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VANCOUVER, July 31, 2014 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) today reported adjusted quarterly revenues1 of $1.1 billion, generating adjusted net earnings1,2 of $164 million, or $0.20 per share, compared to $117 million, or $0.14 per share, in the second quarter of 2013.  Reported net earnings attributable to shareholders of Goldcorp were $181 million, or $0.22 per share, compared to $(1,934) million, or $(2.38) per share, in the second quarter of 2013.  Adjusted operating cash flow1,3 was $376 million compared to $388 million for the second quarter of 2013.  The Company also announced the on-schedule commencement of production at the Cerro Negro mine in Argentina, including the first gold pour on July 25, 2014.

Second Quarter 2014 Highlights

  • Gold sales1 of 639,500 ounces on gold production1 of 648,700 ounces.
  • Adjusted revenues of $1.1 billion.
  • All-in sustaining costs of $8521,4 per ounce.
  • Adjusted net earnings of $164 million, or $0.20 per share.
  • Adjusted operating cash flow of $376 million.
  • Dividends paid of $122 million.
  • Completed sale of Marigold mine on April 4, 2014 for $184 million (Goldcorp's share).
  • Issued $1.0 billion of senior unsecured notes.

"Continued solid production and cost performance across the portfolio contributed to strong financial results in the second quarter," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "Cost improvements realized through our Operating for Excellence efficiency program were particularly impressive at Peñasquito.  Those savings, along with grades and recoveries contributed to earnings from Peñasquito mine operations of approximately $130 million in the quarter.  In addition, the three new gold projects under construction that underpin Goldcorp's leading growth profile continued to advance steadily. We were very pleased to announce last week the commencement of gold production at Cerro Negro on schedule and within our capital cost guidance. I congratulate the team at Cerro Negro for this outstanding performance and look forward to strong production and financial results over a long mine life from this important new mine. This achievement signals the start of a prolonged period of increased production, decreasing costs and reduced capital spending for Goldcorp, resulting in significant expected free cash flow generation in 2015 and beyond."

Financial Review

Second quarter gold production and sales increased over last year's second quarter despite the loss of gold production from the recently-divested Marigold mine and lower production from Los Filos as a result of a 43-day work stoppage.  Gold sales in the second quarter were 639,500 ounces on production of 648,700 ounces compared to sales of 624,300 ounces on production of 646,000 ounces in the second quarter of 2013. Silver production totaled 9.0 million ounces compared 7.2 million ounces in the prior year's second quarter.  Increased production efficiencies and lower sustaining capital led to a decrease in all-in sustaining costs to $852 per ounce of gold compared to $1,227 per ounce in the second quarter of 2013.

Adjusted revenues of $1.1 billion were comparable to the second quarter of 2013.  Reported net earnings in the quarter were $181 million, or $0.22 per share, compared to $(1,934) million, or $(2.38) per share, in the second quarter of 2013. Adjusted net earnings in the second quarter increased 40% to $164 million, or $0.20 per share, compared to $117 million, or $0.14 per share, in the second quarter of 2013.  Adjusted net earnings in the second quarter of 2014 primarily exclude the gains from the foreign exchange translation of deferred income tax assets and liabilities, shares of net earnings of associates, gains on derivatives, the loss from the disposition of mining interests, and revisions in estimates on reclamation and closure cost obligations for closed mine sites but include the impact of non-cash stock-based compensation expenses which amounted to approximately $16 million or $0.02 per share for the quarter.  Adjusted operating cash flow was $376 million, or $0.46 per share, compared to $388 million, or $0.48 per share, in last year's second quarter.

During the quarter, the Company completed a $1 billion notes offering with proceeds primarily intended to be used for repayment of the $862.5 million of convertible notes maturing in August 2014.  Subsequent to the end of the second quarter, the Company extended the expiration of an undrawn $2 billion revolving credit facility from March 6, 2018 to July 18, 2019.

Mexico

Driven by higher mill throughput, grades and recoveries, gold production at Peñasquito totaled a record 167,400 ounces in the quarter at a record-low all-in sustaining cost of $362 per ounce. Initial permits for the Northern Well Field ("NWF") were received, allowing construction to commence, with completion expected mid-year 2015.  Contingency plans remain in place for fresh water supply to Peñasquito until the NWF is operational. 

