TSX: G NYSE: GG
(All Amounts in $US unless stated otherwise)
VANCOUVER, May 1, 2014 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) today reported adjusted quarterly revenues1 of $1.2 billion, generating adjusted net earnings1,2 of $209 million, or $0.26 per share, compared to $253 million, or $0.31 per share, in the first quarter of
2013. Reported net earnings were $98 million, or $0.12 per share,
compared to $309 million, or $0.38 per share, in the first quarter of 2013. Adjusted
operating cash flow1,3 was $281 million, or $0.35 per share, compared to $400 million, or
$0.49 per share, for the first quarter of 2013. The Company announced
first quarter gold production and estimated all-in sustaining costs on
April 9, 2014.
First Quarter 2014 Highlights
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Adjusted revenues totaled $1.2 billion.
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Gold sales1 totaled 684,000 ounces on gold production1 of 679,900 ounces.
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All-in sustaining costs decreased 26% versus the prior year to $8401,4 per ounce.
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Adjusted operating cash flow totaled $281 million, or $0.35 per share.
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Adjusted net earnings were $209 million, or $0.26 per share.
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Dividends paid totaled $122 million.
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Sale of Primero interest for $201 million completed on March 26, 2014.
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Sale of Marigold mine completed on April 4, 2014.
"2014 is a year of significant forecast growth for Goldcorp, and solid
first quarter production and lower all-in sustaining costs represent a
strong start toward the achievement of our guidance," said
Chuck
Jeannes
, Goldcorp President and Chief Executive Officer. "Our low-cost
production profile will benefit from an infusion of new gold production
from our three gold projects, starting with expected first production
at Cerro Negro in just a few months. With initial gold production at
Éléonore and Cochenour following closely behind, Goldcorp remains
well-positioned for accelerating cash flow."
Financial Review
Gold sales in the first quarter were 684,000 ounces on production of
679,900 ounces. This compares to sales of 595,100 ounces on production
of 614,600 ounces in the first quarter of 2013. Silver production
totaled 9.6 million ounces compared to silver production of 5.6 million
ounces in the prior year's first quarter. All-in sustaining costs were
$840 per ounce of gold compared to $1,134 per ounce of gold in the
first quarter of 2013.
Adjusted revenues were $1.2 billion, essentially unchanged from the
first quarter of 2013, as increases in metals sales were offset by
lower metals prices. Net earnings in the quarter were $98 million, or
$0.12 per share, compared to $309 million, or $0.38 per share, in the
first quarter of 2013. Adjusted net earnings in the first quarter
totaled $209 million, or $0.26 per share, compared to $253 million, or
$0.31 per share, in the first quarter of 2013. Adjusted net earnings
in the first quarter of 2014 primarily exclude the losses from the
foreign exchange translation of deferred income tax assets and
liabilities, and losses from the foreign exchange on capital projects,
and the gain from the disposition of mining interests but include the
impact of non-cash stock-based compensation expenses which amounted to
approximately $24 million or $0.03 per share for the quarter. Adjusted
operating cash flow was $281 million, or $0.35 per share, compared to
$400 million, or $0.49 per share, in last year's first quarter.
Mexico
At Peñasquito, production totaled 129,800 gold ounces at a record low
all-in sustaining cost of $371 per ounce. Grades continued to increase
over the prior quarter as mining continued in a higher-grade portion of
the deposit. Lower all-in sustaining costs were driven by continued
success of the Operating for Excellence program and higher by-product
credits. The Northern Well Field project is expected to begin
construction by mid-year 2014 with completion now expected around
mid-year 2015, approximately six months later than planned, due to land
access and permitting challenges. Contingency plans have been developed
for fresh water production to ensure plant production continues as
planned and guidance for 2014 remains unchanged at between 530,000 and
560,000 ounces.
The exploration drilling program at Peñasquito continues to define the
intersection of the copper-gold sulphide rich skarn deposit located
below and adjacent to the diatreme ore body. Current exploration
activities continue to focus on in-fill and extension of the higher
grade portion of the skarn deposit.
