1	
   1!
October 2010!
CORPORATE UPDATE!
2	
  
FORWARD-LOOKING STATEMENTS!
2!
This presentation contains “forward-looking statements”, within the meaning of the Un...
3 3
GROWING:	
  
	
  EFFICIENT:	
  
	
  STRONG:	
  
STABLE:	
  
GROWTH LEADER
LOW-COST PRODUCER
OUTSTANDING BALANCE SHEET
...
4	
  
	
  	
  	
  	
  INCREASING VALUE: EARNINGS AND CASHFLOW!
4!
$1,500M!
2 0 0 7! 2 0 0 8! 2 0 0 9!
$0M!
$750M!
2010*!
A...
5	
  
GOLDCORP: THE GROWTH CONTINUES!
5!
2004! 2005! 2006! 2007! 2008! 2009! 2010*! 2011*! 2012*! 2013*! 2014*!
3.7 Moz!4!...
EARLY STAGE!
o  Red Lake O/P!
o  Peñasquito U/G!
o  Hollinger!
Pueblo Viejo!
6	
  
GROWING: A ROBUST PIPELINE!
6!
2.4 Moz!...
7
ANDEAN TRANSACTION – PORTFOLIO ENHANCEMENT!
Transaction Details!
7!
Project Overview!
Rationale!
Total consideration: C$...
8
CERRO NEGRO DEVELOPMENT & EXPLORATION!
8!
Robust feasibility study results released in July 2010!
  Development underwa...
9	
  
STRONG: OUTSTANDING BALANCE SHEET (AS OF JUN. 30, 2010)!
Cash!
9!
$497.2M!
Convertible senior notes ! $862.5M!
Avail...
10	
  
DELIVERING SHAREHOLDER VALUE!
10!
$0.27!
2004!
$0.80!
2009!
(1) Adjusted earnings per share (2009 reported earnings...
11	
  
CASHFLOW PER SHARE GROWTH (10E - 12E)!
11!
0%	
  
Newmont!BarrickKinross!
20%	
  
30%	
  
40%	
  
50%	
  
10%	
  
S...
12	
  
STABLE: LOW POLITICAL RISK PROFILE!
12!
CANADA!
Red Lake !3.4 !675,000!
Porcupine !2.8 !280,000!
Musselwhite !2.1 !...
13	
  
PEÑASQUITO!
13!
One of the worldʼs
largest new
mines!
14	
  
PEÑASQUITO AT A GLANCE!
14!
17.8 million ounces gold (proven and probable)1!
22-year mine life!
500,000 ounces gold...
15	
  
PEÑASQUITO - RAMPING UP PRODUCTION!
15!
Q4/10!
Q2/10!
Q2/09!
130,000 tonnes/day!
100,000 tonnes/day!
50,000 tonnes/...
16	
   16!
PEÑASQUITO REGIONAL TARGETS!
17	
  
RED LAKE!
17!
The worldʼs	
  
richest	
  gold mine!
18	
  
RED LAKE AT A GLANCE!
18!
Decades of high-grade gold production; 20Mozs produced!
675,000 Ounces 2010 estimated ann...
19	
   19!
Initial operation sized for 5 million ounces of gold!
$71 million investment in 2010, including scoping study!
...
RED LAKE DISTRICT OPTIMIZATION!
20!
5,000 ft -
#3 Shaft
2,500 ft -
Surface
30 L
37 L
23 L
#1 Shaft
Campbell
Complex
Reid S...
21	
  
PUEBLO VIEJO: THE NEXT GROWTH DRIVER!
21!
9.5 million ounces gold reserves*!
+25-year mine life!
Q4 2011 start-up!
...
22	
   22!
$145 million!
Total 2010 exploration
investment !
23	
   23!
RESERVE GROWTH CONTINUES!
5,226!
2 0 0 4!
14,700!
2 0 0 5!
39,700!
2 0 0 6!
43,400!
2 0 0 7!
46,300!
2 0 0 8!
4...
24	
  
EXPLORATION HIGHLIGHTS!
24!
Porcupine – Hoyle Pond success at depth!
Musselwhite – Lynz zone, a major new discovery...
25	
  
