(All amounts in US$ unless stated otherwise)
VANCOUVER, Oct. 26, 2016 /PRNewswire/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported its third quarter 2016
results.
Third Quarter 2016 Highlights
- Net earnings attributable to shareholders of Goldcorp for
the third quarter were $59 million,
or $0.07 per share, compared to a net
loss of $192 million, or loss of
$0.23 per share in 2015.
Net earnings were negatively affected by $0.04 per share of non-cash or other items that
the Company believes are not reflective of the performance of the
underlying operations.
- Third quarter operating cash flows of $267 million and adjusted operating cash
flows(1,2) of $341
million, of which $226 million(3) was used to repay
debt, $56 million was used to fund
the growth pipeline and $14 million
was paid in dividends. Available liquidity at September 30, 2016 stood at $3.4 billion.
- Gold production(1) of 715,000 ounces at
all-in sustaining costs(1)(5) ("AISC") of
$812 per ounce, compared to 922,000
ounces at AISC of $858 per ounce in
2015. 2016 guidance reconfirmed for gold production of
between 2.8 and 3.1 million ounces at
AISC of between $850 and $925 per
ounce. The lower AISC reflects the Company's focus on
cost reductions and the positive effects of the strengthening US
dollar. The decrease was partially offset by lower production
due to planned lower grades at Peñasquito and the exhaustion of
surface stockpiles at Cerro Negro and Éléonore.
- Inaugural gold indicated mineral resource of 4.5
million ounces and 0.9 million ounces of gold inferred mineral
resource announced at Porcupine's
new Dome Century project; study for potential large-scale, open pit
mine underway. The dimensions of this mineralized
envelope and a preliminary analysis indicate the potential to
further extend mineralization well below the existing
pit.
- Robust project pipeline advancing well as expansions at
Peñasquito and Musselwhite commence and acquisition of Coffee
Project completed. Existing mine expansions
are expected to contribute to gold production growth and lower unit
operating costs in 2019. First gold production at the
Coffee project is expected at the end of 2020.
- Over 60% of targeted $250
million sustainable annual efficiencies identified. The
Company is well underway toward achieving its $250 million target of sustainable annual
efficiencies by 2018 as Porcupine
identified additional improvement initiatives of $35 million.
"Improved performance from our flagship Peñasquito mine and low
all-in sustaining costs drove a third quarter that generated solid
financial results, as we begin to see the benefits to the bottom
line of our program to realize $250
million in sustainable annual efficiencies from our existing
business," said David Garofalo,
Goldcorp President and Chief Executive Officer. "The value of our
diversified portfolio in prolific mining camps was also
evident with the definition of the new 5.4 million ounce Dome
Century open pit resource in our 105 year-old Porcupine mining camp, which has the potential
to substantially grow gold production."
FINANCIAL AND OPERATING RESULTS REVIEW
(millions except
where noted)
|
Three months
ended
September
30
|
Nine months
ended
September
30
|
2016
|
2015
|
2016
|
2015
|
Gold
production1 (ounces)
|
715,000
|
922,000
|
2,112,000
|
2,555,000
|
Gold
sales1 (ounces)
|
686,000
|
942,000
|
2,101,000
|
2,672,000
|
Operating cash
flows
|
$267
|
$443
|
$560
|
$1,022
|
Adjusted operating
cash flows1,2
|
$341
|
$506
|
$737
|
$1,147
|
Net earnings (loss)
attributable to shareholders of Goldcorp
|
$59
|
$(192)
|
$61
|
$113
|
Net earnings (loss)
per share
|
$0.07
|
$(0.23)
|
$0.07
|
$0.14
|
By-product cash
costs1,5 (per ounce)
|
$554
|
$597
|
$606
|
$576
|
AISC1,4
(per ounce)
|
$812
|
$858
|
$896
|
$865
|
Net income attributable to Goldcorp shareholders and net income
per share in the third quarter of 2016 were affected by, among
other things, the following non-cash or other items that management
believes are not reflective of the performance of the underlying
operations:
(millions except
where noted)
|
Three months
ended
September 30,
2016
|
Pre-tax
|
After-tax
|
Per share
($/share)
|
Negative deferred tax
effects of foreign exchange on tax assets and liabilities and
losses
|
$-
|
$22
|
$0.03
|
Unrealized foreign
exchange loss on Argentine peso denominated construction
VAT receivable
|
$2
|
$2
|
$-
|
Restructuring
costs
|
$6
|
$4
|
$0.01
|
Total cash costs on a by-product basis for the third quarter of
2016 were $554 per ounce, compared to
$597 per ounce for the third quarter
of 2015. AISC for the third quarter of 2016 were $812 per ounce, compared to $858 per ounce in the third 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 Peñasquito, Cerro Negro, Los Filos and
Éléonore.
As of September 30, 2016, the
Company had total liquidity of approximately $3.4 billion, including $0.4 billion in cash, cash equivalents and money
market investments and a fully undrawn credit facility of
$3.0 billion.
PROGRESS TOWARDS DELIVERING $250
MILLION OF SUSTAINABLE ANNUAL EFFICIENCIES
During the quarter, the Company continued the implementation of
its productivity and cost optimization program to deliver
$250 million in sustainable annual
efficiencies by 2018 as it commenced a comprehensive performance
improvement initiative which will take place at each of the mine
sites. Porcupine was the first
site to complete the review and the site has identified significant
opportunities for value creation, driven primarily from improved
productivity and higher output of high grade ore from Hoyle Pond.
The Company expects that these initiatives at Hoyle Pond, along
with several other opportunities involving mill related initiatives
and general and administrative efficiencies, will deliver
approximately $35 million of annual
efficiencies toward the $250 million
target. The Company believes that there is further potential to
increase resources at Porcupine,
beyond what is in our current mine plans, primarily associated with
Hoyle Pond and has planned to undertake more drilling to confirm
this. Porcupine is also
studying the potential to expand the Hollinger pit, with only a
modest amount of incremental stripping required. In addition,
work is ongoing to identify potential synergies within the
Timmins camp.
