TSX:
G NYSE:
GG
(All amounts in US$ unless stated otherwise)
VANCOUVER, April 27, 2016 /CNW/ - GOLDCORP INC.
(TSX: G, NYSE: GG) today reported its first quarter 2016
results. Adjusted operating cash flows1,2
were $330 million, compared to
adjusted operating cash flows of $366
million, in the first quarter of 2015. The decrease in
adjusted operating cash flows were primarily attributable to lower
cash flow from Alumbrera and Pueblo Viejo. Net
earnings for the quarter were $80
million, or $0.10 per share,
compared to a net loss of $87
million, or $0.11 per share,
in the first quarter of 2015.
First Quarter 2016 Highlights
- Solid first quarter production. Production of
783,700 ounces at all-in sustaining costs1,4 ("AISC") of
$836 per ounce.
- Reconfirmed 2016 guidance. Gold production is
expected to be between 2.8 and 3.1 million ounces with total cash
costs1,5 between $500 and
$575 per ounce on a by-product basis, and AISC between
$850 and $925 per ounce.
- Advancing organic pipeline. Hoyle Pond Deep
project completed in early April; Peñasquito Pyrite Leach and
Musselwhite Materials Handling projects on track for investment
decisions around the middle of the year.
- Further efficiency efforts underway. Over the next two
years, targeting $250 million per
year in mine site and corporate efficiencies through the initiative
to decentralize the organization, drive ownership and
accountability down to the individual mine sites and maximize the
net asset value of the existing business.
"We delivered a solid first quarter of production at low all-in
sustaining costs," said David
Garofalo, President and CEO. "Éléonore and Cerro Negro
continued their ramp-up with underground mine development advancing
well at both assets. With a focus on NAV per share accretion,
we plan to drive further productivity improvements at current
operations and to leverage our existing mining camps by advancing
low capital intensity, high rate of return internal growth
opportunities."
FINANCIAL RESULTS REVIEW
(millions except
where noted)
|
Three Months ended
March 31
|
2016
|
2015
|
Gold
production1 (ounces)
|
783,700
|
724,800
|
Gold
sales1 (ounces)
|
799,400
|
827,500
|
Adjusted operating
cash flows1,2
|
$330
|
$366
|
Free cash
flow1,3
|
($101)
|
($321)
|
Net earnings
(loss)
|
$80
|
($87)
|
Net earnings (loss)
per share
|
$0.10
|
($0.11)
|
AISC1,4 (per ounce)
|
$836
|
$885
|
By-product cash
costs1,5 (per ounce)
|
$557
|
$585
|
Net earnings of $80 million, or
$0.10 per share, in the first quarter
of 2016 were affected by the following non-cash or non-recurring
items that are not reflective of the performance of the underlying
operations:
(millions except where
noted)
|
Pre-tax
|
After-tax
|
Per share
($/share)
|
Positive deferred tax
effects of foreign
exchange on tax assets and liabilities
and losses
|
$-
|
($40)
|
($0.05)
|
Unrealized foreign
exchange loss on
Argentine peso denominated Value
Added Tax receivable from construction
|
$17
|
$17
|
$0.02
|
Restructuring
costs
|
$23
|
$16
|
$0.02
|
AISC for the first quarter of 2016 were $836 per ounce, compared to $885 per ounce in the first quarter of
2015. The lower AISC was primarily a result of lower
production costs from favorable foreign exchange impacts at the
Canadian, Mexican and Argentine operations. Total cash costs
on a by-product basis for the first quarter of 2016 were
$557 per ounce compared to
$585 per ounce for the first quarter
of 2015.
LIQUIDITY REVIEW
While the Company generated negative free cash flow of
$101 million in the first quarter of
2016, compared to negative $321
million in 2015, we are expected to be substantially free
cash flow positive for 2016. Similar to 2015, first quarter
free cash flow was impacted by a working capital increase, which is
expected to reverse over the balance of the year. The
improvement in the first quarter of 2016 as compared to 2015 was
due to lower capital expenditures with the completion of the
construction of Éléonore and Cerro Negro mines.
As of March 31, 2016, the Company
had total liquidity of approximately $3.2
billion, including $0.5
billion in cash, cash equivalents and money market
investments and $2.7 billion in
available credit lines. The drawdown on the revolving credit
facility was as a result of timing of working capital changes for
Mexican tax payments and receipt of metal concentrate sale
proceeds.
