STRATEGY.DISCIPLINE.EXECUTION. MARCH 2013 Corporate Update
FO RWA R D LO O K I N G STAT E M E N T S 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, 2012 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. All amounts are in U.S. dollars, unless otherwise stated. 2
CO N S I ST E N T ST R AT EG I C FO C U S Quality Growth Cost Management Low Political TOGETHER Risk CREATING SUSTAINABLE VALUE Peer-Leading Responsible Balance Mining Sheet Practices 3STRATEGY.
C H A L L E N G ES FAC I N G T H E G O L D I N D U ST RY Industry Goldcorp Revamped planning and Missed guidance forecasting Quality growth Lack of growth Only N.A. senior with YoY growth Poor capital allocation Disciplined M&A and divestitures decisions No writedowns Operating cost escalation Operating for Excellence D E L AY E D FC F A C L EA R PAT H TO FC F 4DISCIPLINE.
A L L - I N S U STA I N I N G C A S H CO ST S (US$) as at Dec. 31, 2012 TOTAL $874 per oz SUSTAINING CAPEX OPERATING COST G&A EXPLORATION OTHER $439 $300 $105 $23 $7 Labor Maintenance Other Energy Consumables 38% 9% 20% 17% 16% IMPROVED CASH COST DISCLOSURE 5DISCIPLINE.
CO M M I T M E N T TO CO ST CO N TA I N M E N T Operating for Excellence A GLOBAL INITIATIVE 6DISCIPLINE.
LOW C A P I TA L I N T E N S I T Y P ROJ EC T S (as at Dec. 31, 2012) Capital Spending for Projects Contributing to 5-Year Growth Profile $3.1B $2.0B $0.4 B SPENT COMMITTED OUTSTANDING* LOW CAPITAL COST / OZ OF <$240 Contributing to 5-year growth: Pueblo Viejo, Cerro Negro, Éléonore, Cochenour and Camino Rojo 7DISCIPLINE.
2013 GUIDANCE 20131 2012 Guidance Actual GOLD PRODUCTION (moz) 2.55 - 2.80 2.4 CASH COSTS $/oz A L L - I N S U S TA I N I N G $1,000 - $1,100 $874 BY-PRODUCT $525 - $575 $300 CO-PRODUCT $700 - $750 $638 C A P I TA L E X P E N D I T U R E S $2.8B $2.6B E X P L O R AT I O N E X P E N D I T U R E S $225M $207M C O R P O R AT E A D M I N I S T R AT I O N $180M $163M D E P R E C I AT I O N / o z $335 $284 TA X R AT E 29% 25% 1 2013 price assumptions: Au=$1,600/oz, Ag=$30/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb 8DISCIPLINE.
5 YEAR PRODUCTION GUIDANCE Increasing Production 4.0 - 4.2 ~70% 3.8 - 4.0 Gold production (Moz) 3.5 - 3.8 3.2 - 3.5 2.55 - 2.8 2.4 2012A 2013E 2014E 2015E 2016E 2017E 9DISCIPLINE.
FINANCIAL POSITION – EXCELLENT LIQUIDITY Balance Sheet CASH & CASH EQUIVALENTS $918.0 M AVAILABLE DEBT FACILITY $2.0 B - UNDRAWN INVESTMENT GRADE SENIOR UNSECURED NOTES – DUE 2018 & 2023 $1.5 B BALANCE SHEET1 CONVERTIBLE SENIOR NOTES – DUE 2014 $862.5 M LIQUIDITY ~$4.4 B (US$) as at Dec. 31, 2012 with pro-forma reflection of US$1.5B notes1 Moody’s: Baa2; S&P: BBB+; Fitch: BBB. 11DISCIPLINE.
RETURNING SHAREHOLDER VALUE Dividend ($ up 233% Dividend per share) Significant return of since 2009 capital to shareholders Dividend ($ per share)1 Dividend as % of Operating Cash Flow2 $0.60 25% $0.54 21% $0.41 19% 14% 14% 14% 11% 10% 12% 12% $0.18 $0.21 2009 2010 2011 2012 2013E KGC ABX AUY GG NEM 2013E 2014E1Dividend increases (annual): Oct. 27, 2010 - $0.36/share; Feb. 24, 2011 - $0.40/share; Dec. 5, 2011 - $0.54/share; Jan. 7, 2013 - $0.60/share2Source: Bloomberg consensus (as of Mar. 12, 2013) 12DISCIPLINE.
QUALITY RESERVE GROWTH Ninth Consecutive Year of Reserve Growth 4% on a per share basis 67,100 64,700 (Thousands of ounces) 60,060 48,800 46,300 43,400 2007 2008 2009 2010 2011 201211 See Appendix D for the 2012 proven and probable gold mineral reserves including tonnage, grade and ounces by property 13DISCIPLINE.