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.

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. Successful implementation of one or both of these projects has the potential to significantly improve the overall economics and add to the reserves and resources of Peñasquito through the addition of another saleable product, and increasing gold and silver recoveries, respectively.

Gold production at Los Filos was 48,700 ounces in the second quarter at an all-in sustaining cost of $1,077 per ounce.  Results were negatively impacted by a 43-day suspension of process operations, inclusive of extended time to obtain regulatory approvals to restart operations.  Following the successful negotiation with the Carrizalillo Ejido, a new five-year land occupancy agreement was signed on May 5, 2014.

The construction of the expansion phase of the heap leach pad, including additional contingency solution storage capacity, was completed in June 2014. The additional storage represents a 250% increase in contingency pond capacity, which allows for heap leach pad growth while maintaining appropriate containment standards.

Canada

At Red Lake in Ontario, gold production in the second quarter was 89,500 ounces at an all-in sustaining cost of $1,066 per ounce.   Production was affected by a decrease in mill throughput resulting from lower tonnes as remnant mining of the Campbell Complex continued.  Red Lake production was also affected by lower stope availability in the High Grade Zone, as planned de-stress activities took place. Production is expected to increase in the second half of 2014 as more stopes become available.

During the quarter, exploration continued from surface on HG Young, an exciting new discovery 1.5 kilometers northwest of the Campbell Complex.  High-grade intercepts are increasing and exploration is continuing with three drills from surface. Planning is underway for the rehabilitation of an historical drift from Campbell to enable more intensive drilling from underground. Exploration efforts also continue to focus on the NXT zone as well as the R zone and FW zone where numerous economic intersections have been encountered.

At Porcupine in Ontario, gold production in the second quarter totaled 68,800 ounces.  Porcupine continued its positive cost performance trend, with all-in sustaining costs decreasing to $895 per ounce in the second quarter.  Over-burden and pre-stripping activities continued at the Hollinger project with 273,000 tonnes placed on the Environmental Control Berm.  The Environmental Control Berm is on track to be completed late in the fourth quarter of 2014, after which mining operations will commence at Hollinger.

Central America

At the Pueblo Viejo joint venture in the Dominican Republic, Goldcorp's share of second quarter gold and silver production increased to 107,100 ounces and 392,800 ounces respectively, driven by higher tonnes processed and higher silver recoveries.  All-in sustaining costs at Pueblo Viejo decreased for the sixth consecutive quarter to $618 per ounce.

South America

Cerro Negro in Argentina became Goldcorp's newest gold mine following initial gold production on July 25, 2014. Production mining continues at Eureka, while production mining at Mariana Central is expected to commence in the first quarter of 2015. Commercial production continues to be expected in the fourth quarter of 2014. The construction of the high voltage power line is now complete with the first stage of commissioning completed by Transpa, the Argentinean power transportation authority.  Construction of the Cerro Negro substation is approximately 92% complete, with the system expected to be completed in the third quarter of 2014. The initial capital guidance range for Cerro Negro has been reduced by $100 million from between $1.6 and $1.8 billion to between $1.6 and $1.7 billion.

Growth Projects

Construction at the Éléonore gold project in Quebec continued on schedule for first gold in the fourth quarter of 2014 and commercial production in the first quarter of 2015.  The processing plant reached 90% completion, and mine development is on track to meet the current plant start-up schedule. Key activities during the quarter included stockpiling 63,000 tonnes of ore on surface, commissioning of the underground ore handling system and the first production blast.  Exploration during the quarter focused on in-fill drilling in the lower mine area with five diamond drills.

At the Cochenour project in the Red Lake district, the haulage drift connecting the Bruce Channel deposit to the Red Lake complex advanced to 96% completion.  With the integration of Cochenour into the Red Lake operation critical to planned ramp-up activities, a dedicated integration team has been established.  The project remains on track to produce first ore from production stopes in the third quarter of 2015.  Exploration drilling continued to yield positive results with seven drill rigs operating.

At the Camino Rojo project near Peñasquito, positive exploration results continue to support the project's potential to be a major new gold operation.  The Company expects to commence a pre-feasibility study before the end of 2014, approximately five months later than expected due to the complexity of the metallurgical testing.  The study is expected to be completed by the first quarter of 2016.  Metallurgical testing continues and waste rock characterization studies are underway.  The pit geotechnical drilling program commenced in June 2014.