ÉLÉONORE: PURE GOLD IN SAFE JURISDICTION!
25!
Resource, +3 million Au ounces M&I; +6 million Au ounces inferred!
Pr...
26	
  
EL MORRO: EXPANDING INTO CHILE*!
26!
4.7 million ounces gold!
4.0 billion pounds copper!
Large,under-explored land ...
27	
   27!
2010 REMAINING DELIVERABLES!
Complete Cochenour scoping study!
Pre-feasibility study update at Éléonore !
Noche...
28	
   28!
Weʼre bullish !
on gold!
29	
  
MINE SUPPLY IS DECREASING!
29!
Source: GFMS for historical production!
TOTAL MINE PRODUCTION!
30	
  
GLOBAL GOLD DEMAND IS INCREASING!
30!
Source: CPM Group (Gold holdings consist of consumer physical holdings) !
0.0...
31	
  
DELIVERING SUPERIOR RETURN!
31!
(1) Peers include Barrick, Newmont, AngloGold, Kinross and Gold Fields. !
(2) Sourc...
32	
  
STRONG CASH MARGINS!
32!
$1,200/oz	
  
$600/oz	
  
$0/oz	
  
$100 $115 $22 $33
$163
$305 $295
$344
$267 $294 $430
$...
33	
   33!
	
  GROWTH	
  LEADER	
  	
  
	
  LOW-­‐COST	
  PRODUCER	
  	
  
	
  OUTSTANDING	
  BALANCE	
  SHEET	
  
	
  LOW...
Base Price
Change
Increments
CFPS
($/share)
By Product
Cash Costs
($/oz)
FCF
($mm)
Gold Price ($/oz) $1000 $50 $0.14 $1 $1...
35!
APPENDIX B - OPERATING COSTS BREAKDOWN!
Consolidated
Canada / USA CA & SA Mexico
35
1.  Total cash costs are defined as cost of sales divided by ounces of gold and silver sold or pounds of copper sold. The ...
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2010 corporate update_june

