(All amounts in US$ unless stated otherwise)
VANCOUVER, July 27, 2016 /CNW/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported its second quarter 2016
results and a decision to proceed with expansions at both its
Peñasquito and Musselwhite mines.
Second Quarter 2016 Highlights
- Gold production(1) of 613,400 ounces at all-in
sustaining costs(1)(3) ("AISC") of $1,067 per ounce, compared to 908,000 ounces at
AISC of $853 per ounce in 2015.
Lower gold production was expected in the second quarter mainly due
to planned lower ore grades, a 10-day mill shutdown for planned
maintenance at Peñasquito and the exhaustion of surface stockpiles
at Cerro Negro which contributed significantly to mill feed in
2015. Further, a slower than expected ramp up after the mill
shutdown at Peñasquito and the decision to accelerate a large
workforce reduction at Cerro Negro had a short-term, negative
impact on second quarter gold production.
- 2016 guidance reconfirmed for gold production of between 2.8
and 3.1 million ounces, at AISC of between $850 and $925 per ounce. Production is
expected to increase in the third and fourth quarter as the plant
at Peñasquito returned to normal operations in July and higher
grades are expected from a number of mines. AISC are expected to
decrease as a result of higher production.
- Approximately 50% of targeted $250
million sustainable annual efficiencies
identified. Workforce reductions and other improvement
initiatives are underway at Cerro Negro which are expected to
deliver approximately $65 million of
annual efficiencies. Additionally, approximately $55 million in annual administrative cost savings
were identified in July and are expected to be fully realized in
2017 as the decentralization of the Company was initiated with a
one-third decrease in the number of employees at corporate and
regional offices. The Company is on schedule to achieve its
$250 million efficiency target by
2018.
- Adjusted operating cash flows(1,2) of
$307 million, compared to
$523 million in 2015. The
decrease in adjusted operating cash flows in the second quarter of
2016 compared to 2015 was primarily due to lower production,
partially offset by an increase in the realized gold price.
- Net loss of $78 million, or
$0.09 per share, compared to net
earnings of $392 million, or
$0.47 per share, in 2015.
Net earnings in 2015 included non-recurring after-tax
gains on the sale of non-core assets of $358
million, or $0.43 per
share. Second quarter 2016 earnings were negatively impacted
by lower production, partially offset by an increase in the
realized gold price.
- Project pipeline advanced: expansions approved at
Peñasquito and Musselwhite; Kaminak Gold acquisition closed and
Coffee project acquired. During the quarter, the Company
advanced its project pipeline with the completion of the Hoyle Deep
project at Porcupine. In addition, the Company received Board
approval to proceed with the Pyrite Leach Project at Peñasquito
("PLP"), with an expected capital investment of approximately
$420 million, and the Materials
Handling Project at Musselwhite, with an expected capital
investment of approximately $90
million, each of which are expected to increase gold
production commencing in 2019. The acquisition of Kaminak,
and its Coffee project in the Yukon,
Canada was completed after quarter end and is expected to
provide the Company with a medium-term opportunity for low-cost,
high return gold production to complement a robust pipeline of
expansion opportunities at existing mines.
"While lower production was expected in the second quarter, the
decision to accelerate a significant organizational restructuring
had a short-term, negative impact on gold production. With
the decentralization of our business well underway and new mine
management installed at the majority of our operations to reflect
the new business model, Goldcorp is poised to deliver better gold
production and cost performance," said David Garofalo, Goldcorp President and
CEO. "We continued to advance our robust project pipeline
with the decision to proceed to construction with high rate of
return expansions at our Peñasquito and Musselwhite mines."
ORGANIZATION STRENGTHENED
Going forward, the mine general managers will have much greater
accountability for growing the net asset value of their individual
businesses. The focus of the corporate office will be to provide
oversight and allocate capital. To those ends, mine
management changes were undertaken and the Company reduced the
number of employees at the corporate and regional offices by
approximately one-third.
As part of the organizational re-design, the Company has
strengthened the senior management team with the recruitment of
several key individuals. Paul
Harbidge has been appointed Senior Vice-President ("SVP"),
Exploration reporting to George
Burns, Executive Vice President ("EVP") and Chief Operating
Officer. Paul will be responsible for the development,
implementation and management of the global exploration function,
within the decentralized model. Paul brings over 20 years of
mining experience to Goldcorp, most recently as head of exploration
at Randgold Resources. Paul holds a Bachelor of Science in
Geology from Kingston University
in the UK, as well as a Master of Science in Mineral Exploration
and Mining Geology from Leicester
University in the UK.
Jason Attew has been appointed
SVP, Corporate Development & Strategy, reporting to
Russell Ball, EVP and Chief
Financial Officer ("CFO"). Jason will lead the optimization
of the Company's portfolio of assets, while evaluating new
opportunities that are consistent with the strategy of increasing
net asset value per share. Jason is a mining and metals
banking executive with over 20 years of experience and holds a
Bachelor of Science from the University of
British Columbia, as well as a Master of Business
Administration from Queen's University in Ontario.
Wade Bristol has been appointed
SVP, Canada, reporting to
George Burns. Wade joined
Goldcorp in July 2014 as the Vice
President, Mine Improvement &
Support. Prior to Goldcorp he served in various General
Manager capacities for Newmont Mining in North America. Wade has a Bachelor of
Science in Mining Engineering Degree from Montana Tech of the University of Montana.
Steven Thomas has been appointed
to the new role of CFO, Canada,
reporting to Wade Bristol and
David Splett has been appointed to
the new role of CFO, Latin America
reporting to Joe Dick, SVP, Latin
America. As part of the regional leadership teams, Steven and
David will provide financial analysis, interpretation and metrics
to facilitate strategic decision making related to the management
of the regional businesses.
Steven brings over 30 years of financial experience, with the
last 13 years in the mining industry with De Beers Canada Inc.
Steven holds a Bachelor of Science Joint Honours Degree in
Accountancy and Economics from the University of Wales in the UK, and is a Fellow of the
Institute of Chartered Accountants.
David brings with him over 24 years of experience in the
resource industry, most recently as VP Finance for Mosaic
Corporation. David holds a Bachelor of Arts, Economics from
the University of Regina, a Master of
Arts, Management Systems from the University of Hull in the UK, as
well as an MBA from Queens University in
Ontario and is a Certified Management Accountant.
During the second quarter of 2016, the Company began
implementing a company-wide program to optimize all areas of
Goldcorp's business and deliver $250
million in sustainable annual efficiencies by 2018.
Cerro Negro began the implementation of a substantial
workforce reduction and along with other improvement initiatives is
expected to provide increased efficiencies of approximately
$65 million. In addition,
approximately $55 million of
administrative cost savings have been identified through the
reduction of employees at corporate and regional offices by
approximately one-third as part of the broader decentralization
effort. The Company is undertaking a comprehensive
optimization effort at each of the mine sites that is expected to
allow it to achieve the balance of the $250
million target.
FINANCIAL AND OPERATING RESULTS REVIEW
(millions except where
noted)
|
Three months
ended
June
30
|
Six months
ended
June
30
|
2016
|
2015
|
2016
|
2015
|
Gold production1
(ounces)
|
613,400
|
908,000
|
1,397,100
|
1,633,000
|
Gold sales1
(ounces)
|
616,000
|
903,000
|
1,415,000
|
1,730,000
|
Operating cash
flows
|
$234
|
$528
|
$293
|
$579
|
Adjusted operating cash
flows1,2
|
$307
|
$523
|
$396
|
$641
|
Net earnings
(loss)
|
$(78)
|
$392
|
$2
|
$305
|
Net earnings (loss) per
share
|
$(0.09)
|
$0.47
|
$0.00
|
$0.37
|
By-product cash
costs1,4 (per ounce)
|
$728
|
$547
|
$631
|
$565
|
AISC1,3 (per
ounce)
|
$1,067
|
$853
|
$936
|
$868
|
Net loss and net loss per share in the second quarter of 2016
and the net earnings and net earnings per share in 2015 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:
(millions except where
noted)
|
Three months
ended
June 30,
2016
|
Three months
ended
June 30,
2015
|
Pre-tax
|
After-tax
|
Per
share
|
Pre-tax
|
After-tax
|
Per
share
|
Negative deferred tax
effects of
foreign exchange on tax
assets
and liabilities and
losses
|
$-
|
$60
|
$0.07
|
$-
|
$10
|
$0.01
|
Restructuring
costs
|
$16
|
$11
|
$0.01
|
$-
|
$-
|
$-
|
Gains on dispositions of,
and dilution
of ownership interest in,
mining
interests
|
$-
|
$-
|
$-
|
$(414)
|
$(358)
|
$(0.43)
|
Total cash costs on a by-product basis for the second quarter of
2016 were $728 per ounce compared to
$547 per ounce for the second quarter
of 2015.AISC for the second quarter of 2016 were $1,067 per ounce, compared to $853 per ounce in the second quarter of
2015. The higher AISC was primarily a result of lower sales
volumes at Peñasquito, Cerro Negro and Red Lake, partially offset by lower production
costs and the favorable impact of the strengthening US dollar
against the Argentine and Mexican pesos and the Canadian
dollar.
