TSX: G NYSE: GG
(All amounts in $US unless stated otherwise)
VANCOUVER, July 30, 2015 /PRNewswire/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported record second quarter gold
production1 of 908,000 ounces, compared to gold
production of 648,700 ounces for the second quarter of 2014.
Adjusted quarterly revenues1 were $1.3 billion, generating adjusted net
earnings1,2 of $65
million, or $0.08 per
share, compared to adjusted net earnings of $164 million, or $0.20 per share, for the second quarter of
2014. Adjusted operating cash flow1,3 was
$358 million, compared to
$376 million for the second quarter
of 2014. Reported net earnings attributable to shareholders
of Goldcorp for the quarter were $392
million, or $0.47 per share,
compared to net earnings of $181
million, or $0.22 per share,
for the second quarter of 2014.
Second Quarter 2015 Highlights
- Gold sales1 of 903,000 ounces; gold production of
908,000 ounces.
- 2015 gold production expected toward the high end of guidance
range; cost guidance narrowed and improved.
- Free cash flow4 of $174
million before dividends; $50
million after dividends.
- Adjusted revenues of $1.3
billion.
- All-in sustaining costs1,5 of $846 per ounce.
- Adjusted net earnings of $65
million, or $0.08 per
share.
- Adjusted operating cash flow of $358
million.
- Declared commercial production at Éléonore on April 1, 2015.
- Increased the credit facility from $2
billion to $3 billion and
extended facility for 5 years.
- Completed secondary offering of Tahoe Resources shares for net
proceeds of $768 million.
- Dividend per share reduced 60% to $0.02 per month effective August 1, 2015.
- Named one of Canada's 50 Most
Socially Responsible Corporations by Sustainalytics.
"Goldcorp's excellent second quarter results underscore the
growing strength and quality of our mine portfolio," said
Chuck Jeannes, Goldcorp President
and Chief Executive Officer. "Higher gold grades at
Peñasquito and a continued strong ramp-up at Cerro Negro drove
record quarterly gold production and more than offset the
slower-than-planned ramp-up at Éléonore. In addition, a
continued focus on cost efficiency and productivity enhancements
along with favorable currency effects continued to push costs
lower. Our expectation is for this strong operating
performance to continue and for 2015 production guidance to trend
toward the high end of the current range of between 3.3 and 3.6
million ounces of gold. In addition, we have improved our
all-in sustaining cost guidance to between $850 and $900 per gold ounce.
"After several years of investment in our new mines, we were
very pleased to generate positive free cash flow after dividends of
$50 million during the quarter.
We have also taken timely actions to fortify Goldcorp's strong
financial liquidity position. The recent sale of our 26%
interest in Tahoe Resources, the $1
billion expansion of our credit facility and the dividend
reduction ensure the Company has the financial flexibility to
succeed in a volatile gold market."
Financial Review
Second quarter gold sales were 903,000 ounces on production of
908,000 ounces, compared to sales of 639,500 ounces on production
of 648,700 ounces in the second quarter of 2014. Silver production
totaled 10.4 million ounces compared to 9.0 million ounces in the
prior year's second quarter. All-in sustaining costs were
$846 per ounce of gold in the second
quarter of 2015 compared to $852 per
ounce in the second quarter of 2014.
Adjusted revenues for the second quarter totaled $1.3 billion and the reported net earnings
attributable to shareholders of Goldcorp for the second quarter
were $392 million, or $0.47 per share, compared to net earnings of
$181 million, or $0.22 per share, for the second quarter of 2014.
Adjusted net earnings for the second quarter totaled
$65 million, or $0.08 per share, compared to $164 million, or $0.20 per share, for the second quarter of
2014. The decrease in adjusted net earnings was a result of
lower realized margin6 on gold and by-product metal
sales due to lower realized prices, higher production costs
resulting from the slower ramp-up at Éléonore and higher
depreciation and depletion expense.
Adjusted net earnings for the second quarter of 2015 primarily
exclude the non-cash dilution gain ($95
million, net of tax or $0.12
per share), realized gain on the sale of the Tahoe Resources shares
($252 million, net of tax or
$0.30 per share), realized gain on
the sale of the Arturo mine project ($11
million, net of tax or $0.01
per share), unrealized losses from the foreign exchange translation
of deferred income tax assets and liabilities ($22 million, or $0.03 per share), unrealized gains on derivatives
($16 million, net of tax or
$0.02 per share) and the Company's
share of impairment losses related to certain power assets at
Pueblo Viejo ($15 million, net of tax or $0.02 per share). Adjusted net earnings
include the impact of non-cash stock-based compensation expenses
which amounted to approximately $14
million, or $0.02 per share,
for the quarter. Adjusted operating cash flow for the second
quarter was $358 million, compared to
$376 million for the second quarter
of 2014.