Gold production at Los Filos was 80,000 ounces in the first quarter at
an all-in sustaining cost of $805 per ounce. The construction of the
next phase of the heap leach pad, including additional contingency
solution storage capacity, commenced during the fourth quarter of 2013
and is expected to be completed late in the second quarter of 2014.
Operations at the Los Filos mine were suspended on April 1, 2014,
following the failure to reach agreement with the Carrizalillo Ejido on
terms to renew the occupancy agreement that expired on March 31, 2014.
Negotiations with Ejido authorities on a new occupancy agreement with
sustainable terms continue and have been ongoing for several months and
the Company believes that ultimately an agreement can be reached. The
suspension has the potential to affect the mine's 2014 production of
between 330,000 and 345,000 gold ounces.
Canada
At Red Lake in Ontario, gold production for the first quarter was 95,000
ounces at an all-in sustaining cost of $954 per ounce. Gold
production was affected by planned lower heading availability due to
scheduled de-stress activities which are expected to be completed in
the third quarter of 2014. Exploration drilling targeting the upper
portion of High Grade Zone Main structure returned high grades over
substantial widths. Drilling continues to extend the zone to higher
elevations.
At Porcupine in Ontario, gold production in the first quarter totaled
66,500 ounces at an all-in sustaining cost of $945 per ounce. The
Hoyle Deep Project continued to sink the #2 Winze shaft to access both
the deep extensions of the current and newly discovered zones and to
enhance operational efficiencies throughout the Hoyle Pond mine. At the
Hollinger project, overburden stripping commenced during the first
quarter of 2014.
Central America
At Pueblo Viejo, first quarter gold production totaled 106,200 ounces at
an all-in sustaining cost of $628 per ounce. Production increased 66%
from the same prior year period as a result of major modifications to
the autoclave facility in the second half of 2013, as the mine worked
to achieve design capacity and all four autoclaves came online.
Ramp-up is expected to continue during the first half of 2014 to full
capacity following completion of the modifications to the lime circuit.
Gold production for 2014 is expected to be between 405,000 and 420,000
ounces (40% basis).
Advancing Towards First Gold Production
The Cerro Negro project in Argentina continued to advance towards first
gold production around mid-year and commercial production in the fourth
quarter of 2014. Engineering, Procurement and Construction Management
(EPCM) activities at Cerro Negro are well advanced with detailed
engineering complete and total EPCM progress at approximately 84%.
During the quarter the high voltage power line and substation advanced
to 94% completion, with an expected completion date of mid-May and
approval expected by Transpa, the Argentinean power transportation
authority, by the end of May 2014.
Mine development continued on the underground deposits of Eureka and
Mariana Central. Production has commenced at Eureka, while production
at Mariana Central is expected to start in the second half of 2014. At
the end of the first quarter the ore stockpile contained an estimated
410,100 tonnes at an average grade of 9.84 grams of gold per tonne and
183.4 grams of silver per tonne.
Éléonore in Quebec remains on track for first gold in late 2014 and for
commercial production during the first quarter of 2015. Production
drilling commenced during the quarter following stope development on
levels 440m, 410m and 380m. The exploration ramp excavation reached
4,686 metres at the end of the first quarter, corresponding to a depth
of 725 metres below surface and was connected with the main 650m
level. The production shaft reached a depth of 735 metres. The ore
stockpile on surface now contains 25,104 tonnes at an average grade of
3.9 grams of gold per tonne.
A total of 19,575 metres of underground diamond drilling was completed
in the first quarter of 2014. Exploration drilling targeted the center
of the Lower Mine and the northern portion of the ore body with
better-than-expected results achieved in the south block and main shoot
of the Lower mine. The focus of drilling in 2014 remains on the
conversion of resources to reserves.
At the Cochenour project in the Red Lake district, the haulage drift
connecting the Bruce Channel deposit to the Red Lake complex advanced
to 90% completion. During the first quarter of 2014, the Cochenour
shaft reached its final bottom depth of 1,116 metres. A ramp of 1,175
metres is being developed to continue the decline down to the 4,000
foot level. The Cochenour-Red Lake integration team is focused on
geotechnical assessments, backfill and material handling studies as
well as infrastructure rationalization and placement. Exploration
continues with four drills on site, completing 9,337 metres in the
first quarter 2014 to further define the ore deposit. Preliminary
results have been consistent with expectations.
