TSX: G NYSE: GG
(All Amounts in $US unless stated otherwise)
VANCOUVER, July 31, 2014 /PRNewswire/ - 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.
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(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. |
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(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. |
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|
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(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. |
| |
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|
(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. |
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|
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.