Porcupine's estimated annual
savings supplement annual costs savings identified in the second
quarter of $65 million at Cerro Negro
and $55 million at corporate.
Performance improvement efforts are expected to begin at Peñasquito
in the fourth quarter of 2016, with efforts at Red Lake and Éléonore starting in the first
quarter of 2017.
OPERATIONS REVIEW AND GUIDANCE
2016 Guidance and Outlook
The Company reconfirmed 2016 gold production guidance between
2.8 and 3.1 million ounces at AISC of between $850 and $925 per ounce. Fourth quarter
production is expected to increase over the third quarter as
Peñasquito continues mining higher grades.
Peñasquito, Mexico
(100%-owned)
Third quarter gold production totaled 121,000 ounces at an AISC
of $777 per ounce. Production
declined compared to the third quarter of 2015 due to: lower grade,
as expected, as a result of mine sequencing; lower throughput due
to harder ore types processed; and lower recoveries associated with
processing lower grade stockpile ore. Towards the end of the third
quarter of 2016 mining shifted from the lower grade upper
transitional ore into higher grade ore in the lower portion of the
pit. Gold grade continues to improve during the fourth quarter of
2016 as the mine progresses deeper into the high-grade zone in the
current phase. Tonnes milled are also expected to increase due to
less planned maintenance.
AISC was higher compared to the third quarter of 2015, primarily
as a result of lower gold production and lower by-product revenues,
partially offset by lower operating costs and a weaker Mexican peso
compared to the US dollar.
The Northern Well Field ("NWF") project, which will satisfy
Peñasquito's long-term water requirements, ramped up as expected
and reached full design capacity in the fourth quarter of
2016.
Cerro Negro, Argentina
(100%-owned)
The operational focus at Cerro
Negro remains on improving productivity through
improved development rates, backfill capabilities, optimization of
mine sequencing, cost reductions and the restructuring process that
started in the second quarter of 2016. This focus is expected
to maximize net asset value over the long-term.
Third quarter gold production totaled 96,000 ounces at an AISC
of $651 per ounce. Gold production
decreased compared to the third quarter of 2015 due to the
exhaustion of surface stockpiles by the end of 2015. As the planned
mine ramp-up continues, ore mined increased by 22% for the nine
months ended September 30, 2016
compared to the same period in 2015. Ore mined in the third
quarter of 2016 was negatively impacted by approximately 20 days of
work stoppages that were associated with the workforce
reduction related to the restructuring process.
Further work stoppages are possible as the restructuring process
continues.
AISC for the three months were lower compared to the same period
in 2015 due to a reduction of approximately 60% in the value of the
Argentine peso compared to the US dollar, the impact of reductions
in personnel (employees and contractors) and the elimination of
Argentina's 5% tax on doré mineral
exports, partially offset by high domestic inflation rates.
Combined with mine improvement initiatives, Cerro Negro's
restructuring process is expected to contribute sustainable annual
savings of approximately $65 million
in 2018.
The Company expects to complete a pre-feasibility study for
additional veins at the Marianas Complex by the end of 2016. This
work includes the design and development of Mariana Norte and
Emilia in 2017 and 2018 to add to the current production
from Mariana Central and Eureka. These plans are captured in
the Cerro Negro Marianas Complex Life of Mine Study, which is focused on an optimal mine
design, development execution plan, and production schedule to
maximize net asset value. The Company expects Cerro Negro to
sustain its nameplate mill capacity of 4,000 tonnes per day in
2018.
Pueblo Viejo,
Dominican Republic
(40%-owned)
Third quarter gold production totaled 126,000 ounces at an AISC
of $454 per ounce. Gold
production increased compared to the third quarter of 2015,
primarily due to higher grades from mine sequencing and recoveries
from processing higher grade ore and a lower amount of carbonaceous
ore processed in 2016. AISC for the third quarter were lower
compared to the third quarter of 2015, primarily due to higher
production and lower operating costs. The decrease in operating
costs was primarily attributable to lower power, fuel
and autoclave maintenance costs, partially offset by higher
equipment rentals costs.
Red Lake, Ontario
(100%-owned)
Third quarter gold production totaled 84,000 ounces at an AISC
of $775 per ounce. Gold
production increased compared to the third quarter of 2015 due to
increased throughput and higher grade. New mining fronts and
improved mining efficiencies from bulk mining in the Upper Red Lake
and Sulphide zones were key enablers to the increased
production. AISC decreased 25% for the third quarter compared
to the same period in 2015 due to higher production, lower
operating costs, lower exploration and lower sustaining capital
expenditures.
Trade-off studies on the rationalization of infrastructure
continued to advance during the third quarter and identified a
number of opportunities. During the third quarter of 2016, the
Number One Shaft was placed on care and maintenance and plans are
in place to shut down the Red Lake
mill in the first quarter of 2017 and place the Campbell shaft on
care and maintenance in the second quarter of 2017. This will
consolidate the path of ore from the mined stope to surface from
four shafts to two and reduce operating and maintenance costs.
Éléonore, Quebec
(100%-owned)
Third quarter gold production totaled 68,000 ounces at an AISC
of $970 per ounce. Gold
production decreased compared to the third quarter of 2015 as a
result of lower tonnes and lower grades. Lower tonnage was the
result of mill feed consisting of only mine material while the
comparative period in 2015 included significant feed from surface
stockpiles. The lower grade for the third quarter was consistent
with the mine plan. AISC was essentially unchanged compared to the
same period in 2015.