OPERATIONS REVIEW
The Company today reconfirmed 2016 production guidance between
2.8 and 3.1 million ounces despite expected lower second quarter
production of approximately 15% compared to the first quarter.
During the second quarter, gold production will be negatively
impacted by planned lower grade mining sequences in most mines and
a 10-day mill shutdown for preventative maintenance at
Peñasquito.
The Company is also on track to meet its operating and capital
cost guidance. AISC is expected to be between $850 to $925 per ounce, higher costs are expected
in the second quarter compared to the first quarter as a result of
higher sustaining capital and lower gold production. The third and
fourth quarter will see AISC normalize as compared to the second
quarter as a result of increasing gold production.
Growth capital during 2016 is expected to be approximately
$100 million to advance the organic
growth projects through their various study phases.
2016 Guidance
|
Guidance
|
Gold production
(million ounces)
|
2.8 to 3.1
|
AISC (per gold
ounce)
|
$850 to
$925
|
By-product cash costs
(per gold ounce)
|
$500 to
$575
|
Sustaining capital
expenditures (millions)
|
$700 to
$800
|
Exploration
expenditures (millions)
|
$135
|
Corporate
administration* (millions)
|
$150
|
Depreciation and
depletion (per gold ounce)
|
$390 to
$420
|
Effective tax
rate6
|
40% to 45%
|
*excludes share based compensation expense of $68 million.
Peñasquito, Mexico
(100%-owned)
First quarter gold production totaled 124,700 ounces at an AISC
of $1,004 per ounce. Production
declined compared to the first quarter of 2015 with mining taking
place in a lower grade portion of the pit. The lower grades
will persist through the year and a 10-day maintenance shutdown is
scheduled in the second quarter. Construction of the Northern
Well Field project continued to progress during the quarter and is
on track to be completed in late-2016.
Cerro Negro, Argentina
(100%-owned)
First quarter gold production totaled 115,400 ounces at an AISC
of $503 per ounce. Increased
production compared to the first quarter of 2015 was a result of
higher grades, recoveries and a reduction of in-circuit
inventory. As ore stockpiles were depleted at the end of
2015, the ramp-up is now focused on the underground development and
mining at Eureka and Mariana Central, with an average mill and mine
throughput of 3,500 tonnes per day expected during 2016.
Exploration during the first quarter was focused on resource
expansion from surface drilling. A life of mine study is underway
that is focused on developing an optimal mine design, development
execution plan and production schedule which yields the best value
for the Cerro Negro operations. The short-term plan is to enable
ore production from Marianas Norte in 2017 to add to the current
production from the Marianas Central and Eureka underground
mines. The study is expected to be completed by the end of
2016.
The new Argentine government has made positive changes since
taking office in December 2015,
including the removal of import restrictions and certain taxes,
which have contributed to improvements in the economics of the
mine.
Pueblo Viejo,
Dominican Republic
(40%-owned)
First quarter gold production totaled 114,300 ounces at an AISC
of $443 per ounce. Production
increased compared to the first quarter of 2015 as a result of
higher plant throughput and grade. The higher plant throughput in
the first quarter of 2016 was due to higher autoclave availability.
Temporary air compressors for the oxygen plant were used during the
quarter to enable full capacity. The repairs to the first two
electric motors has been completed and the third electric motor is
undergoing preventative maintenance and is nearing completion.
Éléonore, Quebec
(100%-owned)
First quarter gold production totaled 66,700 ounces at an AISC
of $965 per ounce. Gold
production increased as a result of the continued ramp-up in mine
development with four horizons compared to two horizons in the
first quarter of 2015. Recovery improvements were the result
of optimization of the sulphide circuit and an average recovery of
91% was achieved in March. Work on the production shaft
continued and is on track to be operational by the end of 2016,
which will increase efficiencies and reduce operating costs.
Red Lake, Ontario
(100%-owned)
First quarter gold production totaled 78,800 ounces at an AISC
of $842 per ounce. Mining
efficiencies and operating costs are improving following the
progress on conversion to bulk mining. However, these
improvements were offset by lower grades due to lower tonnes mined
from the High Grade Zone ("HGZ") as expected, resulting in lower
production compared to the first quarter of 2015. During the
first quarter, exploration focused on infill and expansion drilling
of the HGZ, Upper R Zone and Party Wall area.
