Goldcorp Inc. Achieves Record Cash Flow; Earnings More Than Double
24.02.2011 | CNW
(All Amounts in $US unless stated otherwise)VANCOUVER, Feb. 24 /CNW/ - Goldcorp Inc. (TSX: G) (NYSE: GG) today reported fourth quarter gold production of 689,600 ounces at a total cash cost(1) of $164 per ounce, leading to record operating cash flows before working capital changes(2) of $646.1 million. Reported net earnings in the quarter were $331.8 million compared to $66.7 million in the fourth quarter of 2009. Adjusted net earnings(3) were $417.1 million, or $0.57 per share, compared to $182.7 million, or $0.25 per share, in the fourth quarter of 2009.
Fourth Quarter 2010 Highlights
- Revenues increased 70% over the 2009 fourth quarter, to $1,319.4 million, on gold sales of 678,600 ounces.
- Total cash costs decreased to $164 per ounce on a by-product basis. Co-product cash costs totalled $461 per ounce.
- Operating cash flows before working capital changes totalled $646.1 million or $0.87/share.
- Dividends paid amounted to $55.2 million.
Full-Year 2010 Highlights
- Revenues increased 40% over 2009, to $3.8 billion on gold sales of 2.4 million ounces.
- Total cash costs were $274 per ounce on a by-product basis and $443 per ounce on a co-product basis.
- Operating cash flows before working capital changes totalled $1.7 billion or $2.33/share.
- Dividends paid amounted to $154.4 million.
- Six transactions completed to upgrade quality of asset portfolio.
- Gold reserves increase 23% and 13% on a per share basis, the Company\'s seventh consecutive annual increase.
"Goldcorp\'s record performance in 2010 reflects the consistent ability of our mine portfolio to deliver growing production amid a continued strong market for gold," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "Another excellent performance from Red Lake in Ontario was the key component of our record gold production while Penasquito\'s rapidly growing metals production in Mexico anchored very low cash costs of $274 per ounce for the year and just $164 per ounce in the fourth quarter. With gold production forecast to grow 60% over the next five years at very low cash costs, Goldcorp is ideally positioned to accelerate cash flow and earnings in 2011 and over the next several years.
"Our strategy remains focused not only on growing gold production, but also enhancing the overall quality of our gold ounces, both in production and in the ground. To that end, we completed six transactions in 2010 that have dramatically upgraded the overall strength of our gold asset base. Among the acquisitions, an updated feasibility study at Cerro Negro in Argentina is analyzing a throughput increase to 4,000 tonnes per day based on a recently announced near-doubling of gold resources in 2010 and outstanding potential for continued exploration success. The El Morro gold-copper project in Chile adds to Goldcorp\'s growing South American presence and fortifies our production profile beyond 2015 while Camino Rojo in Mexico presents great potential for substantial supplemental production in the Penasquito district. The divestitures of non-core assets Escobal, San Dimas and our investment in Terrane Metals have simplified our asset portfolio while adding over $1.2 billion in cash and marketable securities to help internally fund our growth profile.
"With the components of our five-year growth profile in place, our focus in 2011 will be on continued execution at producing mines and advancing our suite of high quality gold projects. Construction of the Pueblo Viejo project in the Dominican Republic is progressing toward completion ahead of a planned production ramp-up in 2012, followed by initial production from Cerro Negro in 2013. We are pleased to announce today updated production details for the Cochenour and Éléonore projects that demonstrate their growing potential as linchpins of our Canadian gold production.
"We expect a strong precious metals market to remain in 2011 and beyond, driven by central bank buying, growing physical demand in developing economies around the globe and gold\'s continued re-emergence as an essential asset class for investment portfolios. Goldcorp\'s strong, low-cost gold production from safe jurisdictions, combined with our investment grade balance sheet positions the Company to thrive in any metals price environment and continues to present a compelling value proposition for investors seeking gold exposure."
Financial Review
Gold sales in the fourth quarter were 678,600 ounces on production of 689,600 ounces. This compares to sales of 573,100 ounces on production of 601,300 ounces in the fourth quarter of 2009. Increased production was driven primarily by Red Lake, Musselwhite and record production at both Marlin in Guatemala and Los Filos in Mexico. Low cash costs at Red Lake and higher by-product credit sales from Penasquito, Marlin and Alumbrera contributed to very low total cash costs of $164 per ounce of gold on a by-product basis. On a co-product basis, cash costs were $461 per ounce, an increase of $39 per ounce due primarily to new Penasquito concentrate production in the fourth quarter of 2010, the inclusion of the export retention tax, and higher YMAD net proceeds payments paid at Alumbrera.