FO C U S I N LOW R I S K J U R I S D I C T I O N S CANADA Canada 38% U SA Dominican Republic 14% D O M I NI C AN MEXICO REPUBLIC 2013E Argentina GOLD GUATEMALA 5% PRODUCTION Guatemala US 7% 6% Operating Mines Development Projects Mexico 30% CHILE ARGENTINA 14EXECUTION.
RED LAKE Cornerstone Asset CANADA Musselwhite Éléonore RedCochenour Lake Porcupine Gold production Strong exploration potential 2012A: 507,700 oz 5 drills to test and extend NXT Zone 2013E: 475,000 - 510,000 oz Focus on newly discovered Robust, low cost gold production structure off of 4699 ramp at the High Grade Zone Single de-stress slot for late-2013 at the 46/47 level 15EXECUTION.
RED LAKE - HIGH GRADE ZONE DRILLINGExploration Success – NXT Zone 16EXECUTION.
PEÑASQUITOMexico’s Largest Gold Producer MEXICO El Sauzal PEÑASQUITO Los Filos Gold production Focus on efficiencies & cost 2012A: 411,300 oz reductions 2013E: 360,000 - 400,000 oz Largest cash flow generator in 2012 Long term water management study underway – completion 22-year mine life expected in 1H’13 District potential opportunities 17EXECUTION.
PUEBLO VIEJO New Source of Gold Production DOMINICAN REPUBLIC Pueblo Viejo First gold production achieved Annual output 415,000 to 450,000 ounces per year1 in first five years 2012A: 44,700 oz1 2013E: 330,000 - 435,000 oz1 Life of mine +25 years Commercial production declared Power plant to commence operations in 20131 Goldcorp interest 40% 18EXECUTION.
RO B U ST D E V E LO P M E N T P I P E L I N EGrowth in High Quality Ounces SCOPING FEASIBILITY CAMINO ROJO CONSTRUCTION (SULPHIDES) CAMINO ROJO PRODUCTION (OXIDES) (2016) PEÑASQUITO UG CERRO NEGRO (2013) EL MORRO El MORRO U/G PUEBLO VIEJO (2012) ÉLÉONORE (2014) AGUA RICA PEÑASQUITO (2010) COCHENOUR (2015) CERRO BLANCO LOS FILOS (2008) MARLIN (2006) RED LAKE & OTHER OPERATING MINES* * PORCUPINE, MUSSELWHITE, EL SAUZAL, ALUMBRERA, MARIGOLD, WHARF 19EXECUTION.
CERRO NEGRODeveloping our Next Cornerstone Mine ARGENTINA Alumbrera El Morro Cerro Negro High grade vein system Updated economics: Outstanding reserve growth potential 525 koz Au annually (1st 5 years) Development & construction advancing <$350/oz cash costs (1st 5 years) Eureka decline advanced over 2,200m Initial capital expenditure of $1.35B Mariana Central and Mariana Norte ramp development progressing First production late-2013 20EXECUTION.
ÉLÉONOREPure Gold in a Safe Jurisdiction CANADA Musselwhite Éléonore Red Lake Cochenour Porcupine Development plan: Gaumond exploration shaft completed Upper/lower mine concept; 7 ktpd ~ 600,000 oz Au / annually Exploration ramp extended over 2,500m; 6 drills underway Initial capital expenditure: $1.75B Production shaft sinking First production late-2014 commenced; depth of 140m 21EXECUTION.
COCHENOURKey Growth Driver in Red Lake District CANADA Musselwhite Éléonore Red Lake Cochenour Porcupine Development plan: Haulage drift 70% complete 225,000 - 250,000 oz Au / annually Exploration advancing Initial capital expenditure: $540M Two u/g drills targeting unexplored potential First production 1H’15 Plan to drill ore body at depth by Shaft widening advancing year-end 22EXECUTION.
EL MORROLong Term Strategic Asset CHILE Alumbrera El Morro Cerro Negro Construction deferred pending: Large, under-explored land Reinstatement of permits position Project optimization Power solutionGoldcorp interest 70% 23EXECUTION.
WHY GOLD? 12 Consecutive Years of Gold Price Growth - Gold price (per ounce) 516% increase over 2000 Safe haven/ asset class Inflation 2000 hedge China 2012 factor Stable investment demand Growing Continued Currency physical Flat mine debasement of Central bank protection demand supply international buying currenciesDec. 31, 2000 – Dec. 31, 2012 24EXECUTION.
G O L D CO R P A DVA N TAG E SUPERIOR INVESTMENT PROPOSITION FOCUS ON QUALITY OUNCES COST MANAGEMENT PEER-LEADING BALANCE SHEET RESPONSIBLE MINING PRACTICES LOW POLITICAL RISK 25EXECUTION.
