MD&A 2014Q4

EX-99.1 2 mda2014q4.htm EXHIBIT 99.1 MD&A 2014Q4

Exhibit 99.1

(in United States dollars, tabular amounts in millions, except where noted)

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2014

This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the consolidated financial statements of Goldcorp Inc. (“Goldcorp” or “the Company”) for the year ended December 31, 2014 and related notes thereto which have been prepared in accordance with International Financial Reporting Standards (“GAAP” or “IFRS”) as issued by the International Accounting Standards Board (“IASB”). This MD&A contains “forward-looking statements” that are subject to risk factors set out in a cautionary note contained herein. All figures are in United States (“US”) dollars unless otherwise noted. References to C$ are to Canadian dollars. This MD&A has been prepared as of February 18, 2015.

2015 DEVELOPMENTS

•

On January 30, 2015, the Company announced it had signed a Collaboration Agreement with the Wabauskang First Nations. The agreement paves the way for long-term economic benefits for the northwestern Ontario First Nations and provides a framework for strengthened collaboration in the development and operations of the Red Lake Gold Mines. With the signing of the agreement, the Company now has collaboration agreements in place with all the First Nations which assert Aboriginal and treaty rights in the vicinity of the Company's active operations in Canada.

•

On January 19, 2015, the Company and Probe Mines Limited ("Probe") announced an agreement whereby the Company will acquire, through a friendly plan of arrangement, all the outstanding shares of Probe for total consideration of approximately C$526 million. Probe's principal asset is the 100%-owned Borden Gold project in Ontario, 160 kilometres west of the Company's Porcupine mine. Under the terms of the offer, each common share of Probe not owned by the Company will be exchanged for 0.1755 common shares of the Company. The Company currently owns 15.7 million shares and 2.8 million warrants of Probe, representing a 19.9% partially-diluted ownership interest, of which 7.3 million shares and 2.8 million warrants were purchased from Agnico Eagle Mines Limited on January 27, 2015 and February 2, 2015 for cash consideration of C$45 million. The offer is subject to customary conditions, including the acceptance by Probe shareholders owning a minimum of 66.67% of the outstanding common shares of Probe on a fully diluted basis. The offer is not subject to the Company's shareholders' approval. The transaction is expected to close by the end of March 2015.

•


•	Cerro Negro declared commercial production effective January 1, 2015.

2014 HIGHLIGHTS

•

On November 24, 2014, the Company announced that it had signed a Resource Development Agreement ("RDA") with four First Nations communities, including the Mattagami First Nation, Wahgoshig First Nation, Matachewan First Nation, and Flying Post First Nation. The agreement establishes a framework for continued consultation on current and future operations in the Timmins area, including defining long-term benefits for the First Nations.


•	Cerro Negro and Éléonore achieved first gold production on July 25, 2014 and October 1, 2014, respectively.


•	On June 9, 2014, the Company completed an issuance of $1.0 billion of senior unsecured notes and received net proceeds of $988 million. A portion of these proceeds were used to repay, upon maturity on August 1, 2014, the Company's $863 million convertible senior notes.


•	On April 4, 2014, the Company and its joint venture partner, Barrick Gold Corporation ("Barrick"), completed the sale of their respective interests in the Marigold mine to Silver Standard Resources Inc. Total consideration received was $267 million in cash, after closing adjustments (Goldcorp's share – $184 million).


•	On March 26, 2014, the Company completed the sale of 31,151,200 common shares of Primero Mining Corp. ("Primero") to a syndicate of underwriters for $201 million (C$224 million), recognizing a gain of $18 million, net of selling costs of $8 million. Goldcorp no longer owns any shares of Primero.


•	On March 3, 2014, the Company secured a letter of credit in the amount of $36.3 million (C$40.1 million) to cover 100% of the closure obligation related to the Éléonore mine in northern Quebec.

GOLDCORP | 1

(in United States dollars, tabular amounts in millions, except where noted)

•

On January 8, 2014, the Company filed a National Instrument 43-101 updated technical report for Peñasquito. The new life-of-mine plan resulted in a 13 year mine life that positively impacts the five-year production profile and increased cash flows over the life of the mine. In addition, on March 28, 2014 the Company filed updated National Instrument 43-101 technical reports for Éléonore and Pueblo Viejo.


•	Key consolidated financial information:


◦	A net loss attributable to shareholders of Goldcorp, including discontinued operations, of $(2,396) million, or $(2.94) per share, for the fourth quarter and $(2,161) million, or $(2.66) per share, for 2014, compared with a net loss, including discontinued operations, of $(1,089) million, or $(1.34) per share, and $(2,709) million, or $(3.34) per share, respectively, in 2013.


◦	Operating cash flows, including discontinued operations, of $274 million for the fourth quarter and $1,014 million for 2014, compared with $307 million and $955 million, respectively, in 2013.


◦	Dividends paid of $488 million in 2014, compared to $486 million in 2013.


◦	$1.7 billion of liquidity. ⁽¹⁾


◦	At December 31, 2014, the Company recognized an impairment charge of $2,300 million, net of tax, principally in respect of the Company's exploration potential at its Cerro Negro mine.


•	Key performance measures: ⁽²⁾


◦	Goldcorp’s share of gold production increased to 890,900 ounces for the fourth quarter and 2,871,200 ounces for 2014, compared with 768,900 ounces and 2,666,600 ounces, respectively, in 2013.

◦

Total cash costs of $589 per gold ounce for the fourth quarter and $542 per gold ounce for 2014, net of by-product silver, copper, lead and zinc credits, compared with $467 and $553 per gold ounce, respectively, in 2013. On a co-product basis, cash costs of $669 per gold ounce for the fourth quarter and $668 per gold ounce for 2014, compared with $645 and $687 per gold ounce, respectively, in 2013. ⁽³⁾


◦	All-in sustaining costs of $1,035 per gold ounce for the fourth quarter and $949 per gold ounce for 2014, compared with $810 and $1,031 per gold ounce, respectively, in 2013. All-in costs of $1,544 per gold ounce for the fourth quarter and $1,499 per gold ounce for 2014, compared with $1,336 and $1,575 per gold ounce, respectively, in 2013. ⁽⁴⁾


◦	Adjusted net earnings of $55 million, or $0.07 per share, for the fourth quarter and $498 million, or $0.61 per share, for 2014, compared with $74 million, or $0.09 per share, and $634 million, or $0.78 per share, respectively, in 2013. ⁽⁵⁾


◦	Goldcorp’s share of adjusted operating cash flows of $337 million for the fourth quarter and $1,393 million for 2014, compared to $439 million and $1,601 million, respectively, in 2013. ⁽⁶⁾


◦	Goldcorp’s share of negative free cash flows of $(241) million for the fourth quarter and $(1,003) million for 2014, compared to $(351) million and $(1,375) million, respectively, in 2013. ⁽⁷⁾


(1)	At December 31, 2014, the Company held $482 million of cash and cash equivalents, $53 million of money market investments, and had $1.2 billion undrawn on its $2.0 billion revolving credit facility.

(2)

The Company has included non-GAAP performance measures on an attributable (or Goldcorp’s share) basis throughout this document. Attributable performance measures include the Company’s mining operations, including its discontinued operations, and projects, and the Company’s share of Alumbrera and Pueblo Viejo. The Company believes that disclosing certain performance measures on an attributable basis is a more relevant measurement of the Company’s operating and economic performance, and reflects the Company’s view of its core mining operations. 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; however, these performance measures do not have any standardized meaning. 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.

(3)

The Company has included non-GAAP performance measures – total cash costs, by-product and co-product, per gold ounce, throughout this document. In the gold mining industry, total cash costs 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 Gold Institute, which ceased operations in 2002, was a non-regulatory body and represented a global group of suppliers of gold and gold products. The production cost standard developed by the Gold Institute remains the generally accepted standard of reporting cash costs of production by gold mining companies. In addition to conventional measures prepared in accordance with GAAP, the Company assesses this measure in a manner that isolates the impacts of gold production volumes, the by-product credits, and operating costs fluctuations such that the non-controllable and controllable variability is independently addressed. The Company uses total cash costs, by-product and co-product, per gold ounce, to monitor its operating performance

GOLDCORP | 2

(in United States dollars, tabular amounts in millions, except where noted)

internally, including operating cash costs, as well as in its assessment of potential development projects and acquisition targets. The Company believes these measures provide investors and analysts with useful information about the Company’s underlying cash costs of operations and the impact of by-product credits on the Company’s cost structure and is a relevant metric used to understand the Company’s operating profitability and ability to generate cash flow. When deriving the production cash costs associated with an ounce of gold, the Company includes by-product credits as the Company considers that the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing the Company’s management and other stakeholders to assess the net costs of gold production. 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 Goldcorp’s share of by-product silver, copper, lead and zinc sales revenues from Goldcorp’s share of production costs.

Total cash costs on a co-product basis are calculated by allocating Goldcorp‘s share of production costs to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices, as compared to realized sales prices. The Company uses budget prices to eliminate price volatility and improve co-product cash cost reporting comparability between periods. The budget metal prices used in the calculation of co-product total cash costs were as follows:



	2014		2013		2012
Gold	$	1,200	$	1,600	$	1,600
Silver	20		30		34
Copper	3.00		3.50		3.50
Lead	1.00		0.90		0.90
Zinc	0.90		0.90		0.90

Using actual realized sales prices, co-product total cash costs, including discontinued operations, would be $676 per gold ounce for the year ended December 31, 2014 (2013 – $692). Refer to page 43 for a reconciliation of total cash costs to reported production costs.

(4)

All-in sustaining costs and all-in costs are non-GAAP performance measures that the Company believes more fully define the total costs associated with producing gold; however, these performance measures have no standardized meaning. 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. The Company reports these measures on a gold ounces sold basis. Effective June 2013, the Company conformed its all-in sustaining and all-in cost definitions to the guidance note released by the World Gold Council, which became effective January 1, 2014. The World Gold Council is a non-regulatory market development organization for the gold industry whose members comprise global senior gold mining companies. Refer to page 46 for a reconciliation of all-in sustaining costs.

(5)

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 48 for a reconciliation of adjusted net earnings to reported net loss attributable to shareholders of Goldcorp.

(6)

Adjusted operating cash flows is a non-GAAP performance measure which comprise Goldcorp’s share of operating cash flows before working capital changes and which the Company believes provides additional information about the Company’s ability to generate cash flows from its mining operations. 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 50 for a reconciliation of adjusted operating cash flows before working capital changes to reported net cash provided by operating activities.

(7)

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. 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. Free cash flows are calculated by deducting from net cash provided by operating activities, Goldcorp's share of expenditures on mining interests, deposits on mining interest expenditures and capitalized interest paid, and adding Goldcorp's share of net cash provided by operating activities from Alumbrera and Pueblo Viejo. Refer to page 50 for a reconciliation of free cash flows to reported net cash provided by operating activities.

GOLDCORP | 3

(in United States dollars, tabular amounts in millions, except where noted)

OVERVIEW

Goldcorp is a leading gold producer engaged in the operation, exploration, development, and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company’s current sources of operating cash flows are primarily from the sale of gold, silver, copper, lead, and zinc.

Goldcorp is one of the world’s fastest growing senior gold producers. Goldcorp’s strategy is to provide its shareholders with superior returns from high quality assets. Goldcorp has a strong balance sheet. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.

Goldcorp is listed on the New York Stock Exchange (symbol: GG) and the Toronto Stock Exchange (symbol: G).

At December 31, 2014, the Company’s principal producing mining properties were comprised of the Red Lake, Porcupine and Musselwhite gold mines in Canada; the Peñasquito gold/silver/lead/zinc mine and the Los Filos and El Sauzal gold mines in Mexico; the Marlin gold/silver mine in Guatemala; the Wharf gold mine in the United States; the Alumbrera gold/copper mine (37.5% interest) in Argentina; and the Pueblo Viejo gold/silver/copper mine (40% interest) in the Dominican Republic. The Company also owns a 39.3% equity interest in Tahoe Resources Inc. ("Tahoe"), which owns and operates the Escobal silver mine in Guatemala. The Wharf gold mine was classified as a discontinued operation during the year ended December 31, 2014.

The Company’s significant development projects at December 31, 2014 were comprised of the Cerro Negro gold project in Argentina, which declared commercial production effective January 1, 2015; the Éléonore and Cochenour gold projects in Canada; the El Morro gold/copper project (70.0% interest) in Chile; and the Camino Rojo gold/silver project in Mexico.

