TSX: G NYSE: GG
(All Amounts in $US unless stated otherwise)
VANCOUVER, Oct. 30, 2014 /CNW/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported adjusted quarterly
revenues1 of $1.1 billion,
generating adjusted net earnings1,2 of $70 million, or $0.09 per share, compared to adjusted net
earnings of $190 million, or
$0.23 per share, in the third quarter
of 2013. Adjusted operating cash flow1,3 was
$399 million, compared to adjusted
operating cash flow of $375 million
in the third quarter of 2013. The Company also announced the
on-schedule commencement of gold production at the Éléonore mine in
Quebec, including first gold
poured on October 1, 2014.
The Company reported a net loss for the quarter of $(44) million, or $(0.05) per share compared to net earnings of
$5 million, or $0.01 per share, in the third quarter of
2013. Both reported earnings and adjusted earnings were
negatively impacted by a $36
million, or $0.04 per share,
non-cash reduction in the value of low-grade stockpiles at
Peñasquito.
Third Quarter 2014 Highlights
- Gold sales1 of 641,400 ounces on gold
production1 of 651,700 ounces.
- Adjusted revenues of $1.1
billion.
- All-in sustaining costs of $1,0661,4 per ounce.
- Adjusted net earnings of $70
million, or $0.09 per
share.
- Adjusted operating cash flow of $399
million.
- Dividends paid of $122 million.
- Ramp–up at Cerro Negro in Argentina and Éléonore in Quebec progressing on schedule.
"The continued ramp-up of new mines Cerro Negro and Éléonore,
coupled with stable performance at our existing mines position us
for a strong finish to 2014," said Chuck
Jeannes, Goldcorp President and Chief Executive Officer. "We
expect to meet our 2014 production guidance, but the
lower-than-expected production at El
Sauzal due to pit wall instability and the second-quarter
stoppage at Los Filos will cause gold production to be at the low
end of our previously guided range of between 2.95 million and 3.1
million ounces. With respect to cost guidance, the success of
our Operating for Excellence programs has exceeded our
expectations, with over $185 million
of additional savings already realized through the first nine
months of 2014 versus our previous target of $100 million for the year. This performance
is expected to help drive all-in sustaining costs toward the low
end of our guided range of between $950 and
$1,000 per ounce for the year. With new project
capital spending beginning to wind down, Goldcorp remains
well-positioned for sustained growth in free cash flow in 2015 and
beyond."
Financial Review
Third quarter gold production increased over last year's third
quarter despite the loss of gold production from the divestiture of
Marigold earlier in the year and lower production from El Sauzal as a result of the suspension of
operations due to pit wall instability. Gold sales in the
third quarter were 641,400 ounces on production of 651,700 ounces
compared to sales of 652,100 ounces on production of 637,100 ounces
in the third quarter of 2013. Silver production totaled 7.8 million
ounces compared to 7.7 million ounces in the prior year's third
quarter. All-in sustaining costs were $1,066 per ounce of gold in the third quarter of
2014 compared to $995 per ounce in
the third quarter of 2013. The all-in sustaining costs for
the third quarter of 2014 include a $41
million, or $64 per ounce,
reduction in carrying value of the low-grade stockpile at
Peñasquito due to improvements to the mine plan that defers
processing of low-grade stockpiles to the end of the mine life and
also recognizing lower anticipated recoveries from those
stockpiles. Excluding the impact of the reduction in carrying
value, Goldcorp's all-in sustaining costs would be $1,002 per ounce in the third quarter of
2014.
Adjusted revenues of $1.1 billion
were comparable to the third quarter of 2013. Reported net
loss in the quarter was $(44)
million, or $(0.05) per share,
compared to net earnings of $5
million, or $0.01 per share,
in the third quarter of 2013. Adjusted net earnings in the third
quarter totaled $70 million, or
$0.09 per share, compared to
$190 million, or $0.23 per share, in the third quarter of
2013. Adjusted net earnings in the third quarter of 2014
primarily exclude the unrealized losses from the foreign exchange
translation of deferred income tax assets and liabilities in the
amount of $85 million, or
$0.10 per share, unrealized losses on
derivatives in the amount of $14
million, or $0.02 per share,
and the impairment against the carrying amount of El Sauzal as a result of accelerating closure
activities due to previously-reported pit wall instability in the
amount of $13 million, or
$0.02 per share. Adjusted net
earnings include the impact of non-cash stock-based compensation
expenses which amounted to approximately $19
million or $0.02 per share for
the quarter. The reduction in carrying value of Peñasquito's
low-grade stockpile inventory had an approximate impact of
$0.04 per share. Adjusted
operating cash flow was $399 million,
or $0.49 per share, compared to
$375 million, or $0.46 per share in last year's third
quarter.
