Mr. Jeff Wilhoit reports
GOLDCORP ANNOUNCES STRONG QUARTERLY CASH FLOW AND EARNINGS; GOLD RESERVES INCREASE FOR NINTH CONSECUTIVE YEAR
Goldcorp Inc. has released record fourth quarter gold production of 700,400 ounces
compared with gold production of 687,900 ounces in the fourth quarter of
2011. Reported net earnings in the quarter were $504-million, or 62 cents per share, compared with $405-million, or 50 cents per share,
in the same period a year ago. Adjusted net earnings were $465-million, or 57 cents per share, compared with $531-million, or
66 cents per share, in the same period a year ago. Operating cash flows before working capital changes totalled $721-million compared with $831-million in the fourth quarter of 2011.
Fourth quarter 2012 highlights:
- Revenues totalled $1.4-billion on gold sales of 645,100 ounces. (All amounts are in U.S. dollars unless stated otherwise.)
- Operating cash flows before working capital changes totalled $721-million or 89 cents per share.
- Adjusted net earnings totalled $465-million, or 57 cents per share.
- All-in sustaining cash costs totalled $910 per ounce, $360 per ounce on a
byproduct cash cost basis and $621 per ounce on a co-product cash cost basis.
- Dividends paid amounted to $110-million. Annual dividend increased 11 per cent to 60 cents per share.
Full-year 2012 highlights:
- Revenues increased to a record $5.4-billion on gold sales of 2.3 million ounces.
- Operating cash flows before working capital changes totalled $2.4-billion
or $2.97 per share.
- Adjusted net earnings totalled $1.6-billion, or $2.03 per share.
- All-in sustaining cash costs totalled $874 per ounce, $300 per ounce on a
byproduct cash cost basis and $638 per ounce on a co-product cash
cost basis.
- Dividends paid amounted to $438-million.
- Proven and probable gold mineral reserves increased 4 per cent to 67.1 million
ounces or 3.5 per cent on a per-share basis.
"Excellent quarterly performances at our two largest mines resulted in a
strong finish to 2012 and position Goldcorp for a much improved 2013,"
said Chuck Jeannes, Goldcorp president and chief executive officer.
"Red Lake in Canada benefited from full access to higher-grade gold
zones while Penasquito in Mexico performed well despite commencing
mining in a new, lower-grade phase of the pit during the quarter. A
full year of gold production at Pueblo Viejo in the Dominican Republic,
coupled with production stability throughout our portfolio, will enable
a renewed focus on productivity and efficiency at our mines in the year
ahead. Goldcorp's operating for excellence initiative is aimed at
identifying and implementing best practices to unlock the full cash
flow potential within our asset base.
"Another key priority in 2013 is the timely advancement of our three
gold growth projects currently under construction that are expected to
drive forecast 70-per-cent production growth in the next five years. Cerro
Negro in Argentina remains on track for initial gold production at the
end of this year amid successful achievement of key milestones and
growing ore stockpiles. Eleonore in Quebec continues to benefit from a
development plan focused on capital efficiency and building a solid
production platform beyond expected first production in late 2014.
Development of Cochenour in Red Lake is expected to accelerate,
bringing a stronger production profile to the Red Lake complex
following the start of production in 2015.
"Goldcorp's consistent strategy is centred on realizing strong
shareholder value in a challenging industry through growing, low-cost
production. We have always focused on strengthening our overall
portfolio through the addition of high-quality gold projects,
divestiture of non-core assets and successful exploration investments
that have driven a ninth consecutive year of growth in gold reserves.
We also enter 2013 with an outstanding balance sheet with the
flexibility to pursue new opportunities while maintaining an active
dividend policy to return value to shareholders."
Ninth consecutive year of reserve and resource growth
Goldcorp also announced today that proven and probable gold mineral
reserves increased by 4 per cent to 67.1 million ounces, the ninth consecutive
year that Goldcorp has increased gold reserves. Proven and probable
silver mineral reserves totalled 1.2 billion ounces, representing one of
the largest silver reserves in the industry.
Gold reserve growth at Cerro Negro, Camino Rojo, Marigold and Porcupine
more than offset decreases at Penasquito, Los Filos and Red Lake, which
decreased primarily as a result of the removal of marginally economic
gold ounces. On a per-share basis, gold reserves increased 3.5 per cent.