2014 Guidance Outlook

The Company today reconfirmed 2014 production guidance of between 2.95 and 3.10 million gold ounces. In light of lower-than-expected all-in sustaining costs in the first half of 2014, the Company expects all-in costs toward the low end of its guidance range of between $950 and $1,000 per gold ounce, with sustaining capital spending expected to increase significantly in the second half of 2014.  The Company today also narrowed the range of capital spending guidance to between $2.3 billion and $2.4 billion for 2014 compared to $2.3 billion to $2.5 billion previously.

By-Laws

On July 30, 2014, the Board of Directors of the Company approved By-Law No. 4 which includes a provision that requires advance notice to the Company in circumstances where director nominations are made by shareholders of the Company.  The full text of By-Law No. 4 has been filed under the Company's SEDAR profile at www.sedar.com and on the United States Securities and Exchange Commission website at www.sec.gov.

About Goldcorp 

Goldcorp is one of the world's fastest growing gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.

This release should be read in conjunction with Goldcorp's second 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 July 31, 2014 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 1-416-695-6617 for calls from outside Canada and the US.  A recorded playback of the call can be accessed after the event until August 31, 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)     

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.

 

 

(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 40 of the Q2 2014 Management Discussion & Analysis ("MD&A") for a reconciliation of adjusted net earnings to reported net earnings attributable to shareholders of Goldcorp.

 

 

(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 41 of the Q2 2014 MD&A for a reconciliation of adjusted operating cash flows to reported net cash provided by operating activities.

 

 

(4)     

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 38 of the Q2 2014 MD&A for a reconciliation of all-in sustaining costs.

 

 

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 "Description of the Business – 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
(in millions of United States dollars, except per share amounts and where noted)

 

 

               Three Months Ended
               June 30

Goldcorp's share (1)

2014

2013

Revenues

$1,116

$1,075

Gold produced (ounces)

648,700

646,000

Gold sold (ounces)

639,500

624,300

Copper produced (thousands of pounds)

19,300

21,600

Copper sold (thousands of pounds)

13,000

19,400

Silver produced (ounces)

8,984,000

7,180,000

Silver sold (ounces)

9,808,100

7,005,000

Lead produced (thousands of pounds)

38,600

35,400

Lead sold (thousands of pounds)

43,200

36,800

Zinc produced (thousands of pounds)

91,900

70,100

Zinc sold (thousands of pounds)

77,000

61,800

Average realized gold price (per ounce)

$1,296

$1,358

Average London spot gold price (per ounce)

$1,289

$1,414

Average realized copper price (per pound)

$3.39

$2.63

Average London spot copper price (per pound)

$3.08

$3.24

Average realized silver price (per ounce)

$16.96

$17.01

Average London spot silver price (per ounce)

$19.61

$23.11

Average realized lead price (per pound)

$0.97

$0.93

Average London spot lead price (per pound)

$0.95

$0.93

Average realized zinc price (per pound)

$1.00

$0.82

Average London spot zinc price (per pound)

$0.94

$0.83

Total cash costs – by-product (per gold ounce)

$470

$646

Total cash costs – co-product (per gold ounce)

$643

$713

All-in sustaining cash costs (per gold ounce)

$852

$1,227

 

 

 

 

Production Data:

 

 

 

Red Lake gold mines :

Tonnes of ore milled

157,700

196,100

 

Average mill head grade (grams per tonne)

18.77

20.91

 

Gold ounces produced

89,500

122,500

 

Total cash cost per ounce – by-product

$656

$523

 

All-in sustaining cash cost per ounce

$1,066

$955

Porcupine mines :

Tonnes of ore milled

1,081,400

989,600

 

Average mill head grade (grams per tonne)

2.19

2.32

 

Gold ounces produced

68,800

69,800

 

Total cash cost per ounce – by-product

$658

$782

 

All-in sustaining cash cost per ounce

$895

$1,176

Musselwhite mine :

Tonnes of ore milled

313,400

356,500

 

Average mill head grade (grams per tonne)

7.12

5.60

 

Gold ounces produced

67,800

62,800

 

Total cash cost per ounce – by-product

$605

$786

 

All-in sustaining cash cost per ounce

$794

$1,214

Peñasquito :