Mexico
At Peñasquito, gold production totaled 129,500 ounces in the
quarter at an all-in sustaining cost of $1,142 per ounce. Production decreased
compared to the prior quarter as a result of lower grades and
recoveries due to the supplementing of fresh ore feed with ore from
stockpiles. All-in sustaining costs increased over the
prior quarter due to lower gold production, higher sustaining
capital and higher operating costs attributable to the $41 million, or $288 per ounce impact of the reduction in
carrying value of the long-term inventory stockpile.
Construction is well underway at the Northern Well Field ("NWF")
project with completion expected mid-2015. Contingency plans
remain in place for fresh water supply to Peñasquito until the NWF
is operational. Also at Peñasquito,
pre-feasibility studies for the concentrate enrichment process
project and the pyrite leach project are advancing and are expected
to be completed in late 2014 and early 2015, respectively.
Both of these projects have the potential to significantly enhance
the overall economics and mine life of Peñasquito.
The exploration program at Peñasquito continues to focus on
defining the copper-gold sulphide-rich skarn deposit located below
and adjacent to the diatreme ore body. Current exploration
activities include drilling to establish the vertical and
horizontal size and extent of the skarn deposit.
The Mineral Resource estimate for the Peñasquito Mine contained
in the Technical Report entitled "Peñasquito Polymetalic Operation,
Zacatecas State Mexico, NI 43-101 Technical Report" dated
January 8, 2014 has been corrected
because it did not include an updated increase in Mineral
Resources. Refer to page 49 of the third quarter 2014 Management
Discussion and Analysis ("MD&A") for the corrected Mineral
Resource estimation for the Peñasquito mine as of December 31, 2013.
Gold production at Los Filos was 64,100 ounces in the third
quarter at an all-in sustaining cost of $808 per ounce. Production increased over
the prior quarter as mining activity resumed following the
second-quarter suspension of mining. The exploration program
continues to focus on in-fill drilling and converting the inferred
mineral resources into reserves at El Bermejal north and the
underground mine.
At El Sauzal, gold production
totaled 6,100 ounces in the third quarter. Mining was
suspended on September 2, 2014 due to
pit wall instability and minimal gold production is expected for
the remainder of the year. The Company has elected to accelerate
the closure of El Sauzal beginning
in the fourth quarter of 2014. Remediation activities
required for the closure of the El
Sauzal mine continued during the third quarter of 2014 with
a focus on over-burden dumps, re-vegetation and tailings
re-grading.
Canada
At Éléonore in Quebec, the
Company was pleased to report first gold was poured on October 1, 2014. Mining of ore took place in
three stopes during the quarter, with the ore stockpile on surface
increasing to 244,000 tonnes at the end of the third quarter.
Commercial production remains on track for the first quarter of
2015. Exploration drilling continued to successfully infill
the lower portions of the mine.
At Red Lake in Ontario, gold production in the third quarter
was 99,600 ounces at an all-in sustaining cost of $955 per ounce. Increased production
over the prior quarter was a result of increased grade and tonnes
from the High Grade Zone following the completion of planned
de-stress activities that contributed to increased stope
availability. During the quarter, strong exploration results from
surface drilling continued to be received at HG Young, an exciting
new target 1.5 kilometers northwest of the Campbell Complex.
Rehabilitation is focused on the 14 Level at the Campbell Complex
which will provide access at HG Young for exploration diamond
drilling from underground in 2015.
At Porcupine in Ontario, gold
production in the third quarter was 74,300 ounces, at an all-in
sustaining cost of $946 per
ounce. Production increased as a result of higher
tonnage and higher grades. Higher tonnage was the result of
the completion of the #1 Winze rehabilitation early in the quarter,
and the increasing grades were a result of the higher grade ore
from the Hollinger Open Pit displacing the processing of the lower
grade stockpile material. Over-burden and pre-stripping
activities continued at the Hollinger project with approximately
1.2 million tonnes placed on the Environmental Control Berm.
The Environmental Control Berm is targeted for completion in the
first quarter of 2015. Once completed, mining operations will
commence 24 hours a
day.
Central
America
At the Pueblo Viejo joint
venture in the Dominican Republic,
Goldcorp's share of third quarter gold production increased to
112,200 ounces, with silver production of 354,800 ounces.