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2010 corporate update_june

  1. 1. 1   1! October 2010! CORPORATE UPDATE!
  2. 2. 2   FORWARD-LOOKING STATEMENTS! 2! This presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp Inc. (“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 and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, 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 forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other 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 the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; 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 annual information form for the year ended December 31, 2009 available at www.sedar.com. 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. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
  3. 3. 3 3 GROWING:    EFFICIENT:    STRONG:   STABLE:   GROWTH LEADER LOW-COST PRODUCER OUTSTANDING BALANCE SHEET LOW POLITICAL RISK RESPONSIBLE:   FOCUS ON ALL STAKEHOLDERS SUSTAINABLE PROSPERITY
  4. 4. 4          INCREASING VALUE: EARNINGS AND CASHFLOW! 4! $1,500M! 2 0 0 7! 2 0 0 8! 2 0 0 9! $0M! $750M! 2010*! Adjusted Net Earnings! Operating Cash Flow After WC Changes! $588M! $1,270M! $866M! $397M! $651M! $440M! $1,394M! $724M! * Pro-forma based on YTD figures!
  5. 5. 5   GOLDCORP: THE GROWTH CONTINUES! 5! 2004! 2005! 2006! 2007! 2008! 2009! 2010*! 2011*! 2012*! 2013*! 2014*! 3.7 Moz!4! 2! 0! $400! $200! $0! $300! $100! Production(Moz)! CashCost/oz   Au actual production! Au est. production (reflects the effect of San Dimas disposition)!Cash costs: 2010-2014 est.!
  6. 6. EARLY STAGE! o  Red Lake O/P! o  Peñasquito U/G! o  Hollinger! Pueblo Viejo! 6   GROWING: A ROBUST PIPELINE! 6! 2.4 Moz! 3.7 Moz! 2014! 2009!
  7. 7. 7 ANDEAN TRANSACTION – PORTFOLIO ENHANCEMENT! Transaction Details! 7! Project Overview! Rationale! Total consideration: C$3.6 billion! 0.14 common share of Goldcorp or cash payment of C$6.50 per Andean share or a combination at election of shareholder up to C$1 billion in cash consideration! Cerro Negro gold project - advanced stage high grade vein system! Located in Santa Cruz province of Argentina! Resources: 2.5Moz Au and 23.6Moz Ag (Indicated); 0.5Moz Au and 3.1Moz Ag (Inferred) ! Consistent with strategy – large, high quality asset in stable jurisdiction! Significant exploration upside! High grade, low cost production = growing cash flow!
  8. 8. 8 CERRO NEGRO DEVELOPMENT & EXPLORATION! 8! Robust feasibility study results released in July 2010!   Development underway with final permits anticipated in Q4 2010 and commercial production in 2012!   Significant potential to expand resources, mine life, and production rates! Young deposit – 1st prospected in the 1990ʼs and high grade Eureka vein only discovered in 2007!   80,000 m of drilling in calendar 2010! Cerro  Negro    (100%  owned  by  Andean)   Santa  Cruz  Province,  ArgenHna   El  Morro  (70%)   Alumbrera  (37.5%)  
  9. 9. 9   STRONG: OUTSTANDING BALANCE SHEET (AS OF JUN. 30, 2010)! Cash! 9! $497.2M! Convertible senior notes ! $862.5M! Available debt facility! $1.5B! Average annual cash flow over next 5 years! ~$2.0B*! Debt : Total capitalization! < 0.06 : 1! Excellent liquidity! *Price Assumptions: 2011 – 2014: Au - $1100/oz; Ag - $17.00/oz; Cu - $2.75/lb; Zn - $0.80/lb; Pb - $0.80/lb; Oil - $85/bbl !
  10. 10. 10   DELIVERING SHAREHOLDER VALUE! 10! $0.27! 2004! $0.80! 2009! (1) Adjusted earnings per share (2009 reported earnings per share is $0.33 per share) 
 (2) Cash flow before changes in working capital 
 (3) Reserves and resources for gold and silver (silver converted at 55x ratio)! Earnings/Share (1)! (US$/share)! Cash Flow/Share (2)! (US$/share)! Reserves/Share (3)! (ounces/1,000 shares)! Resources/Share (3)! (ounces/1,000 shares)! +196%! +204%! +253%! +346%! $0.53! 2004! $1.61! 2009! 28! 2004! 99! 2009! 41! 2004! 183! 2009!
  11. 11. 11   CASHFLOW PER SHARE GROWTH (10E - 12E)! 11! 0%   Newmont!BarrickKinross! 20%   30%   40%   50%   10%   Source: Based on industry analyst consensus! Goldcorp! 60%   52%! 39%! 37%! 28%! 9%! 5%! 0%! Agnico! Goldfields! Anglo!