At the Camino Rojo project near Peñasquito in Mexico, positive
exploration and concept study results continue to support the potential
for it to become Goldcorp's next major growth project. The deposit
remains open at depth and along strike, and exploration in 2014 will
focus on the upgrade and conversion of inferred resources. The Company
expects to commence a pre-feasibility study in the third quarter of
2014.
2014 Guidance Outlook
The Company today reconfirmed guidance for 2014 of between 2.95 and 3.10
million ounces (following the divestiture of Marigold) at all-in
sustaining costs of between $950 and $1,000 per gold ounce. Capital
spending guidance of between $2.3 billion and $2.5 billion for 2014 has
also been reconfirmed.
About Goldcorp
Goldcorp is one of the world's fastest growing senior 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 first 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 May 1, 2014 at 10:00 a.m. (PDT) to
discuss the first quarter results. Participants may join the call by
dialing toll free 1-866-223-7781 or 1-416-340-2216 for calls from
outside Canada and the US. A recorded playback of the call can be
accessed after the event until June 1, 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.
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(1)
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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.
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(2)
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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 42 of the Q1 2014 Management Discussion & Analysis
("MD&A") for a reconciliation of adjusted net earnings to reported net
earnings attributable to shareholders of Goldcorp.
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(3)
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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 43 of
the Q1 2014 MD&A for a reconciliation of adjusted operating cash flows
to reported net cash provided by operating activities.
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(4)
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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 40 of the Q1 2014 MD&A for a reconciliation of
all-in sustaining costs.
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(5)
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The Company has included non-GAAP performance measures - total cash
costs, by-product and co-product, 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. The Company follows the recommendations
of the Gold Institute Production Cost Standard. The production cost
standard developed by the Gold Institute remains the generally accepted
standard of reporting cash costs of production by gold mining
companies. In addition to conventional measures prepared in accordance
with GAAP, the Company assesses this measure in a manner that isolates
the impacts of gold production volumes, the by-product credits, and
operating costs fluctuations such that the non-controllable and
controllable variability is independently addressed. The Company uses
total cash costs, by product and co-product, per gold ounce, to monitor
its operating performance internally, including operating cash costs,
as well as in its assessment of potential development projects and
acquisition targets. The Company believes these measures provide
investors and analysts with useful information about the Company's
underlying cash costs of operations and the impact of by-product
credits on the Company's cost structure and is a relevant metric used
to understand the Company's operating profitability and ability to
generate cash flow. When deriving the production costs associated with
an ounce of gold, the Company includes by-product credits as the
Company considers that the cost to produce the gold is reduced as a
result of the by-product sales incidental to the gold production
process, thereby allowing the Company's management and other
stakeholders to assess the net costs of gold production. 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. 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. Total cash costs on a by-product basis are calculated by
deducting Goldcorp's share of by-product silver, copper, lead and zinc
sales revenues from Goldcorp's share of production costs.
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Total cash costs on a co-product basis are calculated by allocating
Goldcorp's share of production costs to each co-product based on the
ratio of actual sales volumes multiplied by budget metal prices as
compared to realized sales prices. The budget metal prices used in the
calculation of co-product total cash costs were as follows:
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2013
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2012
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2011
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Gold
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$1,200
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$1,600
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$1,250
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Silver
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20.00
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34.00
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20.00
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Copper
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3.00
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3.50
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3.25
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Lead
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1.00
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0.90
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0.90
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Zinc
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0.90
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0.90
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0.90
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Refer to page 38 of the Q1 2014 MD&A for a reconciliation of total cash
costs to reported production costs.
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(6)
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At March 31, 2014 the Company held $1.0 billion of cash and cash
equivalents, and $1.4 billion undrawn on its $2.0 billion revolving
credit facility.