Gold production increased over the prior quarter due to higher
grades. Silver production was lower due to lower recoveries
resulting from the down time of two lime boil tanks due to scaling
issues during the quarter. Stripping activities continued to
increase during the quarter and are expected to continue for the
remainder of 2014 and into 2015. All-in sustaining costs at
Pueblo Viejo decreased for the
sixth consecutive quarter to $559 per
ounce.
South America
Cerro Negro in Argentina
continued to ramp-up following first gold production on
July 25, 2014, with commercial
production expected in the fourth quarter of 2014. Gold and
silver production for the quarter totaled 19,000 ounces and 233,700
ounces, respectively. Production mining continues at Eureka, while
production mining at Mariana Central is expected to commence in the
first quarter of 2015. Cerro Negro continues to operate on diesel
power generation with permanent power from the national grid now
expected by the end of the fourth quarter of 2014. The
initial capital guidance range has been narrowed to between
$1.65 and $1.70 billion.
Growth Projects
At the Cochenour project at
Red Lake, the haulage drift
connecting the Bruce Channel deposit to the Red Lake complex is now
complete. The project remains on track to produce
first ore from production stopes in the third quarter of 2015.
Exploration drilling in the deeper portions of the deposit
continued to yield positive results with eight drill rigs in
operation.
At the Camino Rojo project near Peñasquito, the Company intends
to commence a pre-feasibility study before the end of 2014, with
completion expected in early 2016. Drilling continued during
the third quarter of 2014 to enhance and expand the resource.
Metallurgical testing of the sulphide, transition, and oxide zones
continues, with waste rock drainage studies for waste material in
process.
2014 Guidance Outlook
The Company today reconfirmed 2014 production guidance of
between 2.95 and 3.1 million gold ounces. In light of the pit wall
instability at El Sauzal and the
suspension of activities at Los Filos in the second quarter, the
Company expects gold production guidance to be at the low end of
the range of between 2.95 million and 3.1 million ounces.
The Company expects all-in sustaining costs at the low end of
its guidance range of between $950 and
$1,000 per gold ounce. Capital spending guidance
remains unchanged at between $2.3 billion
and $2.4 billion for 2014.
About
Goldcorp
Goldcorp is one of the world's fastest growing gold producers.
Its low-cost gold production is located in stable jurisdictions in
the Americas and remains 100% unhedged.
This release should be read in conjunction with Goldcorp's third
quarter 2014 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
30, 2014 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 30, 2014 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.
(1)
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The Company has
included non-GAAP performance measures on an attributable (or
Goldcorp's share) basis throughout this document. Attributable
performance measures include the Company's mining operations,
including its discontinued operation, and projects, and the
Company's share of Alumbrera and Pueblo Viejo. The Company believes
that disclosing certain performance measures on an attributable
basis is a more relevant measurement of the Company's operating and
economic performance, and reflects the Company's view of its core
mining operations. 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; however,
these performance measures do not have any standardized meaning.
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 note 10 of the Q3 2014 Financial Statements for a
reconciliation of adjusted revenues to reported
revenues.
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(2)
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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 43 of the Q3 2014 MD&A for a reconciliation
of adjusted net earnings to reported net earnings attributable to
shareholders of Goldcorp.
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(3)
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Adjusted operating
cash flows and adjusted operating cash flows per share are non-GAAP
performance measures which comprises Goldcorp's share of operating
cash flows before working capital changes and which the Company
believes provides additional information about the Company's
ability to generate cash flows from its mining operations.
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 Q3 2014 MD&A for a reconciliation of adjusted
operating cash flows to reported net cash provided by operating
activities.
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(4)
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For 2013, the Company
adopted an "all-in sustaining cost" non-GAAP performance measure
that the Company believes more fully defines the total costs
associated with producing gold. All-in sustaining costs include
by-product cash costs, sustaining capital expenditures, corporate
administrative expense, exploration and evaluation costs and
reclamation cost accretion and amortization. As the measure seeks
to reflect the full cost of gold production from current
operations, new project capital is not included in the calculation.
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. The
Company reports this measure on a sales basis. Refer to page 41 of
the Q3 2014 MD&A for a reconciliation of all-in sustaining
costs.