Reported net earnings in the quarter were $331.8 million compared to $66.7 million in the fourth quarter of 2009. Adjusted net earnings in the fourth quarter totaled $417.1 million, or $0.57 per share, compared to $182.7 million or $0.25 per share, in the fourth quarter of 2009. Adjusted net earnings primarily exclude the effect of a non-cash foreign exchange loss on translation of future income tax liabilities and the net gain on dispositions of mining interests, and the loss on the term silver sales contract but include the impact of non-cash stock option expenses, which amounted to approximately $19.6 million or $0.03 per share for the quarter. Operating cash flows before changes in working capital were a record $646.1 million compared to $307.7 million in last year\'s fourth quarter. Gold margin was a record $1,214 per ounce of gold sold.
For the twelve months ended December 31, 2010, revenues increased by 40% to $3.8 billion. Total cash costs year to date were $274 per ounce on a by-product basis and $443 per ounce on a co-product basis.
Net earnings in the twelve months ended December 31, 2010 were a record $1.6 billion or $2.14 per share, compared to net earnings of $240.2 million or $0.33 per share in the same period in 2009. Adjusted net earnings totaled $1.0 billion, or $1.37 per share, compared to $588.2 million or $0.80 per share, in 2009. Cash flow from operations before changes in working capital increased 45% to $1.7 billion from $1.2 billion in the twelve months ended December 31, 2009.
Penasquito and Los Filos Set the Pace for Growing Production in Mexico
Completing its first full quarter since declaring commercial production in September, Penasquito continued to meet expectations in key production metrics including concentrate grade and quality, mining rates and mill throughput. Gold production totaled 53,900 ounces for the fourth quarter and 168,200 ounces for the year. Silver production totaled 4,607,600 ounces for the fourth quarter and 13,952,600 ounces for the year. Lead and zinc production for the fourth quarter totaled 34.4 million pounds and 54.2 million pounds, respectively. For the year lead and zinc production totaled 97.4 million pounds and 154.5 million pounds, respectively. Strong by-product silver, lead and zinc credits contributed to by-product cash costs during the quarter of negative $1,002 per ounce of gold. During the fourth quarter, commissioning of the high pressure grinding roll (HPGR) circuit continued and Penasquito remained on track to reach designed milling capacity of 130,000 tonnes per day by the end of the first quarter of 2011. As the mine ramps up to full design capacity early 2011, full year gold production is expected to be 350,000 ounces.
Drilling of the mantos below and lateral to the planned pit bottoms continued at Penasquito during the fourth quarter. High grade intercepts in the second half of 2010 demonstrate substantial opportunity to expand existing gold, silver, zinc and lead resources below and outside of the pit shapes, supporting the potential for a concurrent high-grade underground operation to further supplement core Penasquito production.
At Los Filos, quarterly record gold production of 84,900 ounces was 28% higher than in the third quarter of 2010 as higher grades, tonnage and solution were achieved as the rainy season ended. Total gold production for the year amounted to 306,100 ounces. Construction of a fourth stage of the heap leach pad started during the fourth quarter and is expected to be completed late in the third quarter of 2011 resulting in increased gold production of 335,000 ounces for 2011.
The Largest Producer of Canadian Gold
Gold production at Red Lake was 187,000 ounces during the fourth quarter at total cash costs of $313 per ounce. For 2010 gold production totaled 703,300 ounces a 13% increase over 2009 a result of a significant increase in tonnage mined, consistent with the mine\'s strategy to fill the mills by utilizing lower grade areas such as the sulfide zones. With a greater proportion of mined material from the lower grade zone in 2011, gold production is expected to total 665,000 ounces in 2011. The completion of the interconnection drift between the Red Lake and Campbell complexes and continued development of the 4199 exploration ramp during 2010 enabled accelerated exploration drilling on the High Grade Zone. This development success led to a net increase in gold reserves in the High Grade Zone of nearly 300,000 ounces and contributed to a strong overall gold reserve increase at Red Lake.