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Cautionary Note to United States Investors Concerning Estimates of
Measured, Indicated and Inferred Resources:
These tables use the terms "Measured", "Indicated" and "Inferred"
Resources. United States investors are advised that while such terms
are recognized and required by Canadian regulations, the United States
Securities and Exchange Commission does not recognize them. "Inferred
Mineral Resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred Mineral Resource will ever
be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or
other economic studies. United States investors are cautioned not to
assume that all or any part of Measured or Indicated Mineral Resources
will ever be converted into Mineral Reserves. United States investors
are also cautioned not to assume that all or any part of an Inferred
Mineral Resource exists, or is economically or legally mineable.
Scientific and technical information contained in this press release was
reviewed and approved by
Maryse Belanger
, P.Geo., Senior
Vice-President, Technical Services for Goldcorp, and a "qualified
person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
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)
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Three Months Ended
March 31
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Goldcorp's share (1)
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2014
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2013
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Revenues
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$1,228
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$1,219
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Gold produced (ounces)
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679,900
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614,600
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Gold sold (ounces)
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684,000
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595,100
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Copper produced (thousands of pounds)
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21,500
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18,800
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Copper sold (thousands of pounds)
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32,100
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16,500
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Silver produced (ounces)
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9,581,400
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5,633,400
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Silver sold (ounces)
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9,197,700
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5,541,800
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Lead produced (thousands of pounds)
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49,500
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29,100
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Lead sold (thousands of pounds)
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45,300
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24,200
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Zinc produced (thousands of pounds)
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87,900
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52,000
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Zinc sold (thousands of pounds)
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90,100
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50,400
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Average realized gold price (per ounce)
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$1,297
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$1,622
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Average London spot gold price (per ounce)
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$1,294
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$1,631
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Average realized copper price (per pound)
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$3.09
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$3.37
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Average London spot copper price (per pound)
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$3.19
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$3.59
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Average realized silver price (per ounce)
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$17.61
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$26.18
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Average London spot silver price (per ounce)
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$20.48
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$30.07
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Average realized lead price (per pound)
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$0.91
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$1.00
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Average London spot lead price (per pound)
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$0.95
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$1.04
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Average realized zinc price (per pound)
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$0.90
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$0.89
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Average London spot zinc price (per pound)