Éléonore commenced production utilizing a temporary hoisting
system in the exploration shaft, supplemented with truck haulage to
surface from the higher ore horizons while construction on a
production shaft advanced. At the end of the third quarter of
2016, the production shaft construction including the ore handling
system on the 690 meter level was completed and commissioned and
hoisting commenced early in October. Increased production levels,
development efficiencies and reduced operating costs are
anticipated as a result of the production shaft completion. An
additional loading pocket near the bottom of the production shaft
will be completed in the fourth quarter of 2016 which will enable
development of the lower zones of the mine. The exploration shaft
will be decommissioned in the first quarter of 2017 and used for
ventilation.
Mine production for the nine months ended September 30, 2016 is in line with the planned
annual average of between 4,700 to 5,000 tonnes per day of ore from
four production horizons. With the completion of the production
shaft, the mine will continue to ramp up ore production in line
with the mine plan designed to maximize the net asset value of the
mine as a further two production horizons are brought on line by
2018. The production ramp-up to 7,000 tonnes per day is
expected to be completed in the first half of 2018.
Porcupine, Ontario
(100%-owned)
Third quarter gold production totaled 64,000 ounces at an AISC
of $947 per ounce. Production
decreased compared to the third quarter of 2015 as a result of long
term surface stockpiles being depleted by the end of the second
quarter of 2016. AISC for the third quarter were lower than the
same period in 2015 due to lower sustaining capital expenditures
from the completion of the Hoyle Deep project and lower operating
costs.
During the third quarter, Porcupine commenced a comprehensive
performance improvement effort which the Company expects will
result in approximately $35 million
in annual sustainable productivity improvements and cost savings in
2018.
Musselwhite, Ontario
(100%-owned)
Third quarter gold production totaled 59,000 ounces at an AISC
of $753 per ounce. Production for the
third quarter was lower than the comparative period in 2015 due to
lower mined tonnes as a result of mine sequencing. AISC
were higher than third quarter of 2015, primarily as a result of
lower gold production, partially offset by lower sustaining
capital.
PROJECT PIPELINE REVIEW
Peñasquito District
Pyrite Leach (100%-owned)
The Pyrite Leach Project ("PLP") has an expected capital
investment of approximately $420
million and is expected to increase overall gold and silver
recoveries at Peñasquito by treating the zinc tailings before
discharge to the tailings storage facility. Following approval of
the PLP by the Board of Directors in July
2016, the contractor started ramping up detailed
engineering, preparing bid packages for long lead time equipment,
and mobilizing on site to begin construction activities of
permanent facilities. The Company has hedged approximately 50% of
the Mexican peso project expenditures at an average foreign
exchange rate of 20.0 Mexican pesos to the US dollar.
Camino Rojo (100%-owned)
At Camino Rojo, located approximately 50 kilometres from
Peñasquito, the pre-feasibility study on the oxide resource
continued to advance and is on track to be completed by the fourth
quarter of 2016. Goldcorp is evaluating alternative
strategies to maximize the value of the Camino Rojo project.
Musselwhite
Materials Handling (100%-owned)
Following the approval of the Materials Handling Project in
July 2016, mobilization of the
contractor occurred in August with lateral development commencing
in September. Winze raisebore construction is expected to
commence in the first quarter of 2017. The project is
designed to provide an economic 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. The project's capital investment is
approximately $90 million.
Porcupine
District
Dome Century (100%-owned)
A gold indicated mineral resource of 4.5 million
ounces (130.6 million tonnes grading 1.07 grams per tonne) and 0.9
million ounces (35.0 million tonnes grading 0.81 grams per tonne)
of gold inferred mineral resource was announced at
Porcupine's new Dome Century
project and a concept study for a potential new large-scale open
pit mine is underway. A recent update to the geological model
for Porcupine's Dome open pit
additional mineralization, as a halo to high grade material which
was previously mined from underground. The dimensions of this
mineralized envelope and a preliminary analysis indicate the
potential to further extend open pit mining well below the existing
pit. With the completion of the resource estimate, the
concept study will evaluate the development of an expanded open pit
on this zone. The concept study is expected to be completed in the
first quarter of 2017 and, with positive results expected,
will proceed for internal approval to fund a pre-feasibility
study.
Borden (100%-owned)
The Borden project, located 160
kilometres west of Porcupine, has
the potential to further enhance the long-term economics of
Porcupine. The Company expects to
complete phase one of a pre-feasibility study during the first
quarter of 2017. An advanced exploration permit is expected by
early 2017 to allow for the construction of a ramp into the deposit
and the extraction of a 30,000 tonne bulk sample. The
underground platform will further support exploration drilling of a
deposit that remains open at depth and laterally. The final
pre-feasibility study requires the completion of the bulk sample
and is expected to be completed by the end of 2018.
Red Lake
District
HG Young (100%-owned)
At the HG Young deposit, a high-grade exploration discovery near
Red Lake, a concept study is
advancing and is expected to be completed in the fourth quarter of
2016. During the third quarter, exploration drilling
continued with both surface and underground drills. Assuming
a positive business case based on the exploration results, the
Company expects to commence a decline from surface that will
provide access to the higher confidence areas for further
exploration and bulk sampling and a pre-feasibility study in the
first half of 2017.
Cochenour (100%-owned)
At Cochenour, exploration
drilling continued through the third quarter. In addition,
sill development along the Upper Main Zone was completed on both
the 3990 and 4060 foot levels and all material was processed
through a sample tower. In the fourth quarter of 2016, this
material will be processed through the Red Lake mill. Following the mill processing,
a reconciliation process will take place, analyzing the
results from the underground face samples, muck samples, sample
tower and mill. Results to date from the sample tower and silling
are favourable. The Cochenour project is currently undergoing
a concept study, which is expected to be completed in the fourth
quarter of 2016.