Canada
At Éléonore in Quebec,
commercial production was declared on April
1, 2015. Second quarter gold production totaled 43,800
ounces at an all-in sustaining cost of $1,656 per ounce. The increase in
production compared to the prior quarter was primarily the result
of increased process and filtration plant availability following
the successful resolution of previously-reported start-up issues.
Following a shut-down in May to remediate a bottleneck on the
tailings conveyor, the mill has averaged 5,100 tonnes per
day. Further increases in gold production for the balance of
2015 will be driven by increased mill throughput as well as higher
gold grades as underground mining expands from two to four
horizons. In light of the slower than planned ramp-up, Éléonore
gold production in 2015 is now expected to be at or below the low
end of the guidance range of between 290,000 and 330,000
ounces.
Work on the Éléonore crown pillar pre-feasibility study
continued to advance during the second quarter. Major
activities included the progression of the trade-off study between
pit/underground mining, determination of the dike location, and
permitting and stakeholder engagement efforts. The completion
of the pre-feasibility study is expected by the end of
2015.
Gold production at Red Lake in
Ontario in the second quarter
totaled 90,800 ounces at an all-in sustaining cost of $879 per ounce. Production decreased
over the prior quarter as a result of lower grades from fewer
tonnes mined in the High Grade Zone due to mine sequencing. A
focus on exploration to access the HG Young discovery continued to
advance north on the 14 Level at the Campbell Complex. This
drift provides a new drill platform for follow-up drilling on
several positive intercepts from the ongoing surface exploration
program at the HG Young discovery.
At Cochenour, intersected gold
grades remain consistent with expectations, however recent drill
data and newly discovered mineralized zones indicate a change in
orientation of a portion of the veins compared to the Company's
existing model. Additional advanced exploration and analysis is
required to support final mine planning and infrastructure.
Processing of mill feed from the first test stopes is expected in
the fourth quarter of 2015.
At Porcupine in Ontario, gold production for the second
quarter was 72,400 ounces at an all-in sustaining cost of
$1,010 per ounce.
Production increased over the prior quarter due to higher mill
throughput primarily as a result of improved weather
conditions. The Hoyle Deep project, which will enable
efficient access to lower portions of the Hoyle Pond deposit when
completed, continued to progress successfully toward expected
completion in the first quarter of 2016. Pre-stripping
activities continued at the Hollinger project with approximately
1.8 million tonnes of material placed on the Environmental Control
Berm at the end of the second quarter. Upon planned
completion of the berm in the third quarter of 2015, mining
operations are expected to commence 24 hours a day.
At the Borden Gold project 160 kilometres west of Porcupine, studies are underway to determine
the optimization of a combined Borden-Porcupine operation. Surface diamond
drilling continued during the second quarter with six drills on
site. The current exploration focus is on in-fill drilling
with a target to convert resources into reserves by the end of
2015.
Gold production at Musselwhite in Ontario increased over the prior quarter to
60,900 ounces as a result of higher mill throughput.
Musselwhite's all-in sustaining cost was among the lowest within
the portfolio at $761 per ounce as
the team at site continued to concentrate on productivity and
efficiency improvements. The focus of the exploration program
during the second quarter was on reserve replacement. Drilling was
concentrated on the West Limb zone and the Upper Lynx zone. Four
rigs are being utilized to complete the programs and all zones
continue to build with positive results.
Latin America
At Peñasquito in Mexico, gold
production totaled a record 298,000 ounces for the quarter at an
all-in sustaining cost of $416 per
ounce. Strong production compared to the prior quarter was
primarily driven by higher sulphide grades as a result of positive
model reconciliation and as substantial mining took place in the
heart of the deposit in Phase 5C. All-in sustaining costs
decreased over the prior quarter primarily as a result of increased
gold production. In light of the strong performance,
production at Peñasquito is expected to be at the high end of 2015
guidance of between 700,000 and 750,000 ounces.
Progress on the construction of the Northern Well Field ("NWF")
project was limited due to continued social issues with local
communities. The remaining NWF work is on hold until a fair
resolution of the issues is reached with the communities. The
Company continues to pursue an equitable resolution and evaluate
mitigation strategies. Contingency plans remain in place for
a fresh water supply to Peñasquito until the NWF is fully
operational.