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$0.92
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$0.92
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Total cash costs - by-product (per gold ounce)
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$507
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$565
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Total cash costs - co-product (per gold ounce)
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$673
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$710
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All-in sustaining cash costs (per gold ounce)
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$840
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$1,134
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Production Data:
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Red Lake gold mines :
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Tonnes of ore milled
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175,100
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196,900
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Average mill head grade (grams per tonne)
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16.66
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22.91
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Gold ounces produced
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95,000
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145,500
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Total cash cost per ounce - by-product
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$625
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$476
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All-in sustaining cash cost per ounce
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$954
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$780
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Porcupine mines :
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Tonnes of ore milled
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867,700
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1,036,700
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Average mill head grade (grams per tonne)
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2.60
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|
2.17
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Gold ounces produced
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66,500
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|
67,200
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Total cash cost per ounce - by-product
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$701
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$797
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All-in sustaining cash cost per ounce
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$945
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$1,173
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Musselwhite mine :
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Tonnes of ore milled
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332,200
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325,300
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Average mill head grade (grams per tonne)
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7.30
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5.86
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Gold ounces produced
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74,900
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|
59,100
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Total cash cost per ounce - by-product
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$643
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$841
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All-in sustaining cash cost per ounce
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$787
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$1,206
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Peñasquito :
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Tonnes of ore mined
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11,146,600
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10,888,700
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Tonnes of waste removed
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33,628,000
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36,079,200
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Tonnes of ore milled
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9,220,400
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9,329,400
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Average head grade (grams per tonne) - gold
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0.59
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0.31
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Average head grade (grams per tonne) - silver
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32.92
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17.88
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Average head grade (%) - lead
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0.33
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0.22
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Average head grade (%) - zinc
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0.63
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0.43
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Gold ounces produced
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129,800
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|