The Company realized an average gold price of $1,264 per ounce in 2014, a 9% decrease compared to $1,385 per ounce in 2013. The average realized gold price of $1,203 per ounce for the fourth quarter of 2014 decreased 5% compared to $1,266 per ounce for the third quarter of 2014. The declining realized average gold price through 2014 was a reflection of the challenges faced by the global commodities market during the year resulting in the gold price fluctuating from a high of $1,392 per ounce in the first quarter of 2014 to a low of $1,132 per ounce in the fourth quarter of 2014. The downward pressure was primarily attributable to an improving economic climate in the United States resulting in the United States Federal Reserve ending its quantitative easing program and signaling an increase in domestic interest rates. In response to ongoing economic weakness outside of the United States, most notably in Japan and Europe and signals that the economy in China was slowing down, the gold price rebounded in late 2014 from its low to close at $1,206 per ounce. In addition, the physical market for gold remained strong during 2014, most notably in China and India, continuing the trend started in 2011 where the demand for physical gold shifted from the West to the East.

The Company achieved record gold production in 2014, with 2,871,200 ounces, an 8% increase compared to 2,666,600 ounces in 2013, despite production challenges at Los Filos during the second quarter of 2014 due to the suspension of operations while a negotiated settlement with the Carrizalillo Ejido was being reached and the Pit Wall instability at El Sauzal during the third quarter of 2014 resulting in the accelerated closure of the mine effective January 1, 2015. Peñasquito contributed a 41% increase in gold production compared to 2013 as a result of continued mining in higher grade ore benches at the bottom of Phase 4 supplemented by the processing of high grade stockpiles during 2014. Production at Pueblo Viejo also increased by 118,200 ounces (Goldcorp's share) with the completion of autoclave modifications in the second half of 2013 resulting in less downtime and the achievement of name plate autoclave capacity during the third quarter of 2014 resulting in a 52% increase in tonnes processed. At Musselwhite gold production increased 9% from 2013 as a result of mining higher grade material from the Lynx Zone and the C-Block of the PQ Deeps, coupled with improved dilution and ore control. Finally, Cerro Negro and Éléonore contributed 152,100 and 18,300 pre-commissioning ounces, respectively, during 2014 which are not reflected in consolidated gold sales.

Production costs increased by 7% compared to 2013 primarily due to revisions in estimates at the Company's inactive and closed mines resulting in increases in reclamation and closure costs and a reduction of the carrying values of the low-grade stockpile at Peñasquito and the heap leach ore inventory at Los Filos, respectively, to net realizable value during 2014. Cost management and production efficiencies continued to be a focus for 2014 where benefits realized from supply chain and Operating for Excellence ("O4E") initiatives have contributed to ongoing cash flow improvements.

Gold production for the fourth quarter of 2014 was 890,900 ounces, a 37% increase compared to the third quarter of 2014. Increased production was seen at Red Lake where mining in newly developed areas in the Upper Red Lake and Footwall Zones, combined with operational improvement initiatives and long hole mining in the High Grade Zone, resulted in 14% higher tonnes and 3% higher grades. Porcupine increased production 22% to 90,400 ounces in the fourth quarter of 2014 as a result of ore development on numerous higher grade VAZ veins in the Hoyle Pond underground operation which increased grades by 27% from the prior quarter. The Company's share of Alumbrera's gold production increased 83% from prior quarter following the resolution of the geotechnical event in the third quarter of 2014 that resulted in the suspension of mining operations from the end of August until resolved on October 4, 2014. Cerro Negro and Éléonore contributed 133,100 ounces and 18,300 ounces, respectively, during the fourth quarter of 2014.

GOLDCORP | 4

(in United States dollars, tabular amounts in millions, except where noted)

Production costs for the fourth quarter of 2014 increased by 13% compared to the third quarter of 2014 primarily due to revisions in estimates at the Company's inactive and closed mines resulting in a $56 million increase in reclamation and closure costs and lower capitalized stripping costs at Peñasquito during the fourth quarter of 2014.

All-in sustaining costs of $949 per ounce for 2014 decreased 8% compared to $1,031 per ounce in 2013. The decrease in all-in sustaining costs was primarily driven by record gold sales volumes achieved during 2014, a continued focused on operating and capital cost management, higher by-product sales credits, and favourable foreign exchange movements, partially offset by an increase in production costs.

At Red Lake, exploration drilling from surface during 2014 focused on the HG Young discovery with up to five diamond drills resulting in numerous high grade intercepts and extension of the strike length. HG Young can be developed from the Campbell Complex infrastructure to the south and rehabilitation on the 14 Level at the Campbell Complex was completed during 2014. This rehabilitation will provide access for exploration development and diamond drilling from underground beginning in early 2015.

Permitting delays experienced in the first quarter of 2014 due to unanticipated additional regulatory requirements related to the interconnection with the existing well fields, securing surface land access rights, and additional permitting requirements by the environmental authority deferred start-up of construction of the Northern Well Field ("NWF") project at Peñasquito to mid-year 2014. Following receipt of initial permits and finalizing the remaining construction contracts, construction on the NWF project ramped up to full activity levels in the fourth quarter of 2014, with completion anticipated around mid-year 2015. Activities to address the additional regulatory requirements related to the interconnection to the existing well field continue as planned. Contingency plans remain in place for fresh water supply to Peñasquito until the NWF is operational.

During 2014, Peñasquito progressed with the pre-feasibility studies on two projects to assess the potential for producing saleable copper concentrate at Peñasquito, the Concentrate Enrichment Project ("CEP"), and to assess the viability of leaching a pyrite concentrate from the zinc flotation tailings ("Pyrite Leach"). Successful implementation of one or both of these new process improvements has the potential to significantly improve the overall economics and life of mine of Peñasquito, through the addition of another saleable product with the CEP, and increasing gold and silver recoveries from Pyrite Leach. A US Patent for the CEP was filed during the first quarter of 2014. The pre-feasibility studies were essentially complete at the end of 2014 and the projects are expected to be integrated as they enter the feasibility study phase which is anticipated by the end of the first quarter of 2015. The feasibility study is expected to be complete in early 2016.

Overall Engineering, Procurement, and Construction Management ("EPCM") was completed at Cerro Negro in the fourth quarter of 2014 resulting in commercial production being declared on January 1, 2015. Following the transition from contractor development mining to in-house mining and development at Cerro Negro, which was completed in the second quarter of 2014, mine development productivity significantly improved through the remainder of 2014 resulting in 8,316 metres of underground development in 2014, an 8% increase compared to 2013. Production mining at Eureka continued through 2014, while production mining at Mariana Central is expected to commence in the first quarter of 2015. Exploration activity, focused on surface resource confirmation drilling intended to support future development at Bajo Negro and Vein Zone, resumed in the fourth quarter of 2014 following suspension in the third quarter of 2013.

As a result of the restrictions on importation of goods and services and limitations on the exchange of Argentine pesos into US dollars, coupled with the continuing inflationary environment in the country, the operations at Cerro Negro have been negatively impacted. Additionally, the market valuations of future exploration potential have declined. As a result, through the Company's annual goodwill impairment testing and life of mine planning processes an after-tax asset impairment of $2,300 million was recognized in the fourth quarter of 2014 against the carrying value of Cerro Negro of which $975 million and $1,325 million were applied to goodwill and mining interests, respectively.

At Éléonore, ore feed was first introduced at the process plant on September 22, 2014, first gold was produced on October 1, 2014, and EPCM service contracts were complete in the fourth quarter of 2014. Commercial production is expected late in the first quarter of 2015.

On October 7, 2014, the Supreme Court of Chile issued a final ruling revoking the decision of the Court of Appeals thereby invalidating the Environmental Assessment Resolution issued in October 2013 to Goldcorp-El Morro. In November 2014, Goldcorp-El Morro elected to withdraw the Environmental Impact Study and the environmental authority subsequently issued Exempted Resolution N° 271 closing the environmental assessment process. The Company has commenced new studies to determine an optimal development plan for El Morro that meets the Company's investment return criteria. The Company remains committed to continued productive interaction and engagement with the adjacent communities and regional authorities.

GOLDCORP | 5

(in United States dollars, tabular amounts in millions, except where noted)

CORPORATE DEVELOPMENTS

Acquisition of Probe Mines Limited:

On January 19, 2015, the Company and Probe announced an agreement whereby the Company will acquire, through a friendly plan of arrangement, all the outstanding shares of Probe for total consideration of approximately C$526 million. Probe's principal asset is the 100%-owned Borden Gold project in Ontario, 160 kilometres west of the Company's Porcupine mine. Under the terms of the offer, each common share of Probe not owned by the Company will be exchanged for 0.1755 common shares of the Company. The Company currently owns 15.7 million shares and 2.8 million warrants of Probe, representing a 19.9% partially-diluted ownership interest, of which 7.3 million shares and 2.8 million warrants were purchased from Agnico Eagle Mines Limited on January 27, 2015 and February 2, 2015 for cash consideration of C$45 million. The offer is subject to customary conditions, including the acceptance by Probe shareholders owning a minimum of 66.67% of the outstanding common shares of Probe on a fully diluted basis. The offer is not subject to the Company's shareholders' approval. The transaction is expected to close by the end of March 2015.

Executive Appointments:

On January 14, 2015, the Company announced the appointment of Brent Bergeron as Executive Vice President, Corporate Affairs and Sustainability. Since joining the Company in 2010 as Vice President, Corporate Affairs and, since 2012, as Senior Vice President, Corporate Affairs, he has successfully established and cultivated key relationships with government and community leaders in the Company's operating jurisdictions. In this capacity, he has also overseen important changes to the Company's approach to government relations, corporate social responsibility as well as to stakeholder engagement and communications. The Company also announced that Russell Ball, Executive Vice President, Capital Projects will oversee the Company's corporate development function.

Sale of Wharf:

On January 12, 2015, the Company announced that it had entered into a definitive stock purchase agreement whereby it will sell its 100% interest in the Wharf mine in Lead, South Dakota to Coeur Mining, Inc. Under the terms of the agreement, the Company will receive total consideration of $105 million in cash, subject to certain closing adjustments. The transaction is expected to close on February 20, 2015.

Issuance of $1.0 Billion Notes:

On June 9, 2014, the Company issued $1.0 billion of senior unsecured notes (the "1.0 Billion Notes"), consisting of $550 million aggregate principal amount of 3.625% notes due June 9, 2021 and $450 million aggregate principal amount of 5.45% notes due June 9, 2044. The Company received total proceeds of $988 million from the issuance, net of transaction costs. The Company used the proceeds primarily for repayment of its $863 million convertible senior notes which matured on August 1, 2014.

Sale of Marigold:

On April 4, 2014, the Company and its joint venture partner, Barrick, completed the sale of their respective interests in the Marigold mine ("Marigold") to Silver Standard Resources Inc. Total consideration received was $267 million in cash, after closing adjustments (Goldcorp's share – $184 million).

Sale of Primero:

On March 26, 2014, the Company completed the sale of 31,151,200 common shares of Primero to a syndicate of underwriters for $201 million (C$224 million), recognizing a gain of $18 million, net of selling costs of $8 million. Goldcorp no longer owns any shares of Primero.

GOLDCORP | 6

(in United States dollars, tabular amounts in millions, except where noted)

SUMMARIZED ANNUAL FINANCIAL RESULTS ⁽²⁾⁽³⁾



Consolidated financial information	2014			2013			2012
Revenues ^(1)(2)(3)	$	3,436		$	3,609		$	4,660
(Loss) earnings from operations and associates ⁽²⁾	$	(2,527	)	$	(2,282	)	$	2,025
(Loss) earnings from continuing operations ⁽³⁾	$	(2,168	)	$	(2,657	)	$	1,695
Net earnings (loss) from discontinued operations ⁽³⁾	$	9		$	(52	)	$	54
Net (loss) earnings	$	(2,159	)	$	(2,709	)	$	1,749
Net (loss) earnings attributable to shareholders of Goldcorp	$	(2,161	)	$	(2,709	)	$	1,749
Net (loss) earnings from continuing operations per share⁽³⁾
– Basic	$	(2.67	)	$	(3.27	)	$	2.09
– Diluted	$	(2.67	)	$	(3.27	)	$	1.89
Net (loss) earnings per share
– Basic	$	(2.66	)	$	(3.34	)	$	2.16
– Diluted	$	(2.66	)	$	(3.34	)	$	1.95
Cash flows from operating activities of continuing operations ^(1)(2)(3)	$	982		$	886		$	1,900
Cash flows from operating activities including discontinued operations ^(1)(2)(3)	$	1,014		$	955		$	1,960
Dividends paid	$	488		$	486		$	438
Cash and cash equivalents ⁽²⁾	$	482		$	625		$	757
Total assets	$	27,866		$	29,564		$	30,979
Non-current liabilities	$	9,235		$	7,773		$	6,982



Key performance measures ⁽⁴⁾	2014		2013		2012
Gold produced (ounces) ⁽³⁾	2,777,300		2,502,900		2,299,900
Gold sold (ounces) ⁽¹⁾⁽³⁾	2,580,800		2,434,000		2,244,600
Silver produced (ounces)	36,807,500		30,326,100		30,470,500
Copper produced (thousands of pounds)	84,800		90,600		112,200
Lead produced (thousands of pounds)	152,300		159,100		153,700
Zinc produced (thousands of pounds)	329,700		279,300		324,200
Average realized gold price (per ounce)	$	1,264	$	1,385	$	1,672
Average London spot gold price (per ounce)	$	1,266	$	1,410	$	1,669
Total cash costs – by-product (per gold ounce) ⁽⁵⁾	$	531	$	529	$	279
Total cash costs – co-product (per gold ounce) ⁽⁶⁾	$	661	$	672	$	632
All-in sustaining costs (per gold ounce)	$	949	$	1,008	$	867
Adjusted net earnings	$	468	$	600	$	1,588
Adjusted operating cash flow	$	1,362	$	1,527	$	2,334
Including discontinued operations⁽³⁾
Gold produced (ounces)	2,871,200		2,666,600		2,396,200
Gold sold (ounces) ⁽¹⁾	2,672,800		2,597,200		2,340,600
Total cash costs – by-product (per gold ounce) ⁽⁵⁾	$	542	$	553	$	300
Total cash costs – co-product (per gold ounce) ⁽⁶⁾	$	668	$	687	$	638
All-in sustaining costs (per gold ounce)	$	949	$	1,031	$	884
Adjusted net earnings	$	498	$	634	$	1,642
Adjusted operating cash flow	$	1,393	$	1,601	$	2,409


(1)	Excludes pre-commissioning sales ounces from Cerro Negro, Éléonore, and Pueblo Viejo, prior to January 1, 2013, as costs incurred, net of proceeds from sales, were credited against capitalized project costs.

