance costs |
|
|
(8) |
|
(5) |
|
(24) |
|
(16) |
Other income
(expense) |
|
|
2 |
|
(13) |
|
8 |
|
22 |
Earnings before
taxes |
|
|
626 |
|
572 |
|
1,599 |
|
2,013 |
Income taxes |
|
|
(128) |
|
(236) |
|
(354) |
|
(537) |
Net
earnings attributable to shareholders of
Goldcorp Inc. |
|
$ |
498 |
$ |
336 |
$ |
1,245 |
$ |
1,476 |
Net earnings per
share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.61 |
$ |
0.42 |
$ |
1.54 |
$ |
1.84 |
|
Diluted |
|
|
0.61 |
|
0.41 |
|
1.48 |
|
1.80 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(In millions of United States dollars - Unaudited)
|
|
Three Months
Ended September 30 |
Nine
Months
Ended September 30 |
|
|
2012 |
2011 |
2012 |
2011 |
Net earnings attributable to
shareholders of Goldcorp Inc. |
|
$ |
498 |
$ |
336 |
$ |
1,245 |
$ |
1,476 |
Other comprehensive income (loss),
net of tax |
|
|
|
|
|
|
|
|
|
|
Mark-to-market gains (losses) on securities |
|
|
19 |
|
(67) |
|
(47) |
|
(191) |
|
Reclassification adjustment for impairment losses
included in net earnings |
|
|
6 |
|
- |
|
61 |
|
1 |
|
Reclassification adjustment for realized gains on
disposition of securities recognized in net earnings |
|
|
(1) |
|
- |
|
(1) |
|
(295) |
|
|
|
24 |
|
(67) |
|
13 |
|
(485) |
Total comprehensive
income attributable to shareholders of Goldcorp Inc. |
|
$ |
522 |
$ |
269 |
$ |
1,258 |
$ |
991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions of United States dollars - Unaudited)
|
|
Three Months
Ended September 30 |
Nine Months
Ended September 30 |
|
|
2012 |
2011 |
2012 |
2011 |
Operating Activities |
|
|
|
|
|
|
|
Net earnings |
|
$ |
498 |
$ |
336 |
$ |
1,245 |
$ |
1,476 |
Adjustments for: |
|
|
|
|
|
|
|
|
|
Reclamation expenditures |
|
|
(6) |
|
(8) |
|
(17) |
|
(18) |
Gains on disposition of securities,
net |
|
|
(1) |
|
- |
|
(1) |
|
(320) |
Items not affecting cash |
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion |
|
|
188 |
|
163 |
|
500 |
|
505 |
|
Share of net (earnings) losses of associates |
|
|
(102) |
|
6 |
|
(63) |
|
12 |
|
Share-based compensation expense |
|
|
22 |
|
24 |
|
72 |
|
77 |
|
Impairment of available-for-sale securities |
|
|
6 |
|
- |
|
68 |
|
1 |
|
Realized gains on share purchase warrants |
|
|
- |
|
- |
|
- |
|
(33) |
|
Unrealized losses (gains) on derivatives, net |
|
|
95 |
|
14 |
|
(27) |
|
20 |
|
Accretion of reclamation and closure cost
obligations |
|
|
4 |
|
3 |
|
12 |
|
10 |
|
Reversal of impairment of Primero Convertible
Note |
|
|
(8) |
|
- |
|
- |
|
- |
|
Deferred income tax (recovery) expense |
|
|
(17) |
|
153 |
|
(108) |
|
143 |
|
Other |
|
|
8 |
|
(10) |
|
6 |
|
(12) |
Change in working capital |
|
|
(253) |
|
42 |
|
(377) |
|
(222) |
Net cash provided by operating
activities |
|
|
434 |
|
723 |
|
1,310 |
|
1,639 |
Investing Activities |
|
|
|
|
|
|
|
|
|
Expenditures on mining interests |
|
|
(573) |
|
(466) |
|
(1,697) |
|
(1,217) |
Deposits on mining interests
expenditures |
|
|
(96) |
|
(25) |