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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 economic 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 "Risk Factors" in
Goldcorp's annual information form for the year ended December 31, 2013 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
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(in millions of
United States dollars, except per share amounts and where
noted)
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Three Months
Ended
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September
30
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Goldcorp's share
(1)
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2014
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2013
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Revenues
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$
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1,088
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$
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1,160
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Gold produced
(ounces)
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651,700
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637,100
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Gold sold
(ounces)
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641,400
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652,100
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Copper
produced (thousands of pounds)
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16,800
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21,400
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Copper sold
(thousands of pounds)
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18,600
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21,800
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Silver
produced (ounces)
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7,815,800
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7,744,600
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Silver sold
(ounces)
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8,454,400
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8,025,700
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Lead produced
(thousands of pounds)
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37,000
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41,000
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Lead sold
(thousands of pounds)
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41,400
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40,800
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Zinc produced
(thousands of pounds)
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81,000
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76,300
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Zinc sold
(thousands of pounds)
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85,400
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66,800
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Average realized
gold price (per ounce)
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$
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1,266
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$
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1,339
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Average London
spot gold price (per ounce)
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$
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1,282
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$
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1,327
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Average realized
copper price (per pound)
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$
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2.98
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$
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3.40
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Average London
spot copper price (per pound)
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$
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3.17
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$
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3.21
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Average realized
silver price (per ounce)
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$
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15.71
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$
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18.71
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Average London
spot silver price (per ounce)
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$
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19.75