The Metallurgical Enhancement Project ("MEP") continues to
demonstrate the potential to significantly enhance the overall
economics and mine life of Peñasquito. During the quarter, the
pilot plant construction was completed and pilot plant testing
commenced. MEP permit applications were submitted in May 2015 and the feasibility study remains on
track for completion in early 2016.
At the Camino Rojo project located approximately 50 kilometres
from Peñasquito, ongoing pre-feasibility study work is focused on
the evaluation of Camino Rojo as a supplemental source of
transitional and sulphide feed to the existing Peñasquito facility,
in addition to a small, stand-alone oxide heap leach
facility. This approach has the potential to generate the
highest rate of return given the significantly lower capital costs
versus building a separate processing facility at Camino Rojo.
Updating of the geologic model continued during the second
quarter and metallurgical testing of sulphide, transition and oxide
zones is ongoing. The pre-feasibility study is on track to be
completed in 2016.
Gold production at Los Filos in Mexico in the second quarter of 2015 totaled
67,500 ounces at an all-in sustaining cost of $1,071 per ounce. Increased production over
the prior quarter was a result of increased grades and recoveries,
resulting from recovery improvement projects which were initiated
in the prior quarter. A new life-of-mine plan is
progressing with a focus to maximize return on investment and is
expected to be completed by the end of 2015. The
exploration program continues with the objective to define later
phases of the El Bermejal pit and extend the high grade zones for
underground mining.
At Cerro Negro in Argentina,
second quarter gold production totaled 131,300 ounces at an all-in
sustaining cost of $792 per ounce.
Mine ramp-up continued during the second quarter as planned
with a focus on the higher-grade Mariana Central mine.
Additional stopes came on-line during the second quarter,
increasing the proportion of tonnes milled from Mariana
Central. Recoveries increased during the quarter
as the mill continues to be optimized. Total tonnes milled
increased following an increase in surface haulage capacity
resulting in an average of 3,378 tonnes per day processed for the
second quarter of 2015. Exploration in the second quarter
continued to focus on resource confirmation drilling. The current
drilling program is progressing as planned, expanding resources at
the Marianas Complex, Bajo Negro and Vein Zone. The most
significant assay results have been received from the Marianas
Complex area.
At the Pueblo Viejo joint
venture in the Dominican Republic,
Goldcorp's share of second quarter gold and silver production
totaled 87,200 ounces and 38,100 ounces, respectively, at an all-in
sustaining cost of $688 per
ounce. Gold production decreased over the prior quarter due
to lower than planned gold recoveries, largely related to a
higher proportion of carbonaceous ore. Increased all-in
sustaining costs were a result of lower silver recoveries
associated with a temporary shut-down of the lime boil process
during scheduled autoclave maintenance. Recent modifications
to the lime boil are showing significantly improved silver
recoveries and the first copper concentrate was shipped in the
second quarter. Production is expected to be higher and costs
lower in the fourth quarter compared to the third quarter on higher
expected grades, improved recoveries and better autoclave
availability, as maintenance shut-downs were weighted to the first
half of 2015.
2015 Guidance Outlook
Driven by strong second quarter results and management's outlook
for the second half, the Company expects to be at the high end of
2015 production guidance of between 3.3 and 3.6 million gold
ounces. All-in sustaining cost guidance has been reduced to
between $850 and $900 per gold ounce
compared to prior guidance of between $875
and $950 per gold ounce. Depreciation, depletion, and
amortization expense ("DDA") guidance is now expected to be
approximately $425 per gold ounce
sold from prior guidance of $390 per
gold ounce sold. The increase is due primarily to the impact
of the delay in obtaining the additional mining license at Marlin
and further refinements to the DD&A per gold ounce as Cerro
Negro and Éléonore ramp-up to sustained operating levels.
Capital spending guidance remains unchanged at between $1.2 billion and $1.4 billion for 2015.
Corporate administration expense guidance, excluding share-based
compensation, has also been reduced to approximately $170 million in 2015 compared to prior guidance
of $185 million. Excluding the
impacts of foreign exchange on deferred tax assets and liabilities
and excluding the dilution and disposition gain on the sale of
Tahoe and the related taxes, the Company continues to expect an
annual effective tax rate of 45% in 2015.
About
Goldcorp
Goldcorp is a leading gold producer focused on responsible
mining practices with safe, low-cost production throughout the
Americas. A portfolio of long-lived, high-quality assets
positions the Company to deliver long-term value.
This release should be read in conjunction with Goldcorp's
second quarter 2015 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 July
30, 2015 at 10:00 a.m. (PDT)
to discuss the second quarter results. Participants may join the
call by dialing toll free 1-800-355-4959 or 1-416-340-2216 for
calls from outside Canada and the
US. A recorded playback of the call can be accessed after the
event until August 30, 2015 by
dialing 1-800-408-3053 or 1-905-694-9451 for calls outside
Canada and the US. Pass
code: 2383563. A live and archived audio webcast will also be
available at www.goldcorp.com.
