(All amounts in US$ unless stated otherwise)
VANCOUVER, Feb. 15, 2017 /CNW/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported its fourth quarter and
full year 2016 results.
Fourth Quarter Highlights
- Net earnings for the fourth quarter were $101 million, or $0.12 per share, compared to a net loss of
$4.3 billion, or loss of $5.14 per share in the fourth quarter of
2015.
- Fourth quarter operating cash flows of $239 million and adjusted operating cash
flows(1,2) of $383
million, of which $169
million(1) was used to repay debt, $61 million was used to fund the growth pipeline
and $16 million was used to pay
dividends. Available liquidity at December
31, 2016 stood at $3.17
billion.
- Gold production of 761,000 ounces at substantially lower
all-in sustaining costs(1) ("AISC") of $747 per ounce, compared to 909,000 ounces at
AISC of $977 per ounce in the fourth
quarter of 2015. Full year 2016 gold production guidance was
achieved with AISC at the low end of the Company's guidance.
- Renewed growth strategy projected to achieve a 20% increase
in gold production, 20% increase in gold reserves and a 20%
reduction in AISC over the next five years. The ramp-up to
nameplate capacity at Cerro Negro and Éléonore, a continued focus
on productivity and efficiency improvements at the existing camps
and advancing the robust project pipeline are expected to position
the Company to deliver growth in net asset value per share.
- Identified 60% of the targeted $250
million in sustainable efficiencies; 40% delivered by the
end of 2016. The Company is well underway toward achieving its
$250 million target sustainable
annual savings by 2018.
- Growing net asset value ("NAV") per share through portfolio
optimization. Goldcorp continued to deliver on its strategy of
growing net asset value by recycling capital into new large-scale
camps as the $400 million acquisition
of the Coffee Project in the Yukon
in July 2016 was followed by the
announced sales in January 2017 of
the Los Filos mine in Mexico for
consideration of $438 million, and
the Cerro Blanco project in
Guatemala for consideration of
$50 million, including contingent
consideration.
"In 2016, we undertook a significant restructuring to
substantially grow the NAV per share of our company by
decentralizing the business to drive accountability down to the
mine sites, significantly reducing operating costs, selling
non-core assets and reinvesting that capital into a robust internal
pipeline and a new geologically prospective mining camp in the
Yukon," said David Garofalo, President and Chief Executive
Officer. "This culminated in the January 2017 announcement of our ambitious
20/20/20 five year growth program that would see Goldcorp deliver a
20% increase in production, a 20% increase in gold reserves and a
20% decrease in all-in sustaining costs, positioning the company to
drive increasing NAV per share."
FINANCIAL AND OPERATING RESULTS REVIEW
($ millions, except
where indicated)
|
Three months
ended December
31
|
Year ended
December 31
|
2016
|
2015
|
2016
|
2015
|
Gold
production1 (ounces)
|
761,000
|
909,000
|
2,873,000
|
3,464,000
|
Gold
sales1 (ounces)
|
768,000
|
918,000
|
2,869,000
|
3,591,000
|
Operating cash
flows
|
$239
|
$401
|
$799
|
$1,430
|
Adjusted operating
cash flows1,2
|
$383
|
$504
|
$1,120
|
$1,651
|
Net earnings
(loss)
|
$101
|
$(4,271)
|
$162
|
$(4,157)
|
Net earnings (loss)
per share
|
$0.12
|
$(5.14)
|
$0.19
|
$(5.03)
|
By-product cash
costs1,4 (per ounce)
|
$481
|
$687
|
$573
|
$605
|
AISC1,3
(per ounce)
|
$747
|
$977
|
$856
|
$894
|
Net earnings and net earnings per share in the fourth quarter of
2016 and the year ended December 31,
2016 were affected by, among other things, the following
non-cash or other items that management believes are not reflective
of the performance of the underlying operations (items are denoted
as (increases)/decreases to net income and net income per
share):
($ millions, except
where indicated)
|
Three months
ended December 31,
2016
|
Year
ended December 31,
2016
|
Pre-tax
|
After-tax
|
Per share
($/share)
|
Pre-tax
|
After-tax
|
Per
share ($/share)
|
Negative deferred tax
effects of foreign
exchange on tax assets and liabilities
and losses
|
$ -
|
$46
|
$0.05
|
$ -
|
$88
|
$0.10
|
Impairment (reversal)
expense, net
|
$(49)
|
$(49)
|
$(0.06)
|
$(49)
|
$(49)
|
$(0.06)
|
Restructuring costs
and mine-site
severance
|
$18
|
$16
|
$0.02
|
$63
|
$47
|
$0.06
|
Unrealized foreign
exchange loss on
Argentine peso denominated value
added tax receivable
|
$4
|
$4
|
$ -
|
$26
|
$26
|
$0.03
|
Revisions in
estimates and liabilities
incurred on reclamation and closure
cost obligations at inactive and closed
sites
|
$(17)
|
$(12)
|
$(0.01)
|
$(17)
|
$(11)
|
$(0.01)
|
Total cash costs on a by-product basis for the fourth quarter of
2016 were $481 per ounce, compared to
$687 per ounce for the fourth quarter
of 2015. AISC for the fourth quarter of 2016 were
$747 per ounce, compared to
$977 per ounce in the fourth quarter
of 2015. The decrease in AISC was primarily due to lower
production costs and the favourable impact of the strengthening US
dollar against the Argentine and Mexican pesos, partly offset by
lower sales volumes at Cerro Negro, Los Filos and
Éléonore.
As of December 31, 2016, the
Company had total liquidity of approximately $3.17 billion, including $0.2 billion in cash, cash equivalents and short
term investments and an undrawn credit facility of $2.97 billion.
PROGRESS TOWARDS DELIVERING $250
MILLION OF SUSTAINABLE ANNUAL EFFICIENCIES
During the fourth quarter of 2016, the Company continued the
implementation of its productivity and cost optimization program to
deliver $250 million in sustainable
annual efficiencies. Reviews completed at Porcupine during the quarter identified
$35 million in efficiency
improvements and cost reductions, expected to be realized in 2017,
resulting from improved development rates and productivity at Hoyle
Pond, improved productivity at Hollinger and improved recovery and
costs at the mill. Peñasquito is in the early stages of
the productivity and cost optimization efforts, but expects to
realize approximately $55 million in
annual sustainable efficiencies. Potential opportunities at
Peñasquito relate to improved mining, processing and overall
equipment effectiveness, as well as ongoing cost reductions from
major contracts. Red Lake
and Éléonore started their productivity and cost optimization
improvement programs in the first quarter of 2017 and, along with
Cerro Negro and Musselwhite, are expected to attain the balance of
the $250 million target by 2018.