Coffee (100%-owned)
The Company completed the acquisition of Kaminak Gold
Corporation, and its Coffee project ("Coffee"), on July 19, 2016. 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. Activities for the third
quarter focused on review and optimization of the Kaminak
feasibility study, planning for upgrades to site infrastructure,
consultations with First Nations and initial studies to support the
permitting processes.
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 third
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, October 27,
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
November 27,
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.
|
|
|
|
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
September
30
|
Nine months
ended
September
30
|
|
2016
|
2015
|
2016
|
2015
|
Net cash provided
by operating activities of continuing operations
|
$267
|
$443
|
$560
|
$1,022
|
Adjusted operating
cash flows provided by Alumbrera, Pueblo Viejo and
NuevaUnión
|
74
|
63
|
177
|
118
|
Goldcorp's share
of adjusted operating cash flows
|
$341
|
$506
|
$737
|
$1,140
|
Including
discontinued operations
|
|
|
|
|
Adjusted operating
cash flows – Wharf
|
-
|
-
|
-
|
7
|
Goldcorp's share
of adjusted cash flows including discontinued
operations
|
$341
|
$506
|
$737
|
$1,147
|
|
|
|
|
|
3.
|
Includes the
Company's share of Alumbrera's and Pueblo Viejo's debt repayments
of $36 million and $61 million, respectively.
|
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
September 30, 2016
|
$
|
615
|
$
|
(276)
|
$
|
-
|
$
|
41
|
$
|
-
|
$
|
380
|
686
|
$
|
554
|
Three months ended
September 30, 2015
|
$
|
788
|
$
|
(305)
|
$
|
-
|
$
|
55
|
$
|
25
|
$
|
563
|
942
|
$
|
597
|
Nine months
ended September 30, 2016
|
$
|
1,834
|
$
|
(662)
|
$
|
-
|
$
|
101
|
$
|
-
|
$
|
1,273
|
2,101
|
$
|
606
|
Nine months
ended September 30, 2015
|
$
|
2,264
|
$
|
(908)
|
$
|
(21)
|
$
|
152
|
$
|
54
|
$
|
1,541
|
2,673
|
$
|
576
|
|
(1) $23 million and
$49 million in royalties are included in production costs for the
three and nine months ended September 30, 2016, respectively (three
and nine months ended September 30, 2015– $17 million and $70
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 nine months ended September
30, 2016, would be $657 and $657 per ounce of gold, $10.93 and
$10.83 per ounce of silver, $1.68 and $2.030 per pound of copper,
$0.86 and $0.86 per pound of zinc, and $0.92 and $0.96 per pound of
lead, respectively (three and nine months ended September 30, 2015
– $670 and $662 per ounce of gold. $8.08 and $8.7 per ounce of
silver, $2.940 and $2.86 per pound of copper, $0.64 and $0.68 per
pound of zinc, and $0.6 and $0.66 per pound of lead,
respectively).
|
5.
|
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 September 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
|
$
|
43
|
$
|
-
|
$
|
1
|
$
|
1
|
$
|
34
|
$
|
79
|
100
|
$
|
777
|
Cerro
Negro
|
44
|
-
|
-
|
2
|
18
|
64
|
99
|
651
|
Red Lake
|
42
|
-
|
3
|
1
|
18
|
64
|
82
|
775
|
Éléonore
|
58
|
-
|
-
|
1
|
5
|
64
|
66
|
970
|
Porcupine
|
48
|
-
|
1
|
3
|
9
|
61
|
64
|
947
|
Musselwhite
|
36
|
-
|
1
|
2
|
5
|
44
|
58
|
753
|
Other
mines
|
55
|
-
|
1
|
5
|
6
|
67
|
68
|
983
|
Corporate
|
—
|
42
|
-
|
-
|
8
|
50
|
-
|
75
|
Total before
associates
and
discontinued
operations
|
$
|
326
|
$
|
42
|
$
|
7
|
$
|
15
|
$
|
103
|
$
|
493
|
537
|
$
|
917
|
Pueblo
Viejo
|
48
|
-
|
-
|
1
|
9
|
58
|
127
|
454
|
Other
associate
|
6
|
-
|
-
|
1
|
-
|
7
|
22
|
330
|
TOTAL
|
$
|
380
|
$
|
42
|
$
|
7
|
$
|
17
|
$
|
112
|
$
|
558
|
686
|
$
|
812
|
Three months ended September 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
|
$
|
60
|
$
|
-
|
$
|
-
|
$
|
3
|
$
|
42
|
$
|
105
|
226
|
$
|
467
|
Cerro
Negro
|
96
|
-
|
-
|
2
|
17
|
115
|
157
|
731
|
Red Lake
|
45
|
-
|
7
|
1
|
25
|
78
|
75
|
1,028
|
Éléonore
|
78
|
-
|
-
|
1
|
5
|
84
|
85
|
974
|
Porcupine
|
52
|
-
|
-
|
3
|
17
|
72
|
71
|
1,018
|
Musselwhite
|
38
|
-
|
1
|
-
|
10
|
49
|
70
|
697
|
Other
mines
|
97
|
-
|
2
|
5
|
25
|
129
|
108
|
1,195
|
Corporate
|
2
|
51
|
1
|
-
|
6
|
60
|
-
|
62
|
Total before
associates
and discontinued
operations
|
$
|
468
|
$
|
51
|
$
|
11
|
$
|
15
|
$
|
147
|
$
|
692
|
792
|
$
|
873
|
Pueblo
Viejo
|
62
|
-
|
-
|
4
|
10
|
76
|
128
|
585
|
Other
associate
|
33
|
-
|
-
|
2
|
7
|
42
|
22