(1)
|
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 5 of the Q2 2015 Financial Statements for a
reconciliation of adjusted revenues to reported
revenues.
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(2)
|
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 41 of the Q2 2015 MD&A for a reconciliation
of adjusted net earnings to reported net earnings attributable to
shareholders of Goldcorp.
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(3)
|
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 42 of the Q2 2015 MD&A for a reconciliation of adjusted
operating cash flows to reported net cash provided by operating
activities.
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(4)
|
Free cash flow is a
non-GAAP performance measure which the Company believes, in
addition to conventional measures prepared in accordance with GAAP,
the Company and certain investors use to evaluate the Company's
ability to generate cashflows. Accordingly, it is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP. Free cash flows are calculated by
deducting from net cash provided by operating activities,
Goldcorp's share of expenditures on mining interests, deposits on
mining interest expenditures and capitalized interest paid, and
adding Goldcorp's share of net cash provided by operating
activities from Alumbrera and Pueblo Viejo. Refer to page 42 of the
Q2 2015 MD&A for a reconciliation of free cash flows to
reported net cash provided by operating activities.
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(5)
|
For 2014, 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 39 of
the Q2 2015 MD&A for a reconciliation of all-in sustaining
costs.
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(6)
|
Margin is a non-GAAP
performance measure, defined as either revenues less production
costs, revenues less production costs expressed as a percentage of
revenues, or realized gold price per ounce less by-product cash
costs per ounce. 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.
|
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 Section 21E of the United States Securities
Exchange Act of 1934, as amended, Section 27A of the United States
Securities Act of 1933, as amended 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, development at
existing mines, permitting timelines, hedging practices, currency
exchange rate fluctuations, requirements for additional capital,
government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, the completion of technical
studies and reports, 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 necessarily based upon certain
estimates and 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 estimates and 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,
increased costs, delays, suspensions and technical challenges
associated with capital projects, 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, zinc and other commodities; 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, 2014 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 or incorporated by
reference in this document, except in accordance with applicable
securities laws.
SUMMARIZED FINANCIAL RESULTS AND FINANCIAL
STATEMENTS FOLLOW
SUMMARIZED FINANCIAL RESULTS
(in millions of United States
dollars, except per share amounts and where noted)
|
Three Months
Ended
|
|
|
June
30
|
|
Goldcorp's
share (1)
|
2015
|
|
2014
|
|
Revenues
|
1,317
|
|
1,116
|
|
Gold produced
(ounces)
|
908,000
|
|
648,700
|
|
Gold sold
(ounces)
|
903,000
|
|
639,500
|
|
Silver
produced (ounces)
|
10,433,000
|
|
8,984,000
|
|
Silver sold
(ounces)
|
10,788,800
|
|
9,808,100
|
|
Copper