OUTLOOK
Consistent with Goldcorp's focus on profitable ounces and
growing net asset value per share, forecast 2017 gold production is
expected to be 2.5 million ounces (+/- 5%), in line with previous
2017 guidance provided at the Company's recent Investor Day.
AISC are expected to be approximately $850 per ounce(4) (+/- 5%) as the
Company continues to realize savings from its $250 million target in annual sustainable
efficiencies. The Company's five year growth outlook is
focused on growing gold production by 20% to 3 million ounces,
reducing AISC by 20% to $700 per
ounce and growing gold reserves by 20% to 50 million
ounces.
For further details on the 2017 and five year outlook refer
to:
http://www.goldcorp.com/files/doc_downloads/guidance/2017/Goldcorp-Guidance-Jan-2017.pdf
OPERATING HIGHLIGHTS
Peñasquito, Mexico
(100%-owned)
Fourth quarter gold production totaled 183,000 ounces at an AISC
of $487 per ounce. Production
increased compared to the fourth quarter of 2015 as the mine
sequenced into the higher grade Phase 5D ore during the fourth
quarter of 2016. AISC for the fourth quarter of 2016
were lower than the fourth quarter of 2015 as a result of higher
gold production and lower production costs.
Gold production in 2017 is expected to total 410,000 ounces
(+/-5%). The decrease compared to 2016 is due to lower grades as
the high-grade ore from Phase 5D is expected to be mined by the
third quarter of 2017, and more low-grade ore from the stockpiles
will be processed during the year. AISC in 2017 is expected
to be $825 per ounce (+/-5%).
The decrease compared to 2016 is due to productivity improvements
that are expected to be partially offset by lower gold
production. Sustaining capital is expected to be higher than
normal in 2017 as the mine plan requires increased stripping in
2017 compared to 2016 and as the tailings dam is being raised.
Cerro Negro, Argentina
(100%-owned)
Fourth quarter gold production totaled 66,000 at an AISC of
$1,024 per ounce. Production
decreased compared to the fourth quarter of 2015 due to the
processing in 2015 of 47,000 tonnes from the stockpile and the 2016
work stoppages. The work stoppages were the result of the
workforce reduction that was related to the restructuring process
that commenced in the second quarter of 2016. AISC for the
fourth quarter of 2016 were higher than the fourth quarter of 2015
due to lower production partially offset by lower production
costs.
During the fourth quarter of 2016, the prefeasibility study on
the optimal mine design, development execution plan, and production
schedule was completed. The plan has development at Mariana
Norte continuing to ramp up through 2017 with first ore production
expected in 2018. Development of the Emilia vein is expected to
begin in the second half of 2017 and is expected to replace
production from Eureka in 2019.
Gold production in 2017 is expected to total 410,000 ounces
(+/-5%). The increase compared to 2016 is due to the continued ramp
up of the mine as development rates improve. The production ramp-up
to 4,000 tonnes per day is expected to be achieved during the
second half of 2018. AISC for 2017 is expected to be
$685 per ounce (+/-5%), similar to
2016, as a result of lower grades and higher sustaining capital
offset by continued optimization of the cost structure.
Pueblo Viejo, Dominican Republic (40%-owned)
Fourth quarter gold production totaled 127,000 ounces at an AISC
of $311 per ounce. Production
increased compared to the fourth quarter of 2015 primarily due to
higher throughput as the mill experienced an oxygen plant failure
which reduced throughput in the fourth quarter of 2015. AISC
for the fourth quarter of 2016 were lower compared to the fourth
quarter of 2015 as a result of higher gold production and lower
production costs. Lower production costs in the fourth quarter of
2016 were primarily due to the receipt of insurance proceeds
related to the oxygen plant failure.
Gold production in 2017 is expected to total 415,000 ounces
(+/-5%). The decrease compared to 2016 is due to lower
grade. AISC in 2017 is expected to be $530 per ounce (+/-5%). The increase
compared to 2016 is due to non-recurring insurance proceeds
received in 2016 and higher sustaining capital expenditures.
Red Lake, Ontario
(100%-owned)
Fourth quarter gold production totaled 88,000 ounces at an AISC
of $932 per ounce. Production
was lower compared to the fourth quarter of 2015 due to lower
tonnes from the depletion of the Campbell mine as well as a focus
on mine development to increase mining front availability.
AISC in the fourth quarter were lower than the fourth quarter
of 2015 due to lower production costs and lower sustaining capital
partially offset by lower gold production.
Gold production in 2017 is expected to total 300,000 ounces
(+/-5%). The decrease compared to 2016 is due to lower grades
as the High Grade Zone depletes. At Red Lake there are two
key growth projects, Cochenour and
HG Young, that are advancing through the Company's investment
framework and have the potential to provide new sources of ore over
the long-term.
AISC in 2017 is expected to be $870 per ounce (+/-5%), comparable to 2016 as
lower production is offset by lower operating costs. The site
is focused on realizing new cost efficiencies through the
rationalization of site infrastructure and other initiatives.
The Number One Shaft was placed on care and maintenance in the
third quarter of 2016, the Red
Lake mill was placed on care and maintenance in the first
quarter of 2017 and the Campbell shaft is expected to be placed on
care and maintenance in the second quarter of 2017.
Éléonore, Quebec
(100%-owned)
Fourth quarter gold production totaled 65,000 ounces at an AISC
of $965 per ounce. Production
was lower compared to the fourth quarter of 2015 due to lower
milled tonnes and lower grade. Lower milled tonnes were the
result of the depletion of surface stockpiles in 2015 and lower
grades were consistent with the mine plan. AISC for the
fourth quarter of 2016 was higher than the fourth quarter of 2015
due to lower production.