60,100
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Silver ounces produced
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7,396,300
|
|
3,932,600
|
|
|
Lead (thousands of pounds) produced
|
49,500
|
|
29,100
|
|
|
Zinc (thousands of pounds) produced
|
87,900
|
|
52,000
|
|
|
Total cash cost per ounce - by-product
|
$179
|
|
$611
|
|
|
Total cash cost per ounce - co-product
|
$707
|
|
$1,128
|
|
|
All-in sustaining cash cost per ounce
|
$371
|
|
$1,258
|
|
Los Filos mine :
|
Tonnes of ore mined
|
6,877,700
|
|
6,770,500
|
|
|
Tonnes of waste removed
|
10,156,600
|
|
12,163,200
|
|
|
Tonnes of ore processed
|
6,834,300
|
|
6,740,700
|
|
|
Average grade processed (grams per tonne)
|
0.72
|
|
0.68
|
|
|
Gold ounces produced
|
80,000
|
|
81,500
|
|
|
Total cash cost per ounce - by-product
|
$638
|
|
$589
|
|
|
All-in sustaining cash cost per ounce
|
$805
|
|
$1,032
|
|
El Sauzal mine :
|
Tonnes of ore mined
|
572,900
|
|
544,600
|
|
|
Tonnes of waste removed
|
3,062,300
|
|
3,206,900
|
|
|
Tonnes of ore milled
|
493,300
|
|
479,000
|
|
|
Average mill head grade (grams per tonne)
|
1.16
|
|
1.32
|
|
|
Gold ounces produced
|
15,100
|
|
18,200
|
|
|
Total cash cost per ounce - by-product
|
$994
|
|
$946
|
|
|
All-in sustaining cash cost per ounce
|
$1,168
|
|
$1,029
|
|
Marlin mine :
|
Tonnes of ore milled
|
472,700
|
|
480,300
|
|
|
Average mill head grade (grams per tonne) - gold
|
3.15
|
|
3.30
|
|
|
Average mill head grade (grams per tonne) - silver
|
132
|
|
110
|
|
|
Gold ounces produced
|
45,300
|
|
50,000
|
|
|
Silver ounces produced
|
1,836,000
|
|
1,583,000
|
|
|
Total cash cost per ounce - by-product
|
$277
|
|
$102
|
|
|
Total cash cost per ounce - co-product
|
$658
|
|
$641
|
|
|
All-in sustaining cash cost per ounce
|
$809
|
|
$644
|
|
Wharf mine :
|
Tonnes of ore mined
|
751,100
|
|
700,300
|
|
|
Tonnes of ore processed
|
751,100
|
|
693,100
|
|
|
Average grade processed (grams per tonne)
|
0.82
|
|
0.70
|
|
|
Gold ounces produced
|
15,000
|
|
12,500
|
|
|
Total cash cost per ounce - by-product
|
$751
|
|
$836
|
|
|
All-in sustaining cash cost per ounce
|
$856
|
|
$994
|
|
Alumbrera mine (2) :
|
Tonnes of ore mined
|
1,409,200
|
|
1,693,200
|
|
|
Tonnes of waste removed
|
4,504,600
|
|
5,865,300
|
|
|
Tonnes of ore milled
|
3,324,400
|
|
3,513,200
|
|
|
Average mill head grade (grams per tonne) - gold
|
0.42
|
|
0.34
|
|
|
Average mill head grade (%) - copper
|
0.39
|
|
0.32
|
|
|
Gold ounces produced
|
30,300
|
|
24,700
|
|
|
Copper (thousands of pounds) produced
|
21,500
|
|
18,800
|
|
|
Total cash cost per ounce - by-product
|
$106
|
|
$14
|
|
|
Total cash cost per ounce - co-product
|
$784
|
|
$915
|
|
|
All-in sustaining cash cost per ounce
|
$433
|
|
$897
|
|
Pueblo Viejo mine (3) :
|
Tonnes of ore mined
|
2,541,800
|
|
1,156,000
|
|
|
Tonnes of waste removed
|
867,000
|
|
398,500
|
|
|
Tonnes of ore processed
|
653,900
|
|
288,700
|
|
|
Average grade (grams per tonne) - gold
|
5.52
|
|
7.20
|
|
|
Average grade (grams per tonne) - silver
|
29.0
|
|
47.1
|
|
|
Gold ounces produced
|
106,200
|
|
64,100
|
|
|
Silver ounces produced
|
349,100
|
|
117,800
|
|
|
Total cash cost per ounce - by-product
|
$493
|
|
$472
|
|
|
Total cash cost per ounce - co-product
|
$532
|
|
$535
|
|
|
All-in sustaining cash cost per ounce
|
$628
|
|
$912
|
|
Discontinued Operation:
|
|
|
|
|
|
Marigold mine (4) :
|
Tonnes of ore mined
|
1,766,100
|
|
2,253,600
|
|
|
Tonnes of waste removed
|
9,009,500
|
|
6,478,600
|
|
|
Tonnes of ore processed
|
1,766,100
|
|
2,253,600
|
|
|
Average grade processed (grams per tonne)
|
0.32
|
|
0.40
|
|
|
Gold ounces produced
|
21,800
|
|
31,700
|
|
|
Total cash cost per ounce - by-product
|
$1,117
|
|
$854
|
|
|
All-in sustaining cash cost per ounce
|
$1,207
|
|
$1,547
|
|
Financial Data (including discontinued operation):
|
|
|
|
|
Cash flows from operating activities
|
$273
|
|
$294
|
|
Net earnings attributable to shareholders of Goldcorp Inc.
|
$98
|
|
$309
|
|
Net earnings per share - basic
|
$0.12
|
|
$0.38
|
|
Adjusted net earnings per share - basic
|
$0.26
|
|
$0.31
|
|
Weighted average shares outstanding (000's)
|
812,570
|
|
811,668
|
|
(1)
|
|
Includes non-GAAP performance measures on an attributable (or Goldcorp's
share) basis. See footnote (2) on page 2 of the Q1 2014 MD&A.
|
|
(2)
|
|
Shown at Goldcorp's interest - 37.5%
|
|
(3)
|
|
Shown at Goldcorp's interest - 40.0%
|
|
(4)
|
|
Shown at Goldcorp's interest - 66.7%
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(In millions of United States dollars, except for per share amounts -
Unaudited)
|
|
Three Months Ended
March 31
|
|
|
|
|
|
2014
|
|
|
2013
|
|
Revenues
|
|
|
$
|
898
|
|
$
|
964
|
|
Mine operating costs
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
|
|
(500)
|
|
|
(476)
|
|
|
Depreciation and depletion
|
|
|
|
(170)
|
|
|
(144)
|
|
|
|
|
|
(670)
|
|
|
(620)
|
|
Earnings from mine operations
|
|
|
|
228
|
|
|
344
|
|
Exploration and evaluation costs
|
|
|
|
(11)
|
|
|
(13)
|
|
Share of net earnings of associates
|
|
|
|
56
|
|
|
37
|
|
Corporate administration
|
|
|
|
(66)
|
|
|
(60)
|
|
Earnings from operations and associates
|
|
|
|
207
|
|
|
308
|
|
Losses on securities, net
|
|
|
|
(1)
|
|
|
(3)
|
|
(Losses) gains on derivatives, net
|
|
|
|
(3)
|
|
|
49
|
|
Gain on dispositions of mining interests, net
|
|
|
|
18
|
|
|
-
|
|
Finance costs
|
|
|
|
(16)
|
|
|
(10)
|
|
Other expenses
|
|
|
|
(21)
|
|
|
(3)
|
|
Earnings from continuing operations before taxes
|
|
|
|
184
|
|
|
341
|
|
Income tax expense
|
|
|
|
(90)
|
|
|
(42)
|
Net earnings from continuing operations attributable to
shareholders of Goldcorp Inc.
|
|
|
$
|
94
|
|
$
|
299
|
Net earnings from discontinued operation attributable to
shareholders of Goldcorp Inc.