Porcupine, Ontario
(100%-owned)
First quarter gold production totaled 74,200 ounces at an AISC
of $837 per
ounce. Production increased over the first quarter of
2015 as a result of higher tonnage processed and the draw down of
in-circuit inventory. The Hoyle Deep project, which is
an internal winze in the Hoyle Pond operation, focused on
commissioning of the new hoist, shaft and material handling
systems. Full commissioning and hand over to the operations
team was completed in April 2016. This project is expected to
contribute to significant efficiency and productivity improvements
in the movement of materials and people at the Hoyle Pond
underground operation.
Musselwhite, Ontario
(100%-owned)
First quarter gold production totaled 67,700 gold ounces at an
AISC of $553 per ounce. Gold
production increased compared to the first quarter of 2015 as a
result of higher grades and higher mill throughput. Mill
throughput increased from improvements in mine sequencing which
resulted in an increase in stope availability and tonnes
mined. Higher grades were realized as planned.
Exploration in the first quarter focused on reserve replacement,
resource definition and testing the near surface potential of the
West Limb mineralization.
ORGANIC PROJECT PIPELINE REVIEW
Peñasquito District
The pre-feasibility study for the Pyrite Leach Project ("PLP")
continued to advance during the quarter with a capital cost
estimate of approximately $417
million. This estimate continues to be refined and
following an investment decision mid-year final capital costs,
recoveries and a production schedule will be provided.
If approved, the PLP is expected to be in production in the first
quarter of 2019.
At Camino Rojo (100%-owned), located approximately 50 kilometres
from Peñasquito, the pre-feasibility study on the oxide resource
continues to advance and is on track to be completed by the fourth
quarter of 2016.
Musselwhite Materials Handling
The feasibility study for the Materials Handling System
continued during the quarter and is on track to be completed by
mid-2016. The project will enable hoisting of ore through an
underground winze and associated infrastructure. This will
result in reduced reliance on high-cost truck haulage by shortening
the underground hauling distance, leading to improved energy
efficiency, reduced mining costs, enhanced production profile and
longer mine life.
Borden
The Borden project
(100%-owned), located 160 kilometres west of Porcupine, has the potential to further
enhance the long-term economics of Porcupine. A
pre-feasibility study is underway to determine the optimization of
a combined Borden-Porcupine operation and is expected to be
completed during the first quarter of 2017. An advanced
exploration permit is expected to be received by late 2016.
The permit would allow for the construction of a ramp into the
deposit and the extraction of a 30,000 tonne bulk sample, providing
an underground platform for exploration drilling on a deposit that
still remains open at depth and laterally. Exploration is
focused on discovery of additional resources along strike from the
known Borden deposit and
evaluation of the large regional land package. Drilling is
also testing for high-grade up to one kilometer down-plunge from
the current resource limit.
Red Lake
At the HG Young deposit (100%-owned), a high-grade exploration
discovery near the Red Lake
operation, a concept study is advancing and expected to be
completed in the fourth quarter of 2016. Assuming a positive
business case from the concept study, a pre-feasibility study is
expected to commence in the first half of 2017. Exploration
is continuing to focus on the evaluation of underground development
options for the core area of the high-grade defined to date.
At Cochenour (100%-owned), the
focus during the first quarter was on exploration drilling.
Drilling in the core area of the deposit (3990 foot level)
continues to increase data density and is improving the
understanding of projections and orientations of
mineralization. Exploration development has cross-cut the
mineralization on a sub-level below the 3990L and preparations are
advancing towards development of sills, later in 2016, along the
structure on two levels. A rigorous sampling program is being
devised that will enable reconciliation with the mined material and
validated through the use of a sampling tower.
About Goldcorp
Goldcorp is a global 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 first
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, April 28,
2016
|
Time:
|
10:00 a.m.
(PDT)
|
Webcast:
|
www.goldcorp.com
|
Dial-in:
|
1-800-355-4959
(toll-free) or 1-416-340-2216 (outside Canada and the
US)
|
Replay:
|
1-800-408-3053
(toll-free) or 1-905-694-9451 (outside Canada and the
US)
|
Passcode:
|
5644646
|
The conference call
replay will be archived on the website until May 29,
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
Project Corridor subsequent to the formation of the joint venture
on November 24, 2015. The inclusion of Project Corridor in
the Company's non-GAAP performance measures only impacts the
Company's free cash flow metric at this time as it is a development
stage project.
|
|
|
2.
|
Adjusted operating
cash flows are a non-GAAP performance measure which comprises
Goldcorp's share of operating cash flows before working capital
changes. Refer to page 31 of the Q1 MD&A for a reconciliation
of adjusted operating cash flows to reported net cash provided by
operating activities.
|
|
|
3.
|
Free cash flows is a
non-GAAP performance measure which the Company believes, in
addition to conventional measures prepared in accordance with GAAP,
the Company and certain investors use to evaluate the Company's
ability to generate cash flows. Refer to page 31 of the Q1 MD&A
for a reconciliation of free cash flows to reported net cash
provided by operating activities.
|
|
|
4.
|
All-in sustaining
cost is a non-GAAP performance measure that the Company believes
more fully defines the total costs associated with producing gold.