produced (thousands of pounds)
|
8,600
|
|
19,300
|
|
Copper sold
(thousands of pounds)
|
4,600
|
|
13,000
|
|
Lead produced
(thousands of pounds)
|
47,500
|
|
38,600
|
|
Lead sold
(thousands of pounds)
|
48,200
|
|
43,200
|
|
Zinc produced
(thousands of pounds)
|
105,500
|
|
91,900
|
|
Zinc sold
(thousands of pounds)
|
88,900
|
|
77,000
|
|
Average realized
gold price (per ounce)
|
$
|
1,189
|
|
$
|
1,296
|
|
Average London
spot gold price (per ounce)
|
$
|
1,193
|
|
$
|
1,289
|
|
Average realized
silver price (per ounce)
|
$
|
14.00
|
|
$
|
16.96
|
|
Average London
spot silver price (per ounce)
|
$
|
16.41
|
|
$
|
19.61
|
|
Average realized
copper price (per pound)
|
$
|
2.67
|
|
$
|
3.39
|
|
Average London
spot copper price (per pound)
|
$
|
2.75
|
|
$
|
3.08
|
|
Average realized
lead price (per pound)
|
$
|
0.86
|
|
$
|
0.97
|
|
Average London
spot lead price (per pound)
|
$
|
0.88
|
|
$
|
0.95
|
|
Average realized
zinc price (per pound)
|
$
|
0.99
|
|
$
|
1.00
|
|
Average London
spot zinc price (per pound)
|
$
|
1.00
|
|
$
|
0.94
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
547
|
|
$
|
470
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
656
|
|
$
|
643
|
|
All-in sustaining
costs (per gold ounce)
|
$
|
846
|
|
$
|
852
|
|
All-in costs
(per gold ounce)
|
$
|
1,028
|
|
$
|
1,486
|
|
|
|
|
|
|
Production
Data:
|
|
|
|
|
Red Lake
mines:
|
Tonnes of ore
milled
|
150,800
|
|
157,700
|
|
|
Average mill head
grade (grams per tonne)
|
18.45
|
|
18.77
|
|
|
Gold ounces
produced
|
90,800
|
|
89,500
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
602
|
|
$
|
656
|
|
|
All-in sustaining
costs (per ounce)
|
$
|
879
|
|
$
|
1,066
|
|
Porcupine
mines:
|
Tonnes of ore
milled
|
1,020,500
|
|
1,081,400
|
|
|
Average mill head
grade (grams per tonne)
|
2.30
|
|
2.19
|
|
|
Gold ounces
produced
|
72,400
|
|
68,800
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
759
|
|
$
|
658
|
|
|
All-in sustaining
costs (per ounce)
|
$
|
1,010
|
|
$
|
895
|
|
Musselwhite
mine:
|
Tonnes of ore
milled
|
303,800
|
|
313,400
|
|
|
Average mill head
grade (grams per tonne)
|
6.56
|
|
7.12
|
|
|
Gold ounces
produced
|
60,900
|
|
67,800
|
|
|
Total cash costs –
by-product (per ounce)
|
616
|
|
605
|
|
|
All-in sustaining
costs (per ounce)
|
761
|
|
794
|
|
Éléonore
mine:
|
Tonnes of ore
milled
|
388,100
|
|
—
|
|
|
Average mill head
grade (grams per tonne)
|
4.77
|
|
—
|
|
|
Gold ounces
produced
|
43,800
|
|
—
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
1,458
|
|
$
|
—
|
|
|
All-in sustaining
costs (per ounce)
|
$
|
1,656
|
|
$
|
—
|
|
Peñasquito
mines:
|
Tonnes of ore
mined
|
11,666,300
|
|
10,415,800
|
|
|
Tonnes of waste
removed
|
40,080,200
|
|
40,595,300
|
|
|
Tonnes of ore
milled
|
10,065,200
|
|
10,050,000
|
|
|
Average head grade
(grams per tonne) – gold
|
1.31
|
|
0.78
|
|
|
Average head grade
(grams per tonne) – silver
|
28.81
|
|
30.08
|
|
|
Average head grade
(%) – lead
|
0.31
|
|
0.24
|
|
|
Average head grade
(%) – zinc
|
0.70
|
|
0.59
|
|
|
Gold ounces
produced
|
298,000
|
|
167,400
|
|
|
Silver ounces
produced
|
6,899,900
|
|
7,006,800
|
|
|
Lead (thousands of
pounds) produced
|
47,500
|
|
38,600
|
|
|
Zinc (thousands of
pounds) produced
|
105,500
|
|
91,900
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
194
|
|
$
|
124
|
|
|
Total cash costs –
co-product (per ounce of gold)
|
$
|
477
|
|
$
|
610
|
|
|
All-in sustaining
costs (per ounce)
|
$
|
416
|
|
$
|
362
|
|
Los Filos
mine:
|
Tonnes of ore
mined
|
4,013,200
|
|
3,472,600
|
|
|
Tonnes of waste
removed
|
12,707,100
|
|
6,608,800
|
|
|
Tonnes of ore
processed
|
3,944,900
|
|
3,480,200
|
|
|
Average grade