Gold production in 2017 is expected to total 315,000 ounces
(+/-5%). The increase compared to 2016 is due to the
continued ramp up of the mine. The production ramp-up to full
capacity is expected to continue into 2018 with the anticipated
addition of a fifth production horizon. A life of mine study is
underway to determine the sustainable mining rate from the Roberto
deposit
AISC in 2017 is expected to be $985 per ounce (+/-5%). While there is
expected to be a decrease in operating costs as the mine benefits
from a full year of production from the permanent ore handling
system, including the production shaft, and efficiencies from
higher throughput rates, this is expected to be offset by higher
sustaining capital related to the tailings management facility
expansion.
Porcupine, Ontario
(100%-owned)
Fourth quarter gold production totaled 66,000 ounces at AISC of
$985 per ounce. Production was
lower compared to the fourth quarter of 2015 due to planned lower
production from the depletion of the Dome underground and lower
tonnes were milled as depletion of the low grade stockpile was
partially offset by the increased production at the Hollinger Open
Pit. AISC for the fourth quarter of 2016 were lower compared
to the fourth of 2015 due to lower production costs that were
partially offset by lower gold production.
Gold production in 2017 is expected to total 285,000 ounces
(+/-5%), with AISC expected to be $900 per ounce (+/-5%), consistent with 2016.
Musselwhite, Ontario
(100%-owned)
Fourth quarter gold production totaled 75,000 ounces at an AISC
of $696 per ounce. Production
decreased compared to the fourth quarter of 2015 due to lower head
grade and a lower recovery rate. AISC for the fourth quarter
were essentially unchanged from the fourth quarter of 2015 due to
reduced operating costs, offset by lower gold production.
Gold production in 2017 is expected to total 265,000 ounces
(+/-5%), in line with 2016. AISC in 2017 is expected to be
$715 per ounce (+/-5%), in line with
2016.
PROJECT PIPELINE
Peñasquito
Pyrite Leach (100%-owned)
The Pyrite Leach Project ("PLP"), which is expected to increase
gold and silver recovery by treating the zinc tailings before
discharge to the tailings storage facility, continued to advance
during the fourth quarter of 2016. The project achieved 65%
engineering progress by the end of 2016, while procurement
activities are well advanced to support execution. Major works
contractors are mobilizing on site and construction of permanent
facilities has been initiated. The PLP is expected to provide
annual incremental production of 100,000 to 140,000 gold ounces and
approximately 4-6 million silver ounces, with production commencing
in 2019. The capital cost is expected to be $420 million.
As part of the PLP, a carbon pre-flotation facility is being
constructed, anticipated to be completed in the second quarter of
2018.
Musselwhite
Materials Handling (100%-owned)
The Materials Handling Project, which is expected to result in
reduced reliance on truck haulage through the construction of an
underground winze and associated infrastructure, progressed during
the fourth quarter of 2016. At the end of 2016 approximately 90% of
the detailed engineering had been completed. The Materials Handling
Project is expected to increase production by approximately 20% and
reduce operating costs by approximately 10%. Completion of the
project is expected by the first quarter of 2019. The
capital cost is expected to be $90
million.
Porcupine
District
Century Project (100%-owned)
The Century Project is a potential large-scale open pit mine and
related processing facility at the Dome mine. A concept study is
underway to examine engineering, waste rock management and
economics and to evaluate development of an expanded open pit mine
and related processing facility. The Company expects the concept
study to be completed in the first quarter of 2017 and expects to
commence a pre-feasibility study immediately thereafter. In
addition to the current mineral resource estimate at the Dome pit,
the pre-feasibility study will incorporate a review of additional
potential mill feed, including the Pamour Open Pit, which has a
current reserve estimate of 1.1 million ounces (31.9 million tonnes
at 1.02 grams per tonne) and a measured and indicated resource
estimate of 0.7 million ounces (21.7 million tonnes at 1.01 grams
per tonne), and the Pamour West Open Pit, which has a current
measured and indicated resource estimate of 0.8 million ounces
(24.5 million tonnes at 1.00 grams per tonne). The Company is
undertaking the necessary work at the Dome open pit with the
intention of converting a portion of the measured and indicated
mineral resources into an initial mineral reserve and expects that
the estimate will be included as part of the Company's June 30, 2017 reserve and resource update.
Borden Project (100%-owned)
The Borden Project is located near Chapleau in Ontario, approximately 160 kilometres west of
the Company's Porcupine mine, and
comprises 786 square kilometres of claims. All material
required permits, including the Advance Exploration permit, have
been received to allow for the construction of a ramp into the
deposit and the extraction of a 30,000 tonne bulk sample. The ramp
design for the purpose of the bulk sample is expected to be
sufficient for ultimate mining purposes. The underground platforms
developed from the ramp access will further support exploration
drilling of a deposit that remains open at depth and laterally. A
final feasibility study is expected to occur in the first quarter
of 2019 after the completion of a bulk sample. With the expected
ramp completion and minimal additional infrastructure required for
full scale mining, the Company expects to reach commercial
production six months following bulk sample extraction.
Red Lake
District
HG Young Project (100%-owned)
The HG Young Project is an exploration discovery in close
proximity to the Company's 100%-owned Red
Lake mine. During the fourth quarter of 2016
exploration drilling continued with a focus on expanding the
current resource and upgrading the structural understanding of the
mineralized system. During the first quarter of 2017, the
geological interpretation and block models will be updated and used
to update the concept study. Assuming a positive business
case in the concept study, the Company expects to commence a
pre-feasibility study, which currently anticipates a decline from
surface providing access to higher confidence areas for further
exploration and bulk sampling.
Cochenour Project (100%-owned)
The Cochenour Project combines the existing workings of the
historic Cochenour mine with the
Bruce Channel gold discovery in the Red
Lake camp. A bulk sample from the 3990 and 4060 levels
was processed through a sample tower during 2016 to support grade
predictability and then during the fourth quarter was processed
through the Red Lake Mill where the reconciliation was favourable.
The concept study is expected to be completed during the first
quarter of 2017 following which a pre-feasibility study is expected
to commence. To date the concept study has shown positive economics
for a starter mine.
The Company is undertaking the necessary work at Cochenour with the intention of converting a
portion of the 0.29 million ounces (0.6 million tonnes at 15.03
grams per tonne) of measured and indicated resources into a mineral
reserve and expects that the estimate will be included as part of
the Company's June 30, 2017 reserve
and resource update. The development access and further geological
understanding obtained from a starter mine would be evaluated to
support additional development and mining.