Refer to pages 29-30 of the Q1 MD&A for a reconciliation
of all-in sustaining costs.
|
|
|
5.
|
The Company has
included a non-GAAP performance measure - total cash costs:
by-product throughout this document. Refer to
pages 27-28 of the Q1 MD&A for a reconciliation of total
cash costs: by-product to reported production costs.
|
|
|
6.
|
The estimated
effective tax rate is on net income exclusive of share-based
compensation, the effects of foreign currency translation of
deferred tax balances, impacts of foreign exchange fluctuation on
tax losses and deductions and balances and other discrete
events.
|
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking statements", within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, or the United States Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
under the provisions of applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of Goldcorp. Forward-looking statements include, but are
not limited to, statements with respect to the future price of
gold, silver, copper, lead and zinc, the estimation of Mineral
Reserves (as defined above) and Mineral Resources (as defined
above), the realization of Mineral Reserve estimates, the timing
and amount of estimated future production, costs of production,
targeted cost reductions, capital expenditures, free cash flow,
costs and timing of the development of new deposits, success of
exploration activities, permitting time lines, hedging practices,
currency exchange rate fluctuations, requirements for additional
capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, timing and possible
outcome of pending litigation, title disputes or claims and
limitations on insurance coverage. Generally, these
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will", "occur" or "be achieved" or the negative connotation
thereof.
Forward-looking statements are necessarily based upon a number
of factors that, if untrue, could cause the actual results,
performances or achievements of Goldcorp to be materially different
from future results, performances or achievements expressed or
implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Goldcorp will operate in
the future, including the price of gold and other by-product
metals, anticipated costs and ability to achieve goals. Certain
important factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, among others, gold and other by-product metals
price volatility, discrepancies between actual and estimated
production, mineral reserves and mineral resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), changes in national and
local government legislation, taxation, controls or regulations
and/or change in the administration of laws, policies and
practices, expropriation or nationalization of property and
political or economic developments in Canada, the United
States and other jurisdictions in which the Company does or
may carry on business in the future, delays, suspension and
technical challenges associated with capital projects, higher
prices for fuel, steel, power, labour and other consumables,
currency fluctuations, the speculative nature of gold exploration,
the global economic climate, dilution, share price volatility,
competition, loss of key employees, additional funding requirements
and defective title to mineral claims or property. Although
Goldcorp believes its expectations are based upon reasonable
assumptions and has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
Goldcorp to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to:
risks related to international operations including economic and
political instability in foreign jurisdictions in which Goldcorp
operates; risks related to current global financial conditions;
risks related to joint venture operations; actual results of
current exploration activities; actual results of current
reclamation activities; environmental risks; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; future prices of gold and other by-product
metals; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; risks related to the integration of acquisitions;
accidents, labour disputes; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities and other risks of the mining industry, as
well as those factors discussed in the section entitled
"Description of the Business – Risk Factors" in Goldcorp's most
recent annual information form available on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov. Although Goldcorp has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Forward-looking statements
are made as of the date hereof and, accordingly, are subject to
change after such date. Except as otherwise indicated by Goldcorp,
these statements do not reflect the potential impact of any
non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations
or other transactions that may be announced or that may occur after
the date hereof. Forward-looking statements are provided for the
purpose of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of the Company's operating environment.
Goldcorp does not intend or undertake to publicly update any
forward-looking statements that are included in this document,
whether as a result of new information, future events or otherwise,
except in accordance with applicable securities laws.