At Porcupine in Ontario, gold production during the fourth quarter totaled 67,900 ounces at a total cash cost of $656 per ounce. The Hoyle Pond Deep project continued to progress, which will access recently-discovered zones of gold mineralization and enhance operational flexibility and efficiencies throughout the Hoyle Pond underground complex. Drilling focused on lateral and depth extension of current mineralized zones, as well as testing for additional mineralized areas. The TVZ deposit, encountered during depth extension of the current mineralization, has been successfully extended up-dip and remains open both up and down dip and to the east. There are currently three surface diamond drills testing the projection of this deposit to surface.
Driven by 12% higher throughput, Musselwhite in Ontario turned in record quarterly gold production of 79,900 ounces. Surface exploration drilling in 2011 will target both the recently discovered Lynx and West Limb targets, while underground drilling will focus on further defining the Lynx and PQ Deeps resources at depth. Stronger grade in the PQ Deeps and initial mining of the Lynx zone is expected to contribute to increased production of 265,000 ounces during 2011.
Commitment to Sustainable Prosperity Continues in Guatemala
A record quarter was reported at Marlin in Guatemala for production of both gold and silver and total cash costs. Gold production was 92,300 ounces at total cash costs of negative $224 per ounce, including silver production of 2,156,500 ounces. The increase in production from the third quarter of 2010 was due to 41% and 45% higher gold and silver grades, respectively, and additional tonnes processed as planned. Gold production at Marlin in 2011 is expected to total approximately 400,000 ounces as the final, higher grade portion of the open pit is mined.
Operations at Marlin continue normally while the administrative process by the Guatemalan government is underway. The process is in response to precautionary measures issued by the Inter-American Commission on Human Rights (IACHR) which included a recommendation to suspend operations at Marlin. Goldcorp strongly believes the IACHR\'s action is based on environmental allegations that are demonstrably without merit. On October 25, the IACHR held a public audience at which representatives of the Municipality of Sipacapa and the government of Guatemala appeared. The government\'s responses to the IACHR expressly confirm that studies conducted by the Ministry of Energy and Mines, the Ministry of Health and Social Welfare, and the Ministry of Environment and Natural Resources in Guatemala demonstrate there is no evidence of pollution or ill effects to public health or the environment as a result of operations at Marlin. The Government of Guatemala also stated that an assessment by the Ministry of Health and Social Welfare did not detect any disease linked to alleged contamination. While the government\'s administrative process is underway, the Company expects normal operations at the Marlin mine to continue.
Project Pipeline Advances
Goldcorp today released results of updated economic studies for its Canadian growth projects Cochenour near Red Lake and Éléonore in Quebec. The release announcing the successful progress can be found at www.goldcorp.com.
Construction of Pueblo Viejo in the Dominican Republic continues advancing with first production expected in the first quarter of 2012. In December, the Environmental Impact Assessment for the 240 kV power transmission line was approved allowing associated construction activities to commence. Alternative temporary power sources are being secured which will allow project commissioning in the fourth quarter of 2011. Overall construction is nearly 50% complete, approximately 75% of the capital has been committed and all four autoclaves are on site and have been placed on their foundations. Work continues toward achieving key milestones including the connection of power to the site. Pre-production capital estimate is now expected to be $3.3-$3.5 billion (100% basis) (Goldcorp share $1.3 - $1.4 billion) a 10-15% increase from the previous estimate largely due to higher labor, power supply, freight and steel product related costs as well as general inflation.
At the Cerro Negro project in Argentina, the recently announced successful growth of the total gold resource to over 5 million ounces forms the basis of an updated feasibility study to analyze an increase in throughput to approximately 4,000 tonnes per day. The update, expected to be completed at the end of the first quarter 2011, is incorporating recent drilling success of the high grade Marianas and San Marcos veins, which remain open along strike. The Company is deploying ten exploration drill rigs to further delineate and extend these large new vein zones and test new vein targets in an effort to further expand overall gold resources in 2011.
Exploration and development work continued at Camino Rojo and Noche Buena, two advanced-stage satellite exploration projects near Penasquito. At Camino Rojo, exploration activities have commenced with drilling and airborne geophysics now underway. At Noche Buena, drilling will continue during 2011 with the objective of adding further oxide resources and expanding the understanding of the sulphide zones. A new scoping study will be updated during 2011 to incorporate the results of high-grade structure definition drilling.
At the El Morro project, approval of the Environmental Impact Assessment (EIA) is anticipated in the first quarter of 2011. Once the EIA has been approved, condemnation drilling will commence, focusing on selected areas of plant, mine waste, tailing and camp. Subsequent exploration drilling will concentrate on in-fill drilling and sampling for metallurgical and geo-technical data. A further update to the feasibility study is expected in the third quarter of 2011.
