STRATEGY.DISCIPLINE.EXECUTION. JANUARY 29, 2013 TD SECURITIES MINING CONFERENCE
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, 2011 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 Focus on Quality Ounces Cost Management Low Political TOGETHER Risk CREATING SUSTAINABLE VALUE Peer-Leading Responsible Balance Mining Sheet Practices 3STRATEGY.
RO B U ST D E V E LO P M E N T P I P E L I N EGrowth Pipeline of 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 4STRATEGY.
FINANCIAL POSITION – EXCELLENT LIQUIDITY Balance Sheet (US$) as at Dec. 31, 2012 CASH & CASH EQUIVALENTS2 ~$900 M INVESTMENT AVAILABLE DEBT FACILITY - UNDRAWN $2.0 B GRADE BALANCE CONVERTIBLE SENIOR NOTES – DUE 2014 $862.5 M SHEET1 LIQUIDITY ~$2.9 B1 Moody’s: Baa2; S&P: BBB+; Fitch: BBB. 2 Includes money market instruments, non-GAAP measure. 5DISCIPLINE.
2013 MINE BY MINE GUIDANCE 2013 2012 Guidance Actual Red Lake 475,000 - 510,000 507,500 Peñasquito 360,000 - 400,000 411,300 Los Filos 340,000 - 350,000 340,400 Pueblo Viejo (40.0%) 330,000 - 435,000 41,200 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 2,392,500 9DISCIPLINE.
2013 GUIDANCE 20131 2012 Guidance Actual GOLD PRODUCTION (moz) 2.55 - 2.80 2.39 CASH COSTS $/oz A L L - I N S U S TA I N I N G $1,000 - $1,100 ~$865 BY-PRODUCT $525 - $575 ~$315 CO-PRODUCT $700 - $750 ~$645 C A P I TA L E X P E N D I T U R E S $2.8B TBA E X P L O R AT I O N E X P E N D I T U R E S $225M TBA C O R P O R AT E A D M I N I S T R AT I O N $180M TBA D E P R E C I AT I O N / o z $335 TBA TA X R AT E 29% TBA 1 2013 price assumptions: Au=$1600/oz, Ag=$30/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb 10DISCIPLINE.
A L L - I N C A S H CO ST S What’s included: Why? By-product cash costs text Current metrics do not capture all expenditures key to analyzing a company’s profitability Sustaining capital text More complete picture of industry profitability to stakeholders More effective correlation to current Corporate general and text gold equity valuation administrative expense Industry working towards a consistent, industry-wide standard Exploration text expense IMPROVED CASH COST DISCLOSURE 11DISCIPLINE.
5 YEAR PRODUCTION GUIDANCE Increasing Production 4.0 - 4.2 3.8 - 4.0 ~70% 3.5 - 3.8 Gold production (Moz) 3.2 - 3.5 2.55 - 2.8 2.39 2012A 2013E 2014E 2015E 2016E 2017E 12DISCIPLINE.
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 13EXECUTION.
RED LAKE Cornerstone Asset CANADA Musselwhite Éléonore RedCochenour Lake Porcupine Gold production Strong exploration potential 2012A: 507,500 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 2013 at the 46/47 level 14EXECUTION.
RED LAKE - HIGH GRADE ZONE DRILLINGExploration Success – NXT Zone 15EXECUTION.
PEÑASQUITOMexico’s Largest Gold Producer MEXICO El Sauzal PEÑASQUITO Los Filos Gold production Focus on efficiencies & cost reductions 2012A: 411,300 oz 2013E: 360,000 - 400,000 oz Largest cash flow generator in 2012 Long term water management 22-year mine life study underway – completion expected in 1H’13 16EXECUTION.
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: 41,200 oz1 2013E: 330,000 - 435,000 oz1 Life of mine +25 years Commercial production declared Dual fuel power plant to commence operations in mid-20131 Goldcorp interest 40% 17EXECUTION.
CERRO NEGRODeveloping our Next Cornerstone Mine ARGENTINA Alumbrera El Morro Cerro Negro High grade vein system Updated economics: Outstanding reserve growth 525 koz Au annually (1st 5 years) potential <$350/oz cash costs (1st 5 years) Santa Cruz mining province Initial capital expenditure of $1.35B First production late-2013 18EXECUTION.
CERRO NEGROConstruction on Schedule Eureka decline advanced over 2,100 M Ore stockpile of ~40,300 tonnes at expected grades of 11.1 g/t Au and 204 g/t Ag Mariana Central ramp development reached 475m Mariana Norte ramp development reached 310m Construction & development activities advancing: Plant construction Equipment & material imports progressing well Strong exploration results continue 19EXECUTION.
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; 4 drills underway Initial capital expenditure: $1.75B Production shaft sinking First production late-2014 commenced; depth of 83m 20EXECUTION.
COCHENOURKey Growth Driver in Red Lake District CANADA Musselwhite Éléonore Red Lake Cochenour Porcupine Development plan: Shaft widening advancing 225,000 - 250,000 oz Au / annually Haulage drift 68% complete Initial capital expenditure: $540M Exploration advancing First production 1H’15 Two drills from haulage drift Construction underway 21EXECUTION.
CAMINO ROJO - EXPLORATION SUCCESSAdvancing District Opportunity MEXICO El Sauzal Peñasquito CAMINO ROJO Los Filos Economic oxide project Focus on exploration, land acquisition permitting and Testing sulphide opportunity metallurgical testing 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 solution Updated capital estimatesGoldcorp interest 70% 23EXECUTION.
E X EC U T I O N D E L I V E R A B L ES - 2 0 1 3 INITIATIVE 1 Implement long term water strategy at Peñasquito text INITIATIVE 2 Pueblo Viejo ramp up text INITIATIVE 3 Commence production attext Negro Cerro INITIATIVE 4 Advance Éléonore mine development text INITIATIVE 5 text Test Los Filos expansion opportunity INITIATIVE 6 Haulage drift completion text at Cochenour (Q1’14) H I T T I N G M I L E S TO N E S 100% 24EXECUTION.
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 25EXECUTION.
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 26EXECUTION.
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 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, P. Geo., Senior 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. 3. 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. 30
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