Tonnes of ore mined

10,415,800

14,181,300

 

Tonnes of waste removed

40,595,300

30,770,200

 

Tonnes of ore milled

10,050,000

9,600,800

 

Average head grade (grams per tonne) – gold

0.78

0.43

 

Average head grade (grams per tonne) – silver

30.08

22.51

 

Average head grade (%) – lead

0.24

0.25

 

Average head grade (%) – zinc

0.59

0.54

 

Gold ounces produced

167,400

88,100

 

Silver ounces produced

7,006,800

5,195,200

 

Lead (thousands of pounds) produced

38,600

35,400

 

Zinc (thousands of pounds) produced

91,900

70,100

 

Total cash cost per ounce – by-product

$124

$920

 

Total cash cost per ounce – co-product

$610

$998

 

All-in sustaining cash cost per ounce

$362

$1,484

Los Filos mine :

Tonnes of ore mined

3,472,600

6,526,600

 

Tonnes of waste removed

6,608,800

11,468,200

 

Tonnes of ore processed

3,480,200

6,572,700

 

Average grade processed (grams per tonne)

0.75

0.70

 

Gold ounces produced

48,700

83,500

 

Total cash cost per ounce – by-product

$778

$624

 

All-in sustaining cash cost per ounce

$1,077

$1,217

El Sauzal mine :

Tonnes of ore mined

476,400

556,000

 

Tonnes of waste removed

3,343,700

3,030,400

 

Tonnes of ore milled

453,700

485,500

 

Average mill head grade (grams per tonne)

1.21

1.35

 

Gold ounces produced

15,600

19,700

 

Total cash cost per ounce – by-product

$1,011

$890

 

All-in sustaining cash cost per ounce

$1,234

$950

Marlin mine :

Tonnes of ore milled

485,400

472,100

 

Average mill head grade (grams per tonne) – gold

2.88

3.44

 

Average mill head grade (grams per tonne) – silver

109

127

 

Gold ounces produced

43,500

50,000

 

Silver ounces produced

1,584,400

1,778,000

 

Total cash cost per ounce – by-product

$525

$260

 

Total cash cost per ounce – co-product

$770

$599

 

All-in sustaining cash cost per ounce

$981

$729

Wharf mine :

Tonnes of ore mined

1,015,800

656,200

 

Tonnes of ore processed

975,000

831,300

 

Average grade processed (grams per tonne)

0.72

0.64

 

Gold ounces produced

15,000

16,200

 

Total cash cost per ounce – by-product

$711

$808

 

All-in sustaining cash cost per ounce

$804

$1,076

Alumbrera mine (2) :

Tonnes of ore mined

1,455,100

1,844,400

 

Tonnes of waste removed

4,568,200

5,871,700

 

Tonnes of ore milled

3,492,300

3,561,700

 

Average mill head grade (grams per tonne) – gold

0.34

0.38

 

Average mill head grade (%) – copper

0.33

0.37

 

Gold ounces produced

25,300

29,900

 

Copper (thousands of pounds) produced

19,300

21,600

 

Total cash cost per ounce – by-product

$238

$299

 

Total cash cost per ounce – co-product

$910

$907

 

All-in sustaining cash cost per ounce

$1,050

$1,140

Pueblo Viejo mine (3) :

Tonnes of ore mined

2,008,600

943,700

 

Tonnes of waste removed

1,492,000

134,400

 

Tonnes of ore processed

650,200

443,400

 

Average grade (grams per tonne) – gold

5.47

6.02

 

Average grade (grams per tonne) – silver

28.6

40.0

 

Gold ounces produced

107,100

81,000

 

Silver ounces produced

392,800

206,800

 

Total cash cost per ounce – by-product

$438

$507

 

Total cash cost per ounce – co-product

$478

$531

 

All-in sustaining cash cost per ounce

$618

$739

Financial Data (including discontinued operation):

 

 

Cash flows from operating activities

$275

$80

Net earnings attributable to shareholders of Goldcorp Inc.

$181

($1,934)

Net earnings per share – basic

$0.22

($2.38)

Adjusted net earnings per share – basic

$0.20

$0.14

Weighted average shares outstanding (000's)

812,954

812,043

 

(1)    

Includes non-GAAP performance measures on an attributable (or Goldcorp's share) basis. See footnote (2) on page 2 of the Q2 2014 MD&A.