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$
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21.36
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Average realized
lead price (per pound)
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$
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0.98
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$
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0.95
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Average London
spot lead price (per pound)
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$
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0.99
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$
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0.95
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Average realized
zinc price (per pound)
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$
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1.07
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$
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0.85
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Average London
spot zinc price (per pound)
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$
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1.05
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$
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0.84
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Total cash costs –
by-product (per gold ounce)
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$
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597
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$
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551
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Total cash costs –
co-product (per gold ounce)
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$
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682
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$
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706
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All-in sustaining
costs (per gold ounce)
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$
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1,066
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$
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995
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Production
Data:
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Red Lake
mines:
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Tonnes of ore
milled
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164,400
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204,200
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Average mill head
grade (grams per tonne)
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20.80
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15.11
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Gold ounces
produced
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99,600
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97,000
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Total cash costs –
by-product (per ounce)
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$
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533
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$
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640
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All-in sustaining
costs (per ounce)
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$
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955
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$
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986
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Porcupine
mines:
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Tonnes of ore
milled
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1,123,600
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1,123,600
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Average mill head
grade (grams per tonne)
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2.22
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2.26
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Gold ounces
produced
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74,300
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76,000
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Total cash costs –
by-product (per ounce)
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$
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663
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$
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637
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All-in sustaining
costs (per ounce)
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$
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946