GOLDCORP | 7

(in United States dollars, tabular amounts in millions, except where noted)

(2)

Effective January 1, 2013, the Company's 37.5% interest in Alumbrera was required to be accounted for as an investment in associate and accounted for using the equity method. The Company has restated the 2012 comparative period to remove Alumbrera's revenues, cash flows from operating activities, and cash and cash equivalents, and to include the effect of Alumbrera on earnings from operations and associates.

(3)

In accordance with the requirements of IFRS 5 – Non-current assets held for sale and discontinued operations, the Company's 100% interest in Wharf was classified as a discontinued operation for the year ended December 31, 2014, accordingly the 2013 comparative information for Wharf has been re-presented however the 2012 comparative information has not been re-presented. The Company's 66.7% interest in Marigold was classified as a discontinued operation for the years ended December 31, 2014 and 2013, accordingly, the 2012 comparative information for Marigold has been re-presented.

(4)

The Company has included the Company’s share of the applicable production, sales and financial information of Alumbrera and Pueblo Viejo in the non-GAAP performance measures noted above. The Company believes that disclosing certain performance measures including Alumbrera and Pueblo Viejo is a more relevant measurement of the Company’s operating and economic performance, and reflects the Company’s view of its core mining operations.

(5)

Total cash costs per gold ounce on a by-product basis is calculated net of Goldcorp’s share of by-product sales revenues (by-product copper sales revenues for Alumbrera; by-product silver sales revenues for Marlin and Pueblo Viejo; by-product lead and zinc sales revenues and 75% of silver sales revenues for Peñasquito at market silver prices, and 25% of silver sales revenues for Peñasquito at $4.05 per silver ounce (2013 – $4.02 per silver ounce) sold to Silver Wheaton).


(6)	Total cash costs per gold ounce on a co-product basis is calculated by allocating Goldcorp’s share of production costs to each co-product (Alumbrera (copper); Marlin (silver); Pueblo Viejo (silver); Peñasquito (silver, lead and zinc)) based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3).

GOLDCORP | 8

(in United States dollars, tabular amounts in millions, except where noted)

REVIEW OF ANNUAL FINANCIAL RESULTS

The net loss attributable to shareholders of Goldcorp for the year ended December 31, 2014 was $(2,161) million, or $(2.66) per share, compared to a net loss attributable to shareholders of Goldcorp of $(2,709) million, or $(3.34) per share, for the year ended December 31, 2013. Compared to the year ended December 31, 2013, the net loss attributable to shareholders of Goldcorp for the year ended December 31, 2014 was impacted by the following factors:

•

Revenues decreased by $173 million, or 5%, primarily due to a $241 million decrease in gold revenues and a $13 million decrease in silver revenues, partially offset by an $85 million increase in zinc revenues, net of refining charges. The decrease in revenues is primarily a result of the decrease in gold and silver commodity prices during the year ended December 31, 2014, partially offset by higher sales volumes for silver and zinc;

•

Production costs increased by $140 million, or 7%, primarily due to revisions in estimates at the Company's inactive and closed mines during the year ended December 31, 2014 resulting in a $72 million increase in reclamation and closure costs compared with a $25 million reduction during the year ended December 31, 2013; a $41 million and $31 million reduction of the carrying values of the low-grade stockpile at Peñasquito and the heap leach ore inventory at Los Filos, respectively, to net realizable value during the year ended December 31, 2014; and increased water use payments in Peñasquito in the first quarter of 2014; partially offset by increased capitalized stripping costs at Peñasquito during the year ended December 31, 2014; and favourable foreign exchange movements which decreased production costs by $70 million from prior year;


•	Depreciation and depletion increased by $123 million, or 20%, due to higher overall sales volumes; new assets put into service; and a $14 million and $10 million reduction of the carrying values of the low-grade stockpile at Peñasquito and the heap leach ore inventory at Los Filos, respectively, to net realizable value during the year ended December 31, 2014;

•

The Company’s share of net earnings of associates of $156 million was comprised of net earnings of $91 million from Pueblo Viejo; net earnings of $35 million from the Company's investments in Tahoe and Primero as a result of the commencement of commercial production at Tahoe, effective January 1, 2014; and net earnings of $30 million from Alumbrera. The Company’s share of net losses and impairments of associates of $395 million for the year ended December 31, 2013 was comprised of a net loss of $295 million from Alumbrera primarily due to a $276 million impairment expense recognized in respect of the Company's investment; a net loss of $66 million from Pueblo Viejo primarily due to the $183 million cumulative tax expense recognized as a result of the renegotiated Special Lease Agreement ("SLA") with the government of the Dominican Republic; and a net loss of $34 million from the Company's equity investments in Primero and Tahoe, primarily due to an impairment expense of $19 million recognized in respect of the Company's investment in Primero;

•

An impairment of mining interests and goodwill of $2,999 million ($2,313 million, net of tax), comprised of an impairment expense of $2,980 million and $19 million ($2,300 million and $13 million, net of tax) recognized against the carrying amount of the Cerro Negro project and the El Sauzal mine, respectively, during the year ended December 31, 2014. An impairment of mining interests and goodwill of $2,646 million ($2,020 million, net of tax) was recognized during the year ended December 31, 2013, comprised of an impairment expense of $2,427 million ($1,827 million, net of tax) recognized against the carrying amount of the Peñasquito mine, $131 million ($131 million, net of tax) recognized against the carrying amount of the Cerro Blanco project, $59 million ($42 million, net of tax) recognized against the carrying amount of certain of the Company's Mexican exploration projects, and $29 million ($20 million, net of tax) recognized against the carrying amount of the El Sauzal mine;


•	Corporate administration, excluding share-based compensation expense, was $175 million, an $11 million increase compared to the year ended December 31, 2013. Share-based compensation expense of $72 million for the year ended December 31, 2014 was comparable to the year ended December 31, 2013;


•	A $17 million gain on securities primarily due to the sale of certain available-for-sale equity and marketable securities during the year ended December 31, 2014. A $32 million loss on securities was recognized during the year ended December 31, 2013 representing an impairment expense on certain of the Company's available-for-sale equity and marketable securities;

•

A $40 million loss on derivatives for the year ended December 31, 2014 comprised of a loss on foreign currency, heating oil, copper, lead, and zinc contracts. During 2014, the Company repaid the $863 million convertible senior notes (the "Convertible Notes") upon maturity and delivered the remaining ounces of silver under the contract to sell 1.5 million ounces of silver to Silver Wheaton at a fixed price over each of the four years ended August 5, 2014 (the "Silver Wheaton silver contract"). For the year ended December 31, 2013, an $83 million gain on derivatives was comprised of a $57 million unrealized gain on the conversion feature of the Convertible Notes; a $17 million net gain on the Silver Wheaton silver contract; and a $9 million net gain on foreign currency, heating oil, copper, lead, and zinc contracts;

GOLDCORP | 9

(in United States dollars, tabular amounts in millions, except where noted)


•	An $18 million net gain on disposition of mining interests for the year ended December 31, 2014 as the Company sold its equity interest in Primero on March 26, 2014. An $11 million loss ($8 million, net of tax) on disposition of mining interests during the year ended December 31, 2013 arose on the Company's sale of its 30.8% interest in the Cerro del Gallo property to Primero;

•

Other expenses of $27 million for the year ended December 31, 2014 was comprised primarily of $22 million of net foreign exchange losses arising on value added tax receivables denominated in Mexican and Argentine pesos, and cash and cash equivalents denominated in Canadian dollars. Other expenses of $57 million for the year ended December 31, 2013 was comprised primarily of $43 million of net foreign exchange losses arising on value added tax receivables denominated in Mexican and Argentine pesos, and cash and cash equivalents denominated in Canadian dollars. The decrease in net foreign exchange losses compared to the prior year was a result of the weakening Mexican and Argentine peso and the Canadian dollar during the year ended December 31, 2014;


•	Income tax recovery for the year ended December 31, 2014 totaled $440 million (year ended December 31, 2013 – income tax expense of $309 million) and was impacted by:

•

An $272 million foreign exchange loss on the translation of deferred income tax assets and liabilities arising primarily from the Placer Dome and Glamis acquisitions in 2006 and the Camino Rojo and Cerro Negro acquisitions in 2010, compared to a $133 million foreign exchange loss for the year ended December 31, 2013. The foreign exchange related deferred income tax impacts resulted from the weakening Canadian dollar and Argentine and Mexican peso during the years ended December 31, 2014 and 2013;


•	During the year ended December 31, 2014 a deferred income tax recovery of $686 million arising on the impairment of mining interests and goodwill was recognized compared to a $626 million deferred income tax recovery recognized during the year ended December 31, 2013;

•

A decrease in the effective tax rate for the year ended December 31, 2014 from 18% to negative 6%, after adjusting income taxes for the above noted items, the non-deductible share-based compensation expense, the impairment of mining interests and goodwill from loss before taxes, and the deferred tax impacts of the Mexican tax law changes and electing to pay Guatemalan taxes on net income rather than gross revenues during the year ended December 31, 2013. The year ended December 31, 2014 was favourably impacted by higher income from associates primarily due to the impact of the renegotiated SLA and the impairments recognized in respect of Alumbrera and Primero during the year ended December 31, 2013, the gain on sale of Primero during the year ended December 31, 2014 not being subject to tax, and higher tax deductible foreign exchange losses on US dollar debt in Argentina. These favourable impacts were partially offset by non-taxable realized and mark-to-market gains on the conversion feature of the Convertible Notes and the Silver Wheaton silver contract of $74 million during the year ended December 31, 2013; and

•

Net earnings from discontinued operations of $9 million for the year ended December 31, 2014 due to net earnings of $24 million from Wharf and net earnings of $6 million from the Company's 66.7% share of Marigold, both of which were classified as discontinued operations during the year ended December 31, 2014, partially offset by the $21 million net loss recognized on the sale of the Company's 66.7% share of Marigold. The Company had a net loss of $52 million for the year ended December 31, 2013 as a result of an $86 million, net of tax, impairment expense on the Company's 66.7% share of Marigold, partially offset by $34 million of net earnings from Wharf and the Company's 66.7% share of Marigold.

Adjusted net earnings amounted to $498 million, or $0.61 per share ⁽¹⁾, for the year ended December 31, 2014, compared to $634 million, or $0.78 per share, for the year ended December 31, 2013. Compared to the year ended December 31, 2013, adjusted net earnings was primarily impacted by higher production costs, depreciation and depletion, and lower gold and silver commodity prices during the year ended December 31, 2014, partially offset by a lower effective income tax rate.

Total cash costs (by-product) decreased to $542 per gold ounce ⁽²⁾, for the year ended December 31, 2014, compared to $553 per gold ounce for the year ended December 31, 2013. The decrease in cash costs was primarily due to higher by-product sales credits and an increase in volume of gold sales, partially offset by an increase in production costs.

(1)

(2)

The Company has included non-GAAP performance measures – total cash costs, by-product and co-product, per gold ounce, throughout this document. In the gold mining industry, total cash costs 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 Goldcorp’s share of by-product silver, copper, lead and zinc sales revenues from Goldcorp’s share of production costs. Refer to page 43 for a reconciliation of total cash costs to reported production costs.