Coffee Project (100%-owned)
The Coffee Project is a structurally hosted hydrothermal deposit
located approximately 130 kilometres south of the City of Dawson,
Yukon. The Coffee land package, comprising over 60,000
hectares, demonstrates potential for near-mine discoveries, with
mineralization remaining open along strike and at depth and the
potential for the discovery of a major new mineral system.
During the fourth quarter of 2016, activities continued to focus
on review and optimization of the feasibility study, planning for
upgrades to site infrastructure and First Nation and community
consultation. The Environmental Socioeconomic Assessment
application is being prepared and is expected to be submitted in
the first quarter of 2017. The Company expects permitting and
construction to take about four years with commercial production
targeted for the first quarter of 2021.
About Goldcorp
Goldcorp is a senior gold producer focused on responsible mining
practices with safe, low-cost production from a high-quality
portfolio of mines.
This release should be read in conjunction with Goldcorp's 2016
financial statements and Management's Discussion and Analysis
("MD&A") report on the Company's website, in the "Investor
Resources – Reports & Filings" section under "Annual
Reports".
Conference Call and Webcast
Date:
|
Thursday, February
16, 2017
|
Time:
|
10:00 a.m.
(PST)
|
Dial-in:
|
1-800-355-4959
(toll-free) or 1-416-340-2216 (outside Canada and the
US)
|
Replay:
|
1-800-408-3053
(toll-free) or 1-905-694-9451 (outside Canada and the
US)
|
Replay end
date:
|
March 19,
2017
|
Replay
Passcode:
|
Conference ID#:
2296992
|
A live and archived webcast will also be available at
www.goldcorp.com.
Footnotes
|
|
1.
|
The Company has
included non-GAAP performance measures on an attributable basis
(Goldcorp share) throughout this document. Attributable performance
measures include the Company's mining operations and projects and
the Company's share from Alumbrera, Pueblo Viejo and NuevaUnión
subsequent to the formation of the joint venture on November 24,
2015.
|
|
|
2.
|
Adjusted operating
cash flows comprises Goldcorp's share of operating cash flows,
calculated on an attributable basis to include the Company's share
of Alumbrera, Pueblo Viejo and NuevaUnión's operating cash flows.
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 operate without reliance on additional external funding
or use of available cash.
|
|
|
|
The following table
provide a reconciliation of net cash provided by operating
activities in the consolidated financial statements to Goldcorp's
share of adjusted operating cash flows:
|
|
Three months
ended
December
31
|
Year
ended
December
31
|
|
2016
|
2015
|
2016
|
2015
|
Net cash provided
by operating activities of continuing operations
|
$239
|
$401
|
$799
|
$1,423
|
Adjusted operating
cash flows provided by Alumbrera, Pueblo Viejo and
NuevaUnión
|
$144
|
$103
|
$321
|
$221
|
Goldcorp's share
of adjusted operating cash flows
|
$383
|
$504
|
$1,120
|
$1,644
|
Including
discontinued operations
|
|
|
|
|
Adjusted operating
cash flows – Wharf
|
-
|
-
|
-
|
$7
|
Goldcorp's share
of adjusted cash flows including discontinued
operations
|
$383
|
$504
|
$1,129
|
$1,651
|
|
|
|
|
|
|
|
|
|
|
|
3.
|
The Company has
included a non-GAAP performance measure - total cash costs:
by-product in this document. Total cash costs: by-product
incorporate Goldcorp's share of all production costs, including
adjustments to inventory carrying values, adjusted for changes in
estimates in reclamation and closure costs at the Company's closed
mines which are non-cash in nature, and include Goldcorp's share of
by-product silver, lead, zinc and copper credits, and treatment and
refining charges included within revenue. Additionally, cash costs
are adjusted for realized gains and losses arising on the Company's
commodity and foreign currency contracts which the Company enters
into to mitigate its exposure to fluctuations in by-product metal
prices, heating oil prices and foreign exchange rates, which may
impact the Company's operating costs.
|
|
|
|
In addition to
conventional measures, the Company assesses this per ounce 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 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
this measure provides 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 reports
total cash costs: by-product on a gold ounces sold 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
Gold Institute, which ceased operations in 2002, was a
non-regulatory body and represented a global group of producers of
gold and gold products. The production cost standard developed by
the Gold Institute remains the generally accepted standard of
reporting cash costs of production by gold mining
companies.
|
|
|
|
The following tables
provide a reconciliation of total cash costs to reported production
costs:
|
|
Production
costs(a)
|
By-Product
Credits
|
Non-cash Reclamation
and Closure Cost Obligations
|
Treatment and
Refining Charges on Concentrate Sales
|
Hedging Gain/Loss
(net)
|
Total Cash Costs:
by-product
|
Ounces
(000's)
|
Total Cash Costs:
by-product per ounce(b)(c)
|
Three months
ended December 31,
2016
|
$
|
602
|
$
|
(281)
|
$
|
4
|
$
|
45
|
$
|
-
|
$
|
370
|
770
|
$
|
481
|
Three months
ended
December 31, 2015
|
$
|
770
|
$
|
(280)
|
$
|
60
|
$
|
52
|
$
|
29
|
$
|
631
|
918
|
$
|
687
|
Year
ended December 31,
2016
|
$
|
2,436
|
$
|
(943)
|
$
|
4
|
$
|
146
|
$
|
-
|
$
|
1,643
|
2,871
|
$
|
573
|
Year
ended December 31,
2015
|
$
|
3,034
|
$
|
(1,188)
|
$
|
39
|
$
|
204
|
$
|
83
|
$
|
2,172
|
3,591
|
$
|
605
|
|
|
|
(a)
|
$20 million and $69
million in royalties are included in production costs for the three
months and year ended December 31, 2016, respectively (three months
and year ended December 31, 2015– $23 million and $93 million,
respectively).
|
|
|
|
(b)
|
Total cash costs:
by-product per ounce may not calculate based on amounts presented
in these tables due to rounding.
|
|
|
|
(c)
|
If silver, lead, zinc
and copper for Peñasquito, silver for Marlin, silver and copper for
Pueblo Viejo, and copper for Alumbrera were treated as co-products,
Goldcorp's share of total cash costs: co-product from continuing
operations for the three months and year ended December 31, 2016,
would be $619 and $649 per ounce of gold, $8.73 and $10.17 per
ounce of silver, $1.81 and $1.960 per pound of copper, $0.67 and
$0.79 per pound of zinc, and $0.69 and $0.87 per pound of lead,
respectively (three months and year ended December 31, 2015 – $739
and $684 per ounce of gold. $8.85 and $8.57 per ounce of silver,
$2.31 and $2.66 per pound of copper, $0.72 and $0.69 per pound of
zinc, and $0.76 and $0.68 per pound of lead,
respectively).
|
4.
|
AISC include total
production cash costs incurred at the Company's mining operations,
which forms the basis of the Company's by-product cash costs.