Corporate Responsibility, Safety & Health
During the fourth quarter both the Porcupine Mine and Red Lake Gold Mines in Canada became fully certified under the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold ("the Cyanide Code"), becoming Goldcorp\'s sixth and seventh mines to be certified. All of the Company\'s nominated mines are now compliant. Goldcorp is also pleased to announce the 2010 recipients of Company\'s two highest awards for safety. Los Filos mine retains the Best Overall Safety honor for the second consecutive year while Musselwhite mine has been honored for Most Improved Safety Performance.
This release should be read in conjunction with Goldcorp\'s 2010 financial statements and MD&A report on the Company\'s website, www.goldcorp.com, in the "Investors" section under "Financials".
A conference call will be held on February 25, 2011 at 10:00 a.m. (PDT) to discuss the fourth quarter results. Participants may join the call by dialing toll free 1-866-223-7781 or 1-416-340-8018 for calls from outside Canada and the US. A recorded playback of the call can be accessed after the event until March 28, 2011 by dialing 1-800-408-3053 or 1-416-695-5800 for calls outside Canada and the US. Pass code: 3536617. A live and archived audio webcast will also be available at www.goldcorp.com.
(1) The Company has included a non-GAAP performance measure, total cash cost per gold ounce, throughout this document. The Company reports total cash costs on a sales basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. The Company follows the recommendations of the Gold Institute standard. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate the Company\'s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to page 44 of the 2010 annual MD&A for a reconciliation of total cash costs to reported operating expenses.
(2) Operating cash flow before working capital changes and operating cash flows before working capital changes per share are non-GAAP measures which the Company believes provides a better indicator of the Company\'s ability to generate cash flow from its mining operations. Cash provided by operating activities reported in accordance with GAAP was $676.8 million and $1,787.3 million in the fourth quarter and twelve months ended December 31, 2010, respectively.
(3) Adjusted net earnings and adjusted net earnings per share are non- GAAP measures. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company\'s performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to page 45 of the 2010 annual MD&A for a reconciliation of adjusted earnings to reported net earnings.
(4) The Company has included a non-GAAP performance measure, margin per gold ounce, throughout this document. The Company reports margin on a sales basis. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate the Company\'s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
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(in $ millions, except where noted) Q4\'10
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Revenues per Financial Statements $1,319.4
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Treatment and refining charges on concentrate sales 31.3
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By-product silver and copper sales and other (415.5)
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Gold revenues 935.2
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Divided by ounces of gold sold 678,600
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Realized gold price per ounce 1,378
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Deduct total cash costs per ounce of gold sold(1) 164
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Margin per gold ounce $1,214
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Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp Inc. ("Goldcorp"). Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Goldcorp to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Goldcorp will operate in the future, including the price of gold, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, among others, gold price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks, litigation risks, regulatory restrictions (including environmental regulatory restrictions and liability), activities by governmental authorities (including changes in taxation), currency fluctuations, the speculative nature of gold exploration, the global economic climate, dilution, share price volatility, competition, loss of key employees, additional funding requirements and defective title to mineral claims or property. Although Goldcorp has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations, including economical and political instability in foreign jurisdictions in which Goldcorp operates; risks related to current global financial conditions; risks related to joint venture operations; actual results of current exploration activities; environmental risks; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; mine development and operating risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; risks related to indebtedness and the service of such indebtedness, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Goldcorp\'s annual information form for the year ended December 31, 2009 available at www.sedar.com. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Goldcorp, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management\'s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