Complete mineral reserve and mineral resource data, including tonnes,
grades and ounces, can be found in this news release and have
been posted to Goldcorp's website. The summary in the attached summary reserves table accounts for the changes in gold ounces year
over year.
SUMMARY RESERVES
Proven and probable reserves as of Jan. 1, 2012 64.7 moz
Mined ounces during 2012 (including mining depletion) 3.1 moz
Net discovered ounces and converted resources during 2012 4.6 moz
Net changes due to metal prices/engineering 1.0 moz
Proven and probable reserves as of Jan. 1, 2013 67.1 moz
* Numbers may not add up due to rounding.
At Cerro Negro, an aggressive exploration program featuring eight
surface diamond drills completed 421 holes for a total of 146,112
metres for the year. Proven and probable gold reserves have now
increased 177 per cent to 5.7 million ounces from the initial proven and
probable gold reserve estimate of 2.1 million ounces (7.14 million tonnes at 9.03
grams per tonne gold) at acquisition in December, 2010. Exploration during 2012
focused on infill drilling and expansion of the Mariana Central,
Mariana Norte and San Marcos deposits. These efforts have led to
extensions in the strike length of all three veins and demonstrated the
emergence of adjacent vein systems. An exploration program budgeted at
$36-million for 2013 will focus on further extending the Mariana
Central, Mariana Norte and San Marcos veins to the east and
drill testing other vein targets.
Successful drilling at the Camino Rojo project near Penasquito
contributed 1.6 million ounces to proven and probable gold reserves,
based on a positive study for mining of near-surface oxide and
transition mineralization and conventional heap leach processing. The
company is following up on positive exploration results in the sulphide
portions of the deposit that will defer development of the heap leach
operation. Work will continue in 2013 on sulphide zone exploration.
Red Lake 2012 proven and probable gold reserves totalled 3.2 million
ounces, as drilling during the year focused on resource expansion
rather than conversion of existing resources to reserves. This effort
was successful with the confirmation of the extension of the high-grade
zone between the 52 and 57 levels and the discovery of the new NXT
zone to the west of the high-grade zone. With a budget of $40-million,
the focus in 2013 will be on infill drilling between the 48 and 55
levels in the high-grade zone to convert resources to reserves and
definition and extension of the NXT zone above and to the west of the
54 level, with the objective of identifying the up plunge extents.
Construction is progressing on an exploration drift at the 47 level
with expected completion by the end of the first quarter in 2013 that
will provide a platform to increase NXT zone drill density for
conversion of resources to reserves. Additional exploration work in
the high-grade zone will focus on a newly discovered structure at the
bottom of the 4699 ramp.
At Penasquito, proven and probable gold reserves decreased to 15.7
million ounces, consistent with normal depletion of the deposit.
Exploration is now focused on testing deep mantos and skarn-type
mineralization related with copper mineralization, beneath and adjacent
to the current open-pit workings. Preliminary results show that the
sulphide horizons contain copper, lead, zinc, gold and silver.
At Marigold, exploration activity for 2012 focused on development
drilling in the GAP and central part of Mackay pit, Herco, and Red Dot
areas, where positive results have increased proven and probable
reserves to 3.3 million ounces, an increase of 960,000 ounces over 2011
to Goldcorp's share of the proven and probable gold reserve, extending
mine life by an additional five years.
Record quarterly production drives strong revenues
Gold sales in the fourth quarter were 645,100 ounces on production of
700,400 ounces. This compares with sales of 685,000 ounces on production of 687,900 ounces in the fourth quarter of 2011.
Reported net earnings in the quarter were $504-million compared with $405-million in the fourth quarter of 2011. Adjusted
net earnings in the fourth quarter totalled $465-million, or 57 cents per
share, compared with $531-million or 66 cents per share, in the fourth
quarter of 2011. Adjusted net earnings in 2012 exclude the effect of a
non-cash foreign exchange loss on translation of deferred income tax
assets and liabilities, a non-cash provision related to the revision in
estimates on the reclamation and closure costs for the company's
inactive and closed mine sites, net impairment charges and gains on
disposition related to certain of its equity investments, and
unrealized gains on derivative instruments, but include the impact of
non-cash stock option expenses, which amounted to approximately $10-million or one cent per share for the quarter. Operating cash flows
before changes in working capital totalled $721-million compared with $831-million in last year's fourth quarter.