Additionally, the Company includes sustaining capital expenditures,
corporate administrative expense, exploration and evaluation costs,
and reclamation cost accretion and amortization. The measure seeks
to reflect the full cost of gold production from current
operations, therefore growth capital is excluded. Certain other
cash expenditures, including tax payments, dividends and financing
costs are also excluded.
|
|
|
|
The Company believes
that this measure represents the total costs of producing gold from
current operations, and provides the Company and other stakeholders
of the Company with additional information of the Company's
operational performance and ability to generate cash flows. AISC,
as a key performance measure, allows the Company to assess its
ability to support capital expenditures and to sustain future
production from the generation of operating cash flows. This
information provides management with the ability to more actively
manage capital programs and to make more prudent capital investment
decisions.
|
|
|
|
The Company reports
AISC on a gold ounces sold basis. This performance measure was
adopted as a result of an initiative undertaken within the gold
mining industry; however, this performance measure has no
standardized meaning and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP. The Company follows the guidance note released by the
World Gold Council, which became effective January 1, 2014. The
World Gold Council is a non-regulatory market development
organization for the gold industry whose members comprise global
senior gold mining companies.
|
The following tables provide a reconciliation of
AISC per ounce to the consolidated financial statements:
Three months ended December 31,
2016
|
Total cash costs:
by-product
|
Corporate
Administration
|
Exploration &
evaluation costs
|
Reclamation cost
accretion and amortization
|
Sustaining capital
expenditures
|
Total AISC
|
Ounces
(thousands)
|
Total AISC per
ounce(1)
|
Peñasquito
|
$
|
38
|
$
|
-
|
$
|
-
|
$
|
2
|
$
|
49
|
$
|
89
|
185
|
$
|
487
|
Cerro
Negro
|
55
|
-
|
1
|
1
|
15
|
72
|
70
|
1,024
|
Red Lake
|
46
|
-
|
2
|
-
|
22
|
70
|
76
|
932
|
Éléonore
|
66
|
-
|
-
|
1
|
8
|
75
|
69
|
1,075
|
Porcupine
|
46
|
-
|
-
|
-
|
15
|
61
|
63
|
985
|
Musselwhite
|
38
|
-
|
1
|
1
|
12
|
52
|
74
|
696
|
Other
mines
|
54
|
-
|
3
|
4
|
5
|
66
|
73
|
880
|
Corporate
|
—
|
38
|
1
|
-
|
6
|
45
|
-
|
59
|
Total before
associates and
discontinued operations
|
$
|
343
|
$
|
38
|
$
|
8
|
$
|
9
|
$
|
132
|
$
|
530
|
610
|
$
|
869
|
Pueblo
Viejo
|
27
|
-
|
-
|
1
|
12
|
40
|
132
|
311
|
Other
associate
|
-
|
-
|
-
|
2
|
1
|
3
|
28
|
140
|
Discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
TOTAL
|
$
|
370
|
$
|
38
|
$
|
8
|
$
|
12
|
$
|
145
|
$
|
573
|
770
|
$
|
747
|
Three months ended December 31,
2015
|
Total cash costs:
by-product
|
Corporate
Administration
|
Exploration &
evaluation costs
|
Reclamation cost
accretion and amortization
|
Sustaining capital
expenditures
|
Total AISC
|
Ounces
(thousands)
|
Total AISC per
ounce(1)
|
Peñasquito
|
$
|
89
|
$
|
-
|
$
|
2
|
$
|
2
|
$
|
41
|
$
|
134
|
195
|
$
|
687
|
Cerro
Negro
|
77
|
-
|
1
|
-
|
39
|
117
|
132
|
872
|
Red Lake
|
55
|
-
|
6
|
1
|
25
|
87
|
92
|
959
|
Éléonore
|
69
|
-
|
-
|
-
|
8
|
77
|
103
|
761
|
Porcupine
|
57
|
-
|
-
|
4
|
15
|
76
|
74
|
1,031
|
Musselwhite
|
43
|
-
|
1
|
-
|
13
|
57
|
83
|
699
|
Other
mines
|
167
|
-
|
2
|
4
|
26
|
199
|
121
|
1,642
|
Corporate
|
1
|
48
|
-
|
-
|
10
|
59
|
-
|
64
|
Total before
associates and
discontinued operations
|
$
|
558
|
$
|
48
|
$
|
12
|
$
|
11
|
$
|
177
|
$
|
806
|
800
|
$
|
1,009
|
Pueblo
Viejo
|
47
|
-
|
-
|
3
|
7
|
57
|
93
|
608
|
Other
associate
|
26
|
-
|
-
|
2
|
4
|
32
|
25
|
1,274
|
Discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
TOTAL
|
$
|
631
|
$
|
48
|
$
|
12
|
$
|
16
|
$
|
188
|
$
|
895
|
918
|
$
|
977
|
Twelve months ended December 31,
2016
|
Total cash costs:
by-product
|
Corporate
Administration
|
Exploration &
evaluation costs
|
Reclamation cost
accretion and amortization
|
Sustaining capital
expenditures
|
Total AISC
|
Ounces
(thousands)
|
Total AISC per
ounce(1)
|
Peñasquito
|
$
|
217
|
$
|
-
|
$
|
2
|
$
|
6
|
$
|
195
|
$
|
420
|
449
|
$
|
937
|
Cerro
Negro
|
193
|
-
|
1
|
7
|
68
|
269
|
382
|
705
|
Red Lake
|
182
|
-
|
11
|
2
|
78
|
273
|
313
|
872
|
Éléonore
|
243
|
-
|
-
|
2
|
28
|
273
|
278
|
981
|
Porcupine
|
189
|
-
|
2
|
9
|
46
|
246
|
275
|
898
|
Musselwhite
|
140
|
-
|
5
|
3
|
29
|
177
|
260
|
678
|
Other
mines
|
272
|
-
|
9
|
16
|
26
|
323
|
352
|
914
|
Corporate
|
—
|
187
|
2
|
-
|
26
|
215
|
-
|
75
|
Total before
associates and
discontinued operations
|
$
|
1,436
|
$
|
187
|
$
|
32
|
$
|
45
|
$
|
496
|
$
|
2,196
|
2,309
|
$
|
951
|
Pueblo
Viejo
|
160
|
-
|
-
|
4
|
40
|
204
|
467
|
439
|
Other
associate
|
47
|
-
|
-
|
8
|
1
|
56
|
95
|
603
|
Discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
TOTAL
|
$
|
1,643
|
$
|
187
|
$
|
32
|
$
|
57
|
$
|
537
|
$
|
2,456
|
2,871
|
$
|
856
|
Twelve months ended December 31,
2015
|
Total cash costs:
by-product
|
Corporate
Administration
|
Exploration &
evaluation costs
|
Reclamation cost
accretion and amortization
|
Sustaining capital
expenditures
|
Total AISC
|
Ounces
(thousands)
|
Total AISC per
ounce(a)
|
Peñasquito
|
$
|
286
|
$
|
-
|
$
|
3
|
$
|
10
|
$
|
186
|