As of June 30, 2016, the Company
had total liquidity of approximately $3.2
billion, including $0.3
billion in cash, cash equivalents and money market
investments and $2.9 billion in
available credit. The Company's $3
billion revolving credit facility was recently extended by a
year to June 22, 2021.
OPERATIONS REVIEW AND GUIDANCE
The Company reconfirmed 2016 gold production guidance between
2.8 and 3.1 million ounces at AISC between $850 and $925 per ounce. Third and fourth quarter
production is expected to increase over the second quarter as
Peñasquito returns to normal operations after its maintenance
shutdown and grades are expected to increase at a number of mine
sites. In addition, AISC are expected to decrease in the
third and fourth quarter as compared to the second quarter of 2016
as a result of higher production.
With the approval to proceed to construction of the PLP and the
Materials Handling Project, and the addition of the Coffee Project,
growth capital for 2016 is expected to increase by approximately
$90 - $100 million to approximately
$190 - $200
million.
Peñasquito, Mexico
(100%-owned)
Brian Berney has been appointed
Mine General Manager at Peñasquito. Brian has a successful
track record of bringing projects to operations and his focus on
continuous improvement and safe production will help bring
Peñasquito to the next stage of productivity and efficiency.
Brian comes to Goldcorp with broad mining and project development
experience in large operations including Teck's Quebrada Blanca
mine, leading and participating in Barrick's Pueblo Viejo and Pascua Lama Projects, and
leading the Technical Services areas in former Placer Dome
operations. Brian holds a Bachelor's degree in Civil
Engineering from the University of
Queensland.
Second quarter gold production totaled 36,000 ounces at an AISC
of $3,094 per ounce. AISC were
significantly higher compared to the second quarter of 2015,
primarily as a result of lower gold production and lower by-product
revenues. Production declined compared to the second quarter
of 2015 as a result of lower ore grade and recovery from the upper
transitional ore and low grade stockpiles in 2016 compared with
2015, when ore was being sourced from the heart of the deposit.
Additionally, production declined as a result of a shutdown for 10
days for plant maintenance and a longer than anticipated period to
ramp the plant up to full production due to a variety of restart
issues. The plant has operated normally in July.
Over the next three years, mining activities in the pit are
expected to be focused on lower grade ore in the upper parts of the
Peñasco pit while stripping is emphasized to ensure an economically
optimal pit shell design to maximize the net asset value of the
operation. By 2019, Peñasquito's gold production
is expected to benefit from an improvement in mined grades as it
recommences mining higher grades at the bottom of the Peñasco pit
and significantly enhanced metallurgical recoveries with the
planned completion of the recently approved PLP. Further
information on PLP is described within the 'Project Pipeline
Review' below.
At the Northern Well Field project, 15% of the total fresh water
production was commissioned by June
30 and the balance is expected to be completed by the end of
the third quarter of 2016.
Cerro Negro, Argentina
(100%-owned)
Vern Baker has been appointed
Mine General Manager at Cerro Negro. Vern has more than 30
years of mining experience, including more than 10 years as Mine
General Manager of multiple open pit and underground operations,
working for Barrick, Teck and Antofagasta, among others. Vern holds a
Bachelor's degree of Science in Mining Engineering from the Mackay
School of Mines at the University of
Nevada and an MBA from Stanford
University.
Second quarter gold production totaled 86,000 ounces at an AISC
of $808 per ounce. Production
decreased compared to the second quarter of 2015 as a result of
lower mill tonnage processed due to the exhaustion of surface
stockpiles which contributed significantly to mill feed in
2015. While underground ore production improved from 2015
levels, productivity was negatively affected by a large workforce
reduction as part of the restructuring process that commenced
during the second quarter. This reduction resulted in a
five-day shutdown of the site in May. These reductions
and other improvement initiatives, which have been undertaken in
order to reduce the large labour productivity gap between this mine
and the Company's North American operations, are expected to
deliver approximately $65 million in
annual efficiencies.
The Marianas Complex Life of Mine
Study is progressing and is focused on developing an optimal
mine design, development execution plan and production schedule to
maximize net asset value for Cerro Negro. The short-term plan
is to enable ore development from Mariana
Norte in 2017 to provide a third source of ore which would
allow the mill to be operated at its designed capacity of 4,000
tonnes per day in 2018.
During the second quarter of 2016, exploration continued to
focus on resource and reserve expansion from surface drilling at
the Marianas Complex, with 24,263 metres drilled at the Emilia and
Mariana Norte Este B veins. Additional reserve expansion at these
two zones has the potential to further enhance the value of
synergies being developed by the Marianas Complex Life of
Mine Study.
The most significant result received to date at the Emilia Vein,
which is interpreted to be a fault offset structure to the east of
the Mariana Central mine, was in hole MDD-16041 which intersected
4.66 metres true width at 149.17 g/t Au and 858.2 g/t Ag in a
step-out approximately 150 meters to the east of the December 31, 2015 inferred resource
boundary. The most significant result received at Mariana
Norte Este B was in hole MDD-16053 which intersected 15.47 metres
true width at 31.22 g/t Au and 184.0 g/t Ag, in a step-out
approximately 135 metres east of the main December 31, 2015 inferred resource body and 100
metres up dip of the nearest hole from the 2015 drilling
program. Both of these holes are noteworthy in that they are
step-out holes greater than 100 meters to the east of the
December 31, 2015 inferred resource
boundaries, represent grade thicknesses in excess of deposit
averages, and additional ore grade results have been encountered in
nearby holes.
Pueblo Viejo,
Dominican Republic
(40%-owned)
Second quarter gold production totaled 100,000 ounces at an AISC
of $587 per ounce. Gold
production increased compared to the second quarter of 2015
primarily due to higher grades. Silver production increased
compared to the second quarter of 2015 primarily due to higher
recoveries due to the preg-robbing characteristics of ore processed
in 2015.
Éléonore, Quebec
(100%-owned)
Second quarter gold production totaled 74,000 ounces at an AISC
of $919 per ounce. Gold
production increased compared to the second quarter of 2015 as a
result of higher throughput and grades. AISC decreased as a
result of substantially higher production. Higher tonnes
processed were the result of greater tonnes mined as mining
continued across four horizons compared to two in the second
quarter of 2015. Higher grades were the result of improved
stope designs after accounting for the folding and faulting of the
ore body. The focus continues to be on optimizing stope
designs to lower dilution. Work on the production shaft continued
and is expected to be fully operational by the end of 2016, which
will result in increased efficiencies and reduced operating
costs.
During the second quarter of 2016, exploration drilling was
focused on the 494 area (below 650 metres) and tested the deep
projection of the south and central portion of the deposit (below
1,000 metres). In the third quarter of 2016, exploration will be
focusing on the 494 zone, on the deep projection of the south and
central portion of the deposit and on the upper horizons (upper 650
metres).
Red Lake, Ontario
(100%-owned)
Bill Gascon has been appointed
Mine General Manager at Red Lake. Bill joined Goldcorp in
October 2013 as the Mine General
Manager of Musselwhite and under his leadership has significantly
improved the profitability of the mine. He has more than 20
years of underground mining experience. He originally started
his mining career as an underground miner and has progressed
through to a senior operational leadership level by taking on roles
of increasing scope and responsibility. Prior to Goldcorp he
was the Underground Mine Manager at Barrick's Hemlo
Operation.
Second quarter gold production totaled 73,000 ounces at an AISC
of $958 per ounce.
Production decreased compared to the second quarter of
2015 due to lower grades processed and lower mill throughput.
Production from the Upper Red Lake zones continues to increase with
the completion of a more efficient material handling system and
improved mining efficiencies through the conversion to bulk
mining. As expected, lower grades and lower tonnes from the
High Grade Zone and Campbell offset
these improvements. Trade-off studies continued to advance on
the rationalization of the infrastructure with results expected by
year-end.