Beginning in 2013, Goldcorp is adopting an all-in sustaining cash cost
measure that the company believes more fully defines the total costs
associated with producing gold. All-in sustaining cash costs include
byproduct cash costs, sustaining capital, corporate general and administrative expenses, exploration expense, and reclamation cost
accretion. As the measure seeks to reflect the full cost of gold
production from current operations, new project capital is not included
in the calculation. A full reporting of cash activities will continue
to be available in the company's financial statements, and Goldcorp will
continue to report cash costs on a byproduct and co-product basis in
addition to all-in sustaining cash costs. For the fourth quarter 2012,
all-in sustaining cash costs were $910 per ounce. Total cash costs were
$360 per ounce on a byproduct basis and $621 per ounce on a co-product
basis.
For the 12 months ended Dec. 31, 2012, revenues totalled $5.4-billion. Net earnings for 2012 were $1.7-billion, or $2.16 per share,
compared with net earnings of $1.9-billion, or $2.34 per share, in 2011.
Adjusted net earnings totalled $1.6-billion, or $2.03 per share,
compared with $1.8-billion, or $2.22 per share, in 2011. Cash flow from
operations before changes in working capital totalled $2.4-billion
compared with $2.7-billion in the 12 months ended Dec. 31, 2011.
For 2012, all-in sustaining cash costs were $874 per ounce. Total cash
costs were $300 per ounce on a byproduct basis and $638 per ounce on a
co-product basis.
Mexico
At Penasquito, throughput averaged 98,800 tonnes per day during the
fourth quarter resulting in gold production of 112,900 ounces. Gold
production decreased from the third quarter as mining commenced in a
lower-grade portion of the pit. Strong byproduct silver, lead and
zinc credits contributed to byproduct cash costs during the quarter of
$17 per ounce of gold and negative $457 per ounce of gold for the year.
Grades continue to reconcile well with reserves. Following the first
quarter, Penasquito grades are expected to increase significantly
throughout the year. Mill throughput in 2013 is forecast at 105,000
tonnes per day as the company continues to bring additional water wells
into production within the Cedros basin in addition to new dewatering
wells within the Chile Colorado pit. A water and tailings study is
expected to be completed in the first half of 2013 to develop a
comprehensive long-term water strategy for the Penasquito district.
Full-year 2013 gold production is expected to be between 360,000 to
400,000 ounces.
Gold production at Los Filos increased 16 per cent over the prior quarter to
92,800 ounces and contributed to a record year of gold production of
340,400 ounces. The construction of the next expansion phase of Los Filos heap leach pad facility began during the fourth quarter of
2012 and is expected to be completed in the second quarter of 2013.
Gold production during 2013 is expected to be between 340,000 to
350,000 ounces. During 2013, the company will investigate the potential
for an expansion at Los Filos.
Canada
Gold production at Red Lake increased 39 per cent from the prior quarter to
168,300 ounces at a total cash cost of $403 per ounce. Following the
completion of the destressing program in the third quarter, increased
flexibility in the high-grade zone was achieved, which increased the
number of high-grade mine headings available. For 2012, gold
production totalled 507,700 ounces at total cash costs of $494 per
ounce. Production in 2013 is expected between 475,000 to 510,000
ounces. One destress slot is planned for late 2013 at the 46/47
level.
At Porcupine in Ontario, higher grade and higher tonnage from increased
mill utilization led to fourth quarter gold production of 74,100 ounces
at a total cash cost of $750 per ounce. For 2012, gold production
totalled 262,800 ounces at a total cash cost of $772 per ounce. The
Hoyle Pond Deep project continued to progress, which will access deeper
discovered zones of gold mineralization and enhance operational
flexibility and efficiencies throughout the Hoyle Pond underground
complex. By the end of 2012, full face shaft sinking had advanced to
within 20 metres of the 720-metre level skip dump excavation. Pending
receipt of permits, the initial production from the Hollinger open-pit
project is expected in the first half of 2013. For 2013, total gold
production at Porcupine is expected at between 270,000 and 280,000
ounces.