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SUMMARIZED FINANCIAL RESULTS
(in millions of United States dollars, except per share and per ounce
amounts)
Three Months Ended
December 31
2010 2009
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Gold produced (ounces) 689,600 601,300
Gold sold (ounces) 678,600 573,100
Copper produced (thousands of pounds) 27,700 32,400
Copper sold (thousands of pounds) 27,000 31,300
Silver produced (ounces) 6,764,100 2,605,900
Silver sold (ounces) 7,161,900 2,535,500
Average realized gold price (per ounce) $1,378 $1,107
Average London spot gold price (per ounce) $1,367 $1,100
Average realized copper price (per pound) $4.84 $3.69
Average London spot copper price (per pound) $3.92 $3.01
Average realized silver price (per ounce) $23.92 $10.84
Average London spot silver price (per ounce) $26.43 $17.57
Total cash costs - by-product (per gold ounce) $164 $289
Total cash costs - co-product (per gold ounce) $461 $422
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Three Months Ended
December 31
Production Data: 2010 2009
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Red Lake gold mines : Tonnes of ore milled 224,700 197,700
Average mill head grade
(grams per tonne) 26 27
Gold ounces produced 187,000 156,300
Total cash cost per ounce -
by-product $313 $317
Porcupine mine : Tonnes of ore milled 1,037,600 1,005,100
Average mill head grade
(grams per tonne) 2.10 2.40
Gold ounces produced 67,900 71,700
Total cash cost per ounce -
by-product $656 $509
Musselwhite mine : Tonnes of ore milled 405,700 337,000
Average mill head grade
(grams per tonne) 6.20 5.49
Gold ounces produced 79,900 56,300
Total cash cost per ounce -
by-product $572 $605
Los Filos mine : Tonnes of ore mined 7,304,200 6,747,300
Tonnes of waste removed 7,587,200 7,184,800
Tonnes of ore processed 7,403,500 6,839,100
Average grade processed
(grams per tonne) 0.70 0.69
Gold ounces produced 84,900 60,100
Total cash cost per ounce -
by-product $400 $444
El Sauzal mine : Tonnes of ore mined 645,200 592,600
Tonnes of waste removed 752,400 1,766,700
Tonnes of ore milled 527,500 507,000
Average mill head grade
(grams per tonne) 2.39 2.25
Gold ounces produced 38,500 34,200
Total cash cost per ounce -
by-product $303 $371
Marlin mine : Tonnes of ore milled 380,500 552,400
Average mill head grade
(grams per tonne) - gold 7.81 4.83
Average mill head grade
(grams per tonne) - silver 193 99
Gold ounces produced 92,300 78,600
Silver ounces produced 2,156,500 1,331,200
Total cash cost per ounce -
by-product ($224) $129
Total cash cost per ounce -
co-product $280 $336
Alumbrera mine(1) : Tonnes of ore mined 1,940,200 3,557,400
Tonnes of waste removed 5,270,500 5,199,900
Tonned of ore milled 3,479,900 3,556,600
Average mill head grade
(grams per tonne) - gold 0.50 0.43
Average mill head grade (%)
- copper 0.45% 0.48%
Gold ounces produced 42,200 34,600
Copper (thousands of pounds)
produced 27,700 32,400
Total cash cost per ounce -
by-product ($1,002) ($1,333)
Total cash cost per ounce -
co-product $673 $519
Marigold mine(2) : Tonnes of ore mined 1,805,100 2,051,800
Tonnes of waste removed 7,313,300 5,077,300
Tonnes of ore processed 1,805,100 2,051,800
Average grade processed
(grams per tonne) 0.66 0.84
Gold ounces produced 27,000 31,900
Total cash cost per ounce -
by-product $787 $482
Wharf mine : Tonnes of ore mined 815,800 815,900
Tonnes of ore processed 726,900 756,900
Average grade processed
(grams per tonne) 0.63 0.82
Gold ounces produced 16,000 16,400
Total cash cost per ounce -
by-product $788 $805
Penasquito mine : Tonnes of ore mined 12,360,800 -
Tonnes of waste removed 34,970,900 -
Tonnes of ore milled 7,635,600 -
Average mill head grade
(grams per tonne) - gold 0.30 -
Average mill head grade
(grams per tonne) - silver 26.14 -
Average mill head grade (%)
- lead 0.35% -
Average mill head grade (%)
- zinc 0.56% -
Gold ounces produced 53,900 -
Silver ounces produced 4,607,600 -
Lead (thousands of pounds)
produced 34,400 -
Zinc (thousands of pounds)
produced 54,200 -
Total cash cost per ounce -
by-product ($1,002) -
Total cash cost per ounce -