During the second quarter of 2016, exploration drilling focused
on the R Zone, Upper Red Lake and Far East and HG Young.
Porcupine, Ontario
(100%-owned)
Marc Lauzier has been appointed
Mine General Manager at Porcupine. Marc has held roles with
increasing responsibility including Manager of Mining at
Red Lake and Mine General Manager
of Porcupine. His most recent role at Goldcorp was Vice
President, Operational Support, Canada & US.
Second quarter gold production totaled 73,000 ounces at an AISC
of $844 per ounce.
Production increased compared to the second quarter of 2015 as a
result of higher grades and recoveries, offset by lower tonnes
processed. Grades were positively impacted by increased
Hollinger pit material displacing lower grade stockpile material
and higher grades from Dome underground. Lower milled tonnes
were due to the longer grinding time required for Hollinger
material to optimize recovery as well as lower tonnes from Dome
underground. The Dome underground has deferred closure
activities, which were previously scheduled for mid-2016.
With the recent increase in gold prices and operating cost
reductions that have resulted in higher margins, the site is
determining options to extend mine life.
The Hoyle Deep project was completed early in the quarter and
has allowed for more efficient movement of personnel and material
to the lower levels of the mine. Since completion, travel
time has been reduced by two hours per shift, and together with
increased production levels in 2016 has resulted in an additional
100 meters of development per month. Further production
increases beyond the current 1,000 tonnes of ore per day are
expected as development expands and efficiencies from the new
infrastructure are leveraged.
Musselwhite, Ontario
(100%-owned)
Peter Gula has been appointed
Mine General Manager at Musselwhite. Peter has over 27 years
of mining experience. He has held a variety of roles
increasing in responsibility during his career at Goldcorp.
His most recent role was Operations Manager at Musselwhite.
Peter received a mining diploma from Haileybury School of Mines,
holds a Bachelor Degree in Mining Engineering from Laurentian University and is a Professional
Engineer of Ontario.
Second quarter gold production totaled 59,000 ounces at an AISC
of $721 per ounce. Production
was essentially unchanged compared to the second quarter of
2015. Following a decision to proceed with the Materials
Handling Project, incremental production of approximately 20% is
expected beginning in 2019. Further information on the
Materials Handling Project is described within the 'Project
Pipeline Review' below.
PROJECT PIPELINE REVIEW
Peñasquito District
Pyrite Leach Project ("PLP") (100%-owned)
PLP was approved by the Board on July
27 and mobilization will commence in August 2016. The project is expected to
increase overall gold and silver recovery by treating the zinc
tailings before discharge to the tailings storage facility. Based
on a feasibility study entitled "Feasibility Study Report
Peñasquito Metallurgical Enhancement Project" completed
December 2015 by Fluor Canada Inc.
(the "feasibility study"), the PLP is expected to recover
approximately 40% of the gold and 48% of the silver currently
reporting to the tailings. PLP is expected to add annual
incremental production of approximately 100,000 – 140,000 gold
ounces and approximately 4.0 – 6.0 million silver ounces.
Commercial production is expected in the first quarter of
2019.
Based on the feasibility study the project is expected to have
an after-tax internal rate of return ("IRR") of approximately 17%
at long-term gold and silver prices of $1,250 per ounce and $18.00 per ounce, respectively. Every
$100 change in the gold price and
$1.50 change in the silver price
would impact the project IRR by approximately 2.5%.
The expected capital investment of approximately $420 million will be funded over the next three
years in the following amounts:
Year
|
|
|
|
|
|
Amount
|
2016
|
|
|
|
|
|
$40
million
|
2017
|
|
|
|
|
|
$270
million
|
2018
|
|
|
|
|
|
$110
million
|
TOTAL
|
|
|
|
|
|
$420
million
|
PLP operating costs are expected to be approximately
$1.75 per tonne. The project
has a minimal impact on the site water balance and will not require
upgrades to the water supply as the Pyrite Leach processing plant
recirculates existing plant processing water.
Camino Rojo (100%-owned)
At Camino Rojo, located approximately 50 kilometres from
Peñasquito, the pre-feasibility study on the oxide resource
continues to advance and is on track to be completed by the fourth
quarter of 2016.
Musselwhite Materials Handling (100%-owned)
The Materials Handling System was approved by the Board on July
27. Mobilizing a contractor for additional development will
commence in August and the winze raisebore construction is expected
to commence in December. Currently, mining is at a depth below
1,000 metres under Lake Opapimiskan and the truck haulage distance
is 7.5 km to the 400 mL underground crusher. This growth has
resulted in a haul truck fleet size of 17 haul trucks,
necessitating a more economical and practical means of transporting
ore as the current ventilation system cannot support the additional
haul truck fleet required to extend mine life. The project
will enable hoisting of ore through an underground winze and
associated infrastructure which will result in reduced reliance on
high-cost truck haulage by significantly reducing uphill truck
haulage between the winze and underground crushers leading to
improved energy efficiency, reduced ventilation requirements,
reduced mining costs, enhanced production profile and potential to
extend mine life through exploration success.
Based on an internal study, the project is expected to have an
after-tax IRR of approximately 25% (exclusive of resources).
Following completion of the winze, which is expected in the
first quarter of 2019, incremental production of approximately 20%
is anticipated and operating costs are expected to be reduced by
approximately 10% for the life of the mine. The expected
capital investment of approximately $90
million will be funded over the next three years in the
following amounts:
Year
|
|
|
|
|
|
Amount
|
2016
|
|
|
|
|
|
$15
million
|
2017
|
|
|
|
|
|
$40
million
|
2018
|
|
|
|
|
|
$35
million
|
TOTAL
|
|
|
|
|
|
$90
million
|
Borden
(100%-owned)
The Borden project, located 160
kilometres west of Porcupine, has
the potential to further enhance the long-term economics of
Porcupine. A pre-feasibility study is underway to determine
the optimization of a combined Borden-Porcupine operation and is expected to be
completed during the first quarter of 2017. An advanced
exploration permit is expected to be received by late 2016 or early
2017 to allow for the construction of a ramp into the deposit and
the extraction of a 30,000 tonne bulk sample, providing an
underground platform for exploration drilling on a deposit that
remains open at depth and laterally. Exploration for the
second quarter of 2016 continued to focus on discovery of
additional resources along strike from the known Borden deposit as well as on high potential
targets away from the main ore body, both to the east and northwest
to look for new zones in the regional land package.
Red Lake
(100%-owned)
At the HG Young deposit, a high-grade exploration discovery near
the Red Lake operation, a concept
study is advancing and is expected to be completed in the fourth
quarter of 2016. Assuming a positive business case from the
concept study, a pre-feasibility study is expected to commence in
the first half of 2017 with a decline from surface that will
provide access to the higher confidence areas for further
exploration and bulk sampling. Exploration drilling has
focused on increasing the confidence of the continuity of the
mineralization and defining the plunge of the mineralization at 14
level.
At Cochenour, the focus during
the second quarter continued on exploration drilling.
Drilling in the core area of the deposit (3,990 foot level)
continues to increase data density and is moving to push the known
mineralization downward toward the 5320 foot level. Sill
development along the Upper Main Zone commenced on both the 3990
and 4060 foot levels with all the material being stockpiled for
processing through a sample tower in the third quarter. A
rigorous face sampling program was initiated this quarter and will
allow reconciliation with the mined material. During the
second quarter, one economic test stope was successfully mined on
the 5320 level and the results were as expected. Further
drilling, sampling and test mining is expected to be completed by
the end of 2016.
Coffee (100%-owned)
Following the announcement of the closing of the transaction on
July 19, 2016, the Company appointed
Buddy Crill as Mine General Manager
for the Coffee project. Buddy joined Goldcorp in April 2015 as the Energy Manager for the
Latin America region.
In July 2015, he accepted the role of
Interim Director of Operations Support for the region to manage
business improvement, supply chain, maintenance, and information
technology/operations technology functions within the region.
Prior to joining Goldcorp he was with Barrick in a variety of
roles, most recently as the Asset Manager at the Pueblo Viejo Mine.
Buddy holds a B.S. Electrical Engineering from the
University of Idaho.
The Coffee Gold project ("Coffee"), is a structurally hosted
hydrothermal deposit located approximately 130 kilometres south of
the City of Dawson, Yukon. Coffee
is a high-grade, open pit, heap leach mining project located in a
top tier mining jurisdiction. 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.