$
|
485
|
893
|
$
|
544
|
Cerro
Negro
|
349
|
-
|
1
|
3
|
95
|
448
|
580
|
769
|
Red Lake
|
209
|
-
|
27
|
3
|
93
|
332
|
366
|
906
|
Éléonore
|
210
|
-
|
-
|
1
|
21
|
232
|
231
|
1,007
|
Porcupine
|
212
|
-
|
1
|
14
|
67
|
294
|
273
|
1,078
|
Musselwhite
|
161
|
-
|
6
|
1
|
38
|
206
|
269
|
766
|
Other
mines
|
412
|
-
|
8
|
19
|
110
|
549
|
440
|
1,249
|
Corporate
|
3
|
207
|
5
|
-
|
35
|
250
|
-
|
70
|
Total before
associates and
discontinued operations
|
$
|
1,842
|
$
|
207
|
$
|
51
|
$
|
51
|
$
|
645
|
$
|
2,796
|
3,052
|
$
|
916
|
Pueblo
Viejo
|
223
|
-
|
-
|
10
|
41
|
274
|
450
|
607
|
Other
associate
|
92
|
-
|
-
|
11
|
18
|
121
|
73
|
1,670
|
Discontinued
Operations
|
15
|
1
|
-
|
-
|
1
|
17
|
16
|
996
|
TOTAL
|
$
|
2,172
|
$
|
208
|
$
|
51
|
$
|
72
|
$
|
705
|
$
|
3,208
|
3,591
|
$
|
894
|
|
|
(a)
|
AISC may not
calculate based on amounts presented in these tables due to
rounding.
|
Cautionary Statement Regarding Forward Looking
Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, the United States Private Securities
Litigation Reform Act of 1995, or in releases made by the United
States Securities and Exchange Commission, all as may be amended
from time to time, and "forward-looking information" under the
provisions of applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of 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 (as defined below) and Mineral Resources (as defined
below), the realization of Mineral Reserve estimates, the timing
and amount of estimated future production, costs of production,
targeted cost reductions, capital expenditures, free cash flow,
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 or comparable language of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements are necessarily based upon a number
of factors and assumptions 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 Mineral Resources and metallurgical recoveries, mining
operational and development risks, litigation risks, regulatory
restrictions (including environmental regulatory restrictions and
liability), changes in national and local government legislation,
taxation, controls or regulations and/or change in the
administration of laws, policies and practices, expropriation or
nationalization of property and political or economic developments
in Canada, the United States and other jurisdictions in
which the Company does or may carry on business in the future,
delays, suspension and technical challenges associated with capital
projects, higher prices for fuel, steel, power, labour and other
consumables, 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 believes its expectations are based upon
reasonable assumptions and 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 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; actual results of current
reclamation activities; environmental risks; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; future prices of gold, silver, copper, lead
and zinc; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; mine development and operating risks; accidents,
labour disputes and other risks of the mining industry; risks
associated with restructuring and cost-efficiency initiatives;
delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; risks related
to the integration of acquisitions; 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 most recent annual information
form available on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. 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 disposition, monetization, merger, acquisition,
other business combination or other transaction 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 Goldcorp's
operating environment. Goldcorp does not intend or undertake to
publicly update any forward-looking statements that are included in
this document, whether as a result of new information, future
events or otherwise, except in accordance with applicable
securities laws.
Cautionary Note Regarding Reserves and Resources
Scientific and technical information contained in this press
release relating to Mineral Reserves and Mineral Resources was
reviewed and approved by Gil Lawson,
P.Eng., Vice President, Geology and Mine Planning for Goldcorp, and
a "qualified person" as defined by Canadian Securities
Administrators' National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101"). Scientific and
technical information in this press release relating to exploration
results was reviewed and approved by Sally
Goodman, PhD, PGeo, Director, Generative Geology for
Goldcorp, and a "qualified person" as defined by NI 43-101.
All Mineral Reserves and Mineral Resources have been calculated in
accordance with the standards of the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") and NI 43-101, or the Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves equivalent. All Mineral Resources are reported
exclusive of Mineral Reserves. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
Information on data verification performed on the mineral
properties mentioned in this press release that are considered to
be material mineral properties to the Company are contained in
Goldcorp's most recent annual information form and the current
technical report for each of those properties, all available on
SEDAR at www.sedar.com.