SUMMARIZED RESULTS AND FINANCIAL STATEMENTS
FOLLOW
SUMMARIZED
FINANCIAL RESULTS
|
(in millions of
United States dollars, except per share amounts and where
noted)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
Goldcorp's
share (1)
|
|
|
2016
|
|
2015
|
Revenues
|
|
|
1,156
|
|
1,270
|
Gold produced
(thousands of ounces)
|
|
|
784
|
|
725
|
Gold sold
(thousands of ounces)
|
|
|
799
|
|
827
|
Silver
produced (thousands of ounces)
|
|
|
7,700
|
|
8,500
|
Silver sold
(thousands of ounces)
|
|
|
7,900
|
|
10,500
|
Copper
produced (thousands of pounds)
|
|
|
17,200
|
|
9,200
|
Copper sold
(thousands of pounds)
|
|
|
19,100
|
|
15,000
|
Lead produced
(thousands of pounds)
|
|
|
29,000
|
|
36,700
|
Lead sold
(thousands of pounds)
|
|
|
30,200
|
|
39,500
|
Zinc produced
(thousands of pounds)
|
|
|
71,100
|
|
82,500
|
Zinc sold
(thousands of pounds)
|
|
|
73,100
|
|
82,600
|
Average realized
gold price (per ounce)
|
|
$
|
1,203
|
$
|
1,217
|
Average London
spot gold price (per ounce)
|
|
$
|
1,181
|
$
|
1,219
|
Average realized
silver price (per ounce)
|
|
$
|
13.61
|
$
|
15.30
|
Average London
spot silver price (per ounce)
|
|
$
|
14.83
|
$
|
16.72
|
Average realized
copper price (per pound)
|
|
$
|
2.11
|
$
|
2.45
|
Average London
spot copper price (per pound)
|
|
$
|
2.12
|
$
|
2.64
|
Average realized
lead price (per pound)
|
|
$
|
0.77
|
$
|
0.81
|
Average London
spot lead price (per pound)
|
|
$
|
0.79
|
$
|
0.82
|
Average realized
zinc price (per pound)
|
|
$
|
0.79
|
$
|
0.91
|
Average London
spot zinc price (per pound)
|
|
$
|
0.76
|
$
|
0.94
|
Total cash costs –
by-product (per gold ounce)
|
|
$
|
557
|
$
|
585
|
Total cash costs –
co-product (per gold ounce)
|
|
$
|
604
|
$
|
670
|
All-in sustaining
costs (per gold ounce)
|
|
$
|
836
|
$
|
885
|
All-in costs
(per gold ounce)
|
|
$
|
891
|
$
|
1,210
|
Production
Data:
|
|
|
|
|
|
|
Peñasquito:
|
Tonnes of ore mined
(thousands)
|
|
|
10,867
|
|
10,011
|
|
Tonnes of waste
removed (thousands)
|
|
|
35,152
|
|
33,057
|
|
Tonnes of ore milled
(thousands)
|
|
|
9,233
|
|
9,532
|
|
Average head grade
(grams per tonne) – gold
|
|
|
0.68
|
|
0.81
|
|
Average head grade
(grams per tonne) – silver
|
|
|
22.53
|
|
24.65
|
|
Average head grade
(%) – lead
|
|
|
0.22
|
|
0.27
|
|
Average head grade
(%) – zinc
|
|
|
0.53
|
|
0.61
|
|
Gold produced
(thousands of ounces)
|
|
|
125
|
|
156
|
|
Silver produced
(thousands of ounces)
|
|
|
4,714
|
|
5,095
|
|
Lead produced
(thousands of pounds)
|
|
|
29,000
|
|
36,700
|
|
Zinc produced
(thousands of pounds)
|
|
|
71,100
|
|
82,500
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
513
|
$
|
457
|
|
Total cash costs –
co-product (per ounce of gold)
|
|
$
|
707
|
$
|
681
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
1,004
|
$
|
702
|
Cerro
Negro:
|
Tonnes of ore milled
(thousands)
|
|
|
277
|
|
281
|
|
Average mill head
grade (grams per tonne) – gold
|
|
|
12.59
|
|
11.64
|
|
Average mill head
grade (grams per tonne) – silver
|
|
|
135.30
|
|
207.40
|
|
Gold produced
(thousands of ounces)
|
|
|
115
|
|
93
|
|
Silver produced
(thousands of ounces)
|
|
|
1,156
|
|
1,501
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
381
|
$
|
603
|
|
Total cash costs –
co-product (per ounce)
|
|
$
|
464
|
$
|
691
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
503
|
$
|
704
|
Pueblo Viejo (40%
share):
|
Tonnes of ore mined
(thousands)
|
|
|
2,096
|
|
705
|
|
Tonnes of waste