|
(192) |
|
(39) |
Interest paid |
|
|
(8) |
|
(8) |
|
(17) |
|
(17) |
Return of capital investment in Pueblo
Viejo |
|
|
- |
|
- |
|
- |
|
64 |
Purchases of securities and other
investments |
|
|
- |
|
(124) |
|
(17) |
|
(154) |
Proceeds from sales of securities and
maturity of investments, net |
|
|
- |
|
- |
|
283 |
|
519 |
Other |
|
|
2 |
|
(1) |
|
13 |
|
(6) |
Net cash used in investing activities
of continued operations |
|
|
(675) |
|
(624) |
|
(1,627) |
|
(850) |
Net cash provided by (used in)
investing activities of discontinued operations |
|
|
- |
|
- |
|
5 |
|
(88) |
Financing Activities |
|
|
|
|
|
|
|
|
|
Common shares issued, net of issue
costs |
|
|
23 |
|
75 |
|
32 |
|
470 |
Dividends paid to shareholders |
|
|
(109) |
|
(82) |
|
(328) |
|
(239) |
Net cash (used in) provided by
financing activities |
|
|
(86) |
|
(7) |
|
(296) |
|
231 |
Effect of exchange rate changes on
cash and cash equivalents |
|
|
- |
|
6 |
|
- |
|
(12) |
(Decrease) increase in cash and
cash equivalents |
|
|
(327) |
|
98 |
|
(608) |
|
920 |
Cash and cash equivalents, beginning
of period |
|
|
1,221 |
|
1,378 |
|
1,502 |
|
556 |
Cash and cash equivalents, end of
period |
|
$ |
894 |
$ |
1,476 |
$ |
894 |
$ |
1,476 |
|
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED BALANCE
SHEETS
(In millions of United States dollars - Unaudited)
|
|
|
|
|
|
September 30
2012 |
December 31
2011 |
Assets |
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
894 |
$ |
1,502 |
|
Accounts receivable |
|
|
880 |
|
473 |
|
Inventories and stockpiled ore |
|
|
656 |
|
574 |
|
Notes receivable |
|
|
5 |
|
40 |
|
Other |
|
|
156 |
|
361 |
|
|
|
2,591 |
|
2,950 |
Mining interests |
|
|
|
|
|
|
Owned by subsidiaries |
|
|
23,779 |
|
22,673 |
|
Investments in associates |
|
|
2,017 |
|
1,536 |
|
|
|
25,796 |
|
24,209 |
Goodwill |
|
|
1,737 |
|
1,737 |
Investments in securities |
|
|
166 |
|
207 |
Note receivable |
|
|
42 |
|
42 |
Deposits on mining interests
expenditures |
|
|
67 |
|
73 |
Other |
|
|
223 |
|
156 |
Total assets |
|
$ |
30,622 |
$ |
29,374 |
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
792 |
$ |
619 |
|
Income taxes payable |
|
|
152 |
|
48 |
|
Derivative liabilities |
|
|
93 |
|
65 |
|
Other |
|
|
30 |
|
39 |
|
|
|
1,067 |
|
771 |
Deferred income taxes |
|
|
5,464 |
|
5,560 |
Long-term debt |
|
|
771 |
|
737 |
Derivative liabilities |
|
|
206 |
|
237 |
Provisions |
|
|
397 |
|
375 |
Income taxes payable |
|
|
96 |
|
113 |
Other |
|
|
106 |
|
96 |
Total liabilities |
|
|
8,107 |
|
7,889 |
Equity |
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Common shares, stock options and restricted share
units |
|
|
17,092 |
|
16,992 |
|
Investment revaluation reserve |
|
|
56 |
|
43 |
|
Retained earnings |
|
|
5,154 |
|
4,237 |
|
|
|
22,302 |
|
21,272 |
Non-controlling interest |
|
|
213 |
|
213 |
Total equity |
|
|
22,515 |
|
21,485 |
Total liabilities and
equity |
|
$ |
30,622 |
$ |
29,374 |
.
SOURCE Goldcorp Inc.