Cautionary Note to United
States investors concerning estimates of measured, indicated
and inferred resources: The Mineral Resource and Mineral Reserve
estimates contained in this press release have been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the
requirements of United States
securities laws and uses terms that are not recognized by the
United States Securities and Exchange Commission ("SEC"). Canadian
reporting requirements for disclosure of mineral properties are
governed by NI 43-101. The definitions used in NI 43-101 are
incorporated by reference from the CIM Definition Standards adopted
by CIM Council on May 10, 2014 (the
"CIM Definition Standards"). U.S. reporting requirements are
governed by the SEC Industry Guide 7 ("Industry Guide 7") under the
United States Securities Act of 1933, as amended. These
reporting standards have similar goals in terms of conveying an
appropriate level of confidence in the disclosures being reported,
but embody difference approaches and definitions. For
example, the terms "Mineral Reserve", "Proven Mineral Reserve" and
"Probable Mineral Reserve" are Canadian mining terms as defined in
in NI 43-101, and these definitions differ from the definitions in
Industry Guide 7. Under Industry Guide 7 standards, a "final" or
"bankable" feasibility study is required to report reserves and the
primary environmental analysis or report must be filed with the
appropriate governmental authority. Further, under Industry
Guide 7, mineralization may not be classified as "reserve" unless
the determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve determination is made.
While the terms "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
defined in and required to be disclosed by NI 43-101, these terms
are not defined terms under Industry Guide 7 and are normally not
permitted to be used in reports and registration statements filed
with the SEC. United States
readers are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.
In addition, "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. A significant amount of
exploration must be completed in order to determine whether an
Inferred Mineral Resource may be upgraded to a higher category.
Under Canadian regulations, estimates of Inferred Mineral Resources
may not form the basis of feasibility or pre-feasibility studies,
except in rare cases. United
States readers are cautioned not to assume that all or any
part of an Inferred Mineral Resource exists or is economically or
legally mineable. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations if such disclosure
includes the grade or quality and the quantity for each category of
Mineral Resource and Mineral Reserve; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Accordingly, information contained in this press release
containing descriptions of the Goldcorp's mineral deposits may not
be comparable to similar information made public by United States companies subject to the
reporting and disclosure requirements under the United States federal securities laws and
the rules and regulations thereunder.
FINANCIAL STATEMENTS FOLLOW
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In millions of United States
dollars, except for per share amounts – Unaudited)
|
Three Months
Ended
December
31
|
Twelve Months
Ended
December
31
|
|
2016
|
2015
|
2016
|
2015
|
Revenues
|
$
|
898
|
$
|
1,072
|
$
|
3,510
|
$
|
4,375
|
Mine operating
costs
|
|
|
|
|
|
Production
costs
|
(516)
|
(662)
|
(2,066)
|
(2,580)
|
|
Depreciation and
depletion
|
(254)
|
(421)
|
(1,024)
|
(1,493)
|
|
(770)
|
(1,083)
|
(3,090)
|
(4,073)
|
Earnings from mine
operations
|
128
|
(11)
|
420
|
302
|
Exploration,
evaluation, and project costs
|
(10)
|
(12)
|
(34)
|
(51)
|
Share of net earnings
(loss) of associates and joint venture
|
60
|
(24)
|
171
|
(1)
|
Reversal of
impairment loss (Impairment) of mining interests and
|
|
|
|
|
Goodwill,
net
|
49
|
(4,906)
|
49
|
(4,906)
|
Corporate
administration
|
(38)
|
(48)
|
(187)
|
(207)
|
Restructuring
costs
|
(5)
|
—
|
(50)
|
—
|
Earnings (loss)
from operations, associates and joint venture
|
184
|
(5,001)
|
369
|
(4,863)
|
Gain (loss) on
derivatives, net
|
1
|
1
|
3
|
(54)
|
Gain on dilution of
ownership interest in associate
|
—
|
—
|
—
|
99
|
Gain on dispositions
of mining interests, net of transaction costs
|
—
|
—
|
—
|
315
|
Finance
costs
|
(34)
|
(31)
|
(137)
|
(135)
|
Other expenses,
net
|
(12)
|
(80)
|
(13)
|
(50)
|
Earnings (loss)
from continuing operations before taxes
|
139
|
(5,111)
|
222
|
(4,688)
|
Income tax (expense)
recovery
|
(38)
|
840
|
(60)
|
485
|
Net earnings
(loss) from continuing operations
|
101
|
(4,271)
|
162
|
(4,203)
|
Net earnings from
discontinued operation
|
—
|
—
|
—
|
46
|
Net earnings
(loss)
|
$
|
101
|
$
|
(4,271)
|
$
|
162
|
$
|
(4,157)
|
|
|
|
|
|
Net earnings
(loss) per share from continuing operations
|
|
|
|
|
|
Basic
|
$
|
0.12
|
$
|
(4.90)
|
$
|
0.19
|
$
|
(5.08)
|
|
Diluted
|
0.12
|
(4.90)
|
0.19
|
(5.08)
|
Net earnings
(loss) per share
|
|
|
|
|
|
Basic
|
$
|
0.12
|
$
|
(5.14)
|
$
|
0.19
|
$
|
(5.03)
|
|
Diluted
|
0.12
|
(5.14)
|
0.19
|
(5.03)
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
December
31
|
Twelve Months
Ended
December
31
|
|
2016
|
2015
|
2016
|
2015
|
Net earnings
(loss)
|
$
|
101
|
$
|
(4,271)
|
$
|
162
|
$
|
(4,157)
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings (loss)
|
|
|
|
|
|
Unrealized gains
(losses) on available-for-sale
securities
|
(8)
|
—
|
75
|
(6)
|
|
Reclassification