APPENDIX A - 2013 MINE BY MINE GUIDANCE 2013 2012 Guidance Actual Red Lake 475,000 - 510,000 507,700 Peñasquito 360,000 - 400,000 411,300 Los Filos 340,000 - 350,000 340,400 Pueblo Viejo (40.0%) 330,000 - 435,000 44,700 Porcupine 270,000 - 280,000 262,800 Musselwhite 250,000 - 260,000 239,200 Marlin 185,000 - 200,000 207,300 Alumbrera (37.5%) 120,000 - 125,000 136,600 Marigold (66.7%) 95,000 - 100,000 96,300 El Sauzal 70,000 - 80,000 81,800 Wharf 55,000 - 60,000 68,100 To t a l 2,550,000 – 2,800,000 2,396,200 26
APPENDIX D - GOLD MINERAL RESERVES GOLDCORP MINERAL RESERVES (as of December 31, 2012) PROVEN PROBABLE PROVEN & PROBABLE Ownership Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained GOLD mt g Au/t m oz mt g Au/t m oz mt g Au/t m oz Alumbrera 37.5% 78.75 0.36 0.91 2.51 0.23 0.02 81.26 0.36 0.93 Camino Rojo 100.0% - - 66.76 0.76 1.63 66.76 0.76 1.63 Cerro Blanco 100.0% - - - - - - Cerro Negro 100.0% 0.04 11.08 0.01 18.87 9.43 5.72 18.91 9.43 5.74 Cochenour 100.0% - - - - - - Dee 40.0% - - 20.42 1.44 0.95 20.42 1.44 0.95 El Morro 70.0% 233.95 0.56 4.24 215.56 0.36 2.49 449.51 0.47 6.73 El Sauzal 100.0% 4.42 1.52 0.22 Eleonore 100.0% - - 12.48 7.56 3.03 12.48 7.56 3.03 Los Filos 100.0% 72.61 0.96 2.25 224.10 0.72 5.18 296.71 0.78 7.43 Marigold 66.7% 23.37 0.68 0.51 173.06 0.50 2.77 196.43 0.52 3.28 Marlin 100.0% 3.52 3.37 0.38 3.91 4.91 0.62 7.44 4.18 1.00 Musselwhite 100.0% 5.26 6.79 1.15 5.97 5.94 1.14 11.23 6.34 2.29 Noche Buena 100.0% - - - - - - Penasquito Heap Leach 100.0% 32.34 0.15 0.16 87.41 0.13 0.36 119.75 0.13 0.52 Penasquito Mill 100.0% 577.90 0.55 10.27 484.71 0.31 4.90 1,062.60 0.44 15.17 Porcupine 100.0% 27.79 1.57 1.40 80.98 1.13 2.94 108.78 1.24 4.35 Pueblo Viejo 40.0% 13.88 3.49 1.56 96.06 2.74 8.45 109.94 2.83 10.01 Red Lake 100.0% 2.00 11.85 0.76 8.49 9.04 2.47 10.48 9.57 3.23 San Nicolas 21.0% - - - - - - Wharf 100.0% 10.32 0.81 0.27 11.80 0.82 0.31 22.12 0.82 0.58 Totals 23.87 42.99 67.08 1. Mineral Reserves are estimated using appropriate recovery rates and US$ commodity prices of $1,350 per ounce of gold, $24 per ounce of silver, $3.00 per pound of copper, $0.80 per pound of lead, and $0.85 per pound of zinc, unless otherwise stated below: 1. Alumbrera $1,400/oz gold and $3.20/lb copper 2. Pueblo Viejo, Dee $1,500/oz gold, $28/oz silver, $3.00/lb copper 29
Endnotes 1. The Company has included non-GAAP performance measures, performance measures, total cash cost per gold ounce and all-in sustaining cash cost per gold ounce, throughout this presentation. The Company reports both of these measures on a sales basis. Total cash cost per gold ounce in the gold mining industry is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. The Company follows the recommendations of the Gold Institute standard. All-in sustaining cash costs include by-product cash costs, sustaining capital, corporate general & administrative expenses and exploration expense. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, they are 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. Production costs in 2013 are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metals prices of $1,600 per ounce of gold, $30 per ounce of silver, $3.50 per pound of copper, $0.90 per pound of lead and $0.90 per pound of zinc, rather than realized sales prices. 2. All Mineral Reserves and Mineral Resources have been estimated as at December 31, 2012 in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 (“NI 43-101”), or the AusIMM JORC equivalent. These estimates, as well as all other scientific and technical information relating to Goldcorp’s mineral properties contained herein, have been prepared by employees of Goldcorp, its joint venture partners or its joint venture operating companies, as applicable, and have been reviewed and approved by Maryse Belanger, P. Geo., Senior Vice-President, Technical Services of Goldcorp, a “qualified person” for the purposes of NI 43-101. These estimates 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. Goldcorp’s normal data verification procedures have been employed in connection with these estimates. For a breakdown of Mineral Reserves and Mineral Resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Goldcorp’s Mineral Reserves and Mineral Resources, please refer to Goldcorp’s most recently filed Annual Information Form/ Form 40-F filed with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. 3. 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. 30