GOLDCORP | 10

(in United States dollars, tabular amounts in millions, except where noted)

QUARTERLY FINANCIAL REVIEW ⁽²⁾



	2014
Consolidated financial information	Q1		Q2			Q3			Q4			Total
Revenues ⁽¹⁾⁽²⁾	$	878	$	884		$	839		$	835		$	3,436
Earnings (loss) from operations and associates	$	201	$	207		$	53		$	(2,988	)	$	(2,527	)
Net earnings (loss) from continuing operations ⁽²⁾	$	89	$	194		$	(48	)	$	(2,403	)	$	(2,168	)
Net earnings (loss) from discontinued operations ⁽²⁾	$	9	$	(11	)	$	4		$	7		$	9
Net earnings (loss)	$	98	$	183		$	(44	)	$	(2,396	)	$	(2,159	)
Net earnings (loss) attributable to shareholders of Goldcorp	$	98	$	181		$	(44	)	$	(2,396	)	$	(2,161	)
Net earnings (loss) from continuing operations per share⁽²⁾
– Basic	$	0.11	$	0.24		$	(0.06	)	$	(2.95	)	$	(2.67	)
– Diluted	$	0.11	$	0.24		$	(0.06	)	$	(2.95	)	$	(2.67	)
Net earnings (loss) per share
– Basic	$	0.12	$	0.22		$	(0.05	)	$	(2.94	)	$	(2.66	)
– Diluted	$	0.12	$	0.22		$	(0.05	)	$	(2.94	)	$	(2.66	)
Cash flows from operating activities of continuing operations ⁽¹⁾⁽²⁾	$	263	$	266		$	188		$	265		$	982
Cash flows from operating activities including discontinued operations ⁽¹⁾⁽²⁾	$	273	$	275		$	192		$	274		$	1,014
Dividends paid	$	122	$	122		$	122		$	122		$	488
Cash and cash equivalents	$	1,001	$	1,220		$	376		$	482		$	482
Total assets	$	30,175	$	30,618		$	30,218		$	27,866		$	27,866
Non-current liabilities	$	7,747	$	8,762		$	8,868		$	9,235		$	9,235



	2014
Key performance measures ⁽³⁾	Q1		Q2		Q3		Q4		Total
Gold produced (ounces) ⁽²⁾	643,100		633,700		635,500		865,000		2,777,300
Gold sold (ounces) ⁽¹⁾⁽²⁾	648,700		624,000		627,000		681,100		2,580,800
Silver produced (ounces)	9,581,400		8,984,000		7,815,800		10,426,300		36,807,500
Copper produced (thousands of pounds)	21,500		19,300		16,800		27,200		84,800
Lead produced (thousands of pounds)	49,500		38,600		37,000		27,200		152,300
Zinc produced (thousands of pounds)	87,900		91,900		81,000		68,900		329,700
Average realized gold price (per ounce)	$	1,297	$	1,296	$	1,265	$	1,203	$	1,264
Average London spot gold price (per ounce)	$	1,294	$	1,289	$	1,282	$	1,201	$	1,266
Total cash costs – by-product (per gold ounce) ⁽⁴⁾	$	482	$	464	$	590	$	582	$	531
Total cash costs – co-product (per gold ounce) ⁽⁵⁾	$	655	$	641	$	678	$	665	$	661
All-in sustaining costs (per gold ounce)	$	827	$	853	$	1,067	$	1,043	$	949
Adjusted net earnings	$	200	$	154	$	66	$	48	$	468
Adjusted operating cash flow	$	272	$	369	$	392	$	329	$	1,362
Including discontinued operations⁽²⁾
Gold produced (ounces)	679,900		648,700		651,700		890,900		2,871,200
Gold sold (ounces) ⁽¹⁾	684,000		639,500		641,400		707,900		2,672,800
Total cash costs – by-product (per gold ounce) ⁽⁴⁾	$	507	$	470	$	597	$	589	$	542
Total cash costs – co-product (per gold ounce) ⁽⁵⁾	$	673	$	643	$	682	$	669	$	668
All-in sustaining costs (per gold ounce)	$	840	$	852	$	1,066	$	1,035	$	949
Adjusted net earnings	$	209	$	164	$	70	$	55	$	498
Adjusted operating cash flow	$	281	$	376	$	399	$	337	$	1,393

GOLDCORP | 11

(in United States dollars, tabular amounts in millions, except where noted)



	2013
Consolidated financial information	Q1		Q2			Q3			Q4			Total
Revenues ⁽¹⁾⁽²⁾	$	946	$	836		$	871		$	956		$	3,609
Earnings (loss) from operations and associates	$	300	$	(2,451	)	$	(7	)	$	(124	)	$	(2,282	)
Net earnings (loss) from continuing operations ⁽²⁾	$	293	$	(1,946	)	$	(3	)	$	(1,001	)	$	(2,657	)
Net earnings (loss) from discontinued operations ⁽²⁾	$	16	$	12		$	8		$	(88	)	$	(52	)
Net earnings (loss)	$	309	$	(1,934	)	$	5		$	(1,089	)	$	(2,709	)
Net earnings (loss) attributable to shareholders of Goldcorp	$	309	$	(1,934	)	$	5		$	(1,089	)	$	(2,709	)
Net earnings (loss) from continuing operations per share⁽²⁾
– Basic	$	0.36	$	(2.40	)	$	—		$	(1.23	)	$	(3.27	)
– Diluted	$	0.32	$	(2.40	)	$	—		$	(1.23	)	$	(3.27	)
Net earnings (loss) per share
– Basic	$	0.38	$	(2.38	)	$	0.01		$	(1.34	)	$	(3.34	)
– Diluted	$	0.33	$	(2.38	)	$	—		$	(1.34	)	$	(3.34	)
Cash flows from operating activities of continuing operations ⁽¹⁾⁽²⁾	$	268	$	66		$	256		$	296		$	886
Cash flows from operating activities including discontinued operations ⁽¹⁾⁽²⁾	$	294	$	80		$	274		$	307		$	955
Dividends paid	$	122	$	121		$	122		$	121		$	486
Cash and cash equivalents	$	1,463	$	899		$	972		$	625		$	625
Total assets	$	32,632	$	30,029		$	29,933		$	29,564		$	29,564
Non-current liabilities	$	8,323	$	7,808		$	6,995		$	7,773		$	7,773



	2013
Key performance measures ⁽³⁾	Q1		Q2		Q3		Q4		Total
Gold produced (ounces) ⁽²⁾	570,400		607,300		595,200		730,000		2,502,900
Gold sold (ounces) ⁽¹⁾⁽²⁾	552,200		586,100		608,500		687,200		2,434,000
Silver produced (ounces)	5,633,400		7,180,000		7,744,600		9,768,100		30,326,100
Copper produced (thousands of pounds)	18,800		21,600		21,400		28,800		90,600
Lead produced (thousands of pounds)	29,100		35,400		41,000		53,600		159,100
Zinc produced (thousands of pounds)	52,000		70,100		76,300		80,900		279,300
Average realized gold price (per ounce)	$	1,622	$	1,357	$	1,341	$	1,254	$	1,385
Average London spot gold price (per ounce)	$	1,631	$	1,414	$	1,327	$	1,272	$	1,410
Total cash costs – by-product (per gold ounce) ⁽⁴⁾	$	543	$	631	$	523	$	437	$	529
Total cash costs – co-product (per gold ounce) ⁽⁵⁾	$	698	$	699	$	688	$	625	$	672
All-in sustaining costs (per gold ounce)	$	1,113	$	1,208	$	969	$	784	$	1,008
Adjusted net earnings	$	237	$	105	$	182	$	76	$	600
Adjusted operating cash flow	$	369	$	372	$	358	$	428	$	1,527
Including discontinued operations⁽²⁾
Gold produced (ounces)	614,600		646,000		637,100		768,900		2,666,600
Gold sold (ounces) ⁽¹⁾	595,100		624,300		652,100		725,700		2,597,200
Total cash costs – by-product (per gold ounce) ⁽⁴⁾	$	565	$	646	$	551	$	467	$	553
Total cash costs – co-product (per gold ounce) ⁽⁵⁾	$	710	$	713	$	706	$	645	$	687
All-in sustaining costs (per gold ounce)	$	1,134	$	1,227	$	995	$	810	$	1,031
Adjusted net earnings	$	253	$	117	$	190	$	74	$	634
Adjusted operating cash flow	$	400	$	388	$	374	$	439	$	1,601


(1)	Excludes pre-commissioning sales ounces from Cerro Negro and Éléonore as costs incurred, net of proceeds from sales, were credited against capitalized project costs.

GOLDCORP | 12

(in United States dollars, tabular amounts in millions, except where noted)


(2)	The Company's 100% interest in Wharf and 66.7% interest in Marigold are classified as discontinued operations for the year ended December 31, 2014. The comparative information has been re-presented in accordance with the requirements of IFRS 5 – Non-current assets held for sale and discontinued operations.

(3)

(4)


(5)	Total cash costs per gold ounce on a co-product basis is calculated by allocating Goldcorp’s share of production costs to each co-product (Alumbrera (copper); Marlin (silver); Pueblo Viejo (silver); Peñasquito (silver, lead and zinc)) based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3).

GOLDCORP | 13

(in United States dollars, tabular amounts in millions, except where noted)

REVIEW OF QUARTERLY FINANCIAL RESULTS – Three months ended December 31, 2014 compared to the three months ended September 30, 2014

The net loss attributable to shareholders of Goldcorp for the fourth quarter of 2014 was $(2,396) million, or $(2.94) per share, compared to a net loss attributable to shareholders of Goldcorp of $(44) million, or $(0.05) per share, for the third quarter of 2014. Compared to the prior quarter, the net loss attributable to shareholders of Goldcorp for the three months ended December 31, 2014 was impacted by the following factors:

•

Revenues decreased by $4 million, primarily due to a $22 million decrease in lead and zinc revenues, net of refining charges, at Peñasquito and a $19 million decrease in silver revenues, partially offset by a $36 million increase in gold revenues. The decrease in revenues resulted primarily from the decline in commodity prices during the fourth quarter of 2014 and lower sales volumes for silver and lead, partially offset by higher sales volumes for gold compared to the third quarter of 2014;

•

Production costs increased by $66 million, or 13%, due to revisions in estimates at the Company's inactive and closed mines during the fourth quarter of 2014 resulting in a $56 million increase in reclamation and closure costs; a $31 million reduction of the carrying value of the heap leach ore inventory at Los Filos to net realizable value recognized during the fourth quarter of 2014; higher consumable and site costs; and lower capitalized stripping costs at Peñasquito during the fourth quarter of 2014; partially offset a $41 million reduction of the carrying value of the low-grade stockpile at Peñasquito to net realizable value recognized during the third quarter of 2014; and favourable foreign exchange movements;


•	Depreciation and depletion increased by $24 million, or 13%, due to higher overall sales volumes;


•	The Company’s share of net earnings of associates increased by $10 million from the prior quarter primarily due to a $20 million increase in the Company's share of net earnings of Alumbrera, partially offset by a $5 million decrease in the Company's share of net earnings of Pueblo Viejo;


•	An impairment of mining interests and goodwill of $2,980 million ($2,300 million, net of tax) was recognized against the carrying amount of the Cerro Negro project in the fourth quarter of 2014. An impairment of mining interests of $19 million ($13 million, net of tax) was recognized against the carrying amount of the El Sauzal mine in the third quarter of 2014;


•	Corporate administration, excluding share-based compensation expense, was $46 million, which was comparable to the prior quarter. Share-based compensation expense of $13 million for the fourth quarter of 2014 decreased by $6 million compared to the prior quarter due to a decrease in the fair value of the Company's performance share units;

•

A $34 million loss on derivatives in the fourth quarter of 2014 comprised of a loss on foreign currency, heating oil, copper, lead, and zinc contracts. A $14 million net loss on derivatives in the third quarter of 2014 comprised of a $14 million net loss on foreign currency, heating oil, copper, lead, and zinc contracts; and a $1 million realized loss on the Silver Wheaton silver contract which was settled during the third quarter of 2014; partially offset by a $1 million gain on the conversion feature of the Convertible Notes which was repaid upon maturity during the third quarter of 2014;


•	Finance costs decreased by $6 million from the prior quarter primarily due to an increase in interest expense eligible for capitalization to the Company's development projects; and


•	Income tax recovery for the three months ended December 31, 2014 totaled $625 million (three months ended September 30, 2014 – income tax expense of $83 million) and was impacted by:


•	A $105 million foreign exchange loss on the translation of deferred income tax assets and liabilities primarily from the Placer Dome and Glamis acquisitions in 2006 and the Camino Rojo and Cerro Negro acquisitions in 2010, compared to an $85 million foreign exchange loss for the third quarter of 2014;


•	During the fourth quarter of 2014 a deferred income tax recovery of $680 million arising on the impairment of mining interests and goodwill;

•

After adjusting for the above noted items, the non-deductible share-based compensation expense, and the impairment of mining interests and goodwill from loss before taxes, the income tax recovery for the fourth quarter of 2014 was primarily a result of a higher tax benefit of inflationary adjustments in Mexico for the fourth quarter of 2014, partially offset by lower tax deductible foreign exchange losses on US dollar denominated debt in Argentina.