Central America
At Pueblo Viejo, Goldcorp's 40-per-cent share of gold production totalled 43,700
ounces for the fourth quarter and 44,700 ounces for the year.
Modifications to one of the four autoclaves were carried out in December,
2012, to implement design improvements and allow for higher
throughputs. These modifications are being made to the remaining three
autoclaves during the first half of 2013. Pueblo Viejo achieved
commercial production in January, 2013. Ramp-up to full capacity is
expected to occur in the second half of 2013 with production forecast
between 330,000 to 435,000 ounces to Goldcorp's account. Forecast
annual average production is expected to be between 415,000 to 450,000
ounces of gold to Goldcorp's account in the first five years of full
production at cash costs of less than $350 per ounce. As part of a longer-term, optimized power solution for Pueblo
Viejo, a plan is under way to build a dual-fuel power plant and is
expected to commence operations in 2013.
Certain members of the Dominican Republic congress, including the
president of the Chamber of Deputies, have expressed a desire to amend
the special lease agreement to accelerate and increase the
benefits that the DR will derive from the Pueblo Viejo mine. The SLA,
which provides for substantial benefits to the DR, including royalties
and taxes, in addition to other benefits such as employment and
purchasing of goods and services, was approved by congress in 2009 and
cannot be unilaterally altered. However, Barrick, as the operator,
while reserving its rights under the SLA, has engaged in a dialogue
with representatives of the government, with a view to achieving a
mutually acceptable outcome. At this time, the outcome of the dialogue
is uncertain, but any amendments to the SLA could impact overall
project economics.
Advancing a high-quality project pipeline
To finance Goldcorp's peer-leading growth pipeline, capital expenditures
for 2013 are forecast at approximately $2.8-billion, of which
approximately 60 per cent is allocated to projects and 40 per cent for operations.
Major project capital expenditures in 2013 include approximately $775-million at Cerro Negro, $650-million at Eleonore, $100-million at
Cochenour and $50-million at Camino Rojo.
Cerro Negro is advancing on schedule toward first gold at the end of
the current year. Engineering, procurement and construction management
activities are steadily progressing with detailed engineering 55 per cent
completed by the end of 2012. Progress on plant construction included
completing the excavations, large concrete pours for building
foundations, base and walls, and installing the anchor bolts. The ball
mill is at site, and all other major imported mechanical equipment has
been secured and is on site or en route. Construction of the tailings
facility commenced with progress ahead of schedule. Construction of
the high-voltage power line is pending receipt of government approvals,
anticipated to be received in early March, 2013.
The Eureka decline, which will access the first ore from Cerro Negro,
has advanced to a length of 2,135 metres of a total planned decline
length of approximately 3,900 metres. The Eureka stockpile contains an
estimated 40,316 tonnes at a grade of 11.08 grams per tonne gold and 204 grams per tonne
silver and is reconciling well with reserve estimates. Excavation
of the ramps into the Mariana Central and Mariana Norte veins are
advancing according to the project development schedule. Production
is expected to average approximately 525,000 ounces of gold in its
first five full years of production.
At the Cochenour project, construction of the five-kilometre
Cochenour-Red Lake haulage drift advanced to 68 per cent of completion at
year-end with expected completion by the end of the first quarter of
2014. Two drills continue to test the exploration potential of this
underexplored area. A study of the overall project was completed in
the fourth quarter of 2012 that concluded that the Bruce Channel orebody is lower than previously expected, necessitating the deepening of
the Cochenour shaft by 245 metres resulting in first gold deferred to
the first half of 2015. Following ramp-up to full production, forecast
life-of-mine gold production is expected to be between 225,000 to
250,000 ounces per year.
At the Eleonore gold project in Quebec, a milestone was reached in the
fourth quarter with the completion of the production shaft hoist room
and head frame facilities, allowing shaft sinking activities to
commence on schedule. The exploration ramp excavation has now reached
over 2,500 metres in length, which corresponds to a vertical depth of
380 metres below surface. During 2013, underground exploration
drilling from the ramp will accelerate, enabling further definition
drilling of the deep portion of the Roberto deposit to proceed.
Currently, four diamond drills are conducting definition and
exploration drilling from working platforms in the ramp. The
exploration shaft is now undergoing conversion from sinking mode to
designed operating mode. Engineering, procurement and construction
management at the end of the 2012 had reached 44-per-cent completion.
