GOLDCORP ACHIEVES RECORD CASH FLOW; EARNINGS
MORE THAN DOUBLE
VANCOUVER, BRITISH
COLUMBIA, February 24, 2011 � GOLDCORP INC. (TSX: G, NYSE: GG) today
reported fourth quarter gold production of 689,600 ounces at a total cash cost1
of $164 per ounce, leading to record operating cash flows before working
capital changes2 of $646.1 million. Reported net earnings in
the quarter were $331.8 million compared to $66.7million in the fourth quarter
of 2009. Adjusted net earnings3 were $417.1 million, or $0.57 per share,
compared to $182.7 million, or $0.25 per share, in the fourth quarter of 2009.
Fourth Quarter 2010 Highlights
- Revenues
increased 70% over the 2009 fourth quarter, to $1,319.4 million, on gold
sales of 678,600 ounces.
- Total
cash costs decreased to $164 per ounce on a by-product basis. Co-product
cash costs totaled
$461 per ounce.
- Operating
cash flows before working capital changes totaled $646.1 million or $0.87
per share.
- Dividends
paid amounted to $55.2million.
Full-Year 2010 Highlights
- Revenues
increased 40% over 2009, to $3.8 billion on gold sales of 2.4
millionounces.
- Total
cash costs were $274 per ounce on a by-product basis and $443 per ounce on
a co-product basis.
- Operating
cash flows before working capital changes totaled $1.7billion or $2.33 per
share.
- Dividends
paid amounted to $154.4million. Dividend doubled in October to $0.36
per share, additional increase announced today brings annual dividend to
$0.408 per share.
- Six
transactions completed to upgrade quality of asset portfolio.
- Gold
reserves increased 23% and 13% on a per share basis, the Company�s seventh
consecutive annual increase.
�Goldcorp�s record
performance in 2010 reflects the consistent ability of our mine portfolio to
deliver growing production amid a continued strong market for gold,� said Chuck
Jeannes, Goldcorp President and Chief Executive Officer. �Another
excellent performance from Red Lake in Ontario was the key component of our
record gold production while Pe�asquito�s rapidly growing metals production in
Mexico anchored very low cash costs of $274 per ounce for the year and just
$164 per ounce in the fourth quarter. With gold production forecast to
grow 60% over the next five years at very low cash costs, Goldcorp is ideally
positioned to accelerate cash flow and earnings in 2011 and over the next
several years.
�Our strategy remains
focused not only on growing gold production, but also enhancing the overall
quality of our gold ounces, both in production and in the ground. To that
end, we completed six transactions in 2010 that have dramatically upgraded the
overall strength of our gold asset base. Among the acquisitions, an
updated feasibility study at Cerro Negro in Argentina is analyzing a throughput
increase to 4,000 tonnes per day based on a recently announced near-doubling of
gold resources in 2010 and outstanding potential for continued exploration
success. The El Morro gold-copper project in Chile adds to Goldcorp�s
growing South American presence and fortifies our production profile beyond
2015 while Camino Rojo in Mexico presents great potential for substantial
supplemental production in the Pe�asquito district. The divestitures of non-core
assets Escobal, San Dimas and our investment in Terrane Metals have simplified
our asset portfolio while adding over $1.2 billion in cash and marketable
securities to help internally fund our growth profile.
�With the components of our
five-year growth profile in place, our focus in 2011 will be on continued
execution at producing mines and advancing our suite of high quality gold
projects. Construction of the Pueblo Viejo project in the Dominican
Republic is progressing toward completion ahead of a planned production ramp-up
in 2012, followed by initial production from Cerro Negro in 2013. We are
pleased to announce today updated production details for the Cochenour and
�l�onore projects that demonstrate their growing potential as linchpins of our
Canadian gold production.
�We expect a strong
precious metals market to remain in 2011 and beyond, driven by central bank
buying, growing physical demand in developing economies around the globe and
gold�s continued re-emergence as an essential asset class for investment
portfolios. Goldcorp�s strong, low-cost gold production from safe
jurisdictions, combined with our investment grade balance sheet positions the
Company to thrive in any metals price environment and continues to present a
compelling value proposition for investors seeking gold exposure.�
Financial Review
Gold sales in the fourth
quarter were 678,600 ounces on production of 689,600 ounces. This
compares to sales of 573,100 ounces on production of 601,300 ounces in the
fourth quarter of 2009. Increased production was driven by a strong
performance at Red Lake, the first full quarter of commercial production at
Pe�asquito and record quarterly production from Musselwhite in Ontario, Marlin
in Guatemala and Los Filos in Mexico. Low cash costs at Red Lake
and higher by-product credit sales from Pe�asquito, Marlin and Alumbrera
contributed to very low total cash costs of $164 per ounce of gold on a
by-product basis. On a co-product basis, cash costs were $461 per ounce,
an increase of $39 per ounce due primarily to new Pe�asquito concentrate
production in the fourth quarter of 2010, the inclusion of the export retention
tax, and higher YMAD net proceeds payments paid at Alumbrera.
Reported net earnings in
the quarter were $331.8 million compared to $66.7million in the fourth quarter
of 2009. Adjusted net earnings in the fourth quarter totaled $417.1 million, or
$0.57 per share, compared to $182.7 million or $0.25 per share, in the fourth
quarter of 2009. Adjusted net earnings primarily exclude the effect of a
non-cash foreign exchange loss on translation of future income tax liabilities
and the net gain on dispositions of mining interests, and the loss on the term
silver sales contract but include the impact of non-cash stock option expenses,
which amounted to approximately $19.6 million or $0.03 per share for the
quarter. Operating cash flows before changes in working capital were a
record $646.1 million compared to $308.6million in last year�s fourth
quarter. Gold margin was a record $1,214 per ounce of gold sold.
For the twelve months ended
December 31, 2010, revenues increased by 40% to $3.8 billion. Total cash
costs year to date were $274 per ounce on a by-product basis and $443 per ounce
on a co-product basis.
Net earnings in the twelve
months ended December 31, 2010 were a record $1.6 billion or $2.14per share,
compared to net earnings of $240.2 million or $0.33 per share in the same
period in 2009. Adjusted net earnings totaled $1.0 billion, or $1.37per
share, compared to $588.2 million or $0.80 per share, in 2009. Cash flow
from operations before changes in working capital increased 45% to $1.7 billion
from $1.2 billion in the twelve months ended December 31, 2009.
To read the complete news
release with tabbled results, please see the link below:
http://goldcorp.com/_resources/news/Q4_2010_Earnings_Combined.pdf