|
1,925
|
Discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
TOTAL
|
$
|
563
|
$
|
51
|
$
|
11
|
$
|
21
|
$
|
164
|
$
|
810
|
942
|
$
|
858
|
Nine months ended September 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
|
$
|
179
|
$
|
-
|
$
|
2
|
$
|
4
|
$
|
146
|
$
|
331
|
264
|
$
|
1,252
|
Cerro
Negro
|
138
|
-
|
-
|
6
|
53
|
197
|
312
|
633
|
Red Lake
|
136
|
-
|
9
|
2
|
56
|
203
|
237
|
853
|
Éléonore
|
177
|
-
|
-
|
1
|
20
|
198
|
209
|
951
|
Porcupine
|
143
|
-
|
2
|
9
|
31
|
185
|
212
|
872
|
Musselwhite
|
102
|
-
|
4
|
2
|
17
|
125
|
186
|
671
|
Other
mines
|
218
|
-
|
6
|
12
|
21
|
257
|
279
|
922
|
Corporate
|
—
|
149
|
1
|
-
|
20
|
170
|
-
|
81
|
Total before
associates
and discontinued
operations
|
$
|
1,093
|
$
|
149
|
$
|
24
|
$
|
36
|
$
|
364
|
$
|
1,666
|
1,669
|
$
|
980
|
Pueblo
Viejo
|
133
|
-
|
-
|
3
|
28
|
164
|
335
|
488
|
Other
associate
|
-
|
-
|
-
|
6
|
-
|
6
|
67
|
791
|
TOTAL
|
$
|
1,273
|
$
|
149
|
$
|
24
|
$
|
45
|
$
|
392
|
$
|
1,883
|
2,101
|
$
|
896
|
Nine months ended September 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
|
$
197
|
$
-
|
$
1
|
$
8
|
$
145
|
$
351
|
698
|
$
504
|
Cerro
Negro
|
272
|
-
|
-
|
3
|
56
|
331
|
448
|
739
|
Red Lake
|
154
|
-
|
21
|
2
|
68
|
245
|
274
|
889
|
Éléonore
|
141
|
-
|
-
|
1
|
13
|
155
|
128
|
1,203
|
Porcupine
|
155
|
-
|
1
|
10
|
52
|
218
|
199
|
1,095
|
Musselwhite
|
118
|
-
|
5
|
1
|
25
|
149
|
186
|
796
|
Other
mines
|
245
|
-
|
6
|
15
|
84
|
350
|
319
|
1,100
|
Corporate
|
2
|
159
|
5
|
-
|
25
|
191
|
-
|
71
|
Total before
associates
and discontinued
operations
|
$
1,284
|
$
159
|
$
39
|
$
40
|
$
468
|
$ 1,990
|
2,252
|
$
883
|
Pueblo
Viejo
|
176
|
-
|
-
|
7
|
34
|
217
|
357
|
607
|
Other
associate
|
66
|
-
|
-
|
9
|
14
|
89
|
48
|
1,874
|
Discontinued
Operations
|
15
|
1
|
-
|
-
|
1
|
17
|
16
|
996
|
TOTAL
|
$
1,541
|
$
160
|
$
39
|
$
56
|
$
517
|
$ 2,313
|
2,673
|
$
865
|
|
|
|
|
|
|
|
|
|
(1) 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, 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 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 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; risks associated with restructuring and
cost efficiency initiatives; 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.
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 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 annual information form for the year ended
December 31, 2015 and the current
technical report for each of those properties, all available at
www.sedar.com.
Cautionary Note to United
States investors concerning estimates of measured, indicated
and inferred resources: This document has been prepared in
accordance with the requirements of the Canadian securities laws
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 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 Company'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.
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
|
|
September
30
|
Goldcorp's
share (1)
|
2016
|
|
2015
|
Revenues
|
1,151
|
|
1,299
|
Gold produced
(thousands of ounces)
|
715
|
|
922
|
Gold sold
(thousands of ounces)
|
686
|
|
942
|
Silver
produced (thousands of ounces)
|
7,700
|
|
11,300
|
Silver sold
(thousands of ounces)
|
7,800
|
|
11,000
|
Copper
produced (thousands of pounds)
|
16,900
|
|
12,300
|
Copper sold
(thousands of pounds)
|
14,900
|
|
14,700
|
Lead produced
(thousands of pounds)
|
33,700
|
|
49,200
|
Lead sold
(thousands of pounds)
|
32,900
|
|
49,100
|
Zinc produced
(thousands of pounds)
|
75,200
|
|
111,500
|
Zinc sold
(thousands of pounds)
|
73,000
|
|
118,700
|
Average realized
gold price (per ounce)
|
$
|
1,333
|
|
$
|
1,114
|
Average London
spot gold price (per ounce)
|
$
|
1,335
|
|
$
|
1,124
|
Average realized
silver price (per ounce)
|
$
|
17.04
|
|
$
|
13.01
|
Average London
spot silver price (per ounce)
|
$
|
19.62
|
|
$
|
14.91
|
Average realized
copper price (per pound)
|
$
|
2.17
|
|
$
|
2.29
|
Average London
spot copper price (per pound)
|
$
|
2.17
|
|
$
|
2.38
|
Average realized
lead price (per pound)
|
$
|
0.89
|
|
$
|
0.76
|
Average London
spot lead price (per pound)
|
$
|
0.85
|
|
$
|
0.78
|
Average realized
zinc price (per pound)
|
$
|
1.08
|
|
$
|
0.75
|
Average London
spot zinc price (per pound)
|
$
|
1.02
|
|
$
|
0.84
|
Total cash costs –