An expanded exploration program will commence in August and the
Company expects to invest $15 million
in 2016 with a focus on exploration, permitting process,
infrastructure upgrades and basic engineering.
The Company has retained the core team of Kaminak geologists,
including members of the initial discovery team to lead exploration
activities. The drilling program is expected to follow-up on
existing targets peripheral to existing resources and reserves,
test potential gaps in the existing resource models and numerous
near-surface oxide mineralization targets which have been
identified with gold-in-soil anomalies while also investigating the
potential for additional high-grade sulphide mineralization at
depth.
The permit application is expected to be submitted to the
authorities in the Fall of 2016 based on positive consultations
with First Nations. An Environmental Socioeconomic Assessment
(ESA), Water Use License and Quartz Mining License will be
permitted simultaneously. The Company expects permitting and
construction activities to take four years with first gold
production targeted for the end of 2020.
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
second quarter 2016 interim consolidated financial statements and
Management's Discussion and Analysis ("MD&A") report on the
Company's website, in the "Investor Resources – Reports &
Filings" section under "Quarterly Reports".
Conference Call and Webcast
Date:
|
Thursday, July 28,
2016
|
Time:
|
10:00 a.m.
(PDT)
|
Webcast:
|
www.goldcorp.com
|
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)
|
Passcode:
|
5644646
|
The conference call replay will be archived on the website until
August 28, 2016.
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.
|
|
|
|
In prior periods, adjusted
operating cash flows was presented on an attributable basis before
working capital changes to provide a consistent measure of the
Company's performance of its core business operations as the
Company, at times, can experience changes in working capital from
one period to another. In the current quarter, the Company revised
its presentation of adjusted operating cash flows to use operating
cash flows as shown on the Company's statement of cash flows and
adjusts it to include operating cash flows of the Company's
associates. The Company believes this measure provides a better
measure of cash available to the Company for financing and
investing purposes.
|
|
|
|
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
June
30
|
Six months
ended
June
30
|
|
2016
|
2015
|
2016
|
2015
|
Net cash provided by
operating activities
of continuing
operations
|
$234
|
$528
|
$293
|
$579
|
Adjusted operating cash
flows provided by Alumbrera,
Pueblo Viejo and
NuevaUnión
|
$73
|
$(5)
|
$103
|
$55
|
Goldcorp's share of
adjusted operating cash flows
|
$307
|
$523
|
$396
|
$634
|
Including discontinued
operations
|
|
|
|
|
Adjusted operating cash
flows – Wharf
|
-
|
-
|
-
|
$7
|
Goldcorp's share of
adjusted cash flows including
discontinued
operations
|
$307
|
$523
|
$396
|
$641
|
3.
|
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 June 30,
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
|
$
|
75
|
$
|
-
|
$
|
-
|
$
|
1
|
$
|
55
|
$
|
131
|
42
|
$
|
3,094
|
Cerro
Negro
|
45
|
-
|
-
|
2
|
21
|
68
|
85
|
808
|
Red
Lake
|
48
|
-
|
3
|
-
|
17
|
68
|
71
|
958
|
Éléonore
|
63
|
-
|
-
|
-
|
4
|
67
|
73
|
919
|
Porcupine
|
48
|
-
|
1
|
3
|
10
|
62
|
73
|
844
|
Musselwhite
|
36
|
-
|
1
|
-
|
7
|
44
|
61
|
721
|
Other
mines
|
77
|
-
|
3
|
3
|
8
|
91
|
99
|
937
|
Corporate
|
-
|
50
|
(1)
|
-
|
8
|
57
|
-
|
88
|
Total
before
associates
and
discontinued
operations
|
$
|
392
|
$
|
50
|
$
|
7
|
$
|
9
|
$
|
130
|
$
|
588
|
504
|
$
|
1,165
|
Pueblo
Viejo
|
45
|
-
|
-
|
1
|
10
|
56
|
96
|
587
|
Other
associate
|
10
|
-
|
-
|
3
|
|
13
|
16
|
839
|
TOTAL
|
$
|
447
|
$
|
50
|
$
|
7
|
$
|
13
|
$
|
140
|
$
|
657
|
616
|
$
|
1,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
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
|
$
|
59
|
$
|
-
|
$
|
-
|
$
|
3
|
$
|
63
|
$
|
125
|
297
|
$
|
416
|
Cerro
Negro
|
79
|
-
|
-
|
-
|
24
|
103
|
130
|
792
|
Red
Lake
|
55
|
-
|
8
|
-
|
17
|
80
|
92
|
879
|
Éléonore
|
63
|
-
|
-
|
-
|
8
|
71
|
43
|
1,656
|
Porcupine
|
55
|
-
|
-
|
4
|
22
|
81
|
74
|
1,103
|
Musselwhite
|
37
|
-
|
2
|
1
|
6
|
46
|
60
|
761
|
Other
mines
|
78
|
-
|
2
|
4
|
25
|
109
|
109
|
1,006
|
Corporate
|
-
|
53
|
2
|
-
|
10
|
65
|
-
|
71
|
Total
before
associates
and
discontinued
operations
|
$
|
426
|
$
|
53
|
$
|
14
|
$
|
12
|
$
|
175
|
$
|
680
|
805
|
$
|
844
|
Pueblo
Viejo
|
50
|
|
-
|
2
|
11
|
63
|
92
|
688
|
Other
associate
|
18
|
|
-
|
4
|
6
|
28
|
6
|
4,900
|
Discontinued
operations
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
TOTAL
|
$
|
494
|
$
|
53
|
$
|
14
|
$
|
18
|
$
|
192
|
$
|
771
|
903
|
$
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
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
|
$
|
136
|
$
|
-
|
$
|
1
|
$
|
3
|
$
|
112
|
$
|
252
|
164
|
$
|
1,542
|
Cerro
Negro
|
94
|
-
|
-
|
4
|
35
|
133
|
213
|
624
|
Red
Lake
|
94
|
-
|
6
|
1
|
38
|
139
|
155
|
895
|
Éléonore
|
119
|
-
|
-
|
-
|
15
|
134
|
143
|
942
|
Porcupine
|
95
|
-
|
1
|
6
|
22
|
124
|
148
|
840
|
Musselwhite
|
66
|
-
|
3
|
-
|
12
|
81
|
128
|
633
|
Other
mines
|
163
|
-
|
5
|
7
|
15
|
190
|
211
|
903
|
Corporate
|
-
|
107
|
1
|
-
|
12
|
120
|
-
|
83
|
Total
before
associates
and
discontinued
operations
|
$
|
767
|
$
|
107
|
$
|
17
|
$
|
21
|
$
|
261
|
$
|
1,173
|
1,162
|
$
|
1,010
|
Pueblo
Viejo
|
85
|
-
|
-
|
2
|
19
|
106
|
208
|
509
|
Other
associate
|
41
|
-
|
-
|
5
|
-
|
46
|
45
|
1,019
|
TOTAL
|
$
|
893
|
$
|
107
|
$
|
17
|
$
|
28
|
$
|
280
|
$
|
1,325
|
1,415
|
$
|
936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
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
|
$
|
137
|
$
|
-
|
$
|
1
|
$
|
5
|
$
|
103
|
$
|
246
|
472
|
$
|
521
|
Cerro
Negro
|
176
|
-
|
-
|
1
|
39
|
216
|
291
|
743
|
Red
Lake
|
109
|
-
|
14
|
1
|
43
|
167
|
199
|
836
|
Éléonore
|
63
|
-
|
-
|
-
|
8
|
71
|
43
|
1,656
|
Porcupine
|
103
|
-
|
1
|
7
|
35
|
146
|
128
|
1,138
|
Musselwhite
|
80
|
-
|
4
|
1
|
15
|
100
|
116
|
856
|
Other
mines
|
148
|
-
|
4
|
10
|
59
|
221
|
211
|
1,051
|
Corporate
|
-
|
108
|
4
|
-
|
19
|
131
|
-
|
76
|
Total
before
associates
and
discontinued
operations
|
$
|
816
|
$
|
108
|
$
|
28
|
$
|
25
|
$
|
321
|
$
|
1,298
|
1,460
|
$
|
888
|
Pueblo
Viejo
|
114
|
-
|
-
|
3
|
24
|
141
|
229
|
619
|
Other
associate
|
33
|
-
|
-
|
7
|
7
|
47
|
26
|
1,830
|
Discontinued
operations
|
15
|
1
|
|
|
1
|
17
|
16
|
996
|
TOTAL
|
$
|
978
|
$
|
109
|
$
|
28
|
$
|
35
|
$
|
353
|
$
|
1,503
|
1,731
|
$
|
868
|
(1) AISC may not
calculate based on amounts presented in these tables due to
rounding.