removed (thousands)
|
|
|
2,117
|
|
2,324
|
|
Tonnes of ore
processed (thousands)
|
|
|
764
|
|
744
|
|
Average grade (grams
per tonne) – gold
|
|
|
5.34
|
|
4.30
|
|
Average grade (grams
per tonne) – silver
|
|
|
21.9
|
|
31.5
|
|
Gold produced
(thousands of ounces)
|
|
|
114
|
|
90
|
|
Silver produced
(thousands of ounces)
|
|
|
256
|
|
194
|
|
Copper produced
(thousands of pounds)
|
|
|
600
|
|
—
|
|
Total cash costs –
by-product (per gold ounce)
|
|
$
|
359
|
$
|
465
|
|
Total cash costs –
co-product (per gold ounce)
|
|
$
|
386
|
$
|
498
|
|
All-in sustaining
costs (per gold ounce)
|
|
$
|
443
|
$
|
573
|
Red Lake:
|
Tonnes of ore milled
(thousands)
|
|
|
162
|
|
134
|
|
Average mill head
grade (grams per tonne)
|
|
|
16.27
|
|
26.04
|
|
Gold produced
(thousands of ounces)
|
|
|
79
|
|
107
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
546
|
$
|
494
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
842
|
$
|
799
|
Éléonore:
|
Tonnes of ore milled
(thousands)
|
|
|
387
|
|
265
|
|
Average mill head
grade (grams per tonne)
|
|
|
5.65
|
|
4.63
|
|
Gold produced
(thousands of ounces)
|
|
|
67
|
|
33
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
804
|
$
|
—
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
965
|
$
|
—
|
Porcupine:
|
Tonnes of ore milled
(thousands)
|
|
|
910
|
|
761
|
|
Average mill head
grade (grams per tonne)
|
|
|
2.63
|
|
2.65
|
|
Gold produced
(thousands of ounces)
|
|
|
74
|
|
56
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
624
|
$
|
874
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
837
|
$
|
1,185
|
Musselwhite:
|
Tonnes of ore milled
(thousands)
|
|
|
289
|
|
271
|
|
Average mill head
grade (grams per tonne)
|
|
|
7.65
|
|
6.71
|
|
Gold produced
(thousands of ounces)
|
|
|
68
|
|
57
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
447
|
$
|
759
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
553
|
$
|
956
|
Los Filos:
|
Tonnes of ore mined
(thousands)
|
|
|
3,997
|
|
4,506
|
|
Tonnes of waste
removed (thousands)
|
|
|
5,695
|
|
11,487
|
|
Tonnes of ore
processed (thousands)
|
|
|
3,948
|
|
4,475
|
|
Average grade
processed (grams per tonne)
|
|
|
0.90
|
|
0.58
|
|
Gold produced
(thousands of ounces)
|
|
|
81
|
|
61
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
763
|
$
|
891
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
839
|
$
|
1,164
|
Marlin:
|
Tonnes of ore milled
(thousands)
|
|
|
293
|
|
346
|
|
Average mill head
grade (grams per tonne) – gold
|
|
|
3.84
|
|
4.24
|
|
Average mill head
grade (grams per tonne) – silver
|
|
|
171
|
|
172
|
|
Gold produced
(thousands of ounces)
|
|
|
35
|
|
45
|
|
Silver produced
(thousands of ounces)
|
|
|
1,542
|
|
1,730
|
|
Total cash costs –
by-product (per ounce)
|
|
$
|
728
|
$
|
435
|
|
Total cash costs –
co-product (per ounce)
|
|
$
|
858
|
$
|
685
|
|
All-in sustaining
costs (per ounce)
|
|
$
|
940
|
$
|
1,011
|
Alumbrera (37.5%
share):
|
Tonnes of ore mined
(thousands)
|
|
|
2,937
|
|
3,616
|
|
Tonnes of waste
removed (thousands)
|
|
|
2,773
|
|
3,232
|
|
Tonnes of ore milled
(thousands)
|
|
|
3,192
|
|
3,221
|
|
Average mill head
grade (grams per tonne) – gold
|
|
|
0.35
|
|
0.24
|
|
Average mill head
grade (%) – copper
|
|
|
0.28
|
|
0.19
|
|
Gold produced
(thousands of ounces)
|
|
|
26
|
|
16
|
|
Copper produced
(thousands of pounds)
|
|
|
16,600
|
|
9,200
|
|
Total cash costs –
by-product (per gold ounce)
|
|
$
|
1,036
|
$
|
751
|
