Toronto Stock Exchange: G
New York Stock Exchange: GG
(All Amounts in $US unless stated otherwise)
VANCOUVER, Jan. 27, 2012 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) is pleased to provide an update following yesterday's announcement by
the Government of Guatemala and the Guatemalan Chamber of Industry of
an agreement to voluntarily increase the royalties paid on the
production of precious metals in Guatemala. Under the terms of the
agreement, the royalty on precious metals will increase from 1% to 4%
of gross revenue. These additional royalties will be calculated, paid,
and distributed in the same manner as the royalty mandated by
Guatemala's Mining Law. This includes the stipulation that 50% of the
total royalty will be paid directly to the municipality in which the
extraction of the mineral occurs. In addition, Marlin has agreed to
pay an additional 1% voluntary royalty, with 80% of this additional
royalty to be used to implement the economic development plans of the
Municipalities of San Miguel Ixtahuacán and Sipacapa. The remaining 20%
will be paid to the Ministry of Energy and Mines and Ministry of
Environment Natural Resources, to be used to develop the institutional
capacity of those ministries.
"This agreement in Guatemala represents a tremendous step forward for
all stakeholders of the Marlin mine," said
Chuck Jeannes
, Goldcorp
President and Chief Executive Officer. "The enhanced revenues
generated by the new royalty agreement will enable greater investment
in community development initiatives in the region and foster a strong,
consistent regulatory framework."
The agreement also provides that the government will use a portion of
the additional royalty revenue to develop the institutional capacity of
the Ministry of Energy and Mines and the Ministry of Environment and
Natural Resources. The government expressed the need to take the
actions necessary to implement its commitment to consult with
indigenous peoples and to seek consensus to resolve conflicts regarding
economic development projects, including mines.
The royalties paid by Montana Exploradora are in addition to the income
tax of 5% of gross revenues and other wage and value added taxes paid
by the company. In 2011, Goldcorp paid approximately $86 million in
taxes and royalties in Guatemala. Approximately $96 million in
supplies were purchased in country, including $5 million from companies
located in San Miguel Ixtahuacán and Sipacapa. The Marlin mine
currently employs 2,241 people, 97% of whom are Guatemalan.
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, 2010 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.