3 q 2012 cc slides final v002_i4e5a3
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

3 q 2012 cc slides final v002_i4e5a3

on

  • 339 views

 

Statistics

Views

Total Views
339
Views on SlideShare
214
Embed Views
125

Actions

Likes
0
Downloads
0
Comments
0

3 Embeds 125

http://www.goldcorp.com 114
http://goldcorp.com 10
http://67.192.1.239 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

3 q 2012 cc slides final v002_i4e5a3 Presentation Transcript

  • 1. THIRD QUARTER CONFERENCE CALLO CT O BER 25, 2012
  • 2. Management Participants Chuck Jeannes Lindsay Hall George Burns President and EVP & Chief Financial EVP & Chief Operating Chief Executive Officer Officer Officer2
  • 3. Forward Looking StatementsThis presentation contains “forward-looking statements”, within the meaning of the United States Private Securities LitigationReform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performanceand condition of Goldcorp Inc. (“Goldcorp”). Forward-looking statements include, but are not limited to, statements with respect tothe future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineralreserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timingof the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchangerate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipatedreclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurancecoverage. 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 notanticipate”, “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 bematerially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related tothe integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results ofcurrent exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes inproject parameters as plans continue to be refined; future prices of gold, silver, copper, lead and zinc; possible variations in orereserves, 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 otherrisks of the mining industry, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” inGoldcorp’s annual information form for the year ended December 31, 2011 available at www.sedar.com. Although Goldcorp hasattempted to identify important factors that could cause actual results to differ materially from those contained in forward-lookingstatements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be noassurance that such statements will prove to be accurate, as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Goldcorpdoes not undertake to update any forward-looking statements that are included in this document, except in accordance withapplicable securities laws. All amounts are in U.S. dollars, unless otherwise stated.3
  • 4. Third Quarter Highlights • Production of 592,500 ounces • By-product cash costs1 - $220/oz; co-product1 $660/oz • Revenues totaled $1.5B • Operating cash flow2 totaled $687M • Adjusted net earnings3 totaled $441M1See Footnote (b)2See Footnote (c)3See Footnote (a)4
  • 5. Operational Highlights • Red Lake de-stress slot at 45 level completed • Drilling of water wells underway at Peñasquito • Pueblo Viejo achieves first gold production • Project pipeline advancing steadily  Internal studies under review – Cochenour, Camino Rojo and Noche Buena • Added to the Dow Jones Sustainability North America Index5
  • 6. Robust Development Pipeline PEÑASQUITO UG El MORRO U/G SCOPING SCOPING AGUA RICA CERRO BLANCO NOCHE BUENA CAMINO ROJO (2014) FEASIBILITY FEASIBILITY EL MORRO ÉLÉONORE (2014) COCHENOUR (2014) CERRO NEGRO (2013) CONSTRUCTION CONSTRUCTION PUEBLO VIEJO (2012) PEÑASQUITO (2010) LOS FILOS (2008) MARLIN (2006) RED LAKE / PORCUPINE / MUSSELWHITE / EL SAUZAL / ALUMBRERA / MARIGOLD / WHARFPRODUCTION PRODUCTION6