co-product $655 -
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(1) Goldcorp\'s interest - 37.5%
(2) Goldcorp\'s interest - 66.67%
Three Months Ended
December 31
Financial Data: 2010 2009
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Cash flow from operating activities (before changes
in non-cash working capital) $646.1 $308.6
Net earnings attributable to shareholders of
Goldcorp $331.8 $66.7
Earnings per share - basic $0.45 $0.09
Adjusted net earnings $417.1 $182.7
Weighted average number of shares outstanding
(000\'s) 736,620 733,079
CONSOLIDATED STATEMENTS OF EARNINGS
(United States dollars in millions, except for share and per share
amounts - Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
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2010 2009 2010 2009
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Revenues $ 1,319.4 $ 778.3 $ 3,799.8 $ 2,723.6
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Operating expenses (498.1) (321.8) (1,478.4) (1,187.3)
Depreciation and depletion (201.4) (141.4) (623.0) (526.2)
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Earnings from mine
operations 619.9 315.1 1,698.4 1,010.1
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Corporate administration(1) (54.9) (38.9) (177.1) (133.1)
Exploration (8.9) (9.1) (51.8) (31.8)
Write-down of mining
interests - (24.0) - (24.0)
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Earnings from operations 556.1 243.1 1,469.5 821.2
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Other income (expenses)
Interest and other
expenses (21.3) (13.6) (46.3) (19.2)
Interest expense and
finance fees (13.1) (22.0) (52.3) (59.0)
Share of losses of
equity investees (5.1) - (8.1) -
Gains (losses) on non-
hedge derivatives, net (60.8) (5.7) (61.8) 3.6
Gains on securities, net 0.8 44.6 0.5 50.2
Gains on dispositions of
mining interests - 20.1 780.5 20.1
Losses on foreign
exchange, net (219.6) (128.2) (355.4) (363.7)
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(319.1) (104.8) 257.1 (368.0)
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Earnings from continuing
operations before taxes 237.0 138.3 1,726.6 453.2
Income and mining taxes (119.4) (70.6) (346.0) (209.1)
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Earnings from continuing
operations 117.6 67.7 1,380.6 244.1
Earnings (loss) from
discontinued operation,
net of tax 210.1 (1.9) 185.5 (5.9)
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Net earnings $ 327.7 $ 65.8 $ 1,566.1 $ 238.2
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Earnings from continuing
operations attributable
to:
Shareholders of
Goldcorp Inc. $ 117.6 $ 66.7 $ 1,380.5 $ 244.1
Non-controlling
interests - - 0.1 -
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$ 117.6 $ 66.7 $ 1,380.6 $ 244.1
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Net earnings (loss)
attributable to:
Shareholders of
Goldcorp Inc. $ 331.8 $ 66.7 $ 1,574.3 $ 240.2
Non-controlling
interests (4.1) (0.9) (8.2) (2.0)
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$ 327.7 $ 65.8 $ 1,566.1 $ 238.2
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(1) Stock based compensation
expense (non-cash item)
included in corporate
administration $ 19.6 $ 10.5 $ 63.2 $ 45.1
Earnings from continuing
operations per share
Basic $ 0.16 $ 0.09 $ 1.88 $ 0.33
Diluted 0.16 0.09 1.87 0.33
Net earnings per share
Basic $ 0.45 $ 0.09 $ 2.14 $ 0.33
Diluted 0.44 0.09 2.13 0.33
Weighted-average number
of shares outstanding
(000\'s)
Basic 736,620 733,079 735,337 731,306
Diluted 740,123 737,318 738,236 734,564
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31
(United States dollars in millions - Unaudited)
2010 2009
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Assets
Cash and cash equivalents $ 556.2 $ 874.6
Marketable securities 39.9 24.9
Accounts receivable 443.8 278.8
Income and mining taxes receivable 36.9 38.4
Inventories and stockpiled ore 396.8 349.4
Notes receivable 64.1 -
Other 84.1 35.4
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Current assets 1,621.8 1,601.5
Mining interests 25,316.3 18,001.3
Deposits on mining interest expenditures 6.4 86.9
Goodwill 761.8 761.8
Stockpiled ore 82.3 93.6
Investments 930.6 390.3
Note receivable 47.5 -
Other 42.4 13.3
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$ 28,809.1 $ 20,948.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Accounts payable and accrued liabilities $ 586.5 $ 416.4
Income and mining taxes payable 217.8 182.6
Current debt - 16.7
Future income and mining taxes payable 174.6 107.9
Current derivative liabilities 55.1 11.4
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Current liabilities 1,034.0 735.0
Income and mining taxes payable 125.1 65.4
Long-term debt 747.1 719.0
Future income and mining taxes payable 6,082.0 3,575.2