|
|
|
$
|
4
|
|
$
|
10
|
|
Net earnings attributable to shareholders of Goldcorp Inc.
|
|
|
$
|
98
|
|
$
|
309
|
|
Net earnings per share from continuing operations
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.12
|
|
$
|
0.37
|
|
|
Diluted
|
|
|
|
0.12
|
|
|
0.32
|
|
Net earnings per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.12
|
|
$
|
0.38
|
|
|
Diluted
|
|
|
|
0.12
|
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions of United States dollars - Unaudited)
|
|
|
Three Months Ended
March 31
|
|
|
|
|
2014
|
|
|
2013
|
|
Net earnings attributable to shareholders of Goldcorp Inc.
|
|
$
|
98
|
|
$
|
309
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to net earnings:
|
|
|
|
|
|
|
|
|
Mark-to-market gains (losses) on available-for-sale securities
|
|
|
4
|
|
|
(34)
|
|
|
Reclassification adjustment for impairment losses included in net
earnings
|
|
|
1
|
|
|
4
|
|
|
Reclassification adjustment for realized gains on disposition of
available-for-sale securities recognized in net earnings
|
|
|
-
|
|
|
(1)
|
|
|
|
|
5
|
|
|
(31)
|
|
Items that will not be reclassified to net earnings:
|
|
|
|
|
|
|
|
|
Remeasurements on defined benefit pension plans
|
|
|
(2)
|
|
|
-
|
|
|
|
|
(2)
|
|
|
-
|
|
Total other comprehensive income (loss), net of tax
|
|
$
|
3
|
|
$
|
(31)
|
|
Total comprehensive income attributable to shareholders of Goldcorp Inc.
|
|
$
|
101
|
|
$
|
278
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States dollars - Unaudited)
|
|
|
Three Months Ended
March 31
|
|
|
|
|
2014
|
|
|
2013
|
|
Operating Activities
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
$
|
94
|
|
$
|
299
|
|
Adjustments for:
|
|
|
|
|
|
|
|
Dividends from associate
|
|
|
34
|
|
|
21
|
|
Reclamation expenditures
|
|
|
(3)
|
|
|
(3)
|
|
Items not affecting cash:
|
|
|
|
|
|
|
|
|
Depreciation and depletion
|
|
|
170
|
|
|
144
|
|
|
Share of net earnings of associates
|
|
|
(56)
|
|
|
(37)
|
|
|
Share-based compensation expense
|
|
|
24
|
|
|
18
|
|
|
Losses on securities, net
|
|
|
1
|
|
|
3
|
|
|
Unrealized gains on derivatives, net
|
|
|
(2)
|
|
|
(49)
|
|
|
Gain on disposition of mining interests, net
|
|
|
(18)
|
|
|
-
|
|
|
Accretion of reclamation and closure cost obligations
|
|
|
7
|
|
|
5
|
|
|
Deferred income tax recovery
|
|
|
(46)
|
|
|
(89)
|
|
|
Other
|
|
|
22
|
|
|
5
|
|
Change in working capital
|
|
|
43
|
|
|
(48)
|
|
Net cash provided by operating activities of continuing operations
|
|
|
270
|
|
|
269
|
|
Net cash provided by operating activities of discontinued operation
|
|
|
3
|
|
|
25
|
|
Investing Activities
|
|
|
|
|
|
|
|
Expenditures on mining interests
|
|
|
(466)
|
|
|
(457)
|
|
Deposits on mining interests expenditures
|
|
|
(28)
|
|
|
(54)
|
|
Proceeds from disposition of mining interests, net
|
|
|
193
|
|
|
-
|
|
Interest paid
|
|
|
(26)
|
|
|
(9)
|
|
Purchases of money market investments and available-for-sale securities
|
|
|
(44)
|
|
|
(553)
|
Proceeds from maturities and sales of money market investments