processed (grams per tonne)
|
0.88
|
|
0.75
|
|
|
Gold ounces
produced
|
67,500
|
|
48,700
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
919
|
|
$
|
778
|
|
|
All-in sustaining
costs (per ounce)
|
$
|
1,071
|
|
$
|
1,077
|
|
Marlin
mine:
|
Tonnes of ore
milled
|
335,300
|
|
485,400
|
|
|
Average mill head
grade (grams per tonne) – gold
|
3.86
|
|
2.88
|
|
|
Average mill head
grade (grams per tonne) – silver
|
181
|
|
109
|
|
|
Gold ounces
produced
|
40,600
|
|
43,500
|
|
|
Silver ounces
produced
|
1,887,200
|
|
1,584,400
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
397
|
|
$
|
525
|
|
|
Total cash costs –
co-product (per ounce)
|
$
|
669
|
|
$
|
770
|
|
|
All-in sustaining
costs (per ounce)
|
$
|
904
|
|
$
|
981
|
|
Cerro Negro
mines:
|
Tonnes of ore
milled
|
304,000
|
|
—
|
|
|
Average mill head
grade (grams per tonne) – gold
|
13.57
|
|
—
|
|
|
Average mill head
grade (grams per tonne) – silver
|
188.7
|
|
—
|
|
|
Gold ounces
produced
|
131,300
|
|
—
|
|
|
Silver ounces
produced
|
1,607,800
|
|
—
|
|
|
Total cash costs –
by-product (per ounce)
|
608
|
|
—
|
|
|
Total cash costs –
co-product (per ounce)
|
686
|
|
—
|
|
|
All-in sustaining
costs (per ounce)
|
792
|
|
—
|
|
Alumbrera mine (37.5%
share):
|
Tonnes of ore
mined
|
3,857,300
|
|
1,455,100
|
|
|
Tonnes of waste
removed
|
5,246,300
|
|
4,568,200
|
|
|
Tonnes of ore
milled
|
3,081,700
|
|
3,492,300
|
|
|
Average mill head
grade (grams per tonne) – gold
|
0.24
|
|
0.34
|
|
|
Average mill head
grade (%) – copper
|
0.19
|
|
0.33
|
|
|
Gold ounces
produced
|
15,500
|
|
25,300
|
|
|
Copper (thousands of
pounds) produced
|
8,300
|
|
19,300
|
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
3,191
|
|
$
|
238
|
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
1,645
|
|
$
|
910
|
|
|
All-in sustaining
costs (per gold ounce)
|
$
|
4,900
|
|
$
|
1,050
|
|
Pueblo Viejo mine
(40% share):
|
Tonnes of ore
mined
|
1,251,900
|
|
2,008,600
|
|
|
Tonnes of waste
removed
|
2,602,100
|
|
1,492,000
|
|
|
Tonnes of ore
processed
|
694,400
|
|
650,200
|
|
|
Average grade (grams
per tonne) – gold
|
4.54
|
|
5.47
|
|
|
Average grade (grams
per tonne) – silver
|
39.3
|
|
28.6
|
|
|
Gold ounces
produced
|
87,200
|
|
107,100
|
|
|
Silver ounces
produced
|
38,100
|
|
392,800
|
|
|
Copper (thousands of
pounds) produced
|
400
|
|
—
|
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
549
|
|
$
|
438
|
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
558
|
|
$
|
478
|
|
|
All-in sustaining
costs (per gold ounce)
|
$
|
688
|
|
$
|
618
|
|
|
|
|
|
|
|
Financial Data
(including discontinued operation):
|
|
|
|
|
Cash flows from
operating activities
|
$
|
528
|
|
$
|
275
|
|
Adjusted operating
cash flows (Goldcorp's share) (2)
|
$
|
358
|
|
$
|
376
|
|
Adjusted operating
cash flows per share (2)
|
$
|
0.43
|
|
$
|
0.46
|
|
Free cash
flows
|
$
|
174
|
|
$
|
(240)
|
|
Net
earnings
|
$
|
392
|
|
$
|
183
|
|
Net earnings per
share – basic
|
$
|
0.47
|
|
$
|
0.22
|
|
Adjusted net earnings
(3)
|
$
|
65
|
|
$
|
164
|
|
Adjusted net earnings
per share – basic (3)
|
$
|
0.08
|
|
$
|
0.20
|
|
Weighted average
shares outstanding (000's)
|
829,985
|
|
812,954
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(In millions of United States
dollars, except for per share amounts – Unaudited)
|
Three Months
Ended
June
30
|
Six Months
Ended
June
30
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
$
|
1,188
|
$
|
884
|
$
|
2,205
|
$
|
1,762
|
Mine operating
costs
|
|
|
|
|
|
Production
costs
|
(640)
|
(494)
|
(1,260)
|
(981)
|
|
Depreciation and
depletion
|
(356)
|
(178)
|
(678)
|
(347)
|
|
(996)
|
(672)
|
(1,938)
|
(1,328)
|
Earnings from mine