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$
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921
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Musselwhite
mine:
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Tonnes of ore
milled
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263,600
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364,500
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Average mill head
grade (grams per tonne)
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7.67
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5.37
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Gold ounces
produced
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62,500
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59,800
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Total cash costs –
by-product (per ounce)
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$
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654
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$
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768
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All-in sustaining
costs (per ounce)
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|
|
|
$
|
|
897
|
|
|
$
|
|
1,114
|
Peñasquito
mines:
|
Tonnes of ore
mined
|
|
|
|
|
|
8,709,700
|
|
|
|
|
19,818,000
|
|
Tonnes of waste
removed
|
|
|
|
|
|
38,173,700
|
|
|
|
|
24,968,400
|
|
Tonnes of ore
milled
|
|
|
|
|
|
10,446,900
|
|
|
|
|
10,115,100
|
|
Average head grade
(grams per tonne) – gold
|
|
|
|
|
|
0.59
|
|
|
|
|
0.50
|
|
Average head grade
(grams per tonne) – silver
|
|
|
|
|
|
23.21
|
|
|
|
|
24.08
|
|
Average head grade
(%) – lead
|
|
|
|
|
|
0.23
|
|
|
|
|
0.27
|
|
Average head grade
(%) – zinc
|
|
|
|
|
|
0.52
|
|
|
|
|
0.55
|
|
Gold ounces
produced
|
|
|
|
|
|
129,500
|
|
|
|
|
113,900
|
|
Silver ounces
produced
|
|
|
|
|
|
5,569,300
|
|
|
|
|
5,892,600
|
|
Lead (thousands of
pounds) produced
|
|
|
|
|
|
37,000
|
|
|
|
|
41,000
|
|
Zinc (thousands of
pounds) produced
|
|
|
|
|
|
81,000
|
|
|
|
|
76,300
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
579
|
|
|
$
|
|
403
|
|
Total cash costs –
co-product (per ounce)
|
|
|
|
$
|
|
819
|
|
|
$
|
|
843
|
|
All-in sustaining
costs (per ounce)
|
|
|
|
$
|
|
1,142
|
|
|
$
|
|
830
|
Los Filos
mine:
|
Tonnes of ore
mined
|
|
|
|
|
|
5,727,700
|
|
|
|
|
6,805,300
|
|
Tonnes of waste
removed
|
|
|
|
|
|
10,910,200
|
|
|
|
|
11,626,000
|
|
Tonnes of ore
processed
|
|
|
|
|
|
5,722,600
|
|
|
|
|
6,753,400
|
|
Average grade
processed (grams per tonne)
|
|
|
|
|
|
0.73
|
|
|
|
|
0.67
|
|
Gold ounces
produced
|
|
|
|
|
|
64,100
|
|
|
|
|
73,400
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
623
|
|
|
$
|
|
640
|
|
All-in sustaining
costs (per ounce)
|
|
|
|
$
|
|
808
|
|
|
$
|
|
891
|
El Sauzal
mine:
|
Tonnes of ore
mined
|
|
|
|
|
|
163,100
|
|
|
|
|
587,300
|
|
Tonnes of waste
removed
|
|
|
|
|
|
2,584,000
|
|
|
|
|
3,121,900
|
|
Tonnes of ore
milled
|
|
|
|
|
|
169,700
|
|
|
|
|
504,500
|
|
Average mill head
grade (grams per tonne)
|
|
|
|
|
|
1.20
|
|
|
|
|
1.40
|
|
Gold ounces
produced
|
|
|
|
|
|
6,100
|
|
|
|
|
21,400
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
2,004
|
|
|
$
|
|
751
|
|
All-in sustaining
costs (per ounce)
|
|
|
|
$
|
|
2,198
|
|
|
$
|
|
831
|
Marlin
mine:
|
Tonnes of ore
milled
|
|
|
|
|
|
485,000
|
|
|
|
|
497,800
|
|
Average mill head
grade (grams per tonne) – gold
|
|
|
|
|
|
2.98
|
|
|
|
|
3.24
|
|
Average mill head
grade (grams per tonne) – silver
|
|
|
|
|
|
113
|
|
|
|
|
118
|
|
Gold ounces
produced
|
|
|
|
|
|
45,400
|
|
|
|
|
49,400
|
|
Silver ounces
produced
|
|
|
|
|
|
1,658,000
|
|
|
|
|
1,715,000
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
478
|
|
|
$
|
|
259
|
|
Total cash costs –
co-product (per ounce)
|
|
|
|
$
|
|
716
|
|
|
$
|
|
603
|
|
All-in sustaining
costs (per ounce)
|
|
|
|
$
|
|
985
|
|
|
$
|
|
635
|
Wharf
mine:
|
Tonnes of ore
mined
|
|
|
|
|
|
1,105,600
|
|
|
|
|
166,800
|
|
Tonnes of ore
processed
|
|
|
|
|
|
1,082,900
|
|
|
|
|
996,900
|
|
Average grade
processed (grams per tonne)
|
|
|
|
|
|
0.73
|
|
|
|
|
0.63
|
|
Gold ounces
produced
|
|
|
|
|
|
16,200
|
|
|
|
|
16,700
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
845
|
|
|
$
|
|
980
|
|
All-in sustaining
costs (per ounce)
|
|
|
|
$
|
|
1,028
|
|
|
$
|
|
1,204
|
Alumbrera mine
(2):
|
Tonnes of ore
mined
|
|
|
|
|
|
884,500
|
|
|
|
|
2,420,700
|
|
Tonnes of waste
removed
|
|
|
|
|
|
3,466,500
|
|
|
|
|
4,847,400
|
|
Tonnes of ore
milled
|
|
|
|
|
|
2,964,100
|
|
|
|
|
3,304,300
|
|
Average mill head
grade (grams per tonne) – gold
|
|
|
|
|
|
0.34
|
|
|
|
|
0.37
|
|
Average mill head
grade (%) – copper
|
|
|
|
|
|
0.32
|
|
|
|
|
0.37
|
|
Gold ounces
produced
|
|
|
|
|
|
22,800
|
|
|
|
|
28,900
|
|
Copper (thousands of
pounds) produced
|
|
|
|
|
|
16,800
|
|
|
|
|
21,400
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