by-product (per gold ounce)
|
$
|
554
|
|
$
|
597
|
Total cash costs –
co-product (per gold ounce)
|
$
|
657
|
|
$
|
670
|
All-in sustaining
costs (per gold ounce)
|
$
|
812
|
|
$
|
858
|
All-in costs
(per gold ounce)
|
$
|
899
|
|
$
|
949
|
|
|
|
Production
Data:
|
|
|
|
Peñasquito:
|
Tonnes of ore mined
(thousands)
|
13,600
|
|
10,591
|
|
Tonnes of waste
removed (thousands)
|
32,712
|
|
40,196
|
|
Tonnes of ore milled
(thousands)
|
9,029
|
|
9,419
|
|
Average head grade
(grams per tonne) – gold
|
0.69
|
|
1.08
|
|
Average head grade
(grams per tonne) – silver
|
25.36
|
|
32.72
|
|
Average head grade
(%) – lead
|
0.24
|
|
0.34
|
|
Average head grade
(%) – zinc
|
0.56
|
|
0.76
|
|
Gold produced
(thousands of ounces)
|
121
|
|
236
|
|
Silver produced
(thousands of ounces)
|
5,242
|
|
7,472
|
|
Lead produced
(thousands of pounds)
|
33,800
|
|
49,200
|
|
Zinc produced
(thousands of pounds)
|
75,200
|
|
111,500
|
|
Total cash costs –
by-product (per ounce)
|
$
|
423
|
|
$
|
267
|
|
Total cash costs –
co-product (per ounce of gold)
|
$
|
849
|
|
$
|
519
|
|
All-in sustaining
costs (per ounce)
|
$
|
777
|
|
$
|
467
|
Cerro
Negro:
|
Tonnes of ore milled
(thousands)
|
178
|
|
340
|
|
Average mill head
grade (grams per tonne) – gold
|
17.01
|
|
13.09
|
|
Average mill head
grade (grams per tonne) – silver
|
163.53
|
|
167.2
|
|
Gold produced
(thousands of ounces)
|
96
|
|
136
|
|
Silver produced
(thousands of ounces)
|
805
|
|
1,501
|
|
Total cash costs –
by-product (per ounce)
|
$
|
450
|
|
$
|
610
|
|
Total cash costs –
co-product (per ounce)
|
$
|
533
|
|
$
|
661
|
|
All-in sustaining
costs (per ounce)
|
$
|
651
|
|
$
|
731
|
Pueblo Viejo (40%
share):
|
Tonnes of ore mined
(thousands)
|
1,943
|
|
2,560
|
|
Tonnes of waste
removed (thousands)
|
2,074
|
|
1,539
|
|
Tonnes of ore
processed (thousands)
|
729
|
|
782
|
|
Average mill head
grade (grams per tonne) – gold
|
5.79
|
|
5.23
|
|
Gold produced
(thousands of ounces)
|
126
|
|
115
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
376
|
|
$
|
481
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
418
|
|
$
|
497
|
|
All-in sustaining
costs (per gold ounce)
|
$
|
454
|
|
$
|
585
|
Red Lake:
|
Tonnes of ore milled
(thousands)
|
172
|
|
160
|
|
Average mill head
grade (grams per tonne)
|
17.12
|
|
15.69
|
|
Gold produced
(thousands of ounces)
|
84
|
|
78
|
|
Total cash costs –
by-product (per ounce)
|
$
|
516
|
|
$
|
601
|
|
All-in sustaining
costs (per ounce)
|
$
|
775
|
|
$
|
1,028
|
Éléonore:
|
Tonnes of ore milled
(thousands)
|
458
|
|
536
|
|
Average mill head
grade (grams per tonne)
|
5.22
|
|
5.78
|
|
Gold produced
(thousands of ounces)
|
68
|
|
87
|
|
Total cash costs –
by-product (per ounce)
|
$
|
876
|
|
$
|
915
|
|
All-in sustaining
costs (per ounce)
|
$
|
970
|
|
$
|
974
|
Porcupine:
|
Tonnes of ore milled
(thousands)
|
876
|
|
1,116
|
|
Average mill head
grade (grams per tonne)
|
2.41
|
|
2.16
|
|
Gold produced
(thousands of ounces)
|
64
|
|
71
|
|
Total cash costs –
by-product (per ounce)
|
$
|
758
|
|
$
|
725
|
|
All-in sustaining
costs (per ounce)
|
$
|
947
|
|
$
|
1,018
|
Musselwhite:
|
Tonnes of ore milled
(thousands)
|
267
|
|
321
|
|
Average mill head
grade (grams per tonne)
|
7.12
|
|
7.28
|
|
Gold produced
(thousands of ounces)
|
59
|
|
71
|
|
Total cash costs –
by-product (per ounce)
|
$
|
626
|
|
$
|
541
|
|
All-in sustaining
costs (per ounce)
|
$
|
753
|
|
$
|
697
|
Los Filos:
|
Tonnes of ore mined
(thousands)
|
2,267
|
|
4,737
|
|
Tonnes of waste
removed (thousands)
|
2,979
|
|
11,300
|
|
Tonnes of ore
processed (thousands)
|
2,219
|
|
4,720
|
|
Average grade
processed (grams per tonne)
|
0.75
|
|
0.82
|
|
Gold produced
(thousands of ounces)
|
47
|
|
70
|
|
Total cash costs –
by-product (per ounce)
|
$
|
782
|
|
$
|
1,275
|
|
All-in sustaining
costs (per ounce)
|
$
|
938
|
|
$
|
1,442
|
Marlin:
|
Tonnes of ore milled
(thousands)
|
253
|
|
319
|
|
Average mill head
grade (grams per tonne) – gold
|
3.32
|
|
4.28
|
|
Average mill head
grade (grams per tonne) – silver
|
163
|
|
192
|
|
Gold produced
(thousands of ounces)
|
26
|
|
42
|
|
Silver produced
(thousands of ounces)
|
1,305
|
|
1,837
|
|
Total cash costs –
by-product (per ounce)
|
$
|
869
|
|
$
|
216
|
|
Total cash costs –
co-product (per ounce)
|
$
|
1,101
|
|
$
|
525
|
|
All-in sustaining
costs (per ounce)