Following the completion of work with regard to mine planning and
initial development capital, the project capital estimate has been
confirmed at $1.75-billion based on all available information. Initial
production remains on track for late 2014 with average life-of-mine
gold production once the mine is at full production of approximately
600,000 ounces.
Cyanide code certification
During the fourth quarter, Wharf mine in South Dakota became fully
certified under the international cyanide management code for the
manufacture, transport and use of cyanide in the production of gold, becoming Goldcorp's ninth mine to be certified.
Guidance for 2013
On Jan. 7, Goldcorp announced production and cash cost guidance for the 2013
year. The company has forecast an approximate 10-per-cent increase in gold
production to between 2.55 million and 2.80 million ounces. Total cash costs
are expected to be between $525 to $575 per ounce of gold on a
byproduct basis and between $700 to $750 per ounce of gold on a
co-product basis. All-in cash costs are expected at between $1,000 to
$1,100 per ounce.
This release should be read in conjunction with Goldcorp's 2012
financial statements and management's discussion and analysis report on the company's website, in the investor resources, reports and filings section, under annual
reports.
Complete reserve and resource information for all metals, including
tonnage, grade and accompanying metals price assumptions, can be found
herein and has been posted to the company' website.
GOLD AND SILVER RESERVES AND RESOURCES SUMMARY
(as of Dec. 31, 2012)
Reserves Contained gold (Moz) Contained silver (Moz)
Proven 23.9 599.2
Probable 43.0 561.2
Proven plus probable 67.1 1,160.4
Resources
Measured 4.2 64.2
Indicated 21.7 309.9
Measured and indicated 25.9 374.0
Inferred 25.9 111.3
Complete reserve and resource estimates are found in the attached reserve and resource estimate tables.
PROVEN AND PROBABLE RESERVES (1) (4) (5) AS OF DEC. 31, 2012,
BASED ON ATTRIBUTABLE OUNCES GOLD
Mt Au g/t Moz
Penasquito mill Mexico 1,062.6 0.44 15.17
Pueblo Viejo (40.0%) Dominican Republic 109.94 2.83 10.01
Los Filos Mexico 296.71 0.78 7.43
El Morro (70.0%) Chile 449.51 0.47 6.73
Cerro Negro Argentina 18.91 9.43 5.74
Porcupine Canada 108.78 1.24 4.35
Marigold (66.7%) United States 196.43 0.52 3.28
Red Lake Canada 10.48 9.57 3.23
Eleonore Canada 12.48 7.56 3.03
Musselwhite Canada 11.23 6.34 2.29
Camino Rojo Mexico 66.76 0.76 1.63
Marlin Guatemala 7.44 4.18 1.00
Dee (40.0%) United States 20.42 1.44 0.95
Alumbrera (37.5%) Argentina 81.26 0.36 0.93
Wharf United States 22.12 0.82 0.58
Penasquito heap leach Mexico 119.75 0.13 0.52
El Sauzal Mexico 4.42 1.52 0.22
Total gold 67.08
Silver Mt Ag g/t Moz
Pensquito mill Mexico 1,062.60 25.45 869.52
Pueblo Viejo (40.0%) Dominican Republic 109.94 17.69 62.53
Los Filos Mexico 296.71 5.51 52.54
Cerro Negro Argentina 18.91 81.20 49.36
Marlin Guatemala 7.44 188.56 45.08
Penasquito heap leach Mexico 119.75 10.98 42.28
Camino Rojo Mexico 66.76 14.94 32.07
Dee (40.0%) United States 20.42 7.07 4.64
Wharf United States 22.12 3.34 2.37
Total silver 1,160.40
Copper Mt % Cu Mlb
El Morro (70.0%) Chile 449.51 0.49 4,886
Alumbrera (37.5%) Argentina 81.26 0.36 640
Pueblo Viejo (40.0%) Dominican Republic 109.94 0.10 232
Total copper 5,758
Lead Mt % Pb Mlb
Penasquito mill Mexico 1,062.60 0.25 5,814
Total lead 5,814
Zinc Mt % Zn Mlb
Penasquito mill Mexico 1,062.60 0.60 13,961
Total zinc 13,961
Numbers may not add up due to rounding.