Adjusted net earnings amounted to $55 million, or $0.07 per share ⁽¹⁾, for the three months ended December 31, 2014, compared to $70 million, or $0.09 per share, for the third quarter of 2014. Compared to the prior quarter, adjusted net earnings was impacted by lower silver, lead and zinc revenues as a result of a decline in commodity prices during the fourth quarter of 2014 and lower sales volumes for silver and lead and higher depreciation and depletion, partially offset by higher gold revenues as a result of higher gold sales volumes and lower production costs.

GOLDCORP | 14

(in United States dollars, tabular amounts in millions, except where noted)

Total cash costs (by-product) were $589 per gold ounce ⁽²⁾, in the fourth quarter of 2014, as compared to $597 per gold ounce in the prior quarter. The decrease in cash costs per ounce was primarily due to higher gold sales volume, partially offset by lower by-product sales credits.

(1)

(2)

The Company has included non-GAAP performance measures – total cash costs, by-product and co-product, per gold ounce, throughout this document. In the gold mining industry, total cash costs 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 Goldcorp’s share of by-product silver, copper, lead and zinc sales revenues from Goldcorp’s share of production costs. Refer to page 43 for a reconciliation of total cash costs to reported production costs.

GOLDCORP | 15

(in United States dollars, tabular amounts in millions, except where noted)

RESULTS OF OPERATIONS ⁽¹⁾

Year ended December 31



		Revenues		Gold produced (ounces)	Gold sold (ounces)	Average realized gold price (per ounce)		Total cash costs – by-product (per gold ounce) ⁽²⁾			All-in sustaining costs (per gold ounce) ⁽³⁾
Red Lake	2014	$	529	414,400	418,300	$	1,262	$	569		$	934
	2013	$	684	493,000	487,300	$	1,400	$	531		$	880
Porcupine	2014	379		300,000	299,400	1,262		647			906
	2013	407		291,900	292,000	1,390		717			1,034
Musselwhite	2014	354		278,300	279,200	1,265		629			811
	2013	353		256,300	253,700	1,390		760			1,088
Peñasquito	2014	1,432		567,800	561,700	1,266		388			813
	2013	1,148		403,800	389,700	1,335		440			914
Los Filos	2014	326		258,700	257,500	1,265		796			993
	2013	457		332,400	325,900	1,396		623			1,002
El Sauzal	2014	49		37,700	37,200	1,289		1,440			1,666
	2013	113		80,600	80,800	1,379		853			915
Marlin	2014	367		186,500	183,800	1,262		384			862
	2013	447		202,200	204,600	1,393		195			628
Alumbrera ⁽¹⁾	2014	386		120,100	113,300	1,248		145			609
	2013	388		117,500	103,600	1,365		(148		)	565
Pueblo Viejo ⁽¹⁾	2014	575		443,400	430,400	1,268		462			608
	2013	431		325,200	296,400	1,397		534			750
Cerro Negro⁽⁵⁾	2014	—		152,100	—	—		—			—
	2013	—		—	—	—		—			—
Éléonore ⁽⁵⁾	2014	—		18,300	—	—		—			—
	2013	—		—	—	—		—			—
Other ⁽³⁾	2014	—		—	—	—		—			111
	2013	—		—	—	—		—			107
Total – continuing operations	2014	$	4,397	2,777,300	2,580,800	$	1,264	$	531		$	949
	2013	$	4,428	2,502,900	2,434,000	$	1,385	$	529		$	1,008
Wharf ⁽⁴⁾	2014	94		72,100	70,100	1,254		770			870
	2013	78		56,200	55,500	1,383		924			1,165
Marigold ⁽⁴⁾	2014	28		21,800	21,900	1,289		1,117			1,207
	2013	151		107,500	107,700	1,404		914			1,503
Total – including discontinued operations	2014	$	4,519	2,871,200	2,672,800	$	1,264	$	542		$	949
	2013	$	4,657	2,666,600	2,597,200	$	1,385	$	553		$	1,031

(1)

The Company has included certain non-GAAP performance measures including the Company’s share of the applicable production, sales and financial information of Alumbrera and Pueblo Viejo, throughout this document; however, these performance measures do not have any standardized meaning. The Company believes that disclosing certain performance measures including Alumbrera and Pueblo Viejo presents a more relevant measurement of the Company’s operating and economic performance, and reflects the Company’s view of its core mining operations.

(2)

Total cash costs per gold ounce on a by-product basis is calculated net of Goldcorp’s share of by-product sales revenues (by-product copper sales revenues for Alumbrera; by-product silver sales revenues for Marlin and Pueblo Viejo; and by-product lead and zinc sales revenues and 75% of silver sales revenues for Peñasquito at market silver prices, and 25% of silver sales revenues for Peñasquito at $4.05 per silver ounce (2013 – $4.02 per silver ounce) sold to Silver Wheaton).


(3)	For the purpose of calculating all-in sustaining costs, the Company includes corporate administration expense, capital expenditures incurred at the Company's regional and head office corporate offices and regional office exploration expense as corporate all-in sustaining costs in the "Other" category. These costs are not allocated to

GOLDCORP | 16

(in United States dollars, tabular amounts in millions, except where noted)

the individual mine sites as the Company measures its operations' performance on all-in sustaining costs directly incurred at the mine site. All-in sustaining costs for Other is calculated using total corporate expenditures and the Company's consolidated gold sales ounces.


(4)	The Company's 100% interest in Wharf and 66.7% interest in Marigold are classified as discontinued operations for the year ended December 31, 2014. The 2013 comparative information has been re-presented in accordance with the requirements of IFRS 5 – Non-current assets held for sale and discontinued operations.


(5)	Gold produced represents pre-commercial production ounces from Cerro Negro and Éléonore. However, revenues and gold sold are excluded as costs incurred, net of proceeds from sales, were credited against capitalized project costs.

Three months ended December 31



		Revenues		Gold produced (ounces)	Gold sold (ounces)	Average realized gold price (per ounce)		Total cash costs – by-product (per gold ounce) ⁽²⁾			All-in sustaining costs (per gold ounce) ⁽³⁾
Red Lake	2014	$	156	130,300	128,700	$	1,208	$	493		$	809
	2013	$	151	128,000	121,400	$	1,243	$	500		$	822
Porcupine	2014	116		90,400	95,700	1,210		591			857
	2013	107		78,900	84,300	1,265		671			907
Musselwhite	2014	98		73,100	81,100	1,208		619			779
	2013	99		74,600	78,200	1,270		675			883
Peñasquito	2014	285		141,100	126,100	1,184		728			1,472
	2013	348		141,700	135,700	1,222		102			473
Los Filos	2014	76		65,900	63,400	1,203		1,194			1,369
	2013	113		94,000	88,800	1,263		637			860
El Sauzal ⁽⁶⁾	2014	1		900	100	1,099		—			—
	2013	27		21,300	21,200	1,269		850			880
Marlin	2014	103		52,300	53,800	1,208		273			703
	2013	111		52,800	54,700	1,260		159			515
Alumbrera ⁽¹⁾	2014	94		41,700	33,900	1,189		(282		)	89
	2013	95		34,000	24,900	1,249		(558		)	37
Pueblo Viejo ⁽¹⁾	2014	126		117,900	98,300	1,215		477			630
	2013	103		104,700	78,000	1,278		592			688
Cerro Negro⁽⁵⁾	2014	—		133,100	—	—		—			—
	2013	—		—	—	—		—			—
Éléonore ⁽⁵⁾	2014	—		18,300	—	—		—			—
	2013	—		—	—	—		—			—
Other ⁽³⁾	2014	—		—	—	—		—			111
	2013	—		—	—	—		—			72
Total – continuing operations	2014	$	1,055	865,000	681,100	$	1,203	$	582		$	1,043
	2013	$	1,154	730,000	687,200	$	1,254	$	437		$	785
Wharf ⁽⁴⁾	2014	32		25,900	26,800	1,195		772			832
	2013	14		10,800	10,600	1,266		1,092			1,411
Marigold ⁽⁴⁾	2014	—		—	—	—		—			—
	2013	35		28,100	27,900	1,258		969			1,216
Total – including discontinued operations	2014	$	1,087	890,900	707,900	$	1,203	$	589		$	1,035
	2013	$	1,203	768,900	725,700	$	1,254	$	467		$	810


(1)	The Company has included certain non-GAAP performance measures including the Company’s share of the applicable production, sales and financial information of Alumbrera and Pueblo Viejo, throughout this document; however, these performance measures do not have any standardized meaning. The Company believes that

GOLDCORP | 17

(in United States dollars, tabular amounts in millions, except where noted)

disclosing certain performance measures including Alumbrera and Pueblo Viejo presents a more relevant measurement of the Company’s operating and economic performance, and reflects the Company’s view of its core mining operations.

(2)

Total cash costs per gold ounce on a by-product basis is calculated net of Goldcorp’s share of by-product sales revenues (by-product copper sales revenues for Alumbrera; by-product silver sales revenues for Marlin and Pueblo Viejo; and by-product lead and zinc sales revenues and 75% of silver sales revenues for Peñasquito at market silver prices, and 25% of silver sales revenues for Peñasquito at $4.05 per silver ounce (2013 – $4.02 per silver ounce) sold to Silver Wheaton).

(3)

For the purpose of calculating all-in sustaining costs, the Company includes corporate administration expense, capital expenditures incurred at the Company's regional and head office corporate offices and regional office exploration expense as corporate all-in sustaining costs in the "Other" category. These costs are not allocated to the individual mine sites as the Company measures its operations' performance on all-in sustaining costs directly incurred at the mine site. All-in sustaining costs for Other is calculated using total corporate expenditures and the Company's consolidated gold sales ounces.


(4)	The Company's 100% interest in Wharf and 66.7% interest in Marigold are classified as discontinued operations for the year ended December 31, 2014. The 2013 comparative information has been re-presented in accordance with the requirements of IFRS 5 – Non-current assets held for sale and discontinued operations.


(5)	Gold produced represents pre-commercial production ounces from Cerro Negro and Éléonore. However, sales and sales related revenues are excluded as they are credited against capitalized project costs.

(6)

As a result of attempts to continue mining activities at El Sauzal during the fourth quarter of 2014 following the identification of the pit wall instability in the third quarter of 2014, incidental costs were incurred and gold ounces produced. While these costs have been included in the 2014 annual all-in sustaining and by-product cash costs, the fourth quarter impacts are not separately disclosed.

GOLDCORP | 18

(in United States dollars, tabular amounts in millions, except where noted)

OPERATIONAL REVIEW

Red Lake mines, Canada



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore milled ⁽¹⁾	175,100			157,700			164,400			186,900			684,100			786,900
Average mill head grade (grams/tonne)	16.66			18.77			20.80			21.52			19.47			20.33
Average recovery rate	95		%	96		%	97		%	96		%	96		%	95		%
Gold (ounces)
– Produced ⁽¹⁾	95,000			89,500			99,600			130,300			414,400			493,000
– Sold	101,200			89,800			98,600			128,700			418,300			487,300
Average realized gold price (per ounce)	$	1,294		$	1,300		$	1,265		$	1,208		$	1,262		$	1,400
Total cash costs – by-product (per ounce)	$	625		$	656		$	533		$	493		$	569		$	531
All-in sustaining costs (per ounce)	$	954		$	1,066		$	955		$	809		$	934		$	880
Mining cost per tonne	$	223.17		$	245.61		$	219.09		$	195.29		$	220.00		$	233.36
Milling cost per tonne	$	48.73		$	51.38		$	46.97		$	44.21		$	47.69		$	47.37
Financial Data
Revenues	$	131		$	117		$	125		$	156		$	529		$	684
Depreciation and depletion	$	27		$	26		$	28		$	35		$	116		$	107
Earnings from operations	$	40		$	31		$	41		$	56		$	168		$	309
Expenditures on mining interests ⁽²⁾	$	54		$	56		$	65		$	58		$	233		$	233


(1)	Included in tonnes of ore milled and gold ounces produced for the fourth quarter of 2014 are 900 tonnes and 200 ounces, respectively, from the Company's Cochenour gold project.


(2)	Expenditures on mining interests includes expenditures incurred at the Company's Cochenour gold project of $76 million.

Gold production for 2014 of 414,400 ounces was 78,600 ounces, or 16%, lower than 2013 due to 13% lower mill throughput and 4% lower grade. Tonnes were lower than anticipated due to lower production from remnant pillar mining and the focus on maximizing cash flow through mining higher margin ounces at the Campbell Complex. In addition, fewer tonnes were obtained from the High Grade Zone as a result of lower stope availability due to issues with long hole drilling, seismicity, and ground conditions which caused sequencing issues and delayed production in the Foot Wall Zone. The lower grades were attributable to back filling delays, which deferred the mining of higher grade material in the Upper Red Lake Zone.