(2)     

Shown at Goldcorp's interest – 37.5%

(3)     

Shown at Goldcorp's interest – 40.0%

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In millions of United States dollars, except for per share amounts – Unaudited) 

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

      2014

 

 

      2013

 

 

      2014

 

 

      2013

Revenues

 

$

       906

 

$

       858

 

$

    1,804

 

$

   1,822

Mine operating costs

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs

 

 

      (506)

 

 

      (524)

 

 

      (1,006)

 

 

      (1,000)

 

Depreciation and depletion

 

 

      (179)

 

 

      (161)

 

 

      (349)

 

 

      (305)

 

 

 

      (685)

 

 

      (685)

 

 

      (1,355)

 

 

      (1,305)

Earnings from mine operations

 

 

      221

 

 

      173

 

 

      449

 

 

      517

Exploration and evaluation costs

 

 

      (6)

 

 

      (12)

 

 

      (17)

 

 

      (25)

Share of net earnings of associates

 

 

      60

 

 

      17

 

 

      116

 

 

      54

Impairment of mining interests and goodwill

 

 

      

 

 

      (2,558)

 

 

      

 

 

      (2,558)

Corporate administration

 

 

      (59)

 

 

      (63)

 

 

      (125)

 

 

      (123)

Earnings (loss) from operations and associates

 

 

      216

 

 

      (2,443)

 

 

      423

 

 

      (2,135)

Gains (losses) on securities, net

 

 

      5

 

 

      (9)

 

 

      4

 

 

      (12)

Gains on derivatives, net

 

 

      11

 

 

      22

 

 

      8

 

 

      71

Gain on disposition of mining interest, net

 

 

      

 

 

      –

 

 

      18

 

 

      –

Finance costs

 

 

      (11)

 

 

      (18)

 

 

      (27)

 

 

      (28)

Other (expenses) income

 

 

      (5)

 

 

      5

 

 

      (26)

 

 

      2

Earnings (loss) from continuing operations before taxes

 

 

      216

 

 

      (2,443)

 

 

      400

 

 

      (2,102)

Income tax (expense) recovery

 

 

      (14)

 

 

      504

 

 

      (104)

 

 

      462

Net earnings (loss) from continuing operations

 

 

            202

 

 

(1,939)

 

 

            296

 

 

(1,640)

Net (loss) earnings from discontinued operation

 

 

            (19)

 

 

            5

 

 

            (15)

 

 

            15

Net earnings (loss)

 

$

    183

 

$

 (1,934)

 

$

  281

 

$

  (1,625)

Net earnings (loss) from continuing operations attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of Goldcorp Inc.

 

$

 200

 

$

       (1,939)

 

$

 294

 

$

 (1,640)

 

Non-controlling interest

 

 

      2

 

 

      –

 

 

      2

 

 

      –

 

 

$

 202

 

$

   (1,939)

 

$

  296

 

$

   (1,640)

Net earnings (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of Goldcorp Inc.

 

$

 181

 

$

  (1,934)

 

$

  279

 

$

 (1,625)

 

Non-controlling interest

 

 

      2

 

 

      –

 

 

      2

 

 

      –

 

 

$

 183

 

$

   (1,934)

 

$

 281

 

$

  (1,625)

Net earnings (loss) per share from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 0.25

 

$

 (2.39)

 

$

 0.36

 

$

 (2.02)

 

Diluted

 

 

            0.24

 

 

(2.39)

 

 

            0.35

 

 

(2.03)

Net earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 0.22

 

$

   (2.38)

 

$

 0.34

 

$

 (2.00)

 

Diluted

 

 

            0.22

 

 

 (2.38)

 

 

            0.33

 

 

(2.01)

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In millions of United States dollars – Unaudited)

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

      2014

 

 

      2013

 

 

      2014

 

 

      2013

Net earnings (loss)

 

$

         183

 

$

       (1,934)

 

$

 281

 

$

(1,625)

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to net earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

 

     

Mark-to-market gains (losses) on available-for-sale securities

 

 

            18

 

 

            (32)

 

 

            22

 

 

            (66)

     

Reclassification adjustment for impairment losses included in net 
earnings (loss)

 

 

            

 

 

            9

 

 

            1

 