|
$
|
1,054
|
|
$
|
759
|
Alumbrera (37.5%
share):
|
Tonnes of ore mined
(thousands)
|
3,445
|
|
3,637
|
|
Tonnes of waste
removed (thousands)
|
2,198
|
|
5,078
|
|
Tonnes of ore milled
(thousands)
|
3,151
|
|
2,933
|
|
Average mill head
grade (grams per tonne) – gold
|
0.34
|
|
0.25
|
|
Average mill head
grade (%) – copper
|
0.29
|
|
0.24
|
|
Gold produced
(thousands of ounces)
|
24
|
|
16
|
|
Copper produced
(thousands of pounds)
|
16,600
|
|
12,300
|
|
Total cash costs –
by-product (per gold ounce)
|
$
|
237
|
|
$
|
1,504
|
|
Total cash costs –
co-product (per gold ounce)
|
$
|
604
|
|
$
|
1,047
|
|
All-in sustaining
costs (per gold ounce)
|
$
|
330
|
|
$
|
1,925
|
|
|
|
|
|
|
Financial Data
(including discontinued operation):
|
|
|
Cash flows from
operating activities
|
$
|
267
|
|
$
|
443
|
Adjusted operating
cash flows (Goldcorp's share) (2)
|
$
|
341
|
|
$
|
506
|
Net earnings
(loss)
|
$
|
59
|
|
$
|
(191)
|
Net earnings (loss)
per share – basic
|
$
|
0.07
|
|
$
|
(0.23)
|
Weighted average
shares outstanding (000's)
|
849,158
|
|
830,202
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In millions of United States
dollars, except for per share amounts – Unaudited)
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
2016
|
2015
|
2016
|
2015
|
Revenues
|
$
|
915
|
$
|
1,098
|
$
|
2,612
|
$
|
3,303
|
Mine operating
costs
|
|
|
|
|
|
Production
costs
|
(523)
|
(658)
|
(1,550)
|
(1,918)
|
|
Depreciation and
depletion
|
(267)
|
(394)
|
(770)
|
(1,072)
|
|
(790)
|
(1,052)
|
(2,320)
|
(2,990)
|
Earnings from mine
operations
|
125
|
46
|
292
|
313
|
Exploration and
evaluation costs
|
(7)
|
(11)
|
(24)
|
(39)
|
Share of net earnings
of associates and joint venture
|
47
|
7
|
111
|
23
|
Corporate
administration
|
(42)
|
(51)
|
(149)
|
(159)
|
Restructuring
costs
|
(6)
|
—
|
(45)
|
—
|
Earnings (loss)
from operations, associates and joint venture
|
117
|
(9)
|
185
|
138
|
Gain (loss) on
derivatives, net
|
1
|
(21)
|
2
|
(55)
|
Gain on dilution of
ownership interest in associate
|
—
|
—
|
—
|
99
|
Gain on dispositions
of mining interests, net of transaction costs
|
—
|
—
|
—
|
315
|
Finance
costs
|
(34)
|
(34)
|
(103)
|
(104)
|
Other income
(expenses), net
|
5
|
9
|
(1)
|
30
|
Earnings (loss)
from continuing operations before taxes
|
89
|
(55)
|
83
|
423
|
Income tax
expense
|
(30)
|
(136)
|
(22)
|
(355)
|
Net earnings
(loss) from continuing operations
|
59
|
(191)
|
61
|
68
|
Net earnings from
discontinued operation
|
—
|
—
|
—
|
46
|
Net earnings
(loss)
|
$
|
59
|
$
|
(191)
|
$
|
61
|
$
|
114
|
Net earnings
(loss) from continuing operations attributable to:
|
|
|
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
59
|
(192)
|
$
|
61
|
$
|
67
|
|
Non-controlling
Interest
|
—
|
1
|
—
|
1
|
|
$
|
59
|
$
|
(191)
|
$
|
61
|
$
|
68
|
Net earnings
(loss) attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
59
|
$
|
(192)
|
$
|
61
|
$
|
113
|
|
Non-controlling
interest
|
—
|
1
|
—
|
1
|
|
$
|
59
|
$
|
(191)
|
$
|
61
|
$
|
114
|
|
|
|
|
|
Net earnings
(loss) per share from continuing operations
|
|
|
|
|
|
Basic
|
$
|
0.07
|
$
|
(0.23)
|
$
|
0.07
|
$
|
0.08
|
|
Diluted
|
0.07
|
(0.23)
|
0.07
|
0.08
|
Net earnings
(loss) per share
|
|
|
|
|
|
Basic
|
$
|
0.07
|
$
|
(0.23)
|
$
|
0.07
|
$
|
0.14
|
|
Diluted
|
0.07
|
(0.23)
|
0.07
|
0.14
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (LOSS)
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
2016
|
2015
|
2016
|
2015
|
Net earnings
(loss)
|
$
|
59
|
$
|
(191)
|
$
|
61
|
$
|
114
|
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
|
28
|
(7)
|
83
|
(6)
|
|
Reclassification
adjustment for impairment losses on available-for
|
|
|
|
|
|
|
sale securities
recognized in net earnings
|
—
|
2
|
—
|
6
|
|
Reclassification
adjustment for realized gains on disposition of
|
|
|
|
|
|
|
available-for-sale
securities recognized in net earnings (loss)
|
(3)
|
—
|
(12)
|
(1)
|
|
Reclassification of
cumulative unrealized gains on shares of Probe
|
|
|
|
|
|
|
Mines Ltd. ("Probe")
on acquisition
|
—
|
—
|
—
|
(3)
|
|
25
|
(5)
|
71
|
(4)
|
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
|
26
|
(5)
|
71
|
(5)
|
Total
comprehensive income (loss)
|
$
|
85
|
$
|
(196)
|
$
|
132
|
$
|
109
|
|
|
|
|
|
Total
comprehensive income (loss) attributable to:
|
|
|
|
|
|
Shareholders of
Goldcorp Inc.