  12. 12. 12   STABLE: LOW POLITICAL RISK PROFILE! 12! CANADA! Red Lake !3.4 !675,000! Porcupine !2.8 !280,000! Musselwhite !2.1 !260,000! UNITED STATES! Marigold (66.7%) !1.6 !120,000! Wharf !0.2 ! 65,000! MEXICO! Peñasquito 17.8 !180,000! Los Filos !5.7 !300,000! El Sauzal !0.3 !155,000! CENTRAL AND SOUTH AMERICA! Marlin !2.1 !290,000! Alumbrera (37.5%) !1.5 !165,000! 2010E Au
 (oz)! Au reserves 
 (Moz)! FOCUS IN THE AMERICAS! 2.55 Moz! 2010E GOLD PRODUCTION!
  13. 13. 13   PEÑASQUITO! 13! One of the worldʼs largest new mines!
  14. 14. 14   PEÑASQUITO AT A GLANCE! 14! 17.8 million ounces gold (proven and probable)1! 22-year mine life! 500,000 ounces gold - average annual production2! Life of mine negative by-product cash costs! (1)  See Endnote; (2) After reaching full design capacity! Significant satellite production opportunities! Noche Buena! Camino Rojo!
  15. 15. 15   PEÑASQUITO - RAMPING UP PRODUCTION! 15! Q4/10! Q2/10! Q2/09! 130,000 tonnes/day! 100,000 tonnes/day! 50,000 tonnes/day! THROUGHPUT! High-Pressure Grinding Rolls 
 SAG Line 2! SAG Line 1! Q2/11!
  16. 16. 16   16! PEÑASQUITO REGIONAL TARGETS!
  17. 17. 17   RED LAKE! 17! The worldʼs   richest  gold mine!
  18. 18. 18   RED LAKE AT A GLANCE! 18! Decades of high-grade gold production; 20Mozs produced! 675,000 Ounces 2010 estimated annual production! Advancing HGZ at depth! District optimization plans advancing: Cochenour, open pit!
  19. 19. 19   19! Initial operation sized for 5 million ounces of gold! $71 million investment in 2010, including scoping study! Shaft rehabilitation (18ʼ dia)! 5 km high speed tram (30 mths construction)! First production late 2014! U/G drilling underway! COCHENOUR – A MAJOR GOLD DISCOVERY!
  20. 20. RED LAKE DISTRICT OPTIMIZATION! 20! 5,000 ft - #3 Shaft 2,500 ft - Surface 30 L 37 L 23 L #1 Shaft Campbell Complex Reid Shaft #2 Shaft Red Lake Complex Bonanza   Follansbee   Discovery   McKenzie   Mine   Western   Discovery   Cochenour   Mine   Inco  Zones   North   Zone     DDH  VG   13  L  Marcus   DriZ   Wilmar  West   Granodiorite   Wilmar  East   Breccia  Zone   High   Grade   Zone   Party    Wall  Zone  Deep   Campbell   Cochenour   Rahill-­‐Bonanza   Joint  venture   Goldcorp  100%  Goldcorp  100%   Goldcorp  51%   Bruce   Channel   Bruce   Channel   West   Open Pit Potential High  Speed  Tram       8 km
  21. 21. 21   PUEBLO VIEJO: THE NEXT GROWTH DRIVER! 21! 9.5 million ounces gold reserves*! +25-year mine life! Q4 2011 start-up! 415,000 – 450,000 ounces average annual gold production**! $485 million - capital budget 2010*! *Goldcorp interest 40%! **During first full five years of operation!
  22. 22. 22   22! $145 million! Total 2010 exploration investment !
  23. 23. 23   23! RESERVE GROWTH CONTINUES! 5,226! 2 0 0 4! 14,700! 2 0 0 5! 39,700! 2 0 0 6! 43,400! 2 0 0 7! 46,300! 2 0 0 8! 48,800! 2 0 0 9! GOLD 2P RESERVES (Koz)1! Targeting 7th consecutive year of reserve growth! (1) See Endnote! 2 0 1 0! ?
  24. 24. 24   EXPLORATION HIGHLIGHTS! 24! Porcupine – Hoyle Pond success at depth! Musselwhite – Lynz zone, a major new discovery! Red Lake – HGZ continues! Los Filos – Substantial reserve addition & growth opportunities! Noche Buena – Growing resources!
  25. 25. 25   ÉLÉONORE: PURE GOLD IN SAFE JURISDICTION! 25! Resource, +3 million Au ounces M&I; +6 million Au ounces inferred! Pre-feasibility study update by year end ! Capex approximately $800M! 330,000 oz Au*; cash costs < $400/oz!            *Ini0al  yearly  average    produc0on  target   +16 year mine life commencing in 2015 ! Exploration shaft sinking underway !
  26. 26. 26   EL MORRO: EXPANDING INTO CHILE*! 26! 4.7 million ounces gold! 4.0 billion pounds copper! Large,under-explored land position! Leverage Goldcorpʼs largemine development expertise! Updating 2008 feasibility study! *Goldcorp interest 70%!
  27. 27. 27   27! 2010 REMAINING DELIVERABLES! Complete Cochenour scoping study! Pre-feasibility study update at Éléonore ! Noche Buena scoping study! Meet production and cost targets ! Commissioning of HPGR at Peñasquito - Q4!
  28. 28. 28   28! Weʼre bullish ! on gold!