|
|
4.
|
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(1)
|
By-Product
Credits
|
Non-cash
Reclamation
and Closure
Cost
Obligations
|
Treatment
and
Refining
Charges on
Concentrate
Sales
|
Other
|
Total Cash
Costs: by-
product
|
Ounces
(000's)
|
Total Cash
Costs: by-
product per
ounce(2)(3)
|
Three months
ended
June 30, 2016
|
$
|
580
|
$
|
(156)
|
|
$
|
23
|
|
$
|
447
|
616
|
$
|
728
|
Three months
ended
June 30, 2015
|
$
|
721
|
$
|
(294)
|
$
|
1
|
$
|
51
|
$
|
15
|
$
|
494
|
903
|
$
|
547
|
Six months ended
June 30, 2016
|
$
|
1,219
|
$
|
(386)
|
|
$
|
60
|
|
$
|
893
|
1,415
|
$
|
631
|
Six months ended
June 30, 2015
|
$
|
1,476
|
$
|
(603)
|
$
|
(21)
|
$
|
97
|
$
|
29
|
$
|
978
|
1,731
|
$
|
565
|
(1) $9 million
and $26 million in royalties are included in production costs for
the three and six months ended June 30, 2016, respectively (three
and six months ended June 30, 2015–
$29 million and $53 million,
respectively).
|
(2) Total cash
costs: by-product per ounce may not calculate based on amounts
presented in these tables due to rounding.
|
(3) 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 and six months
ended June 30, 2016, would be $716 and $657 per ounce of gold,
$14.17 and $10.77 per
ounce of silver, $2.11 and $2.20 per
pound of copper, $1.17 and $0.86 per pound of zinc, and $1.49 and
$0.99 per pound of lead, respectively (three and six months ended
June
30, 2015 – $656 and $663 per ounce of
gold. $8.24 and $8.95 per ounce of silver, $4.20 and $2.77 per
pound of copper, $0.64 and $0.71 per pound of zinc, and $0.59 and
$0.69
per pound of lead, respectively).
Goldcorp's share of total cash costs: co-product, including
discontinued operations, for the three and six months ended June
30, 2016, would be
$716 and $657 per ounce of gold, $14.17
and $10.77 per ounce of silver, $2.11 and $2.2 per pound of copper,
$1.17 and $0.86 per pound of zinc, and $1.49 and $0.99 per
pound
of lead, respectively (three and six
months ended June 30, 2015 – $656 and $665 per ounce of gold, $8.24
and $8.95 per ounce of silver, $4.20 and $2.77 per pound of
copper,
$0.64 and $0.71 per pound of zinc, and
$0.59 and $0.69 per pound of lead,
respectively).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.
|
The estimated effective tax
rate is on net income exclusive of share-based compensation, the
effects of foreign currency translation of deferred tax balances,
impacts of foreign exchange fluctuation on tax losses and
deductions and balances and other discrete
events.
|
|
|
CERRO NEGRO EXPLORATION PROGRAM DRILL RESULTS TO JUNE 30, 2016
Hole
ID
|
Deposit
|
|
From
(m)
|
To
(m)
|
Intercept
m
|
True
Thickness
|
Au
g/t
|
Ag
g/t
|
Comments
|
MDD-16001
|
MNE-B
|
|
467.90
|
472.80
|
4.90
|
3.25
|
8.25
|
47.90
|
|
MDD-16002
|
MNE-B
|
|
515.50
|
517.15
|
1.65
|
1.00
|
20.47
|
16.30
|
|
MDD-16002
|
MNE-B
|
|
529.90
|
538.80
|
8.90
|
5.42
|
13.14
|
141.70
|
|
MDD-16003
|
EMILIA
|
|
344.20
|
344.70
|
0.50
|
0.42
|
21.80
|
12.00
|
|
MDD-16003
|
EMILIA
|
|
350.90
|
351.40
|
0.50
|
0.43
|
7.22
|
94.00
|
|
MDD-16003
|
EMILIA
|
|
389.90
|
391.40
|
1.50
|
1.28
|
28.68
|
32.90
|
|
MDD-16004
|
MNE-B
|
|
462.25
|
470.80
|
8.55
|
6.88
|
19.23
|
90.40
|
|
MDD-16004
|
MNE-B
|
Including
|
468.00
|
470.80
|
2.80
|
2.25
|
46.24
|
229.20
|
|
MDD-16005
|
EMILIA
|
|
349.00
|
349.70
|
0.70
|
0.63
|
14.43
|
19.30
|
|
MDD-16005
|
EMILIA
|
|
358.50
|
368.10
|
9.60
|
8.64
|
21.11
|
53.10
|
|
MDD-16005
|
EMILIA
|
Including
|
365.40
|
366.75
|
1.35
|
1.21
|
86.53
|
126.90
|
|
MDD-16006
|
EMILIA
|
|
389.05
|
391.15
|
2.10
|
1.36
|
8.62
|
83.80
|
|
MDD-16007
|
MNE-B
|
|
509.45
|
513.90
|
4.45
|
3.02
|
8.01
|
56.20
|
|
MDD-16008
|
EMILIA
|
|
343.40
|
345.90
|
2.50
|
2.38
|
77.30
|
229.20
|
|
MDD-16009
|
MNE-B
|
|
503.35
|
505.05
|
1.70
|
1.23
|
18.21
|
220.90
|
|
MDD-16010
|
EMILIA
|
|
454.00
|
454.87
|
0.87
|
0.76
|
16.00
|
28.00
|
|
MDD-16011
|
MNE-B
|
|
571.95
|
579.80
|
7.85
|
4.10
|
23.05
|
28.63
|
|
MDD-16012
|
MNE-B
|
|
|
|
|
|
|
|
ABORTED
|
MDD-16013
|
EMILIA
|
|
401.10
|
409.00
|
7.90
|
6.41
|
8.09
|
9.80
|
|
MDD-16014
|
MNE-B
|
|
|
|
|
|
|
|
NSV
|
MDD-16015
|
EMILIA
|
|
309.00
|
320.00
|
11.00
|
10.59
|
19.24
|
135.10
|
|
MDD-16015
|
EMILIA
|
Including
|
313.90
|
317.90
|
4.00
|
3.85
|
35.27
|
321.70
|
|
MDD-16016
|
MNE-B
|
|
|
|
|
|
|
|
NSV
|
MDD-16017
|
EMILIA
|
|
310.25
|
324.75
|
14.50
|
13.31
|
10.66
|
20.80
|
|
MDD-16017
|
EMILIA
|
Including
|
314.75
|
319.00
|
4.25
|
3.90
|
24.90
|
46.70
|
|
MDD-16018
|
EMILIA
|
|
311.30
|
316.70
|
5.40
|
4.68
|
94.43
|
237.20
|
|
MDD-16018
|
EMILIA
|
Including
|
311.30
|
312.00
|
0.70
|
0.61
|
400.50
|
1,378.00
|
|
MDD-16019
|
EMILIA
|
|
379.00
|
386.00
|
6.70
|
6.02
|
12.10
|
20.70
|
|
MDD-16020
|
MNE-B
|
|
593.75
|
602.25
|
8.50
|
3.80
|
10.07
|
32.50
|
|
MDD-16021
|
MNE-B
|
|
556.25
|
559.50
|
3.25
|
1.44
|
9.97
|
39.40
|
|
MDD-16022
|
EMILIA
|
|
412.35
|
417.20
|
4.85
|
4.31
|
15.75
|
35.40
|
|
MDD-16023
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16024
|
MNE-B
|
|
|
|
|
|
|
|
ABORTED
|
MDD-16025
|
EMILIA
|
|
230.40
|
233.40
|
3.00
|
2.83
|
17.88
|
108.20
|
|
MDD-16026
|
MNE-B
|
|
588.15
|
592.10
|
3.95
|
2.84
|
7.71
|
65.40
|
|
MDD-16027
|
EMILIA
|
|
399.30
|
400.30
|
1.00
|
0.71
|
9.29
|
172.00
|
|
MDD-16028
|
EMILIA
|
|
384.00
|
384.65
|
0.65
|
0.55
|
50.50
|
65.00
|
|
MDD-16029
|
EMILIA
|
|
423.53
|
424.50
|
0.97
|
0.93
|
7.91
|
5.00
|
|
MDD-16030
|
MNE-B
|
|
|
|
|
|
|
|
NSV
|
MDD-16031
|
MNE-B
|
|
556.55
|
562.70
|
6.15
|
3.94
|
8.82
|
65.60
|
|
MDD-16032
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16033
|
EMILIA
|
|
445.00
|
447.00
|
2.00
|
1.63
|
5.83
|
12.50
|
|
Hole
ID
|
Deposit