  • 7. Financial Position - Excellent Liquidity INVESTMENT GRADE BALANCE SHEET1 CASH FLOW / SHARE3,5 (US$ / share) $2.22 (US$) as at Sept. 30, 2012 $1.43 CASH & CASH EQUIVALENTS2 $894 M $0.62 $0.56 $0.80 2007 2008 2009 2010 2011 AVAILABLE DEBT FACILITY - UNDRAWN $2.0 B EARNINGS / SHARE4,5 (US$ / share) 80.4 75.3 CONVERTIBLE SENIOR NOTES - DUE 2014 $862.5 M 61.5 65.0 66.7 LIQUIDITY ~$2.9 B 2007 2008 2009 2010 20111 Moody’s: Baa2; S&P: BBB+; Fitch: BBB. 2 Includes money market instruments, non-GAAP measure3 Cash flow before changes in working capital (from continuing operations as applicable). 4Adjusted earnings per share. 5Non-GAAP financial measures see pages 29-95 of the 2011 Annual report for further details.7
  • 8. 2012 Guidance 20121 Updated Guidance Gold Production (koz) 2,350 - 2,450 - Red Lake (koz) 460 - 510 - Peñasquito 370 - 390 Cash Costs $/oz – By-product $310 - $340 – Co-product $625 - $650 Capital Expenditures $2.7 B Exploration Expenditures $226 M Tax Rate 28%1 2012 price assumptions: Au=$1600/oz, Ag=$34/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb8
  • 9. Operational Highlights9
  • 10. Operational Highlights Solid Quarterly Production, Advancing Growth Projects • Production of 592,500 ounces • Red Lake 2012 H2 grade increase over 2012 H1 • Strong performance at Peñasquito • First gold produced Pueblo Viejo • Growth projects steadily progressing10
  • 11. Red Lake - Canada Long-Life, Cornerstone Asset • Gold production of 121,200 oz • Completed de-stress on Level 45  Increased number of mine headings available in HGZ • Successful exploration drilling  Results continue to confirm the extension of the HGZ at depth  High grade intercepts down to the 57 level  NXT zone between the 47 and 52 level11
  • 12. Red Lake - High Grade Zone Drilling Closing the gap – up dip potential 7.31oz/2.0’ *47L 4.65oz/1.0’ * Planned drift NXT Zone 0.41oz/1.2’ 0.15oz/1.7’ 0.58oz/3.2’ 1.64oz/3.5’ 0.87oz/10.0’ 2.42oz/4.5’52L 1.08oz/4.8’ 0.43oz/6.6’ 1.83oz/3.5’ 2.44oz/21.8’ Drill Bay 2.86oz/12.3’ #22 3.87oz/6.6’ Current 4699 Ramp New Intercept*57L Development 17.24/2.5’ Historic Deep Intercept* 4.31 oz/4.8’*Note some intercepts may appear to intersect lower elevation than they actually are due to oblique view**Selected intercepts are shown View Looking NE12
  • 13. Peñasquito - Mexico Mexico’s Largest Gold Producer in 2012 • Q2 gold production 126,000 oz • Drilling of additional water wells in well field continues • Study ongoing for longer term water solution • Waste Conveyor system on track for commissioning in Q4’12 • Internal studies completed during Q3’12  Camino Rojo  Noche Buena13
  • 14. Pueblo Viejo - Dominican Republic New Source of Gold Production • Construction essentially completed, first gold poured • Major systems commissioned • >16Mt of ore stockpiled14
  • 15. Cerro Negro - Argentina Building the Next Cornerstone Mine • EPCM activities 46% complete • Eureka vein  Ramp advanced to a length of 1,962 metres  Stockpile over 25,000 tonnes • Mariana Central and Mariana Norte ramps steadily progressing • Successful exploration drilling15
  • 16. Cochenour - Canada Key Growth Driver in Red Lake District • Development plan update under management review • Shaft depth at 423 metres • Haulage Drift advanced to 60% complete;  Expecting 66% by year-end  Two drills testing exploration potential • Surface exploration with two drills targeting further resource growth16
  • 17. Éléonore - Canada Canada’s Next New Underground Gold Mine • Gaumond exploration shaft excavation completed • Exploration ramp advanced to over 2,000 metres in length • Production shaft  Infrastructure advancing  Underground collar complete  Full-face shaft sinking expected late 2012 • Exploration Drilling  Two drills in the ramp with two more to be added in Q4  Surface exploration continuing17
  • 18. DELIVERING RESULTS18
  • 19. Q3 2012 Highlights Q3 2012 Q2 2012 Q3 YTD 2012 Q3 YTD 2011 Revenues ($ million) 1,538 1,113 4,000 3,847 Realized gold price ($/oz) $1,685 $1,596 $1,664 $1,538 Cash costs by-product ($/oz) (b) 220 370 277 209 Margin by-product ($/oz) (d) $1,465 $1,226 $1,387 $1,329 Cash costs co-product ($/oz) (b) 660 619 645 535 Cash flows from Operations ($ million) 434 554 1,310 1,639 Cash flows from Operations before 687 520 1,687 1,861 NCWC ($ million) (c) Capital expenditures ($ million) 669 630 1,889 1,25619