|
Total cash costs –
co-product (per gold ounce)
|
|
$
|
876
|
$
|
814
|
|
All-in sustaining
costs (per gold ounce)
|
|
$
|
1,115
|
$
|
971
|
|
|
|
|
|
|
Financial Data
(including discontinued operations):
|
|
|
|
|
|
Cash flows from
operating activities
|
|
$
|
59
|
$
|
58
|
Adjusted operating
cash flows (Goldcorp's share) (2)
|
|
$
|
330
|
$
|
366
|
Free cash
flows
|
|
$
|
(101)
|
$
|
(321)
|
Net earnings
(loss)
|
|
$
|
80
|
$
|
(87)
|
Net earnings (loss)
per share – basic
|
|
$
|
0.10
|
$
|
(0.11)
|
Weighted average
shares outstanding (000's)
|
|
|
830,977
|
|
816,909
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
|
(In millions of
United States dollars, except for per share amounts –
Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
$
|
944
|
$
|
1,017
|
Mine operating
costs
|
|
|
|
|
|
|
|
|
Production
costs
|
|
|
|
|
(528)
|
|
(620)
|
|
Depreciation and
depletion
|
|
|
|
|
(271)
|
|
(322)
|
|
|
|
|
|
(799)
|
|
(942)
|
Earnings from mine
operations
|
|
|
|
|
145
|
|
75
|
Exploration and
evaluation costs
|
|
|
|
|
(10)
|
|
(14)
|
Share of net earnings
of associates and joint venture
|
|
|
|
|
36
|
|
35
|
Corporate
administration
|
|
|
|
|
(57)
|
|
(55)
|
Restructuring
costs
|
|
|
|
|
(23)
|
|
—
|
Earnings from
operations, associates and joint venture
|
|
|
|
|
91
|
|
41
|
Gain (loss) on
derivatives, net
|
|
|
|
|
1
|
|
(42)
|
Finance
costs
|
|
|
|
|
(34)
|
|
(27)
|
Other (expenses)
income, net
|
|
|
|
|
(18)
|
|
18
|
Earnings (loss)
from continuing operations before taxes
|
|
|
|
|
40
|
|
(10)
|
Income tax recovery
(expense)
|
|
|
|
|
40
|
|
(129)
|
Net earnings
(loss) from continuing operations
|
|
|
|
|
80
|
|
(139)
|
Net earnings from
discontinued operation
|
|
|
|
|
—
|
|
52
|
Net earnings
(loss)
|
|
|
|
$
|
80
|
$
|
(87)
|
Net earnings
(loss) per share from continuing operations
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.10
|
$
|
(0.17)
|
|
Diluted
|
|
|
|
|
0.10
|
|
(0.17)
|
Net earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.10
|
$
|
(0.11)
|
|
Diluted
|
|
|
|
|
0.10
|
|
(0.11)
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
(In millions of
United States dollars – Unaudited)
|
|
|
|
Three Months Ended
March 31
|
|
|
2016
|
|
2015
|
Net earnings
(loss)
|
$
|
80
|
$
|
(87)
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings (loss):
|
|
|
|
|
|
Unrealized gains on
available-for-sale securities
|
|
19
|
|
1
|
|
Reclassification
adjustment for impairment losses on available-for-sale
|
|
|
|
|
|
|
securities recognized
in net loss
|
|
—
|
|
3
|
|
Reclassification
adjustment for realized gains on disposition of
available-
|
|
|
|
|
|
|
for-sale securities
recognized in net earnings (loss)
|
|
(4)
|
|
(1)
|
|
Reclassification of
cumulative unrealized gains on shares of Probe Mines
|
|
|
|
|
|
|
Ltd. ("Probe") on
acquisition
|
|
—
|
|
(3)
|
|
|
15
|
|
—
|
Items that will not
be reclassified to net earnings (loss):
|
|
|
|
|
|
Remeasurements on
defined benefit pension plans
|
|
—
|
|
(2)
|
Total other
comprehensive income (loss), net of tax
|
|
15
|
|
(2)
|
Total
comprehensive income (loss)
|
$
|
95
|
$
|
(89)
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In millions of
United States dollars – Unaudited)
|
|
|
|
Three Months Ended
March 31
|
|
|
2016
|
|
2015
|
Operating
activities
|
|
|
|
|
Net earnings
(loss) from continuing operations
|
$
|
80
|
$
|
(139)
|
Adjustments
for:
|
|
|
|
|
Dividends from
associates
|
|