|
|
From
(m)
|
To
(m)
|
Intercept
m
|
True
Thickness
|
Au
g/t
|
Ag
g/t
|
Comments
|
MDD-16034
|
MNE-B
|
|
|
|
|
|
|
|
ABORTED
|
MDD-16035
|
MNE-B
|
|
437.00
|
438.90
|
1.90
|
1.48
|
57.14
|
104.90
|
|
MDD-16036
|
MNE-B
|
|
461.20
|
474.40
|
13.20
|
6.77
|
21.06
|
13.20
|
|
MDD-16037
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16038
|
MNE-B
|
|
497.00
|
497.90
|
0.95
|
0.59
|
12.87
|
58.40
|
|
MDD-16038
|
MNE-B
|
|
502.00
|
510.50
|
8.50
|
5.50
|
13.60
|
55.10
|
|
MDD-16039
|
MNE-B
|
|
|
|
|
|
|
|
NSV
|
MDD-16040
|
EMILIA
|
|
|
|
|
|
|
|
ABORTED
|
MDD-16041
|
EMILIA
|
|
369.90
|
374.75
|
4.85
|
4.66
|
149.17
|
858.20
|
|
MDD-16041
|
EMILIA
|
Including
|
371.00
|
372.00
|
1.00
|
0.96
|
611.70
|
3,601.00
|
|
MDD-16042
|
EMILIA
|
|
394.70
|
395.55
|
0.85
|
0.74
|
8.87
|
8.00
|
|
MDD-16043
|
EMILIA
|
|
|
|
|
|
|
|
ABORTED
|
MDD-16044
|
MNE-B
|
|
512.85
|
513.65
|
0.80
|
0.49
|
10.60
|
191.00
|
|
MDD-16045
|
EMILIA
|
|
310.45
|
314.50
|
4.05
|
3.61
|
19.35
|
130.70
|
|
MDD-16046
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16047
|
EMILIA
|
|
342.00
|
342.90
|
0.90
|
0.86
|
8.10
|
23.00
|
|
MDD-16047
|
EMILIA
|
|
354.50
|
355.25
|
0.75
|
0.64
|
6.47
|
38.00
|
|
MDD-16048
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16049
|
MNE-B
|
|
448.20
|
453.70
|
5.50
|
3.75
|
17.72
|
126.60
|
|
MDD-16051
|
MNE-B
|
|
|
|
|
|
|
|
NSV
|
MDD-16052
|
EMILIA
|
|
393.15
|
398.25
|
5.10
|
4.54
|
9.76
|
77.40
|
|
MDD-16053
|
MNE-B
|
|
393.15
|
419.50
|
26.35
|
15.47
|
31.22
|
184.00
|
|
MDD-16053
|
MNE-B
|
|
423.80
|
425.15
|
1.35
|
0.76
|
7.57
|
62.21
|
|
MDD-16053
|
MNE-B
|
|
480.10
|
481.90
|
1.80
|
1.01
|
13.84
|
371.30
|
|
MDD-16054
|
EMILIA
|
|
402.75
|
407.30
|
4.55
|
3.45
|
16.33
|
60.40
|
|
MDD-16056
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16057
|
EMILIA
|
|
|
|
|
|
|
|
NSV
|
MDD-16058
|
MNE-B
|
|
453.10
|
454.20
|
1.10
|
0.72
|
7.33
|
65.00
|
|
|
|
|
|
Footnotes:
|
|
1.
|
NSV = No significant
value
|
2.
|
All gold and silver values
are uncut
|
3.
|
True widths are estimated
based on drill angle and interpreted vein
geometry
|
4.
|
All samples were submitted
for preparation to Bureau Veritas (formerly ACME) laboratories at
its facility in Perito Moreno, Santa Cruz, Argentina. Pulps
are then shipped to the BV facility in Santiago, Chile for
analysis. All samples were analyzed using 50g charge fire
assay with AA finish. Samples over 10 ppm gold or 100 ppm silver
were reanalyzed using gravimetric finish. Select intervals are also
analyzed for multiple elements by ICP. One in 40 samples was
blank, one in 40 was a standard sample, and one in 40 was a
preparation duplicate selected from coarse
rejects.
|
5.
|
Andrew S. Tripp, Manager,
Strategic Planning, Cerro Negro is the Qualified Person (QP)
responsible for the Cerro Negro Exploration
Program
|
Cautionary Note Regarding Reserves and Resources
Scientific and technical information contained in this press
release was reviewed and approved by Gil
Lawson, P.Eng., Vice President, Geology and Mine Planning
for Goldcorp, and a "qualified person" as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("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 annual information form for the year ended
December 31, 2015 and the current
technical report for those properties, all available 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 news 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"). The terms
"Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral
Reserve" are Canadian mining terms as defined in accordance with
the CIM -Definition Standards adopted by CIM Council on
May 10, 2014 (the "CIM Definition
Standards") which were incorporated by reference in NI 43-101.
These definitions differ from the definitions in SEC Industry Guide
7 ("SEC Industry Guide 7") under United
States securities laws. Under SEC Industry Guide 7
standards, a "final" or "bankable" feasibility study is required to
report reserves or cash flow analysis to designate reserves and the
primary environmental analysis or report must be filed with the
appropriate governmental authority.
In addition, 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;
however, these terms are not defined terms under SEC Industry Guide
7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. United States investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into reserves. "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 investors 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.
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, or the United States Private Securities
Litigation Reform Act of 1995 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 above) and Mineral Resources (as defined
above), 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 words
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", "occur" or "be achieved" or the negative connotation
thereof.
Forward-looking statements are necessarily based upon a number
of 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 and other by-product
metals, 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 and other by-product metals
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 and other by-product
metals; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; risks related to the integration of acquisitions;
accidents, labour disputes; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities and other risks of the mining industry, 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 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 the Company'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.