operations
|
192
|
212
|
267
|
434
|
Exploration and
evaluation costs
|
(14)
|
(6)
|
(28)
|
(17)
|
Share of net (loss)
earnings of associates
|
(19)
|
60
|
16
|
116
|
Corporate
administration
|
(53)
|
(59)
|
(108)
|
(125)
|
Earnings from
operations and associates
|
106
|
207
|
147
|
408
|
Gains (losses) on
derivatives
|
8
|
11
|
(34)
|
8
|
Gain on dilution of
ownership interest in associate
|
99
|
-
|
99
|
-
|
Gain on disposition
of mining interest, net of transaction costs
|
315
|
-
|
315
|
18
|
Finance
costs
|
(43)
|
(11)
|
(70)
|
(27)
|
Other income
(expenses)
|
3
|
-
|
21
|
(22)
|
Earnings from
continuing operations before taxes
|
488
|
207
|
478
|
385
|
Income tax
expense
|
(90)
|
(13)
|
(219)
|
(102)
|
Net earnings from
continuing operations
|
398
|
194
|
259
|
283
|
Net (loss)
earnings from discontinued operations
|
(6)
|
(11)
|
46
|
(2)
|
Net
earnings
|
$
|
392
|
$
|
183
|
$
|
305
|
$
|
281
|
|
|
|
|
|
Net earnings from
continuing operations attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
398
|
$
|
192
|
$
|
259
|
$
|
281
|
|
Non-controlling
interest
|
-
|
2
|
-
|
2
|
|
$
|
398
|
$
|
194
|
$
|
259
|
$
|
283
|
|
|
|
|
|
Net earnings
attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
392
|
$
|
181
|
$
|
305
|
$
|
279
|
|
Non-controlling
interest
|
-
|
2
|
-
|
2
|
|
$
|
392
|
$
|
183
|
$
|
305
|
$
|
281
|
|
|
|
|
|
Net earnings per
share from continuing operations
|
|
|
|
|
|
Basic
|
$
|
0.48
|
$
|
0.24
|
$
|
0.31
|
$
|
0.35
|
|
Diluted
|
0.48
|
0.23
|
0.31
|
0.34
|
Net earnings per
share
|
|
|
|
|
|
Basic
|
$
|
0.47
|
$
|
0.22
|
$
|
0.37
|
$
|
0.34
|
|
Diluted
|
0.47
|
0.22
|
0.37
|
0.33
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
June
30
|
Six Months
Ended
June
30
|
|
2015
|
2014
|
2015
|
2014
|
Net
earnings
|
$
|
392
|
$
|
183
|
$
|
305
|
$
|
281
|
Other
comprehensive income, net of tax
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings:
|
|
|
|
|
|
Mark-to-market gains
on available-for-sale securities
|
-
|
18
|
1
|
22
|
|
Reclassification
adjustment for available-for-sale securities impairment
losses included in net
earnings
|
1
|
-
|
4
|
1
|
|
Reclassification
adjustment for realized gains on disposition of
available-for-
sale securities recognized in net
earnings
|
-
|
(5)
|
(1)
|
(5)
|
|
Reclassification of
Probe Mines Ltd. mark-to-market gains on acquisition
|
-
|
-
|
(3)
|
-
|
|
1
|
13
|
1
|
18
|
Items that will not
be reclassified to net earnings:
|
|
|
|
|
|
Remeasurements on
defined benefit pension plans
|
1
|
(2)
|
(1)
|
(4)
|
Total other
comprehensive income, net of tax
|
2
|
11
|
-
|
14
|
Total
comprehensive income
|
$
|
394
|
$
|
194
|
$
|
305
|
$
|
295
|
|
|
|
|
|
Total
comprehensive income attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
394
|
$
|
192
|
$
|
305
|
$
|
293
|
|
Non-controlling
interests
|
-
|
2
|
-
|
2
|
|
$
|
394
|
$
|
194
|
$
|
305
|
$
|
295
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
June
30
|
Six Months
Ended
June
30
|
|
2015
|
2014
|
2015
|
2014
|
Operating
activities
|
|
|
|
|
Net earnings from
continuing operations
|
$
|
398
|
$
|
194
|
$
|
259
|
$
|
283
|
Adjustments
for:
|
|
|
|
|
Dividends from
associates
|
4
|
33
|
7
|
67
|
Reclamation
expenditures
|
(18)
|
(7)
|
(32)
|
(10)
|
Items not affecting
cash:
|
|
|
|
|
|
Depreciation and
depletion
|
356
|
178
|
678
|
347
|
|
Share of net loss
(earnings) of associates
|
19
|
(60)
|
(16)
|
(116)
|
|
Share-based
compensation
|
15
|
16
|
30
|
40
|
|
Unrealized (gains)
losses on derivatives
|
(22)
|
(10)
|
4
|
(12)
|
|
Gain on dilution of
ownership interest in an associate
|
(99)
|
-
|
(99)
|
-
|
|
Gain on disposition
of mining interests, net of transaction costs
