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(All figures are in US dollars unless stated otherwise)
Vancouver, British Columbia – November 14, 2006 – GOLDCORP INC. (GG:NYSE; G:TSX) is pleased to announce its third quarter results, highlights of which are:
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Net earnings were $59.5 million ($0.14 per share), compared with $56.5 million ($0.17 per share) in 2005. The Company incurred $32.0 million of non-cash losses from copper derivatives, declines in marketable securities, and an exchange loss on the revaluation of future income tax liabilities. Adjusted for these items net earnings amounted to $91.5 million ($0.22 per share) for the quarter.
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Operating cash flows increased 161% to $221.4 million ($0.53 per share), compared with $84.8 million ($0.25 per share) in 2005.
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Gold production increased 52% to 431,800 ounces, compared with 283,700 ounces in 2005.
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Gold sales were 421,400 ounces, compared with 276,700 ounces in 2005.
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Total cash costs were $84 per ounce (net of by-product copper and silver credits) (2005: $9 per ounce) (1).
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On August 31, 2006, Goldcorp and Glamis Gold Ltd. (“Glamis”) agreed to a combination to create one of the world’s largest gold companies. Each Glamis common share will be exchanged for 1.69 Goldcorp common share and C$0.0001 in cash for a total purchase price of approximately $8.2 billion. On October 26, 2006, Glamis shareholders overwhelmingly approved the combination. The transaction closed on November 4, 2006.
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Dividends paid during the quarter of $18.8 million.
(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 prescribed by GAAP, 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.
For the nine months ended September 30, 2006, net earnings increased 86% to $342.3 million ($0.90 per share) compared with $184.0 million ($0.60 per share) in 2005. Adjusted for certain non-cash items, net earnings amounted to $323.5million ($0.85 per share). Operating cash flows increased 63% to $535.8 million ($1.41 per share), compared with $328.9 million ($1.08 per share) in 2005. Gold production totalled 1,105,400 ounces in 2006 compared with 840,100 ounces in 2005. Gold sales increased to 1,108,500 ounces at a total cash cost of minus $35 per ounce, compared with 761,600 ounces, excluding gold sales of 275,700 in gold bullion inventory, at a total cash cost of $49 per ounce in 2005. Ian Telfer, President and Chief Executive Officer of Goldcorp, said, “Goldcorp’s third quarter production results reflect the longer timeframe required to fully integrate the Red Lake gold mines. The year to date, nine month earnings of $342 million were up 86% from 2005; and operating cash flow exceeded half a billion dollars. In addition, we are very pleased to have completed the acquisition of Glamis, creating the premier gold mining company with low cash costs, industry-leading growth, high quality reserves, and unhedged gold production. We are confident that this transaction represents excellent value for our shareholders.”
A conference call will be held Wednesday, November 15th at 11:00 a.m. (ET) to discuss these results. You can listen to the live call by dialing 416-695-9757 or toll free access 1-888-789-0150.
The call will be recorded and you can listen to the playback by dialing: 416-695-5275 or toll free: 1-888-509-0081 Pass code: 632784.
An archived audio webcast will also be available on the website at www.goldcorp.com.
Goldcorp is one of the world’s lowest cost and fastest growing multi-million ounce gold producers with operations throughout the Americas and Australia. The Company does not hedge its gold production.
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. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver and copper, 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, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, 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” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.Forward-looking statements are subject to known and unknown risks, uncertainties and other 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; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, silver and copper; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, 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, 2005, available on SEDAR 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. Goldcorp does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
For further information, please contact:
Melanie Pilon
Director, Investor Relations
Goldcorp Inc.
Telephone: 604-696-3024
Fax: (604) 696-3001
e-mail: info@goldcorp.com
website: www.goldcorp.com