SUMMARIZED RESULTS AND FINANCIAL STATEMENTS
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)
|
2016
|
|
2015
|
|
Revenues
|
921
|
|
1,317
|
|
Gold produced
(thousands of ounces)
|
613
|
|
908
|
|
Gold sold (thousands
of ounces)
|
616
|
|
903
|
|
Silver produced
(thousands of ounces)
|
5,300
|
|
10,400
|
|
Silver sold
(thousands of ounces)
|
4,700
|
|
10,800
|
|
Copper produced
(thousands of pounds)
|
14,400
|
|
8,600
|
|
Copper sold
(thousands of pounds)
|
12,500
|
|
4,600
|
|
Lead produced
(thousands of pounds)
|
17,100
|
|
47,500
|
|
Lead sold (thousands
of pounds)
|
13,300
|
|
48,200
|
|
Zinc produced
(thousands of pounds)
|
38,300
|
|
105,500
|
|
Zinc sold (thousands
of pounds)
|
43,200
|
|
88,900
|
|
Average realized gold
price (per ounce)
|
$
|
1,277
|
|
$
|
1,189
|
|
Average London spot gold
price (per ounce)
|
$
|
1,259
|
|
$
|
1,193
|
|
Average realized silver
price (per ounce)
|
$
|
16.27
|
|
$
|
14.00
|
|
Average London spot
silver price (per ounce)
|
$
|
16.78
|
|
$
|
16.41
|
|
Average realized copper
price (per pound)
|
$
|
2.16
|
|
$
|
2.67
|
|
Average London spot
copper price (per pound)
|
$
|
2.15
|
|
$
|
2.75
|
|
Average realized lead
price (per pound)
|
$
|
0.80
|
|
$
|
0.86
|
|
Average London spot lead
price (per pound)
|
$
|
0.78
|
|
$
|
0.88
|
|
Average realized zinc
price (per pound)
|
$
|
0.95
|
|
$
|
0.99
|
|
Average London spot zinc
price (per pound)
|
$
|
0.87
|
|
$
|
1.00
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
728
|
|
$
|
547
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
716
|
|
$
|
656
|
|
All-in sustaining
costs (per gold ounce)
|
$
|
1,067
|
|
$
|
853
|
|
All-in costs (per
gold ounce)
|
$
|
1,130
|
|
$
|
1,028
|
|
|
|
|
|
|
|
|
Production
Data:
|
|
|
|
Peñasquito:
|
Tonnes of ore mined
(thousands)
|
9,032
|
|
11,666
|
|
|
Tonnes of waste removed
(thousands)
|
38,406
|
|
40,080
|
|
|
Tonnes of ore milled
(thousands)
|
6,607
|
|
10,065
|
|
|
Average head grade (grams
per tonne) – gold
|
0.39
|
|
1.31
|
|
|
Average head grade (grams
per tonne) – silver
|
21.76
|
|
28.81
|
|
|
Average head grade (%) –
lead
|
0.22
|
|
0.31
|
|
|
Average head grade (%) –
zinc
|
0.49
|
|
0.70
|
|
|
Gold produced (thousands of
ounces)
|
36
|
|
298
|
|
|
Silver produced (thousands
of ounces)
|
3,117
|
|
6,900
|
|
|
Lead produced (thousands of
pounds)
|
17,100
|
|
47,500
|
|
|
Zinc produced (thousands of
pounds)
|
38,300
|
|
105,500
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
1,757
|
|
$
|
194
|
|
|
Total cash costs –
co-product (per ounce of gold)
|
$
|
1,304
|
|
$
|
477
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
3,094
|
|
$
|
416
|
|
Cerro
Negro:
|
Tonnes of ore milled
(thousands)
|
205
|
|
304
|
|
|
Average mill head grade
(grams per tonne) – gold
|
14.36
|
|
13.57
|
|
|
Average mill head grade
(grams per tonne) – silver
|
116.3
|
|
188.7
|
|
|
Gold produced (thousands of
ounces)
|
86
|
|
131
|
|
|
Silver produced (thousands
of ounces)
|
648
|
|
1,608
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
529
|
|
$
|
608
|
|
|
Total cash costs –
co-product (per ounce)
|
$
|
599
|
|
$
|
686
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
808
|
|
$
|
792
|
|
Pueblo Viejo (40%
share):
|
Tonnes of ore mined
(thousands)
|
1,672
|
|
1,252
|
|
|
Tonnes of waste removed
(thousands)
|
2,204
|
|
2,602
|
|
|
Tonnes of ore processed
(thousands)
|
699
|
|
694
|
|
|
Average mill head grade
(grams per tonne) – gold
|
4.94
|
|
4.54
|
|
|
Average mill head grade
(grams per tonne) – silver
|
22.3
|
|
39.3
|
|
|
Gold produced (thousands of
ounces)
|
100
|
|
87
|
|
|
Silver produced (thousands
of ounces)
|
298
|
|
38
|
|
|
Copper produced (thousands
of pounds)
|
100
|
|
400
|
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
473
|
|
$
|
549
|
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
499
|
|
$
|
558
|
|
|
All-in sustaining costs
(per gold ounce)
|
$
|
587
|
|
$
|
688
|
|
Red
Lake:
|
Tonnes of ore milled
(thousands)
|
142
|
|
151
|
|
|
Average mill head grade
(grams per tonne)
|
16.31
|
|
18.45
|
|
|
Gold produced (thousands of
ounces)
|
73
|
|
91
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
675
|
|
$
|
602
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
958
|
|
$
|
879
|
|
Éléonore:
|
Tonnes of ore milled
(thousands)
|
444
|
|
388
|
|
|
Average mill head grade
(grams per tonne)
|
5.60
|
|
4.77
|
|
|
Gold produced (thousands of
ounces)
|
74
|
|
44
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
857
|
|
$
|
1,458
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
919
|
|
$
|
1,656
|
|
Porcupine:
|
Tonnes of ore milled
(thousands)
|
897
|
|
1,021
|
|
|
Average mill head grade
(grams per tonne)
|
2.75
|
|
2.30
|
|
|
Gold produced (thousands of
ounces)
|
73
|
|
72
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
655
|
|
$
|
759
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
844
|
|
$
|
1,103
|
|
Musselwhite:
|
Tonnes of ore milled
(thousands)
|
283
|
|
304
|
|
|
Average mill head grade
(grams per tonne)
|
6.80
|
|
6.56
|
|
|
Gold produced (thousands of
ounces)
|
59
|
|
61
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
585
|
|
$
|
616
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
721
|
|
$
|
761
|
|
Los
Filos:
|
Tonnes of ore mined
(thousands)
|
2,324
|
|
4,013
|
|
|
Tonnes of waste removed
(thousands)
|
2,720
|
|
12,707
|
|
|
Tonnes of ore processed
(thousands)
|
2,437
|
|
3,945
|
|
|
Average grade processed
(grams per tonne)
|
0.80
|
|
0.88
|
|
|
Gold produced (thousands of
ounces)
|
66
|
|
67
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
704
|
|
$
|
919
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
822
|
|
$
|
1,071
|
|
Marlin:
|
Tonnes of ore milled
(thousands)
|
194
|
|
335
|
|
|
Average mill head grade
(grams per tonne) – gold
|
4.14
|
|
3.86
|
|
|
Average mill head grade
(grams per tonne) – silver
|
206
|
|
181
|
|
|
Gold produced (thousands of
ounces)
|
26
|
|
41
|
|
|
Silver produced (thousands
of ounces)
|
1,249
|
|
1,887
|
|
|
Total cash costs –
by-product (per ounce)
|
$
|
1,051
|
|
$
|
397
|
|
|
Total cash costs –
co-product (per ounce)
|
$
|
1,122
|
|
$
|
669
|
|
|
All-in sustaining costs
(per ounce)
|
$
|
1,263
|
|
$
|
904
|
|
Alumbrera (37.5%
share):
|
Tonnes of ore mined
(thousands)
|
2,916
|
|
3,857
|
|
|
Tonnes of waste removed
(thousands)
|
3,292
|
|
5,246
|
|
|
Tonnes of ore milled
(thousands)
|
3,155
|
|
3,082
|
|
|
Average mill head grade
(grams per tonne) – gold
|
0.30
|
|
0.24
|
|
|
Average mill head grade (%)
– copper
|
0.26
|
|
0.19
|
|
|
Gold produced (thousands of
ounces)
|
20
|
|
16
|
|
|
Copper produced (thousands
of pounds)
|
14,300
|
|
8,300
|
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
701
|
|
$
|
3,191
|
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
766
|
|
$
|
1,645
|
|
|
All-in sustaining costs
(per gold ounce)
|
$
|
839
|
|
$
|
4,900
|
|
|
|
|
|
|
|
|
|
Financial Data
(including discontinued operations):
|
|
|
Cash flows from operating
activities
|
$
|
234
|
|
$
|
528
|
|
Adjusted operating cash
flows (Goldcorp's share) (2)
|
$
|
307
|
|
$
|
523
|
|
Net (loss)
earnings
|
$
|
(78)
|
|
$
|
392
|
|
Net (loss) earnings per
share – basic
|
$
|
(0.09)
|
|
$
|
0.47
|
|
Weighted average shares
