March 5, 2006
(All figures are in US dollars unless stated otherwise)
Vancouver, British Columbia – March 5, 2006 – GOLDCORP INC. (GG:NYSE; G:TSX)is pleased to announce its 2005 annual and fourth quarter results, highlights of which are:
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Record net earnings of $286 million ($0.91 per share) for 2005, an increase of 460% compared with $51 million ($0.27 per share) in 2004.
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Record fourth quarter net earnings of $102 million ($0.30 per share), compared to 2004 earnings of $15 million ($0.08 per share).
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2005 gold production increased to 1,136,300 ounces (2004 – 628,000 ounces) and gold sales more than tripled to 1,344,600 ounces at a total cash cost of $22 per ounce (2004- 427,600 ounces at $115 per ounce).
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Fourth quarter gold sales of 307,300 ounces at a total cash cost of minus $73 per ounce, compared with 2004 sales of 113,800 ounces at a total cash cost of $127 per ounce.
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Operating cash flows for the year increased to $466 million, or $1.48 per share (2004 – $53 million, or $0.28 per share). Operating cash flows for the fourth quarter were $137 million, or $0.40 per share (2004 – $22 million, or $0.12 per share).
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Goldcorp will acquire certain Placer Dome assets from Barrick, and the Éléonore gold project in Quebec as a result of the transaction with Virginia Gold Mines; both of which are expected to close during April, 2006.
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Total gold production in 2006 from the combined Goldcorp and Placer assets on an annualized basis is expected to be approximately 2 million ounces at a total cash cost of less than $150 per ounce.
Ian Telfer, President and Chief Executive Officer of Goldcorp, said, “The record breaking earnings and production results are indicative of the Company’s ability to deliver value through successful acquisitions. With the expected acquisition of Placer’s assets combined with organic growth, Goldcorp will remain the fastest growing, lowest cost multimillion ounce gold producer, with production expected to double from 2005 to 2007".
A conference call will be held Monday, March 6 at 11:00 a.m. (ET) to discuss these results. You may join the call by dialing toll free 1-888-789-0089 or (416) 695-9753 for calls from outside Canada and the US.
The conference call will be recorded and you can listen to a playback of the call after the event by dialing 1-888-509-0081 or (416) 695-5275. A live and archived audio webcast will be available on the website at www.goldcorp.com.
Click here to review Management’s Discussion and Analysis of Financial Condition and Results of Operations For the Year Ended December 31, 2005.
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 similar Canadian 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, 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, as well as those factors discussed in (a) the section entitled “Description of the Business – Risk Factors” in Goldcorp’s annual information form for the year ended December 31, 2004, and (b) the section entitled “Description of the Business – Risk Factors” in Wheaton River Minerals Ltd.’s annual information form for the year ended December 31, 2004. 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:
Julia Hasiwar
Director, Investor Relations
Goldcorp Inc.
Telephone: 604-696-3011
Fax: (604) 696-3001
e-mail: info@goldcorp.com
website: www.goldcorp.com