All-in sustaining costs for 2014 were $934 per ounce and include by-product cash costs of $569 per ounce, which were $54 per ounce and $38 per ounce higher compared to 2013, respectively. The 6% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower gold production ($146 per ounce) and higher exploration expenditures ($13 per ounce), partially offset by a weaker Canadian dollar ($60 per ounce), lower sustaining capital expenditures ($32 per ounce), and lower operating costs ($13 per ounce). The increase in exploration expenditures was attributable to an increase in exploration activity at HG Young during 2014 where five drills are currently on site. The decreases in operating costs and sustaining capital expenditures were attributable to a decrease in employee and long hole drilling contractor costs due to continued O4E initiatives ($6 million) and less costs being incurred in 2014 on the borehole hoist project, respectively.

Gold production for the fourth quarter of 2014 was 30,700 ounces, or 31%, higher than the third quarter of 2014 due to 14% higher mill throughput and 3% higher grades. The higher tonnage was provided by the newly developed mining areas in the Upper Red Lake and Footwall Zones combined with operational improvement initiatives and long hole mining in the High Grade Zone. Higher grades were provided by the Sulphide, Upper Red Lake, and Campbell Zones as a result of mine sequencing and improved dilution control.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $146 per ounce and $40 per ounce lower than the third quarter of 2014, respectively. The 15% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($225 per ounce), a weaker Canadian dollar ($17 per ounce), and lower sustaining capital expenditures ($12 per ounce), partially offset by higher operating costs ($92 per ounce) and higher exploration expenditures ($16 per ounce). The increase in operating costs was attributable to an increase in employee and contractor costs ($6 million), consumables and maintenance parts ($3 million), site costs due to a one time health care donation in the fourth quarter of 2014 ($2 million), and energy costs ($1 million). The increase in exploration expenditures was attributable to an increase in exploration activity at HG Young during the fourth quarter of 2014.

Red Lake gold mines’ proven and probable gold reserves totaled 2.06 million ounces at December 31, 2014, compared to 2.55 million ounces at December 31, 2013, due primarily to mining depletion. During 2014, drilling continued at the High Grade Zone. In addition, exploration drilling

GOLDCORP | 19

(in United States dollars, tabular amounts in millions, except where noted)

from surface focused on the HG Young discovery resulting in numerous high grade intercepts and extension of the strike length. HG Young can be developed from the Campbell Complex infrastructure to the south and rehabilitation on the 14 Level at the Campbell Complex has now been completed. This rehabilitation will provide access for exploration development and diamond drilling from underground beginning in early 2015. Exploration continued on the NXT Zone, R Zone, Footwall Zone, and the PLM Zone throughout 2014 where numerous significant results have been returned.

On January 30, 2015, the Company announced it had signed a Collaboration Agreement with the Wabauskang First Nations which paves the way for long-term economic benefits for the northwestern Ontario First Nations and provides a framework for strengthened collaboration in the development and operations of the Red Lake Gold Mines.

GOLDCORP | 20

(in United States dollars, tabular amounts in millions, except where noted)

Porcupine mines, Canada



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore milled	867,700			1,081,400			1,123,600			1,094,100			4,166,800			4,231,700
Hoyle Pond underground (tonnes)	71,000			55,200			73,300			122,000			321,500			349,000
Hoyle Pond underground (grams/tonne)	16.30			16.82			13.84			15.86			15.47			13.86
Dome underground (tonnes)	103,500			125,500			111,800			120,500			461,300			475,100
Dome underground (grams/tonnes)	5.44			4.96			4.05			4.36			4.48			4.36
Hollinger Open Pit (tonnes)	—			25,700			93,800			59,000			178,500			—
Hollinger Open Pit (grams/tonnes)	—			1.15			1.26			1.22			1.31			—
Stockpile (tonnes)	693,200			875,000			844,700			792,600			3,205,500			3,407,600
Stockpile (grams/tonne)	0.77			0.99			1.07			0.77			0.81			0.81
Average mill head grade (grams/tonne)	2.60			2.19			2.22			2.82			2.45			2.28
Average recovery rate	93		%	93		%	92		%	91		%	92		%	94		%
Gold (ounces)
– Produced	66,500			68,800			74,300			90,400			300,000			291,900
– Sold	65,700			69,600			68,400			95,700			299,400			292,000
Average realized gold price (per ounce)	$	1,287		$	1,302		$	1,272		$	1,210		$	1,262		$	1,390
Total cash costs – by-product (per ounce)	$	701		$	658		$	663		$	591		$	647		$	717
All-in sustaining costs (per ounce)	$	945		$	895		$	946		$	857		$	906		$	1,034
Mining cost per tonne	$	127.65		$	121.54		$	119.89		$	93.96		$	114.03		$	120.54
Milling cost per tonne	$	8.76		$	7.44		$	8.72		$	7.31		$	8.03		$	8.83
Financial Data
Revenues	$	85		$	91		$	87		$	116		$	379		$	407
Depreciation and depletion	$	13		$	12		$	11		$	18		$	54		$	56
Earnings from operations ⁽¹⁾	$	27		$	21		$	31		$	13		$	92		$	163
Expenditures on mining interests	$	19		$	18		$	19		$	24		$	80		$	96


(1)	Earnings from operations for the three months ended December 31, 2014 and June 30, 2014 were impacted by an increase in non-cash provisions related to the revision in estimates in the reclamation and closure cost obligations for the Porcupine mines' closed sites of $28 million and $11 million, respectively (year ended December 31, 2013 – a reduction of $25 million).

Porcupine consists of four mining operations, Hoyle Pond, Dome, Stockpile, and Hollinger, all which feed the Dome processing facility. Hollinger open pit commenced pre-stripping activities during the second quarter of 2014.

Gold production for 2014 of 300,000 ounces was 8,100 ounces, or 3%, higher than 2013 due to 7% higher grades, partially offset by 2% lower tonnage. The Hoyle Pond underground operation experienced 12% higher grades as the mine focused on the high grade VAZ ore, partially offset by 8% lower tonnes due to the shutdown of the #1 Winze for repairs during the first and second quarters of 2014. These repairs were completed on July 19, 2014. The Dome underground operation provided tonnage and grades that were comparable to 2013. As a result of its pre-stripping activities, Hollinger open pit provided 178,500 tonnes of ore to the mill in 2014 and with the introduction of the higher grade feed from Hollinger, the Surface Stockpile tonnes processed decreased 6% from 2013.

All-in sustaining costs for 2014 were $906 per ounce and include by-product cash costs of $647 per ounce, which were $128 per ounce and $70 per ounce lower compared to 2013, respectively. The 12% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to a weaker Canadian dollar ($55 per ounce), lower sustaining capital expenditures ($47 per ounce), higher gold production ($25 per ounce), and lower operating costs ($13 per ounce), partially offset by higher reclamation accretion expenses ($12 per ounce). The decrease in operating costs was primarily due to lower employee costs resulting from lower overall manpower levels during 2014 ($11 million), partially offset by higher contractor costs for development work at the underground operations ($5 million) and higher power costs ($2 million). The decrease in sustaining capital expenditures was primarily the result of timing of underground projects ($13 million).

Gold production for the fourth quarter of 2014 was 16,100 ounces, or 22%, higher than the third quarter of 2014 due to 27% higher grades, partially offset by 3% lower tonnage. Grades were higher than prior quarter primarily due to ore development on numerous higher grade VAZ veins in the Hoyle Pond underground operation.

GOLDCORP | 21

(in United States dollars, tabular amounts in millions, except where noted)

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $89 per ounce and $72 per ounce lower than the third quarter of 2014, respectively. The 9% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($269) and a weaker Canadian dollar ($17 per ounce), partially offset by higher operating costs ($124 per ounce) and higher sustaining capital expenditures ($73 per ounce). The increase in operating costs was primarily due to an increase in the performance incentive program which increased labour costs ($2 million), an increase in consumables ($4 million), an increase in mine development contractors ($2 million), and costs associated with the RDA entered into during the fourth quarter of 2014 ($1 million). The RDA, signed on November 24, 2014 with four First Nations communities, established a framework for continued consultation and collaboration on current and future operations in the Timmins area, including long-term benefits for the First Nations. The increase in sustaining capital expenditures was primarily due to increased component replacements and overhauls ($3 million).

Underground exploration in 2014 was focused on expanding current ore zones at Hoyle Pond, such as the high grade S veins and UP Splay Zones, and confirming and testing extensions of the TVZ Zone. Underground drilling was successful in expanding the 3766 Zone at Dome. Surface exploration continued to focus on the extension of the volcanic and sedimentary belt east of the Hoyle Pond mine as well as testing targets in the Night Hawk Lake area.

During 2014, work at the Hoyle Deep Project continued to focus on sinking the #2 Winze shaft and advancing the lateral development to complete the 1600 metre level shaft station, the 1670 metre level loading pocket, and continued advancement of the 1705 metre level decline to access the 1740 metre shaft bottom. Shaft sinking advanced a total of 520 metres during 2014 through the 1670 metre level and supporting lateral development advanced a total of 1,305 metres in 2014. Expenditures relating to the Hoyle Deep Project for 2014 totaled $31 million.

At the Hollinger open pit, over-burden and rock pre-stripping activities continued. A total of 2,168,000 tonnes of material was placed on the Control Berm during 2014 which is targeted for completion in the second quarter of 2015, a requirement for mining operations to commence 24 hours per day.

Porcupine mines contained 2.98 million ounces of proven and probable gold reserves at December 31, 2014 compared to 3.01 million ounces at December 31, 2013.

GOLDCORP | 22

(in United States dollars, tabular amounts in millions, except where noted)

Musselwhite mine, Canada



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore milled	332,200			313,400			263,600			312,000			1,221,200			1,391,800
Average mill head grade (grams/tonne)	7.30			7.12			7.67			7.46			7.38			5.92
Average recovery rate	96		%	96		%	96		%	96		%	96		%	96		%
Gold (ounces)
– Produced	74,900			67,800			62,500			73,100			278,300			256,300
– Sold	68,800			67,000			62,300			81,100			279,200			253,700
Average realized gold price (per ounce)	$	1,281		$	1,292		$	1,292		$	1,208		$	1,265		$	1,390
Total cash costs – by-product (per ounce)	$	643		$	605		$	654		$	619		$	629		$	760
All-in sustaining costs (per ounce)	$	787		$	794		$	897		$	779		$	811		$	1,088
Mining cost per tonne	$	85.34		$	71.41		$	82.17		$	71.91		$	77.61		$	77.67
Milling cost per tonne	$	15.69		$	15.25		$	16.01		$	15.25		$	15.53		$	13.90
Financial Data
Revenues	$	88		$	87		$	81		$	98		$	354		$	353
Depreciation and depletion	$	14		$	15		$	14		$	20		$	63		$	53
Earnings from operations	$	29		$	30		$	23		$	29		$	111		$	101
Expenditures on mining interests	$	9		$	12		$	11		$	12		$	44		$	75

Gold production for 2014 of 278,300 ounces was 22,000 ounces, or 9%, higher than 2013 due to 25% higher grades, partially offset by 12% lower mill throughput. Higher grades were realized as a result of mining higher grade material from the Lynx Zone and the C-Block of the PQ Deeps, coupled with improved dilution and ore control which increased grades above expectations. Mill throughput was lower primarily due to more stringent ore control practices focused on delivering better quality ore to the mill and a planned maintenance shutdown during the third quarter of 2014 to perform plant and conveyor maintenance and to upgrade electrical infrastructure.

All-in sustaining costs for 2014 were $811 per ounce and include by-product cash costs of $629 per ounce, which were $277 per ounce and $131 per ounce lower compared to 2013, respectively. The 25% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower sustaining capital expenditures ($103 per ounce), higher gold production ($100 per ounce), a weaker Canadian dollar ($51 per ounce), and lower operating costs ($23 per ounce). The decrease in operating costs was primarily due to decreased contractor usage for raise development ($7 million), while the decrease in sustaining capital expenditures was primarily due to a decrease in construction projects and capital development, as planned ($29 million).

Gold production for the fourth quarter of 2014 was 10,600 ounces, or 17%, higher than the third quarter of 2014 due to 18% higher mill throughput, partially offset by 3% lower grades. The higher mill throughput was due to the 14-day planned maintenance shutdown during the third quarter of 2014. Mining in the fourth quarter of 2014 continued to focus in the higher grade areas of the Lynx Zone and PQ Deeps with a slight decrease in grade, as planned.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $118 per ounce and $35 per ounce lower than the third quarter of 2014, respectively. The 13% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($210 per ounce), lower sustaining capital expenditures ($18 per ounce), and a weaker Canadian dollar ($14 per ounce), partially offset by higher operating costs ($124 per ounce). The increase in operating costs was primarily due to increased labour associated with mine development ($4 million), increased maintenance parts, explosives, and site costs, as planned ($3 million), increased contractor costs ($2 million), and increased propane and power usage due to colder weather conditions in the fourth quarter of 2014 ($2 million).

The 2014 exploration program focused on drilling of the West Limb target to define an inferred resource and determine whether further exploration was warranted. Results by mid-year 2014 were positive enough to trigger the start of an access drift toward the West Limb to establish a drilling platform closer to the mineralized zones. Extensional drilling on the C-Block of the PQ Deeps succeeded in extending the reserve by 150 metres to the north.