outstanding
|
832
|
|
830
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS
(In millions of United States
dollars, except for per share amounts – Unaudited)
|
Three Months
Ended
June
30
|
Six Months
Ended
June
30
|
|
2016
|
2015
|
2016
|
2015
|
Revenues
|
$
|
753
|
$
|
1,188
|
$
|
1,697
|
$
|
2,205
|
Mine operating
costs
|
|
|
|
|
|
Production
costs
|
(499)
|
(640)
|
(1,027)
|
(1,260)
|
|
Depreciation and
depletion
|
(232)
|
(356)
|
(503)
|
(678)
|
|
(731)
|
(996)
|
(1,530)
|
(1,938)
|
Earnings from mine
operations
|
22
|
192
|
167
|
267
|
Exploration and evaluation
costs
|
(7)
|
(14)
|
(17)
|
(28)
|
Share of net earnings
(loss) of associates and joint venture
|
28
|
(19)
|
64
|
16
|
Corporate
administration
|
(50)
|
(53)
|
(107)
|
(108)
|
Restructuring
costs
|
(16)
|
—
|
(39)
|
—
|
(Loss) earnings from
operations, associates and joint
venture
|
(23)
|
106
|
68
|
147
|
Gain (loss) on derivatives,
net
|
—
|
8
|
1
|
(34)
|
Gain on dilution of
ownership interest in associate
|
—
|
99
|
—
|
99
|
Gain on dispositions of
mining interests, net of transaction costs
|
—
|
315
|
—
|
315
|
Finance
costs
|
(35)
|
(43)
|
(69)
|
(70)
|
Other income (expenses),
net
|
12
|
3
|
(6)
|
21
|
(Loss) earnings from
continuing operations before taxes
|
(46)
|
488
|
(6)
|
478
|
Income tax (expense)
recovery
|
(32)
|
(90)
|
8
|
(219)
|
Net (loss) earnings from
continuing operations
|
(78)
|
398
|
2
|
259
|
Net (loss) earnings from
discontinued operation
|
—
|
(6)
|
—
|
46
|
Net (loss)
earnings
|
$
|
(78)
|
$
|
392
|
$
|
2
|
$
|
305
|
|
|
|
|
|
Net (loss) earnings per
share from continuing operations
|
|
|
|
|
|
Basic
|
$
|
(0.09)
|
$
|
0.48
|
$
|
—
|
$
|
0.31
|
|
Diluted
|
(0.09)
|
0.48
|
—
|
0.31
|
Net (loss) earnings per
share
|
|
|
|
|
|
Basic
|
$
|
(0.09)
|
$
|
0.47
|
$
|
—
|
$
|
0.37
|
|
Diluted
|
(0.09)
|
0.47
|
—
|
0.37
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS) INCOME
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
June
30
|
Six Months
Ended
June
30
|
|
2016
|
2015
|
2016
|
2015
|
Net (loss)
earnings
|
$
|
(78)
|
$
|
392
|
$
|
2
|
$
|
305
|
Other comprehensive
income (loss), net of tax
|
|
|
|
|
Items that may be
reclassified subsequently to net (loss)
earnings:
|
|
|
|
|
|
Unrealized gains on
available-for-sale securities
|
36
|
—
|
55
|
1
|
|
Reclassification adjustment
for impairment losses on available-for-
|
|
|
|
|
|
|
sale securities recognized
in net earnings
|
—
|
1
|
—
|
4
|
|
Reclassification adjustment
for realized gains on disposition of
|
|
|
|
|
|
|
available-for-sale
securities recognized in net (loss)
earnings
|
(5)
|
—
|
(9)
|
(1)
|
|
Reclassification of
cumulative unrealized gains on shares of
Probe
|
|
|
|
|
|
|
Mines Ltd. ("Probe") on
acquisition
|
—
|
—
|
—
|
(3)
|
|
31
|
1
|
46
|
1
|
Items that will not be
reclassified to net (loss) earnings:
|
|
|
|
|
|
Remeasurements on defined
benefit pension plans
|
(1)
|
1
|
(1)
|
(1)
|
Total other
comprehensive income, net of tax
|
30
|
2
|
45
|
—
|
Total comprehensive
(loss) income
|
$
|
(48)
|
$
|
394
|
$
|
47
|
$
|
305
|
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
June
30
|
Six Months
Ended
June
30
|
|
2016
|
2015
|
2016
|
2015
|
Operating
activities
|
|
|
|
|
Net (loss) earnings from
continuing operations
|
$
|
(78)
|
$
|
398
|
$
|
2
|
$
|
259
|
Adjustments
for:
|
|
|
|
|
Dividends from
associates
|
—
|
4
|
—
|
7
|
Reclamation
expenditures
|
(8)
|
(18)
|
(16)
|
(32)
|
Items not affecting
cash:
|
|
|
|
|
|
Depreciation and
depletion
|
232
|
356
|
503
|
678
|
|
Share of net (earnings)
loss of associates and joint venture
|
(28)
|
19
|
(64)
|
(16)
|
|
Share-based
compensation
|
4
|
15
|
30
|
30
|
|
Unrealized (gains) losses
on derivatives, net
|
(1)
|
(22)
|
(3)
|
4
|
|
Gain on dilution of
ownership interest in an associate
|
—
|
(99)
|
—
|
(99)
|
|
Gain on disposition of
mining interests, net of transaction costs
|
—
|
(315)
|
—
|
(315)
|
|
Revision of estimates and
accretion of reclamation and closure cost
obligations
|
6
|
5
|
13
|
33
|
|
Deferred income tax
(recovery) expense
|
(7)
|
(29)
|
(81)
|
46
|
|
Other
|
25
|
12
|
26
|
2
|
Change in working
capital
|
89
|
202
|
(117)
|
(18)
|
Net cash provided by
operating activities of continuing
operations
|
234
|
528
|
293
|
579
|
Net cash provided by
operating activities of discontinued
operation
|
—
|
—
|
—
|
7
|
Investing
activities
|
|
|
|
|
Acquisition of mining
interest, net of cash acquired
|
—
|
(4)
|
—
|
(43)
|
Expenditures on mining
interests
|
(166)
|
(313)
|
(339)
|
(706)
|
Return of capital
investment in associate
|
—
|
20
|
—
|
20
|
Proceeds from dispositions
of mining interests, net of transaction
costs
|
—
|
788
|
—
|
788
|
Interest
paid
|
(6)
|
(19)
|
(15)
|
(49)
|
Proceeds (purchases) of
money market investments and available-for-sale securities,
net
|
27
|
(10)
|
27
|
(11)
|
Other
|
5
|
(1)
|
2
|
(1)
|
Net cash (used in) provided
by investing activities of continuing
operations
|
(140)
|
461
|
(325)
|
(2)
|
Net cash (used in) provided
by investing activities of discontinued
operation
|
—
|
(3)
|
—
|
97
|
Financing
activities
|
|
|
|
|
Debt
repayments
|
(1)
|
(9)
|
(3)
|
(12)
|
Credit facility (repayment)
drawdown, net
|
(125)
|
(305)
|
125
|
(5)
|
Finance lease
payments
|
(1)
|
—
|
(2)
|
—
|
Dividends paid to
shareholders
|
(16)
|
(124)
|
(67)
|
(246)
|
Common shares
issued
|
1
|
7
|
3
|
20
|
Other
|
(23)
|
21
|
(22)
|
21
|
Net cash (used in) provided
by financing activities of continuing
operations
|
(165)
|
(410)
|
34
|
(222)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(2)
|
(1)
|
—
|
(1)
|
(Decrease) increase in
cash and cash equivalents
|
(73)
|
575
|
2
|
458
|
Cash and cash equivalents,
beginning of the period
|
401
|
365
|
326
|
482
|
Cash and cash
equivalents, end of the period
|
$
|
328
|
$
|
940
|
$
|
328
|
$
|
940
|
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(In millions of United States
dollars – Unaudited)
|
At
June 30
2016
|
At
December 31
2015
|
Assets
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
328
|
$
|
326
|
|
Money market
investments
|
37
|
57
|
|
Accounts
receivable
|
400
|
346
|
|
Inventories
|
462
|
469
|
|
Income taxes
receivable
|
21
|
67
|
|
Other
|
73
|
66
|
|
1,321
|
1,331
|
Mining
interests
|
|
|
|
Owned by
subsidiaries
|
17,508
|
17,630
|
|
Investments in associates
and joint venture
|
1,914
|
1,839
|
|
19,422
|
19,469
|
Investments in
securities
|
106
|
51
|
Deferred income
taxes
|
36
|
50
|
Inventories
|
213
|
255
|
Other
|
173
|
272
|
Total
assets
|
$
|
21,271
|
$
|
21,428
|
Liabilities
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
515
|
$
|
680
|
|
Debt
|
205
|
212
|
|
Income taxes
payable
|
43
|
104
|
|
Other
|
54
|
53
|
|
817
|
1,049
|
Deferred income
taxes
|
3,657
|
3,749
|
Debt
|
2,603
|
2,476
|
Provisions
|
808
|
775
|
Finance lease
obligations
|
265
|
267
|
Income taxes
payable
|
155
|
161
|
Other
|
105
|
103
|
Total
liabilities
|
8,410
|
8,580
|
Shareholders'
equity
|
|
|
|
Common shares, stock
options and restricted share units
|
17,638
|
17,604
|
|
Accumulated other
comprehensive income (loss)
|
39
|
(6)
|
|
Deficit
|
(4,816)
|
(4,750)
|
|
12,861
|
12,848
|
Total liabilities and
shareholders' equity
|
$
|
21,271
|
$
|
21,428
|
SOURCE Goldcorp Inc.