Non-current derivative liability 95.4 -
Reclamation and closure cost obligations 276.2 282.0
Other 41.9 27.8
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8,401.7 5,404.4
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Equity
Common shares, share purchase warrants,
stock options, restricted share units and
equity component of convertible senior notes 15,853.0 12,908.9
Retained earnings 3,779.3 2,345.5
Accumulated other comprehensive income 561.9 238.8
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4,341.2 2,584.3
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Shareholders\' equity 20,194.2 15,493.2
Non-controlling interests 213.2 51.1
-------------------------------------------------------------------------
20,407.4 15,544.3
-------------------------------------------------------------------------
$ 28,809.1 $ 20,948.7
-------------------------------------------------------------------------
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States dollars in millions - Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
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2010 2009 2010 2009
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Operating Activities
Net earnings from
continuing operations $ 117.6 $ 67.7 $ 1,380.6 $ 244.1
Reclamation expenditures (2.4) (7.6) (15.6) (26.5)
Transaction costs on
convertible senior notes
expensed - (0.1) - 18.5
Gain on securities, net (0.8) (44.6) (0.5) (50.2)
Gains on dispositions of
mining interests - (20.1) (780.5) (20.1)
Current income tax expense
on disposition of San
Dimas Assets - - 145.6 -
Items not affecting cash
Depreciation and
depletion 201.4 141.4 623.0 526.2
Stock based compensation
expense 19.6 10.5 63.2 45.1
Write-down of mining
interests - 24.0 - 24.0
Accretion on Primero
promissory and
convertible notes
receivable (0.5) - (0.5) -
Accretion on convertible
senior notes 7.1 6.8 28.0 15.6
Share of losses of equity
investees 5.1 - 8.1 -
Unrealized loss on non-
hedge derivatives, net 61.0 6.1 68.0 3.3
Future income and mining
taxes 21.3 (0.6) (163.0) 57.4
Unrealized loss on foreign
exchange and other 216.7 125.1 362.0 346.9
Change in non-cash working
capital 30.7 59.3 68.9 90.8
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Cash provided by operating
activities of continuing
operations 676.8 367.9 1,787.3 1,275.1
-------------------------------------------------------------------------
Cash used in operating
activities of
discontinued operation (7.3) (1.4) (15.3) (4.9)
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Investing Activities
Acquisitions, net of cash
acquired (522.2) - (1,317.5) -
Investment in common shares
of Tahoe (143.7) - (143.7) -
Repayment of capital
invested in Pueblo Viejo - - 192.0 -
Expenditures on mining
interests (368.6) (216.4) (1,186.3) (1,007.1)
Deposits on mining interest
expenditures (5.5) (101.7) (42.0) (341.4)
Proceeds on dispositions of
mining interests, net - 14.0 476.7 14.0
Income taxes paid on
disposition of San Dimas
Assets (12.4) - (57.9) -
Income taxes paid on
disposition of Silver
Wheaton shares - - (148.7) -
Purchases of securities (0.3) (26.2) (19.4) (181.9)
Proceeds from sales of
securities - 65.2 - 65.2
Other (1.5) (1.2) (2.0) 0.4
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Cash used in investing
activities of continuing
operations (1,054.2) (266.3) (2,248.8) (1,450.8)
-------------------------------------------------------------------------
Cash provided by (used
in) investing activities
of discontinued
operation 242.6 (0.6) 170.0 (7.9)
-------------------------------------------------------------------------
Financing Activities
Debt borrowings 350.0 1.0 1,120.0 1,323.4
Debt repayments (350.0) - (1,120.0) (460.0)
Transaction costs on
convertible senior notes - 0.1 - (22.7)
Common shares issued, net 27.0 18.1 95.8 79.1
Dividends paid to common
shareholders (55.2) (33.0) (154.4) (131.7)
Other 0.3 - - -
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Cash provided by (used in)
financing activities of
continuing operations (27.9) (13.8) (58.6) 788.1
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Cash provided by
financing activities of
discontinued operation 0.5 2.6 49.5 11.1
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents (6.3) 0.9 (2.5) 1.6
-------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents (175.8) 89.3 (318.4) 612.3
Cash and cash equivalents,
beginning of year 732.0 785.3 874.6 262.3
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Cash and cash equivalents,
end of year $ 556.2 $ 874.6 $ 556.2 $ 874.6
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>>
For further information:
Jeff Wilhoit
Vice President, Investor Relations
Telephone: (604) 696-3074
Fax: (604) 696-3001
E-mail: info@goldcorp.com
website: www.goldcorp.com