Musselwhite mine contained 1.66 million ounces of proven and probable gold reserves at December 31, 2014, compared to 1.85 million ounces at December 31, 2013, due to mining depletion partially offset by increased reserves in the PQ Deeps.

GOLDCORP | 23

(in United States dollars, tabular amounts in millions, except where noted)

Peñasquito mines, Mexico



Operating Data	Q1		Q2		Q3		Q4		Total 2014		Total 2013
Tonnes of ore mined – sulphide	10,025,400		10,280,100		8,437,600		9,172,400		37,915,500		50,612,200
Tonnes of ore mined – oxide	1,121,200		135,700		272,100		844,000		2,373,000		10,471,500
Tonnes of waste removed	33,628,000		40,595,300		38,173,700		32,778,100		145,175,100		120,194,200
Tonnes of total material moved	44,774,600		51,011,100		46,883,400		42,794,500		185,463,600		181,277,900
Ratio of waste to ore	3.0		3.9		4.4		3.3		3.6		2.0
Average head grade
Gold (grams/tonne)	0.59		0.78		0.59		0.65		0.65		0.45
Silver (grams/tonne)	32.92		30.08		23.21		21.61		26.78		23.95
Lead	0.33	%	0.24	%	0.23	%	0.19	%	0.25	%	0.27	%
Zinc	0.63	%	0.59	%	0.52	%	0.52	%	0.56	%	0.53	%
Sulphide Ore
Tonnes of ore milled	9,220,400		10,050,000		10,446,900		10,195,800		39,913,100		38,762,400
Average recovery rate
Gold	72	%	74	%	71	%	66	%	70	%	66	%
Silver	81	%	82	%	81	%	75	%	79	%	77	%
Lead	79	%	77	%	75	%	67	%	74	%	73	%
Zinc	80	%	82	%	79	%	78	%	80	%	73	%
Concentrates Produced – Payable Metal Produced
Gold (ounces)	115,500		159,400		124,000		132,300		531,200		341,500
Silver (ounces)	7,055,100		6,758,700		5,413,300		5,648,400		24,875,500		20,763,300
Lead (thousands of pounds)	49,500		38,600		37,000		27,200		152,300		159,100
Zinc (thousands of pounds)	87,900		91,900		81,000		68,900		329,700		279,300
Lead Concentrate (DMT)	47,100		41,400		36,600		29,100		154,200		155,100
Zinc Concentrate (DMT)	85,200		90,900		78,200		73,700		328,000		267,300
Oxide Ore
Tonnes of ore processed	1,202,900		135,700		563,100		1,151,300		3,053,000		10,471,500
Produced
Gold (ounces)	14,300		8,000		5,500		8,800		36,600		62,300
Silver (ounces)	341,200		248,100		156,000		186,300		931,600		1,684,100
Sulphide & Oxide Ores – Payable Metal Produced
Gold (ounces)	129,800		167,400		129,500		141,100		567,800		403,800
Silver (ounces)	7,396,300		7,006,800		5,569,300		5,834,700		25,807,100		22,447,400
Lead (thousands of pounds)	49,500		38,600		37,000		27,200		152,300		159,100
Zinc (thousands of pounds)	87,900		91,900		81,000		68,900		329,700		279,300
Gold Equivalent Ounces ⁽¹⁾	350,100		376,300		305,400		306,400		1,338,200		1,073,000

GOLDCORP | 24

(in United States dollars, tabular amounts in millions, except where noted)



	Q1		Q2		Q3		Q4			Total 2014		Total 2013
Sulphide and Oxide Ores – Payable Metal Sold
Gold (ounces)	120,700		170,900		144,000		126,100			561,700		389,700
Silver (ounces)	7,118,400		7,863,400		6,439,300		5,210,700			26,631,800		21,663,900
Lead (thousands of pounds)	45,300		43,200		41,400		29,400			159,300		147,900
Zinc (thousands of pounds)	90,100		77,000		85,400		84,000			336,500		256,000
Average realized prices
Gold (per ounce)	$	1,333	$	1,305	$	1,236	$	1,184		$	1,266	$	1,335
Silver (per ounce) ⁽²⁾	$	16.73	$	16.28	$	14.70	$	13.12		$	15.40	$	17.97
Lead (per pound)	$	0.91	$	0.97	$	0.98	$	0.83		$	0.93	$	0.97
Zinc (per pound)	$	0.90	$	1.00	$	1.07	$	0.99		$	0.99	$	0.87
Total Cash Costs – by-product (per ounce) ⁽⁴⁾⁽⁷⁾	$	179	$	124	$	579	$	728		$	388	$	440
Total Cash Costs – co-product (per ounce of gold) ⁽⁴⁾⁽⁷⁾	$	707	$	610	$	819	$	820		$	731	$	870
All-in sustaining costs (per ounce) ⁽⁷⁾	$	371	$	362	$	1,142	$	1,472		$	813	$	914
Mining cost per tonne	$	2.22	$	2.21	$	2.49	$	2.82		$	2.42	$	2.21
Milling cost per tonne	$	7.99	$	7.05	$	6.22	$	5.92		$	6.76	$	7.48
General and administrative cost per tonne milled	$	2.36	$	2.38	$	2.64	$	2.55		$	2.49	$	2.34
Off-site cost per tonne sold (lead) ⁽⁵⁾	$	644	$	842	$	753	$	769		$	744	$	673
Off-site cost per tonne sold (zinc) ⁽⁵⁾	$	352	$	372	$	384	$	351		$	358	$	343
Financial Data
Revenues ⁽²⁾	$	362	$	424	$	361	$	285		$	1,432	$	1,148
Depreciation and depletion ⁽⁸⁾	$	56	$	69	$	78	$	67		$	270	$	163
Earnings (loss) from operations ⁽²⁾⁽³⁾	$	80	$	131	$	15	$	(8	)	$	218	$	(2,270	)
Expenditures on mining interests ⁽⁶⁾	$	19	$	56	$	87	$	164		$	326	$	233

(1)

Gold equivalent ounces are calculated using the following assumptions: $1,300 per ounce of gold; by-product metal prices of $22.00 per ounce of silver; $3.00 per pound copper; $0.90 per pound of zinc; and $0.90 per pound of lead (2013 – $1,350; $24.00; $3.00; $0.85; and $0.80 respectively). By-product metals are converted to gold equivalent ounces by multiplying by-product metal production with the associated by-product metal price and dividing it by the gold price.


(2)	Includes 25% of silver ounces sold to Silver Wheaton at $4.05 per ounce (2013 – $4.02 ounce). The remaining 75% of silver ounces are sold at market rates.


(3)	During the year ended December 31, 2013, the Company recorded impairment charges of $2,427 million before tax ($1,827 million after tax) related to Peñasquito as a result of the change in the metal pricing environment related to in-situ exploration ounces, in combination with the changes to the LOM plan and the Mexican mining duty.

(4)

The calculation of total cash costs per ounce of gold is net of by-product silver, lead and zinc sales revenues. If silver, lead and zinc were treated as co-products, total cash costs for the year ended December 31, 2014 would be $731 per ounce of gold, $10.87 per ounce of silver, $0.95 per pound of lead and $0.78 per pound of zinc (2013 – $870, $13.98, $0.78, and $0.70, respectively). Production costs are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3). The actual and budget silver price for Peñasquito takes into consideration that 25% of silver ounces are sold to Silver Wheaton at $4.05 per ounce (2013 – $4.02 ounce) with the remaining 75% of silver ounces sold at market rates. Using actual realized sales prices, the co-product total cash costs for the year ended December 31, 2014 would be $752 per ounce of gold, $10.28 per ounce of silver, $0.90 per pound of lead, and $0.81 per pound of zinc (2013 – $851, $12.67, $0.91, and $0.76, respectively).


(5)	Off-site costs consist primarily of transportation, warehousing, and treatment and refining charges.


(6)	Expenditures on mining interests includes expenditures incurred at the Company's Camino Rojo gold project.


(7)	Includes a $41 million cash reduction of the carrying value of the low-grade stockpile to net realizable value in the third quarter of 2014. Excluding the impact of the carrying value reduction, total cash costs – by-product were $292 per ounce, total cash costs – co-product were $694 per ounce, and all-in sustaining costs were $854 per ounce for the third quarter of 2014.


(8)	Depreciation and depletion in the third quarter of 2014 includes a $14 million reduction of the carrying value of the low-grade stockpile inventory to net realizable value.

Gold production for 2014 of 567,800 ounces was 164,000 ounces, or 41%, higher than 2013 due to 44% higher gold ore grades, 6% higher metallurgical recoveries, and 3% higher mill throughput for sulphide production, partially offset by 41% lower oxide gold production, as expected.

GOLDCORP | 25

(in United States dollars, tabular amounts in millions, except where noted)

Higher ore grades resulted from continued mining in higher grade ore benches at the bottom of Phase 4 supplemented by the processing of high grade stockpiles during 2014. Higher metallurgical recoveries were the result of plant operational improvements in the efficiency of the flotation cells operation. A mill throughput rate of 109,400 tonnes per day was achieved during 2014 as a result of improved ore fragmentation and the improved operation of the Augmented Feed Circuit and the High Pressure Grinding Roll. Waste removal was 21% higher in 2014 than 2013 as stripping activities increased in preparation for mining ore from Phase 5C and 5D of the Pit.

All-in sustaining costs for 2014 were $813 per ounce and include by-product cash costs of $388 per ounce, which were $101 per ounce and $52 per ounce lower compared to 2013, respectively. During the third quarter of 2014, the carrying value of the low-grade stockpile was reduced by $41 million to net realizable value due to improvements to the mine plan that defers processing of low-grade stockpiles to the end of the mine life and also recognizes lower anticipated recoveries from those stockpiles. Excluding the impact of the low-grade stockpile carrying value reduction, all-in sustaining costs were $740 per ounce and include by-product cash costs of $315 per ounce, which were $174 per ounce and $125 per ounce lower compared to 2013, respectively. The 19% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($879 per ounce), partially offset by lower by-product credit sales ($364 per ounce), higher operating costs ($239 per ounce), and higher sustaining capital expenditures ($102 per ounce). The increase in operating costs resulted primarily from employee and contractor headcount increases to support ongoing mine development ($30 million), increased community payments ($25 million), increased water use payments due to the one-time historical water use payments in the first quarter of 2014 ($18 million), increased fuel costs ($12 million), increased explosives costs ($9 million), increased transportation costs ($9 million), and increased royalties due to the new royalty of 0.5% of gross income derived from the sale of gold and silver, effective January 1, 2014 ($5 million). The increase in sustaining capital expenditures resulted primarily from an increase in capitalized stripping activities during 2014 ($68 million) and investment in mine equipment, partially offset by the completion of certain major construction projects in 2013.

Gold production for the fourth quarter of 2014 was 11,600 ounces, or 9%, higher than the third quarter of 2014 due to 10% higher gold ore grades and 60% higher oxide production, partially offset by 7% lower metallurgical recoveries and 2% lower mill throughput for sulphide production. Higher ore grades were primarily a result of Phase 4 high grade ore and the first sustained ore occurrences in Phase 5C. The increase in oxide gold production was due to higher oxide tonnes being leached on the pad. Metallurgical recoveries were impacted by the introduction of transitional material from Phase 5C, as planned, and lower lead ores processed during the fourth quarter of 2014.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $330 per ounce and $149 per ounce higher, than the third quarter of 2014, respectively. Excluding the impact of the low-grade stockpile carrying value reduction in the third quarter of 2014, all-in sustaining costs, including by-product cash costs, were $618 per ounce and $436 per ounce higher than the third quarter of 2014. The 72% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower gold sales due to timing of concentrate shipments ($349 per ounce), lower by-product credit sales ($164 per ounce), higher sustaining capital expenditures ($120 per ounce), and higher operating costs ($41 per ounce), partially offset by a weaker Mexican peso ($56 per ounce). The increase in sustaining capital expenditures was primarily attributable to an increase in expenditures associated with the NWF project ($16 million), tailings storage facilities expenditures ($4 million), and mobile equipment purchases during the fourth quarter of 2014 which will result in a decrease in contractor costs in 2015 ($5 million).

The provisional pricing impact of lower realized gold, silver, lead, and zinc prices during the fourth quarter of 2014 was negative $3 million, which primarily related to gold sales from the third quarter of 2014 that settled in the fourth quarter of 2014.

Permitting delays experienced in the first quarter of 2014 due to unanticipated additional regulatory requirements related to the interconnection with the existing well fields, securing surface land access rights, and additional permitting requirements by the environmental authority deferred start-up of construction of the NWF project to mid-year 2014. Following receipt of initial permits and finalizing the remaining construction contracts, construction on the NWF project ramped up to full activity levels in the fourth quarter of 2014, with completion anticipated around mid-year 2015. Activities to address the additional regulatory requirements related to the interconnection to the existing well field continue as planned. Contingency plans remain in place for fresh water supply to Peñasquito until the NWF is operational. Studies for the long-term tailings facility continued during 2014, with three viable options being evaluated. In addition, studies are underway to evaluate extending the existing tailings facility's life beyond 2018.