adjustment for impairment losses on available-for
sale securities recognized in net earnings (loss)
|
—
|
3
|
—
|
9
|
|
Reclassification
adjustment for realized gains on disposition of
available-for-sale securities recognized in net earnings
(loss)
|
—
|
—
|
(12)
|
(1)
|
|
Unrealized losses on
derivatives designated as cash flow hedges
|
(15)
|
—
|
(15)
|
—
|
|
Reclassification of
cumulative unrealized gains on shares of Probe
Mines Ltd. ("Probe") on acquisition
|
—
|
—
|
—
|
(3)
|
|
(23)
|
3
|
48
|
(1)
|
Items that will not
be reclassified to net earnings (loss):
|
|
|
|
|
|
Remeasurements on
defined benefit pension plans
|
—
|
1
|
(1)
|
—
|
Total other
comprehensive income (loss), net of tax
|
(23)
|
4
|
47
|
(1)
|
Total
comprehensive income (loss)
|
$
|
78
|
$
|
(4,267)
|
$
|
209
|
$
|
4,158
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States
dollars –
Unaudited)
|
Three Months
Ended
|
Twelve Months
Ended
|
|
December
31
|
December
31
|
|
2016
|
2015
|
2016
|
2015
|
Operating
activities
|
|
|
|
|
Net earnings (loss)
from continuing operations
|
$
|
101
|
$
|
4,271
|
$
|
162
|
$
|
(4,203)
|
Adjustments
for:
|
|
|
|
|
Dividends from
associates
|
—
|
—
|
—
|
7
|
Reclamation
expenditures
|
(6)
|
(8)
|
(28)
|
(57)
|
Items not affecting
cash:
|
|
|
|
|
|
Write-down of
inventories
|
—
|
115
|
10
|
158
|
|
Depreciation and
depletion
|
254
|
421
|
1,024
|
1,493
|
|
Share of net
(earnings) loss of associates and joint venture
|
(60)
|
24
|
(171)
|
1
|
|
(Reversal of
impairment) Impairment of mining interests and goodwill
|
(49)
|
4,906
|
(49)
|
4,906
|
|
Share-based
compensation
|
9
|
10
|
52
|
54
|
|
Unrealized gains on
derivatives, net
|
(3)
|
(29)
|
(9)
|
(29)
|
|
Gain on dilution of
ownership interest in associate
|
—
|
—
|
—
|
(99)
|
|
Gain on dispositions
of mining interests, net of transaction costs
|
—
|
—
|
—
|
(315)
|
|
Revision of estimates
and accretion on closure cost obligations
|
(10)
|
(54)
|
7
|
(15)
|
|
Foreign exchange
loss
|
(17)
|
130
|
13
|
130
|
|
Deferred income tax
recovery
|
(10)
|
(914)
|
(65)
|
(791)
|
|
Other
|
7
|
22
|
(21)
|
25
|
Change in working
capital
|
23
|
49
|
(126)
|
158
|
Net cash provided by
operating activities of continuing operations
|
239
|
401
|
799
|
1,423
|
Net cash provided by
operating activities of discontinued operation
|
—
|
—
|
—
|
7
|
Investing
activities
|
|
|
|
|
Acquisition of mining
interest, net of cash acquired
|
—
|
—
|
6
|
(43)
|
Expenditures on
mining interests
|
(203)
|
(240)
|
(696)
|
(1,178)
|
Return of capital
investment in associate
|
—
|
37
|
24
|
112
|
Proceeds from
dispositions of mining interests, net of transaction
costs
|
—
|
—
|
—
|
788
|
Interest
paid
|
(4)
|
(13)
|
(25)
|
(77)
|
Proceeds (purchases)
of short term investments and available-for-sale securities,
net
|
(12)
|
7
|
37
|
(26)
|
Other
|
1
|
—
|
—
|
(2)
|
Net cash used in
investing activities of continuing operations
|
(218)
|
(209)
|
(654)
|
(426)
|
Net cash provided by
investing activities of discontinued operation
|
—
|
—
|
—
|
97
|
Financing
activities
|
|
|
|
|
Debt borrowings, net
of transaction costs
|
—
|
205
|
—
|
205
|
Debt
repayments
|
(197)
|
(209)
|
(202)
|
(223)
|
Draw down (repayment)
of credit facility, net
|
30
|
—
|
30
|
(840)
|
Finance lease
payments
|
(1)
|
(2)
|
(5)
|
(2)
|
Dividends paid to
shareholders
|
(16)
|
(49)
|
(97)
|
(370)
|
Common shares
issued
|
—
|
—
|
3
|
20
|
Other
|
—
|
—
|
(23)
|
21
|
Acquisition of
non-controlling interest
|
—
|
(67)
|
—
|
(67)
|
Net cash used in
financing activities of continuing operations
|
(184)
|
(122)
|
(294)
|
(1,256)
|
Effect of exchange
rate changes on cash and cash equivalents
|
—
|
(1)
|
—
|
(1)
|
Decrease in cash
and cash equivalents
|
(163)
|
(69)
|
(149)
|
(156)
|
Cash and cash
equivalents, beginning of the period
|
340
|
257
|
326
|
482
|
Cash and cash
equivalents, reclassified as held for sale
|
(20)
|
—
|
(20)
|
—
|
Cash and cash
equivalents, end of the year
|
$
|
157
|
$
|
326
|
$
|
157
|
$
|
326
|
CONSOLIDATED BALANCE SHEETS
(In millions of United States
dollars – Unaudited)
|
At December
31
|
At December
31
|
|
2016
|
2015
|
Assets
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
157
|
$
|
326
|
|
Short term
investments
|
43
|
57
|
|
Accounts
receivable
|
95
|
73
|
|
Inventories
|
370
|
469
|
|
Sales and indirect
taxes recoverable
|
271
|
273
|
|
Income taxes
receivable
|
25
|
67
|
|
Assets held for
sale
|
548
|
—
|
|
Other
|
59
|
66
|
|
1,568
|
1,331
|
Mining
interests
|
|
|
|
Owned by
subsidiaries
|
17,565
|
17,630
|
|
Investments in
associates and joint venture
|
2,007
|
1,839
|
|
19,572
|
19,469
|
Investments in
securities
|
114
|
51
|
Deferred income
taxes
|
49
|
50
|
Inventories
|
28
|
255
|
Other
|
166
|
272
|
Total
assets
|
$
|
21,497
|
$
|
21,428
|
Liabilities
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
512
|
$
|
680
|
|
Debt
|
—
|
212
|
|
Income taxes
payable
|
52
|
104
|
|
Liabilities relating
to assets held for sale
|
118
|
—
|
|
Other
|
95
|
53
|
|
777
|
1,049
|
Deferred income
taxes
|
3,658
|
3,749
|
Debt
|
2,510
|
2,476
|
Provisions
|
661
|
775
|
Finance lease
obligations
|
247
|
267
|
Income taxes
payable
|
127
|
161
|
Other
|
102
|
103
|
Total
liabilities
|
8,082
|
8,580
|
Shareholders'
equity
|
|
|
|
Common shares, stock
options and restricted share units
|
18,064
|
17,604
|
|
Accumulated other
comprehensive income (loss)
|
41
|
(6)
|
|
Deficit
|
(4,690)
|
(4,750)
|
|
13,415
|
12,848
|
Total liabilities
and shareholders' equity
|
$
|
21,497
|
$
|
21,428
|
SOURCE Goldcorp Inc.