 

            13

     

Reclassification adjustment for realized gains on disposition of
available-for-sale securities recognized in net earnings (loss)

 

 

            (5)

 

 

            –

 

 

            (5)

 

 

            (1)

 

 

 

            13

 

 

            (23)

 

 

            18

 

 

            (54)

Items that will not be reclassified to net earnings (loss):
     Remeasurements on defined benefit pension plans

 

 

            (2)

 

 

            –

 

 

            (4)

 

 

            –

Total other comprehensive income (loss), net of tax

 

 

            11

 

 

            (23)

 

 

            14

 

 

            (54)

Total comprehensive income (loss)

 

$

194

 

$

 (1,957)

 

$

 295

 

$

  (1,679)

Total comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

     

Shareholders of Goldcorp Inc.

 

$

   192

 

$

   (1,957)

 

$

 293

 

$

  (1,679)

     

Non-controlling interests

 

 

            2

 

 

            – 

 

 

            2

 

 

            –

 

 

$

   194

 

$

   (1,957)

 

$

 295

 

$

 (1,679)

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States dollars – Unaudited)

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

  2014

 

 

2013

 

 

2014

 

 

 2013

Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

  202

 

 $

      (1,939)

 

$

 296

 

 $

(1,640)

Adjustments for:

 

 

 

 

 

 

 

 

 

 

 

 

Dividends from associate

 

 

            33

 

 

            23

 

 

            67

 

 

            44

Reclamation expenditures

 

 

            (8)

 

 

            (5)

 

 

            (11)

 

 

            (8)

Items not affecting cash:

 

 

 

 

 

 

 

 

 

 

 

 

     

Depreciation and depletion

 

 

            179

 

 

            161

 

 

            349

 

 

305

     

Share of net earnings of associates

 

 

            (60)

 

 

            (17)

 

 

(116)

 

 

(54)

     

Impairment of mining interests and goodwill

 

 

            

 

 

2,558

 

 

            

 

 

2,558

     

Share-based compensation expense

 

 

            16

 

 

            22

 

 

            40

 

 

            40

     

(Gains) losses on securities, net

 

 

            (5)

 

 

            9

 

 

            (4)

 

 

            12

     

Unrealized gains on derivatives, net

 

 

            (10)

 

 

            (13)

 

 

            (12)

 

 

(62)

     

Gain on disposition of mining interest, net

 

 

            

 

 

            –

 

 

            (18)

 

 

            –

     

Revision of estimates and accretion of reclamation and closure cost
       obligations

 

 

            22

 

 

            5

 

 

            29

 

 

            10

     

Deferred income tax recovery

 

 

            (16)

 

 

(488)

 

 

            (62)

 

 

(577)

     

Other

 

 

            (11)

 

 

            18

 

 

            11

 

 

            23

Change in working capital

 

 

            (66)

 

 

(260)

 

 

            (23)

 

 

(308)

Net cash provided by operating activities of continuing operations

 

 

            276

 

 

            74

 

 

            546

 

 

343

Net cash (used in) provided by operating activities of discontinued operation

 

 

            (1)

 

 

            6

 

 

            2

 

 

31

Investing Activities

 

 

              

 

 

 

 

 

              

 

 

 

Expenditures on mining interests

 

 

 (497)

 

 

            (497)

 

 

 (963)

 

 

(954)

Deposits on mining interest expenditures

 

 

            (27)

 

 

            (65)

 

 

            (55)

 

 

(119)

Proceeds from disposition of mining interest, net

 

 

            

 

 

            –

 

 

            193

 

 

            –

Interest paid

 

 

            (2)

 

 

            –

 

 

            (28)

 

 

(9)

Purchases of money market investments and available-for-sale securities

 

 

            (5)

 

 

            (45)

 

 

            (49)

 

 

 (598)

Proceeds from maturities and sales of money market investments and
available-for-sale securities, net

 

 

            25

 

 

            105

 

 

            25

 

 

113

Other

 

 

            2

 

 

            (2)

 

 

            

 

 

            (1)

Net cash used in investing activities of continuing operations

 

 

(504)

 

 

            (504)

 

 

 (877)

 

 

 (1,568)

Net cash provided by (used in) investing activities of discontinued operation

 

 

            210

 

 

            (20)

 

 

            208

 

 

(34)