(1) All mineral reserves and mineral resources have been calculated in
accordance with the standards of the Canadian Institute of Mining,
Metallurgy and Petroleum and National Instrument 43-101 or the AusIMM
Joint Ore Reserves Committee equivalent.
(4) Reserves and resources are reported as of Dec. 31, 2012, with the
following conditions or exceptions:
1. Reserves and resources for Pueblo Viejo are as per information
provided by Barrick Gold Corp.
2. Reserves and resources for Dee are as per information provided by
Barrick Gold.
3. Resources for San Nicolas are as per information provided by Teck
Resources Ltd. (2012 study).
(5) Mineral reserves are estimated using appropriate recovery rates
and U.S.-dollar commodity prices of $1,350 per ounce of gold, $24 per
ounce of silver, $3 per pound of copper, 80 cents per pound of lead and
85 cents per pound of zinc, unless otherwise noted:
1. Alumbrera: $1,400 per ounce gold and $3.20 per pound copper;
2. Pueblo Viejo and Dee: $1,500 per ounce gold, $28 per ounce silver
and $3 per pound copper.
MEASURED AND INDICATED RESOURCES (1) (2) (3) (4) (6) AS OF DEC. 31, 2012,
BASED ON ATTRIBUTABLE OUNCES GOLD
Mt Au g/t Moz
Porcupine Canada 169.22 1.18 6.43
Pueblo Viejo (40.0%) Dominican Republic 80.78 2.14 5.57
Penasquito mill Mexico 576.98 0.18 3.41
Red Lake Canada 4.69 15.41 2.32
Los Filos Mexico 71.02 1.03 2.35
Cerro Blanco Guatemala 2.52 15.64 1.27
Noche Buena Mexico 71.75 0.42 0.96
Camino Rojo Mexico 23.14 0.76 0.57
Cerro Negro Argentina 5.12 3.12 0.51
Dee (40.0%) United States 9.90 1.53 0.49
Eleonore Canada 1.36 10.95 0.48
Marigold (66.7%) United States 30.39 0.42 0.42
El Morro (70.0%) Chile 23.20 0.40 0.30
San Nicolas (21.0%) Mexico 19.26 0.46 0.28
Wharf United States 8.60 0.87 0.24
Musselwhite Canada 0.46 5.63 0.08
El Sauzal Mexico 2.15 1.11 0.08
Penasquito heap leach Mexico 25.45 0.07 0.06
Marlin Guatemala 0.46 2.71 0.04
Total gold 25.9
Silver Mt Ag g/t Moz
Penasquito mill Mexico 576.98 13.41 248.72
Camino Rojo Mexico 23.14 14.94 11.11
Noche Buena Mexico 71.75 14.06 32.44
Pueblo Viejo (40.0%) Dominican Republic 80.78 11.93 30.99
San Nicolas (21.0%) Mexico 19.26 26.70 16.53
Los Filos Mexico 71.02 7.00 15.97
Cerro Blanco Guatemala 2.52 72.00 5.83
Cerro Negro Argentina 5.12 22.95 3.78
Penasquito heap leach Mexico 25.45 4.31 3.52
Dee (40.0%) United States 9.90 7.42 2.36
Marlin Guatemala 0.46 102.36 1.50
Wharf United States 8.60 4.62 1.28
Total silver 374.04
Copper Mt % Cu Mlb
San Nicolas (21.0%) Mexico 19.26 1.24 527
El Morro (70.0%) Chile 23.20 0.52 264
Pueblo Viejo (40.0%) Dominican Republic 80.78 0.09 164
Total copper 955
Lead Mt % Pb Mlbs
Penasquito mill Mexico 576.98 0.13 1,700
Camino Rojo Mexico 23.14 0.17 89
Total lead 1,789
Zinc Mt % Zn Mlb
Penasquito mill Mexico 576.98 0.35 4,493
San Nicolas (21.0%) Mexico 19.26 1.68 713
Camino Rojo Mexico 23.14 0.37 189
Total zinc 5,395
Numbers may not add up due to rounding.
(1) All mineral reserves and mineral resources have been calculated in accordance
with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101 or the AusIMM Joint Ore Reserves Committee
equivalent.
(2) All mineral resources are reported exclusive of mineral reserves.