—
|
|
3
|
Reclamation
expenditures
|
|
(8)
|
|
(14)
|
Items not affecting
cash:
|
|
|
|
|
|
Depreciation and
depletion
|
|
271
|
|
322
|
|
Share of net earnings
of associates and joint venture
|
|
(36)
|
|
(35)
|
|
Share-based
compensation
|
|
26
|
|
15
|
|
Unrealized (gains)
losses on derivatives, net
|
|
(2)
|
|
26
|
|
Revision of estimates
and accretion of reclamation and closure cost
obligations
|
|
7
|
|
28
|
|
Deferred income tax
(recovery) expense
|
|
(74)
|
|
75
|
|
Other
|
|
1
|
|
(10)
|
Change in working
capital
|
|
(206)
|
|
(220)
|
Net cash provided by
operating activities of continuing operations
|
|
59
|
|
51
|
Net cash provided by
operating activities of discontinued operation
|
|
—
|
|
7
|
Investing
activities
|
|
|
|
|
Acquisition of mining
interest, net of cash acquired
|
|
—
|
|
(39)
|
Expenditures on
mining interests
|
|
(173)
|
|
(393)
|
Interest
paid
|
|
(9)
|
|
(30)
|
Purchases of money
market investments and available-for-sale securities,
net
|
|
—
|
|
(1)
|
Other
|
|
(3)
|
|
—
|
Net cash used in
investing activities of continuing operations
|
|
(185)
|
|
(463)
|
Net cash provided by
investing activities of discontinued operation
|
|
—
|
|
100
|
Financing
activities
|
|
|
|
|
Debt
repayments
|
|
(2)
|
|
(3)
|
Credit facility
drawdown, net
|
|
250
|
|
300
|
Finance lease
payments
|
|
(1)
|
|
—
|
Dividends paid to
shareholders
|
|
(51)
|
|
(122)
|
Common shares
issued
|
|
2
|
|
13
|
Other
|
|
1
|
|
—
|
Net cash provided by
financing activities of continuing operations
|
|
199
|
|
188
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
2
|
|
—
|
Increase
(decrease) in cash and cash equivalents
|
|
75
|
|
(117)
|
Cash and cash
equivalents, beginning of the period
|
|
326
|
|
482
|
Cash and cash
equivalents, end of the period
|
$
|
401
|
$
|
365
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
(In millions of
United States dollars – Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
March 31
2016
|
|
At
December 31
2015
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
401
|
$
|
326
|
|
Money market
investments
|
|
|
57
|
|
57
|
|
Accounts
receivable
|
|
|
519
|
|
346
|
|
Inventories
|
|
|
447
|
|
469
|
|
Income taxes
receivable
|
|
|
36
|
|
67
|
|
Other
|
|
|
60
|
|
66
|
|
|
|
1,520
|
|
1,331
|
Mining
interests
|
|
|
|
|
|
|
Owned by
subsidiaries
|
|
|
17,550
|
|
17,630
|
|
Investments in
associates and joint venture
|
|
|
1,882
|
|
1,839
|
|
|
|
19,432
|
|
19,469
|
Investments in
securities
|
|
|
73
|
|
51
|
Deferred income
taxes
|
|
|
39
|
|
50
|
Inventories
|
|
|
243
|
|
255
|
Other
|
|
|
199
|
|
272
|
Total
assets
|
|
$
|
21,506
|
$
|
21,428
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
560
|
$
|
680
|
|
Debt
|
|
|
208
|
|
212
|
|
Income taxes
payable
|
|
|
56
|
|
104
|
|
Other
|
|
|
51
|
|
53
|
|
|
|
875
|
|
1,049
|
Deferred income
taxes
|
|
|
3,665
|
|
3,749
|
Debt
|
|
|
2,727
|
|
2,476
|
Provisions
|
|
|
801
|
|
775
|
Finance lease
obligations
|
|
|
266
|
|
267
|
Income taxes
payable
|
|
|
158
|
|
161
|
Other
|
|
|
99
|
|
103
|
Total
liabilities
|
|
|
8,591
|
|
8,580
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Common shares, stock
options and restricted share units
|
|
|
17,627
|
|
17,604
|
|
Accumulated other
comprehensive income (loss)
|
|
|
9
|
|
(6)
|
|
Deficit
|
|
|
(4,721)
|
|
(4,750)
|
|
|
|
12,915
|
|
12,848
|
Total liabilities
and shareholders' equity
|
|
$
|
21,506
|
$
|
21,428
|
SOURCE Goldcorp Inc.