819
|
|
|
$
|
|
(281)
|
|
Total cash costs –
co-product (per ounce)
|
|
|
|
$
|
|
1,006
|
|
|
$
|
|
777
|
|
All-in sustaining
costs (per gold ounce)
|
|
|
|
$
|
|
1,404
|
|
|
$
|
|
307
|
Pueblo Viejo mine
(3):
|
Tonnes of ore
mined
|
|
|
|
|
|
1,599,700
|
|
|
|
|
672,200
|
|
Tonnes of waste
removed
|
|
|
|
|
|
2,002,900
|
|
|
|
|
186,900
|
|
Tonnes of ore
processed
|
|
|
|
|
|
655,600
|
|
|
|
|
407,200
|
|
Average grade (grams
per tonne) – gold
|
|
|
|
|
|
5.72
|
|
|
|
|
6.23
|
|
Average grade (grams
per tonne) – silver
|
|
|
|
|
|
33.9
|
|
|
|
|
48.9
|
|
Gold ounces
produced
|
|
|
|
|
|
112,200
|
|
|
|
|
75,400
|
|
Silver ounces
produced
|
|
|
|
|
|
354,800
|
|
|
|
|
137,000
|
|
Total cash costs –
by-product (per ounce)
|
|
|
|
$
|
|
438
|
|
|
$
|
|
553
|
|
Total cash costs –
co-product (per ounce)
|
|
|
|
$
|
|
481
|
|
|
$
|
|
576
|
|
All-in sustaining
costs (per gold ounce)
|
|
|
|
$
|
|
559
|
|
|
$
|
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
(including discontinued operation):
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
$
|
|
192
|
|
|
$
|
|
274
|
Net (loss) earnings
attributable to shareholders of Goldcorp Inc.
|
|
|
|
$
|
|
(44)
|
|
|
$
|
|
5
|
Net (loss) earnings
per share – basic
|
|
|
|
$
|
|
(0.05)
|
|
|
$
|
|
0.01
|
Adjusted net earnings
per share – basic
|
|
|
|
$
|
|
0.09
|
|
|
$
|
|
0.23
|
Weighted average
shares outstanding (000's)
|
|
|
|
|
|
813,572
|
|
|
|
|
812,160
|
(1)
|
Includes non-GAAP
performance measures on an attributable (or Goldcorp's share)
basis. See footnote (2) on page 2 of the Q3 2014
MD&A.
|
(2)
|
Shown at Goldcorp's
interest – 37.5%
|
(3)
|
Shown at Goldcorp's
interest – 40.0%
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS
|
|
(In millions of
United States dollars, except for per share amounts –
Unaudited)
|
|
|
|
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
2014
|
2013
|
2014
|
2013
|
Revenues
|
$
|
859
|
$
|
895
|
$
|
2,663
|
$
|
2,717
|
Mine operating
costs
|
|
|
|
|
|
Production
costs
|
(530)
|
(509)
|
(1,536)
|
(1,509)
|
|
Depreciation and
depletion
|
(192)
|
(158)
|
(541)
|
(463)
|
|
(722)
|
(667)
|
(2,077)
|
(1,972)
|
Earnings from mine
operations
|
137
|
228
|
586
|
745
|
Exploration and
evaluation costs
|
(12)
|
(9)
|
(29)
|
(34)
|
Share of net earnings
(loss) of associates
|
15
|
(155)
|
131
|
(101)
|
Impairment of mining
interests and goodwill
|
(19)
|
-
|
(19)
|
(2,558)
|
Corporate
administration
|
(63)
|
(66)
|
(188)
|
(189)
|
Earnings (loss)
from operations and associates
|
58
|
(2)
|
481
|
(2,137)
|
Gains (losses) on
securities, net
|
5
|
(3)
|
9
|
(15)
|
(Losses) gains on
derivatives, net
|
(14)
|
8
|
(6)
|
79
|
Gain on disposition
of mining interest, net
|
-
|
-
|
18
|
-
|
Finance
costs
|
(15)
|
(12)
|
(42)
|
(40)
|
Other income
(expenses)
|
5
|
(2)
|
(21)
|
-
|
Earnings (loss)
from continuing operations before taxes
|
39
|
(11)
|
439
|
(2,113)
|
Income tax (expense)
recovery
|
(83)
|
11
|
(187)
|
473
|
Net (loss)
earnings from continuing operations
|
(44)
|
-
|
252
|
(1,640)
|
Net earnings
(loss) from discontinued operation
|
-
|
5
|
(15)
|
20
|
Net (loss)
earnings
|
$
|
(44)
|
$
|
5
|
$
|
237
|
$
|
(1,620)
|
Net (loss)
earnings from continuing operations attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
(44)
|
$
|
-
|
$
|
250
|
$
|
(1,640)
|
|
Non-controlling
interest
|
-
|
-
|
2
|
-
|
|
$
|
(44)
|
$
|
-
|
$
|
252
|
$
|
(1,640)
|
Net (loss)
earnings attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
(44)
|
$
|
5
|
$
|
235
|
$
|
(1,620)
|
|
Non-controlling
interest
|
-
|
-
|
2
|
-
|
|
$
|
(44)
|
$
|
5
|
$
|
237
|
$
|
(1,620)
|
Net (loss)
earnings per share from continuing operations
|
|
|
|
|
|
Basic
|
$
|
(0.05)
|
$
|
-
|
$
|
0.31
|
$
|
(2.02)
|
|
Diluted
|
(0.05)
|
(0.01)
|
0.30
|
(2.03)
|
Net (loss)
earnings per share
|
|
|
|
|
|
Basic
|
$
|
(0.05)
|
$
|
0.01
|
$
|
0.29
|
$
|
(2.00)
|
|
Diluted
|
(0.05)
|
-
|
0.28
|
(2.01)
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
|
|
(In millions of
United States dollars – Unaudited)
|
|
|
|
|
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
2014
|
2013
|
2014
|
2013
|
Net (loss)
earnings
|
$
|
(44)
|
$
|
5
|
$
|
237
|
$
|
(1,620)
|
Other
comprehensive (loss) income, net of tax
|
|
|
|
|
Items that may be
reclassified subsequently to net (loss) earnings:
|
|
|
|
|
|
Mark-to-market
(losses) gains on available-for-sale securities
|
(10)
|
14
|
12
|
(52)
|
|
Reclassification
adjustment for impairment losses included in net (loss)
earnings
|
1
|
2
|
2
|
15
|
|
Reclassification
adjustment for realized gains on disposition of
available-for-sale securities recognized in net (loss)
earnings
|
(5)
|
-
|
(10)
|
(1)
|
|
(14)
|
16
|
4
|
(38)
|
Items that will not
be reclassified to net (loss) earnings:
|
|
|
|
|
|
Remeasurements on
defined benefit pension plans
|
3
|
(4)
|
(1)
|
(4)
|
Total other
comprehensive (loss) income, net of tax
|
(11)
|
12
|
3
|
(42)
|
Total comprehensive