(3) Mineral resources which are not mineral reserves do not have demonstrated
economic viability.
(4) Reserves and resources are reported as of Dec. 31, 2012, with the following
conditions or exceptions:
1. Reserves and resources for Pueblo Viejo are as per information provided by
Barrick Gold Corp.
2. Reserves and resources for Dee are as per information provided by Barrick Gold.
3. Resources for San Nicolas are as per information provided by Teck Resources
Ltd. (2012 study).
(6) Mineral resources are estimated using U.S.-dollar commodity prices of $1,500
per ounce of gold, $27 per ounce of silver, $3.50 per pound of copper, 95 cents
per pound of lead and 95 cents per pound of zinc, unless otherwise noted:
1. Pueblo Viejo and Dee: $1,650 per ounce gold, $30 per ounce silver and $3.50
per pound copper;
2. San Nicolas: $1,000 per ounce gold, $16 per ounce silver, $2.70 per pound
copper and $1 per pound zinc.
INFERRED RESOURCES (1) (2) (3) (4) (6) AS OF DEC. 31, 2012,
BASED ON ATTRIBUTABLE OUNCES GOLD
Mt Au g/t Moz
Los Filos Mexico 236.18 0.84 6.49
El Morro (70.0%) Chile 472.19 0.25 3.85
Eleonore Canada 12.25 10.60 4.17
Cochenour Canada 9.05 11.18 3.25
Red Lake Canada 3.19 16.11 1.65
Porcupine Canada 18.85 1.95 1.18
Musselwhite Canada 4.99 5.72 0.92
Penasquito mill Mexico 126.63 0.20 0.83
Cerro Negro Argentina 5.32 4.81 0.82
Marigold (66.7%) United States 54.17 0.43 0.74
Cerro Blanco Guatemala 1.35 15.31 0.67
Pueblo Viejo (40.0%) Dominican Republic 6.57 2.18 0.46
Penasquito heap leach Mexico 50.66 0.17 0.28
Dee (40.0%) United States 17.01 0.51 0.28
Noche Buena Mexico 17.67 0.42 0.24
Marlin Guatemala 0.44 4.51 0.06
San Nicolas (21.0%) Mexico 2.28 0.26 0.02
Camino Rojo Mexico 0.64 0.27 0.01
El Sauzal Mexico 0.04 1.35 0.00
Total gold 25.93
Silver Mt Ag g/t Moz
Los Filos Mexico 239.18 6.04 46.47
Penasquito mill Mexico 126.63 9.13 37.17
Noche Buena Mexico 17.67 13.92 7.91
Cerro Negro Argentina 5.32 34.35 5.87
Pueblo Viejo (40.0%) Dominican Republic 6.57 14.32 3.02
Marlin Guatemala 0.44 210.78 3.01
Penasquito heap leach Mexico 50.66 1.61 2.62
Cerro Blanco Guatemala 1.35 59.60 2.59
Dee (40.0%) United States 17.01 2.38 1.30
San Nicolas (21.0%) Mexico 2.28 17.40 1.27
Camino Rojo Mexico 0.64 4.53 0.09
Total silver 111.33
Copper Mt % Cu Mlb
El Morro (70.0%) Chile 472.19 0.35 3,689
San Nicolas (21.0%) Mexico 2.28 1.24 62
Pueblo Viejo (40.0%) Dominican Republic 6.57 0.07 11
Total copper 3,762
Lead Mt % Pb Mlb
Penasquito mill Mexico 126.63 0.14 382
Camino Rojo Mexico 0.64 0.08 1
Total lead 384
Zinc Mt % Zn Mlb
Penasquito mill Mexico 126.63 0.26 736
San Nicolas (21.0%) Mexico 2.28 0.97 49
Camino Rojo Mexico 0.64 0.25 4
Total zinc 788
Numbers may not add up due to rounding.
(1) All mineral reserves and mineral resources have been calculated in accordance
with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101 or the AusIMM Joint Ore Reserves Committee
equivalent.
(2) All mineral resources are reported exclusive of mineral reserves.
(3) Mineral resources which are not mineral reserves do not have demonstrated
economic viability.
(4) Reserves and resources are reported as of Dec. 31, 2012, with the following
conditions or exceptions:
1. Reserves and resources for Pueblo Viejo are as per information provided by
Barrick Gold Corp.