Financing Activities

 

 

              

 

 

              

 

 

              

 

 

              

Debt borrowings, net of transaction costs

 

 

            1,463

 

 

            –

 

 

 2,313

 

 

1,481

Debt repayments

 

 

(1,075)

 

 

            –

 

 

 (1,325)

 

 

            –

Dividends paid to shareholders

 

 

            (122)

 

 

(121)

 

 

(244)

 

 

(243)

Common shares issued, net of issuance costs

 

 

            3

 

 

            –

 

 

            3

 

 

            –

Other

 

 

            (31)

 

 

            –

 

 

            (31)

 

 

            131

Net cash provided by (used in) financing activities of continuing operations

 

 

            238

 

 

(121)

 

 

            716

 

 

1,369

Effect of exchange rate changes on cash and cash equivalents

 

 

            

 

 

            1

 

 

            

 

 

1

Increase (decrease) in cash and cash equivalents

 

 

            219

 

 

 (564)

 

 

            595

 

 

            142

Cash and cash equivalents, beginning of the period

 

 

            1,001

 

 

1,463

 

 

            625

 

 

            757

Cash and cash equivalents, end of the period

 

$

    1,220

 

 $

   899

 

$

       1,220

 

 $

      899

 

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(In millions of United States dollars – Unaudited)

 

 

 

      At June 30
 2014

 

 

At December 31
2013

Assets

 

 

 

 

 

       

Current assets

 

 

 

 

 

 

     

Cash and cash equivalents

 

$

       1,220

 

$

       625

     

Money market investments

 

 

            40

 

 

            –

     

Accounts receivable

 

 

      479

 

 

      469

     

Inventories and stockpiled ore

 

 

      791

 

 

      727

     

Note receivable

 

 

      

 

 

      5

     

Income taxes receivable

 

 

      81

 

 

      182

     

Assets held for sale

 

 

      

 

 

      227

     

Other

 

 

      201

 

 

      139

                                      

 

 

            2,812

 

 

            2,374

Mining interests

 

 

 

 

 

 

     

Owned by subsidiaries

 

 

      23,700

 

 

      22,928

     

Investments in associates

 

 

      2,083

 

 

      2,210

 

 

 

      25,783

 

 

      25,138

Goodwill

 

 

      1,454

 

 

      1,454

Investments in securities

 

 

      59

 

 

      77

Note receivable

 

 

      

 

 

      23

Deposits on mining interest expenditures

 

 

      31

 

 

      71

Deferred income taxes

 

 

      23

 

 

      19

Other

 

 

      456

 

 

      408

Total assets

 

$

30,618

 

$

 29,564

Liabilities

 

 

 

 

 

       

Current liabilities

 

 

 

 

 

 

     

Accounts payable and accrued liabilities

 

$

850

 

$

 856

     

Income taxes payable

 

 

      69

 

 

      6

     

Current portion of long-term debt

 

 

      858

 

 

      832

     

Derivative liabilities

 

 

      38

 

 

      57

     

Liabilities relating to assets held for sale

 

 

      

 

 

      44

     

Other

 

 

      194

 

 

      238

 

 

 

      2,009

 

 

      2,033

Deferred income taxes

 

 

      5,515

 

 

      5,594

Long-term debt

 

 

      2,471

 

 

      1,482

Provisions

 

 

      599

 

 

      517

Income taxes payable

 

 

      74

 

 

      55

Other

 

 

      103

 

 

      125

Total liabilities

 

 

      10,771

 

 

      9,806

Equity

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

     

Common shares, stock options and restricted share units

 

 

      17,229

 

 

      17,191

     

Accumulated other comprehensive income

 

 

      15

 

 

      1

     

Retained earnings

 

 

      2,388

 

 

      2,353

 

 

 

      19,632

 

 

      19,545

Non-controlling interest

 

 

      215

 

 

      213

Total equity

 

 

      19,847

 

 

      19,758

Total liabilities and equity

 

$

30,618

 

$

 29,564

  

SOURCE Goldcorp Inc.

Jeff Wilhoit
Vice President, Investor Relations
Goldcorp Inc.
Telephone: (604) 696-3074
Fax: (604) 696-3001
E-mail:  [email protected]
website:  www.goldcorp.com

Office: +52 (662) 688-5815

[email protected]

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