|
$
|
85
|
$
|
(197)
|
$
|
132
|
$
|
108
|
|
Non-controlling
interest
|
—
|
1
|
—
|
1
|
|
$
|
85
|
$
|
(196)
|
$
|
132
|
$
|
109
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of United States
dollars – Unaudited)
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
2016
|
2015
|
2016
|
2015
|
Operating
activities
|
|
|
|
|
Net earnings (loss)
from continuing operations
|
$
|
59
|
$
|
(191)
|
$
|
61
|
$
|
68
|
Adjustments
for:
|
|
|
|
|
Dividends from
associates
|
—
|
—
|
—
|
7
|
Reclamation
expenditures
|
(6)
|
(17)
|
(22)
|
(49)
|
Items not affecting
cash:
|
|
|
|
|
|
Write-down of
inventories
|
3
|
43
|
10
|
43
|
|
Depreciation and
depletion
|
267
|
394
|
770
|
1,072
|
|
Share of net earnings
of associates and joint venture
|
(47)
|
(7)
|
(111)
|
(23)
|
|
Share-based
compensation
|
13
|
14
|
43
|
44
|
|
Unrealized gains on
derivatives, net
|
(3)
|
(4)
|
(6)
|
—
|
|
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 of reclamation and closure cost
obligations
|
4
|
6
|
17
|
39
|
|
Deferred income tax
expense (recovery)
|
26
|
77
|
(55)
|
123
|
|
Other
|
(17)
|
1
|
2
|
3
|
Change in working
capital
|
(32)
|
127
|
(149)
|
109
|
Net cash provided by
operating activities of continuing operations
|
267
|
443
|
560
|
1,022
|
Net cash provided by
operating activities of discontinued operation
|
—
|
—
|
—
|
7
|
Investing
activities
|
|
|
|
|
Acquisition of mining
interest, net of cash acquired
|
6
|
—
|
6
|
(43)
|
Expenditures on
mining interests
|
(154)
|
(232)
|
(493)
|
(938)
|
Return of capital
investment in associate
|
24
|
55
|
24
|
75
|
Proceeds from
dispositions of mining interests, net of transaction
costs
|
—
|
—
|
—
|
788
|
Interest
paid
|
(6)
|
(15)
|
(21)
|
(64)
|
Proceeds (purchases)
of money market investments and available-for-sale securities,
net
|
22
|
(22)
|
49
|
(33)
|
Other
|
(3)
|
(1)
|
(1)
|
(2)
|
Net cash used in
investing activities of continuing operations
|
(111)
|
(215)
|
(436)
|
(217)
|
|
|
|
|
|
Net cash provided by
investing activities of discontinued operation
|
—
|
—
|
—
|
97
|
Financing
activities
|
|
|
|
|
Debt
repayments
|
(2)
|
(2)
|
(5)
|
(14)
|
Credit facility
(repayment)
|
(125)
|
(835)
|
—
|
(840)
|
Finance lease
payments
|
(2)
|
—
|
(4)
|
—
|
Dividends paid to
shareholders
|
(14)
|
(75)
|
(81)
|
(321)
|
Common shares
issued
|
—
|
—
|
3
|
20
|
Other
|
(1)
|
—
|
(23)
|
21
|
Net cash used in
financing activities of continuing operations
|
(144)
|
(912)
|
(110)
|
(1,134)
|
Effect of exchange
rate changes on cash and cash equivalents
|
—
|
1
|
—
|
—
|
Increase
(decrease) in cash and cash equivalents
|
12
|
(683)
|
14
|
(225)
|
Cash and cash
equivalents, beginning of the period
|
328
|
940
|
326
|
482
|
Cash and cash
equivalents, end of the period
|
$
|
340
|
$
|
257
|
$
|
340
|
$
|
257
|
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(In millions of United States
dollars – Unaudited)
|
At September
30
|
At December
31
|
|
2016
|
2015
|
Assets
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
340
|
$
|
326
|
|
Money market
investments
|
43
|
57
|
|
Accounts
receivable
|
110
|
73
|
|
Sales and indirect
taxes recoverable
|
369
|
273
|
|
Inventories
|
515
|
469
|
|
Income taxes
receivable
|
27
|
67
|
|
Other
|
61
|
66
|
|
1,465
|
1,331
|
Mining
interests
|
|
|
|
Owned by
subsidiaries
|
17,738
|
17,630
|
|
Investments in
associates and joint venture
|
1,941
|
1,839
|
|
19,679
|
19,469
|
Investments in
securities
|
112
|
51
|
Deferred income
taxes
|
44
|
50
|
Inventories
|
151
|
255
|
Other
|
136
|
272
|
Total
assets
|
$
|
21,587
|
$
|
21,428
|
Liabilities
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
519
|
$
|
680
|
|
Debt
|
202
|
212
|
|
Income taxes
payable
|
56
|
104
|
|
Other
|
53
|
53
|
|
830
|
1,049
|
Deferred income
taxes
|
3,677
|
3,749
|
Debt
|
2,479
|
2,476
|
Provisions
|
776
|
775
|
Finance lease
obligations
|
249
|
267
|
Income taxes
payable
|
130
|
161
|
Other
|
102
|
103
|
Total
liabilities
|
8,243
|
8,580
|
Shareholders'
equity
|
|
|
|
Common shares, stock
options and restricted share units
|
18,052
|
17,604
|
|
Accumulated other
comprehensive income (loss)
|
65
|
(6)
|
|
Deficit
|
(4,773)
|
(4,750)
|
|
13,344
|
12,848
|
Total liabilities
and shareholders' equity
|
$
|
21,587
|
$
|
21,428
|
SOURCE Goldcorp Inc.