2. Reserves and resources for Dee are as per information provided by Barrick Gold.
3. Resources for San Nicolas are as per information provided by Teck Resources
Ltd. (2012 study).
(6) Mineral resources are estimated using U.S.-dollar commodity prices of $1,500
per ounce of gold, $27 per ounce of silver, $3.50 per pound of copper, 95 cents
per pound of lead and 95 cents per pound of zinc, unless otherwise noted:
1. Pueblo Viejo and Dee: $1,650 per ounce gold, $30 per ounce silver and $3.50
per pound copper;
2. San Nicolas: $1,000 per ounce gold, $16 per ounce silver, $2.70 per pound
copper and $1 per pound zinc.
Scientific and technical information contained in this press release was
reviewed and approved by Maryse Belanger, PGeo, senior
vice-president, technical services, for Goldcorp, and a qualified
person as defined by National Instrument 43-101 (standards of disclosure for mineral projects).
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 is contained in the current NI
43-101 technical reports listed herein:
- "Red Lake gold operation, Ontario, Canada, NI 43-101 technical report" dated March 14, 2011, as amended March 30, 2011;
- "Goldcorp Inc., Penasquito polymetallic project, Zacatecas state, Mexico, NI 43-101 technical report" dated March 21, 2011;
- "Pueblo Viejo gold project, Dominican Republic technical report" dated March 29, 2011;
- "Cerro Negro gold project, Santa Cruz province, Argentina, NI 43-101 technical report on updated feasibility study" dated April 5, 2011;
- "Eleonore gold project, Quebec, Canada, NI 43-101 technical report" dated Jan. 26, 2011.
The company will be filing a technical report in respect of its Los
Filos mine within 45 days of the date of this press release.
Information on mineral resource and mineral reserve effective dates,
and key assumptions, limits, and methods used to estimate the
mineral resources and mineral reserves with respect to the company's
material mineral properties contained in this press release is included in the technical reports, except as otherwise noted in
this press release.
A conference call will be held on Feb. 15, 2013, at 10 a.m. (PDT)
to discuss the fourth quarter and 2012 results. Participants may join
the call by dialling toll-free 1-800-355-4959 or 1-416-695-6617 for
calls from outside Canada and the United States. A recorded playback of the call
can be accessed after the event until March 17, 2013, by dialling
1-800-408-3053 or 1-905-694-9451 for calls outside Canada and the U.S.
Passcode is 5331726. A live and archived audio webcast will also be
available at the company's website.
For 2013, the company is adopting an all-in sustaining cash cost non-generally accepted accounting principles performance measure that the company believes more fully defines the total costs associated with producing gold. All-in sustaining cash costs include byproduct cash costs, sustaining capital, corporate general and administrative expenses, exploration expense, and reclamation cost accretion. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The company reports this measure on a sales basis.
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions of U.S. dollars, except for per-share amounts)
Three months ended Dec. 31, Twelve months ended Dec. 31,
2012 2011 2012 2011
Revenues $ 1,435 $ 1,515 $ 5,435 $ 5,362
Mine operating costs
Production costs (667) (619) (2,337) (2,042)
Depreciation and depletion (175) (189) (675) (694)
Total (842) (808) (3,012) (2,736)
Earnings from mine operations 593 707 2,423 2,626
Exploration and evaluation costs (3) (19) (55) (61)
Share of net (losses) earnings of associates (16) (86) 47 (98)
Corporate administration (57) (57) (245) (229)
Earnings from operations and associates 517 545 2,170 2,238
Gains (losses) on disposition of securities, net 3 (1) 4 319
Impairment of available-for-sale securities (3) (87) (71) (87)
Gains on derivatives, net 126 87 155 82
Gains on dispositions of mining interests, net 12 -- 12 --
Finance costs (6) (7) (30) (23)
Other income 4 17 12 38
Earnings before taxes 653 554 2,252 2,567
Income taxes (149) (149) (503) (686)
Net earnings attributable to shareholders of
Goldcorp $ 504 $ 405 $ 1,749 $ 1,881
Net earnings per share
Basic $ 0.62 $ 0.50 $ 2.16 $ 2.34
Diluted 0.47 0.39 1.95 2.18
We seek Safe Harbor.