  • 20. Q3 2012 Operational Highlights Q3 2012 Q2 2012 Q3 YTD 2012 Q3 YTD 2011 Gold production (oz) 592,500 578,600 1,695,800 1,826,800 Gold sales (oz) 617,800 532,000 1,695,500 1,805,200 Net earnings ($ million) 498 268 1,245 1,476 Adjusted net earnings ($ million) (a) 441 332 1,177 1,255 Adjusted net earnings per share ($ per share) (a) 0.54 0.41 1.45 1.5620
  • 21. Condensed Statement of Cash Flows ($ million) Q3 2012 Q2 2012 Q3 YTD 2012 Q3 YTD 2011 Operating activities Operating cash flow before change in working capital (c) 687 520 1,687 1,861 Change in non-cash working capital (253) 34 (377) (222) Cash provided by operating activities of 434 554 1,310 1,639 continuing ops Investing activities Expenditures and deposits on mining interests (669) (630) (1,889) (1,256) Interest paid (8) - (17) (17) Purchase of securities - (3) (17) (154) Sale of securities - 10 283 519 Repayment on capital invested in PV - - - 64 Other 2 3 13 (6) Cash used in investing activities of continuing (675) (620) (1,627) (850) ops Cash (used in) provided by investing activities of - - 5 (88) disc. ops Financing activities Common shares issued, net 23 3 32 470 Dividends (109) (110) (328) (239) Cash (used in) provided by financing activities (86) (107) (296) 23121
  • 22. Goldcorp Advantage GROWTH LEADER LOW COST PRODUCER OUTSTANDING SUPERIOR BALANCE SHEET INVESTMENT PROPOSITION LOW POLITICAL RISK RESPONSIBLE MINING PRACTICES22
  • 23. Footnotes a) Adjusted net earnings and adjusted net earnings per share are non-GAAP performance measures. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance. 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. Refer to page 42 of the 2012 third quarter MD&A for a reconciliation of adjusted net earnings to reported net earnings. b) Total cash costs per gold ounce is a non-GAAP performance measure. The Company 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. The Company follows the recommendations of the Gold Institute Production Cost Standard. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance and ability to 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. Total cash costs on a by-product basis are calculated by deducting by-product silver, copper, lead and zinc sales revenues from production costs. Refer to page 41 of the 2012 third quarter MD&A for a calculation of total cash cost per gold ounce. c) Operating cash flows before working capital changes is a non-GAAP measure which the Company believes provides additional information about the Company’s ability to generate cash flows from its mining operations.23
  • 24. Footnotes d) Margin per gold ounce is a non-GAAP performance measure. The Company reports margin on a sales basis. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance and ability to 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. Margin per gold ounce is calculated as follows: Q3 2012 Q2 2012 Q3 YTD 2012 Q3 YTD 2011 Revenues per financial statements ($ million) $1,538 $1,113 $4,000 $3,847 Treatment and refining charges on concentrate sales 54 44 143 95 and other By-product copper, silver, lead and zinc sales credit (551) (308) (1,321) (1,166) Gold revenues ($ million) $1,041 $849 $2,822 $2,776 Divided by ounces of gold sold (oz) 617,800 532,000 1,695,500 1,805,200 Realized gold price per ounce ($/oz) $1,685 $1,596 $1,664 $1,538 Deduct total by-product cash costs per ounce of gold (220) (370) (277) (209) ($/oz) Margin by-product per gold ounce ($/oz) $1,465 $1,226 $1,387 $1,32924
  • 25. Endnotes 1. All Mineral Reserves and Mineral Resources have been calculated as at December 31, 2011 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, Vice President, 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. 2. Goldcorp’s exploration programs are designed and conducted under the supervision of Charlie Ronkos, Senior 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.25