(loss) income
|
$
|
(55)
|
$
|
17
|
$
|
240
|
$
|
(1,662)
|
Total
comprehensive (loss) income attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
(55)
|
$
|
17
|
$
|
238
|
$
|
(1,662)
|
|
Non-controlling
interests
|
-
|
-
|
2
|
-
|
|
$
|
(55)
|
$
|
17
|
$
|
240
|
$
|
(1,662)
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(In millions of
United States dollars – Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
2014
|
2013
|
2014
|
2013
|
Operating
Activities
|
|
|
|
|
Net (loss) earnings
from continuing operations
|
$
|
(44)
|
$
|
-
|
$
|
252
|
$
|
(1,640)
|
Adjustments
for:
|
|
|
|
|
Dividends from
associate
|
38
|
27
|
105
|
71
|
Reclamation
expenditures
|
(11)
|
(4)
|
(22)
|
(12)
|
Items not affecting
cash:
|
|
|
|
|
|
Impairment of
stockpiled ore
|
41
|
-
|
41
|
-
|
|
Depreciation and
depletion
|
192
|
158
|
541
|
463
|
|
Share of net
(earnings) loss of associates
|
(15)
|
155
|
(131)
|
101
|
|
Impairment of mining
interests and goodwill
|
19
|
-
|
19
|
2,558
|
|
Share-based
compensation expense
|
19
|
24
|
59
|
64
|
|
(Gains) losses on
securities, net
|
(5)
|
3
|
(9)
|
15
|
|
Unrealized losses
(gains) on derivatives, net
|
14
|
(4)
|
2
|
(66)
|
|
Gain on disposition
of mining interest, net
|
-
|
-
|
(18)
|
-
|
|
Revision of estimates
and accretion of reclamation and closure cost
obligations
|
6
|
5
|
35
|
15
|
|
Deferred income tax
recovery (expense)
|
117
|
28
|
55
|
(549)
|
|
Other
|
10
|
10
|
21
|
33
|
Change in working
capital
|
(189)
|
(134)
|
(212)
|
(442)
|
Net cash provided by
operating activities of continuing operations
|
192
|
268
|
738
|
611
|
Net cash provided by
operating activities of discontinued operation
|
-
|
6
|
2
|
37
|
Investing
Activities
|
|
|
|
|
Expenditures on
mining interests
|
(450)
|
(483)
|
(1,413)
|
(1,437)
|
Deposits on mining
interest expenditures
|
(50)
|
(44)
|
(105)
|
(163)
|
Proceeds from
disposition of mining interest, net
|
-
|
-
|
193
|
-
|
Interest
paid
|
(40)
|
(14)
|
(68)
|
(23)
|
Purchases of money
market investments and available-for-sale securities
|
(71)
|
(17)
|
(120)
|
(615)
|
Proceeds from
maturities and sales of money market investments and
available-for-sale
securities, net
|
59
|
490
|
84
|
603
|
Other
|
-
|
1
|
-
|
-
|
Net cash used in
investing activities of continuing operations
|
(552)
|
(67)
|
(1,429)
|
(1,635)
|
Net cash (used in)
provided by investing activities of discontinued
operation
|
-
|
(14)
|
208
|
(48)
|
Financing
Activities
|
|
|
|
|
Debt borrowings, net
of transaction costs
|
1,000
|
-
|
3,313
|
1,481
|
Debt
repayments
|
(1,313)
|
-
|
(2,638)
|
-
|
Dividends paid to
shareholders
|
(122)
|
(122)
|
(366)
|
(365)
|
Common shares issued,
net of issuance costs
|
1
|
3
|
4
|
3
|
Other
|
(50)
|
-
|
(81)
|
131
|
Net cash (used in)
provided by financing activities of continuing
operations
|
484
|
(119)
|
232
|
1,250
|
Effect of exchange
rate changes on cash and cash equivalents
|
-
|
(1)
|
-
|
-
|
(Decrease)
increase in cash and cash equivalents
|
(844)
|
73
|
(249)
|
215
|
Cash and cash
equivalents, beginning of the period
|
1,220
|
899
|
625
|
757
|
Cash and cash
equivalents, end of the period
|
$
|
376
|
$
|
972
|
$
|
376
|
$
|
972
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
|
(In millions of
United States dollars – Unaudited)
|
|
|
|
|
|
At September
30
2014
|
At
December 31
2013
|
Assets
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
376
|
$
|
625
|
|
Money market
investments
|
52
|
-
|
|
Accounts
receivable
|
449
|
469
|
|
Inventories and
stockpiled ore
|
857
|
727
|
|
Note
receivable
|
-
|
5
|
|
Income taxes
receivable
|
152
|
182
|
|
Assets held for
sale
|
-
|
227
|
|
Other
|
182
|
139
|
|
2,068
|
2,374
|
Mining
interests
|
|
|
|
Owned by
subsidiaries
|
24,014
|
22,928
|
|
Investments in
associates
|
2,064
|
2,210
|
|
26,078
|
25,138
|
Goodwill
|
1,454
|
1,454
|
Investments in
securities
|
65
|
77
|
Note
receivable
|
-
|
23
|
Deposits on mining
interest expenditures
|
29
|
71
|
Deferred income
taxes
|
23
|
19
|
Heap leach and
stockpiled ore
|
185
|
141
|
Other
|
316
|
267
|
Total
assets
|
$
|
30,218
|
$
|
29,564
|
Liabilities
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
878
|
$
|
856
|
|
Income taxes
payable
|
28
|
6
|
|
Debt
|
550
|
832
|
|
Derivative
liabilities
|
46
|
57
|
|
Liabilities relating
to assets held for sale
|
-
|
44
|
|
Other
|
162
|
238
|
|
1,664
|
2,033
|
Deferred income
taxes
|
5,624
|
5,594
|
Debt
|
2,472
|
1,482
|
Provisions
|
602
|
517
|
Income taxes
payable
|
71
|
55
|
Other
|
99
|
125
|
Total
liabilities
|
10,532
|
9,806
|
Equity
|
|
|
Shareholders'
equity
|
|
|
|
Common shares, stock
options and restricted share units
|
17,245
|
17,191
|
|
Accumulated other
comprehensive income
|
4
|
1
|
|
Retained
earnings
|
2,222
|
2,353
|
|
19,471
|
19,545
|
Non-controlling
interest
|
215
|
213
|
Total
equity
|
19,686
|
19,758
|
Total liabilities
and equity
|
$
|
30,218
|
$
|
29,564
|
SOURCE Goldcorp Inc.