  29. 29. 29   MINE SUPPLY IS DECREASING! 29! Source: GFMS for historical production! TOTAL MINE PRODUCTION!
  30. 30. 30   GLOBAL GOLD DEMAND IS INCREASING! 30! Source: CPM Group (Gold holdings consist of consumer physical holdings) ! 0.0! 0.2! 0.4! 0.6! 0.8! 1.0! 1.2! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! US$Trillions                        e   GOLD HOLDINGS! Gold holdings < 0.6% of Global Financial Assets ($194.1 trillion)
  31. 31. 31   DELIVERING SUPERIOR RETURN! 31! (1) Peers include Barrick, Newmont, AngloGold, Kinross and Gold Fields. ! (2) Source: Bloomberg data Aug. 31/00 – Aug. 31/10! Goldcorp +1163% Gold Price +349% Dow Jones Index -11% Peers(1) +121% -­‐200%   0%   200%   400%   600%   800%   1000%   1200%   1400%   1600%   2004   2006   2008   2010   2012   2014   Goldcorp     Gold  Price   Philadelphia  Gold  /  Silver  Index   DOW  Industrial  Index   Peers   Philly Gold/Silver Index +254%
  32. 32. 32   STRONG CASH MARGINS! 32! $1,200/oz   $600/oz   $0/oz   $100 $115 $22 $33 $163 $305 $295 $344 $267 $294 $430 $577 $540 $563 $685 $816 $980 $868 $703 $610 $452 $409 $367 $1,160! YTD!2009!2008!2007!2006!2005!2004!2003! By-Product Cash Costs! Cash Margin!
  33. 33. 33   33!  GROWTH  LEADER      LOW-­‐COST  PRODUCER      OUTSTANDING  BALANCE  SHEET    LOW  POLITICAL  RISK   A SUPERIOR INVESTMENT ! PROPOSITION! RESPONSIBLE  MINING  
  34. 34. Base Price Change Increments CFPS ($/share) By Product Cash Costs ($/oz) FCF ($mm) Gold Price ($/oz) $1000 $50 $0.14 $1 $103m Silver Price ($/oz) $16.00 $1 $0.02 $5 $16m Copper Price ($/lb) $2.75 $0.50 $0.04 $18 $27m Zinc Price ($/lb) $0.80 $0.10 $0.02 $4 $13m Lead Price ($/lb) $0.80 $0.10 $0.02 $3 $11m Canadian Dollars 1.05 10% $0.05 $20 $83m Mexican Peso 13.00 10% $0.02 $6 $21m Oil Price ($/barrel) $80 10% $0.01 $2 $8m 34 34! APPENDIX A - 2010 SENSITIVITIES!
  35. 35. 35! APPENDIX B - OPERATING COSTS BREAKDOWN! Consolidated Canada / USA CA & SA Mexico 35
  36. 36. 1.  Total cash costs are defined as cost of sales divided by ounces of gold and silver sold or pounds of copper sold. The calculation of total cash costs per ounce of gold is net of by-product sales revenue (by product copper revenue for Alumbrera; by-product silver revenue for Marlin at market silver prices; and by-product silver revenue for Luismin of $3.95 per silver ounce sold to Silver Wheaton). Goldcorp has included a non-GAAP performance measure, total cash costs per gold ounce, throughout this presentation. Goldcorp reports total cash costs on a sales basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. Goldcorp follows the recommendations of the Gold Institute standard. Goldcorp believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate Goldcorp’s performance and ability to generate cash flow. 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 2. All Mineral Reserves and Mineral Resources have been calculated as at December 31, 2009 in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the AusIMM JORC equivalent. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Goldcorp’s Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. Calculations have been prepared by employees of Goldcorp, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Maryse Belanger, Director Technical Services. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. Varying cut-off grades have been used depending on the mine and type of ore contained in the reserves. Goldcorp’s normal data verification procedures have been employed in connection with the calculations. For a breakdown of Reserves and Resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Goldcorp’s Reserves and Resources, see Goldcorp’s Annual information Form/ Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. 3. Goldcorp’s exploration programs are designed and conducted under the supervision of Charlie Ronkos, Vice President, Exploration of Goldcorp. For information on geology, exploration activities generally, and drilling and analysis procedures on Goldcorp’s material properties, see Goldcorp’s Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. ENDNOTES! 36!
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