|
(315)
|
-
|
(315)
|
(18)
|
|
Revision of estimates
and accretion of reclamation and closure cost
obligations
|
5
|
22
|
33
|
29
|
|
Deferred income tax
(recovery) expense
|
(29)
|
(16)
|
46
|
(62)
|
|
Other
|
12
|
(16)
|
2
|
7
|
Change in working
capital
|
202
|
(68)
|
(18)
|
(26)
|
Net cash provided by
operating activities of continuing operations
|
528
|
266
|
579
|
529
|
Net cash provided by
operating activities of discontinued operations
|
-
|
9
|
7
|
19
|
Investing
activities
|
|
|
|
|
Acquisition of mining
property, net of cash acquired
|
(4)
|
-
|
(43)
|
-
|
Expenditures on
mining interests
|
(313)
|
(496)
|
(693)
|
(961)
|
Deposits on mining
interests expenditures
|
-
|
(27)
|
(13)
|
(55)
|
Return of capital
investment in associate
|
20
|
-
|
20
|
-
|
Proceeds from
disposition of mining interests, net of transaction
costs
|
788
|
-
|
788
|
193
|
Interest
paid
|
(19)
|
(2)
|
(49)
|
(28)
|
Net purchases and
proceeds of money market investments and available-for-sale
securities
|
(10)
|
20
|
(11)
|
(24)
|
Other
|
(1)
|
2
|
(1)
|
-
|
Net cash provided by
(used in) investing activities of continuing operations
|
461
|
(503)
|
(2)
|
(875)
|
Net cash (used in)
provided by investing activities of discontinued
operations
|
(3)
|
209
|
97
|
206
|
Financing
activities
|
|
|
|
|
Debt borrowings, net
of transaction costs
|
-
|
988
|
-
|
988
|
Debt
repayments
|
(9)
|
(31)
|
(12)
|
(31)
|
Repayment of $3
billion revolving credit facility, net of draw downs
|
(305)
|
(600)
|
(5)
|
-
|
Dividends paid to
shareholders
|
(124)
|
(122)
|
(246)
|
(244)
|
Common shares
issued
|
7
|
3
|
20
|
3
|
Other
|
21
|
-
|
21
|
-
|
Net cash (used in)
provided by financing activities of continuing
operations
|
(410)
|
238
|
(222)
|
716
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1)
|
-
|
(1)
|
-
|
Increase in cash
and cash equivalents
|
575
|
219
|
458
|
595
|
Cash and cash
equivalents, beginning of the period
|
365
|
1,001
|
482
|
625
|
Cash and cash
equivalents, end of the period
|
$
|
940
|
$
|
1,220
|
$
|
940
|
$
|
1,220
|
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(In millions of United States
dollars – Unaudited)
|
At
June 30
2015
|
At
December 31
2014
|
Assets
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
940
|
$
|
482
|
|
Money market
investments
|
54
|
53
|
|
Accounts
receivable
|
489
|
394
|
|
Inventories
|
700
|
772
|
|
Income taxes
receivable
|
160
|
207
|
|
Assets held for
sale
|
-
|
81
|
|
Other
|
93
|
158
|
|
2,436
|
2,147
|
Mining
interests
|
|
|
|
Owned by
subsidiaries
|
22,605
|
22,458
|
|
Investments in
associates
|
1,712
|
2,087
|
|
24,317
|
24,545
|
Goodwill
|
479
|
479
|
Investments in
securities
|
36
|
43
|
Deposits on mining
interests expenditures
|
12
|
32
|
Deferred income
taxes
|
9
|
26
|
Inventories
|
257
|
249
|
Other
|
344
|
345
|
Total
assets
|
$
|
27,890
|
$
|
27,866
|
Liabilities
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
745
|
$
|
1,039
|
|
Income taxes
payable
|
61
|
45
|
|
Debt
|
183
|
150
|
|
Liabilities relating
to assets held for sale
|
-
|
55
|
Other
|
|
125
|
167
|
|
1,114
|
1,456
|
Deferred income
taxes
|
5,005
|
4,959
|
Debt
|
3,361
|
3,442
|
Provisions
|
657
|
671
|
Income taxes
payable
|
94
|
80
|
Other
|
108
|
83
|
Total
liabilities
|
10,339
|
10,691
|
Equity
|
|
|
Shareholders'
equity
|
|
|
|
Common shares, stock
options and restricted share units
|
17,578
|
17,261
|
|
Accumulated other
comprehensive loss
|
(5)
|
(5)
|
|
Deficit
|
(237)
|
(296)
|
|
17,336
|
16,960
|
Non-controlling
interest
|
215
|
215
|
Total
equity
|
17,551
|
17,175
|
Total liabilities
and equity
|
$
|
27,890
|
$
|
27,866
|
SOURCE Goldcorp Inc.