and available-for-sale securities, net
|
|
|
-
|
|
|
8
|
|
Other
|
|
|
(2)
|
|
|
1
|
|
Net cash used in investing activities of continuing operations
|
|
|
(373)
|
|
|
(1,064)
|
|
Net cash used in investing activities of discontinued operation
|
|
|
(2)
|
|
|
(14)
|
|
Financing Activities
|
|
|
|
|
|
|
|
Debt borrowings, net of borrowing costs
|
|
|
850
|
|
|
1,481
|
|
Debt repayments
|
|
|
(250)
|
|
|
-
|
|
Dividends paid to shareholders
|
|
|
(122)
|
|
|
(122)
|
|
Other
|
|
|
-
|
|
|
131
|
|
Net cash provided by financing activities of continuing operations
|
|
|
478
|
|
|
1,490
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
-
|
|
|
-
|
|
Increase in cash and cash equivalents
|
|
|
376
|
|
|
706
|
|
Cash and cash equivalents, beginning of the period
|
|
|
625
|
|
|
757
|
|
Cash and cash equivalents, end of the period
|
|
$
|
1,001
|
|
$
|
1,463
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(In millions of United States dollars - Unaudited)
|
|
|
|
At March 31
2014
|
|
|
At December 31
2013
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,001
|
|
$
|
625
|
|
|
Money market investments
|
|
|
34
|
|
|
-
|
|
|
Accounts receivable
|
|
|
477
|
|
|
469
|
|
|
Inventories and stockpiled ore
|
|
|
771
|
|
|
727
|
|
|
Notes receivable
|
|
|
5
|
|
|
5
|
|
|
Income taxes receivable
|
|
|
136
|
|
|
182
|
|
|
Assets held for sale
|
|
|
229
|
|
|
227
|
|
|
Other
|
|
|
150
|
|
|
139
|
|
|
|
|
2,803
|
|
|
2,374
|
|
Mining interests
|
|
|
|
|
|
|
|
|
Owned by subsidiaries
|
|
|
23,255
|
|
|
22,928
|
|
|
Investments in associates
|
|
|
2,057
|
|
|
2,210
|
|
|
|
|
25,312
|
|
|
25,138
|
|
Goodwill
|
|
|
1,454
|
|
|
1,454
|
|
Investments in securities
|
|
|
81
|
|
|
77
|
|
Notes receivable
|
|
|
23
|
|
|
23
|
|
Deposits on mining interests expenditures
|
|
|
52
|
|
|
71
|
|
Deferred income taxes
|
|
|
18
|
|
|
19
|
|
Other
|
|
|
432
|
|
|
408
|
|
Total assets
|
|
$
|
30,175
|
|
$
|
29,564
|
|
Liabilities
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
817
|
|
$
|
856
|
|
|
Income taxes payable
|
|
|
79
|
|
|
6
|
|
|
Current portion of long-term debt
|
|
|
1,445
|
|
|
832
|
|
|
Derivative liabilities
|
|
|
55
|
|
|
57
|
|
|
Liabilities relating to assets held for sale
|
|
|
44
|
|
|
44
|
|
|
Other
|
|
|
231
|
|
|
238
|
|
|
|
|
2,671
|
|
|
2,033
|
|
Deferred income taxes
|
|
|
5,539
|
|
|
5,594
|
|
Long-term debt
|
|
|
1,482
|
|
|
1,482
|
|
Provisions
|
|
|
541
|
|
|
517
|
|
Income taxes payable
|
|
|
68
|
|
|
55
|
|
Other
|
|
|
117
|
|
|
125
|
|
Total liabilities
|
|
|
10,418
|
|
|
9,806
|
|
Equity
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
Common shares, stock options and restricted share units
|
|
|
17,211
|
|
|
17,191
|
|
|
Accumulated other comprehensive income
|
|
|
4
|
|
|
1
|
|
|
Retained earnings
|
|
|
2,329
|
|
|
2,353
|
|
|
|
|
19,544
|
|
|
19,545
|
|
Non-controlling interests
|
|
|
213
|
|
|
213
|
|
Total equity
|
|
|
19,757
|
|
|
19,758
|
|
Total liabilities and equity
|
|
$
|
30,175
|
|
$
|
29,564
|
SOURCE Goldcorp Inc.