Waste Rock Overland Conveyor System construction was completed during 2014. The transfer chutes redesign, modifications to the sizer, and improved waste material selection is expected to increase production from the current 6,500 tonnes per hour to approximately 8,000 tonnes per hour.

During 2014, Peñasquito progressed with the pre-feasibility studies on two projects to assess the potential for producing saleable copper concentrate at Peñasquito, the CEP, and to assess the viability of leaching a pyrite concentrate from the zinc flotation tailings ("Pyrite Leach"). Successful implementation of one or both of these new process improvements has the potential to significantly improve the overall economics and life of mine of Peñasquito, through addition of another saleable product with the CEP, and increasing gold and silver recoveries from Pyrite Leach. A US Patent for the CEP was filed during the first quarter of 2014. The pre-feasibility studies were essentially complete at the end of

GOLDCORP | 26

(in United States dollars, tabular amounts in millions, except where noted)

2014 and the projects are expected to be integrated as they enter the feasibility study phase which is anticipated by the end of the first quarter of 2015. The feasibility study is expected to be complete in early 2016.

The 2014 drilling program ended with a total of 23,058 metres drilled, with 1,185 metres drilled during the fourth quarter of 2014. The exploration program continues to define the intersection of the copper-gold sulphide rich skarn ore body and porphyry deposit located below and adjacent to the diatreme ore body and is focused on a 200 metre spaced in-fill program. Exploration activities during 2014 focused on the in-fill of the vertical and horizontal size and extension of the skarn deposit where intersections show continuity of a significant sized body of copper and gold.

Peñasquito’s open pit operations contained 10.54 million ounces of proven and probable gold reserves at December 31, 2014 compared to 11.62 million ounces at December 31, 2013, principally due to mining depletion and lower grades in the Peñasco pit.

In 2005, prior to construction of the Peñasquito Mine, an agreement was negotiated with the Cerro Gordo Ejido for the use of 600 hectares (approximately 1,483 acres) of surface land located within the confines of the proposed Peñasquito Mine site. These lands now include 60% of the mine pit area, a portion of the waste rock facilities and explosive magazine storage area. The terms of the agreement were based on comparable surface valuations in the region as well as on similar agreements at the Peñasquito Mine and other Mexican mining operations. In 2009, the Cerro Gordo Ejido commenced an action against Minera Peñasquito in Mexico’s agrarian courts challenging the land use agreement. Following a series of legal proceedings, the agrarian courts ruled on June 18, 2013, that the land use agreement was null and ordered the land to be returned to the Cerro Gordo Ejido for payment of 2.4 million pesos. Constitutional claims are currently proceeding in the First District Court of Zacatecas by the Cedros and Mazapil Ejidos and a local transportation union. The State of Zacatecas has filed its own constitutional claim against the agrarian court’s ruling.

Federal criminal charges were filed against the agrarian judge who presided at the trial of first instance which started in 2009 and several members of a prior Cerro Gordo Ejido leadership committee who originally approved the land use agreement. The Attorney General has issued an “assurance measure” protecting the status of the disputed lands pending conclusion of the related criminal investigation. With the assurance measure, Minera Peñasquito has sole custody of the disputed lands. Goldcorp has filed with the office of the SEDATU the required documents to expropriate the disputed lands. In addition, Goldcorp will continue to employ all legal means at its disposal to ensure continuity of operations and to protect Goldcorp’s mineral concession rights consistent with Mexican law. Operations at the Peñasquito Mine have not been impacted. However, in the event the constitutional claims by the State of Zacatecas, Ejido Cedros, Ejido Mazapil and transportation union are ultimately rejected, and the assurance measure is removed, Ejido Cerro Gordo would, absent any other intervening event, be entitled to possession of the disputed lands. Should this occur, Peñasquito Mine operations would be adversely impacted, and in such circumstances, the ultimate resolution of this matter is not determinable at this time. Settlement discussions facilitated by the Mexican federal government commenced in June 2014 and progress continues towards a mutually beneficial resolution of the dispute.

GOLDCORP | 27

(in United States dollars, tabular amounts in millions, except where noted)

Los Filos mine, Mexico



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore mined	6,877,700			3,472,600			5,727,700			7,184,100			23,262,100			27,682,200
Tonnes of waste removed	10,156,600			6,608,800			10,910,200			9,685,000			37,360,600			45,805,200
Ratio of waste to ore	1.5			1.9			1.9			1.4			1.6			1.7
Tonnes of ore processed	6,834,300			3,480,200			5,722,600			7,227,200			23,264,300			28,113,300
Average grade processed (grams/tonne)	0.72			0.75			0.73			0.53			0.67			0.70
Average recovery rate ⁽¹⁾	49		%	49		%	49		%	49		%	49		%	49		%
Gold (ounces)
– Produced	80,000			48,700			64,100			65,900			258,700			332,400
– Sold	81,900			45,700			66,500			63,400			257,500			325,900
Average realized gold price (per ounce)	$	1,289		$	1,280		$	1,281		$	1,203		$	1,265		$	1,396
Total cash costs – by-product (per ounce)	$	638		$	778		$	623		$	1,194		$	796		$	623
All-in sustaining costs (per ounce)	$	805		$	1,077		$	808		$	1,369		$	993		$	1,002
Open-pit mining cost per tonne	$	1.67		$	1.65		$	1.78		$	1.78		$	1.73		$	1.73
Processing cost per tonne leached	$	2.15		$	2.37		$	2.51		$	2.30		$	2.32		$	2.42
Financial Data
Revenues	$	106		$	58		$	86		$	76		$	326		$	457
Depreciation and depletion ⁽³⁾	$	16		$	12		$	13		$	22		$	63		$	62
Earnings (loss) from operations ⁽²⁾	$	37		$	10		$	30		$	(20	)	$	57		$	189
Expenditures for mining interests	$	16		$	11		$	11		$	13		$	51		$	112


(1)	Recovery is reported on a cumulative basis to reflect the cumulative recovery of ore on the leach pad, and does not reflect the true recovery expected over time.


(2)	Includes a $31 million cash reduction of the carrying value of the heap leach ore inventory to net realizable value in the fourth quarter of 2014. Excluding the impact of the carrying value reduction, total cash costs – by-product were $708 per ounce and all-in sustaining costs were $883 per ounce for the fourth quarter of 2014.


(3)	Depreciation and depletion in the fourth quarter of 2014 includes a $10 million reduction of the carrying value of the heap leach ore inventory to net realizable value.

Gold production for 2014 of 258,700 ounces was 73,700 ounces, or 22%, lower than 2013 as a result of 17% lower ore processed and 4% lower grades. Ore processed was lower primarily due to the suspension of process operations in the second quarter of 2014 while a negotiated settlement with the Carrizalillo Ejido was being reached and a decrease in ore mined due to longer hauling distances as a result of ore placement on heap leach pad two beginning in 2014. The lower grades were primarily attributable to mining at new phases of the El Bermejal and Los Filos pits, as planned, with grades expected to increase as mining deepens into the new phases.

All-in sustaining costs for 2014 were $993 per ounce and include by-product cash costs of $796 per ounce, which were $9 per ounce lower and $173 per ounce higher compared to 2013, respectively. During the fourth quarter of 2014, the carrying value of the heap leach ore inventory was reduced by $31 million to net realizable value due to a comprehensive evaluation of the ore previously stacked on the heap leach pad. Review of the recovery model indicated that there are areas of the heap leach pad which have underperformed, likely due to a combination of inadequate operating parameters, resulting in a reduction in estimated recoverable ounces. Excluding the impact of the heap leach ore carrying value reduction, all-in sustaining costs for 2014 were $873 per ounce and include by-product cash costs of $676 per ounce, which were $129 per ounce lower and $53 per ounce higher than 2013. The 13% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower sustaining capital expenditures ($281 per ounce), lower operating costs ($111 per ounce), and a weaker Mexican peso ($5 per ounce), partially offset by lower gold production ($268 per ounce). The decrease in operating costs was primarily attributable to a decrease in reagents consumption ($8 million), labour ($7 million), maintenance costs ($6 million) and fuel costs ($3 million). The decrease in sustaining capital expenditures was primarily attributable to additional expenditures incurred in 2013 on the heap leach pad construction ($18 million), mining concession acquisitions ($16 million), and mining equipment ($15 million).

Gold production for the fourth quarter of 2014 was 1,800 ounces, or 3%, higher than the third quarter of 2014, as a result of 26% higher ore processed and 5% higher on solution processed through the ADR plant with the commissioning of the sixth train in November 2014, partially offset by 27% lower grades. The lower grades were due to increased mining at new phases of the El Bermejal and Los Filos pits during the fourth quarter of 2014.

GOLDCORP | 28

(in United States dollars, tabular amounts in millions, except where noted)

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $561 per ounce and $571 per ounce higher than the third quarter of 2014, respectively. Excluding the impact of the heap leach ore carrying value reduction in the fourth quarter of 2014, all-in sustaining costs, including by-product cash costs, were $75 per ounce and $85 per ounce higher than the third quarter of 2014, respectively. The 9% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher operating costs ($57 per ounce) and lower gold sales ($40 per ounce), partially offset by lower sustaining capital expenditures ($17 per ounce) and a weaker Mexican peso ($5 per ounce). The increase in operating costs was primarily attributable to an increase in cyanide consumption and site costs ($3 million).

Construction of the next stage of the heap leach pad commenced during the third quarter of 2014 and is expected to be completed mid-2015.

In May 2014, Los Filos successfully renewed its five year occupation agreements with the Mezcala and Carrizalillo communities located adjacent to the operation. These agreements outline the Company’s social, infrastructure, environmental and labour commitments that benefit the Mezcala and Carrizalillo communities and secure access to all surface rights required for the mine’s long term plan.

Los Filos mine contained 6.77 million ounces in proven and probable gold reserves at December 31, 2014 compared to 7.95 million ounces at December 31, 2013, principally due to mining depletion and a change in cut-off with respect to sulphide ore.

GOLDCORP | 29

(in United States dollars, tabular amounts in millions, except where noted)

El Sauzal mine, Mexico



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore mined	572,900			476,400			163,100			59,000			1,271,400			2,247,000
Tonnes of waste removed	3,062,300			3,343,700			2,584,000			600,600			9,590,600			12,738,800
Ratio of waste to ore	5.3			7.0			15.8			10.2			7.5			5.7
Tonnes of ore milled	493,300			453,700			169,700			44,400			1,161,100			1,930,800
Average mill head grade (grams/tonne)	1.16			1.21			1.20			0.67			1.17			1.40
Average recovery rate	82		%	88		%	91		%	86		%	86		%	92		%
Gold (ounces)
– Produced	15,100			15,600			6,100			900			37,700			80,600
– Sold	12,900			14,500			9,700			100			37,200			80,800
Average realized gold price (per ounce)	$	1,277		$	1,291		$	1,307		$	1,099		$	1,289		$	1,379
Total cash costs – by-product (per ounce) ⁽¹⁾	$	994		$	1,011		$	2,004		$	—		$	1,440		$	853
All-in sustaining costs (per ounce) ⁽¹⁾	$	1,168		$	1,234		$	2,198		$	—		$	1,666		$	915
Mining cost per tonne	$	1.81		$	1.56		$	2.51		$	3.83		$	2.02		$	1.95
Milling cost per tonne	$	10.75		$	13.16		$	23.31		$	60.90		$	15.44		$	12.87
Financial Data
Revenues	$	17		$	19		$	12		$	1		$	49		$	113
Depreciation and depletion	$	4		$	4		$	4		$	1		$	13		$	32
Loss from operations ^(1)(2)(3)	$	(1	)	$	(1	)	$	(30	)	$	(25	)	$	(57	)	$	(22	)
Expenditures on mining interests	$	—		$	—		$	—		$	—		$	—		$	1


(1)	As a result of attempts to continue mining activities during the fourth quarter of 2014, incidental costs were incurred and gold ounces produced. While these costs have been included in the 2014 annual all-in sustaining and by-product cash costs, the fourth quarter impacts are not separately disclosed.

(2)

During the third quarter of 2014, the Company recorded impairment charges of $19 million before tax ($13 million after tax) related to El Sauzal as a result of a decrease in recoverable ounces and associated cash flows over the remaining life of mine due to the instability conditions of the Trini Pit. During the fourth quarter of 2013, the Company recorded impairment charges of $29 million before tax ($20 million after tax) related to El Sauzal as a result of changes in metal price assumptions and the increase in estimated reclamation costs as it approached the end of its mine life.


(3)	Loss from operations for the three months ended December 31, 2014 was impacted by an increase in non-cash provisions related to the revision in estimates in the reclamation and closure cost obligations for the El Sauzal mine of $18 million.

During the third quarter of 2014, as a safety precaution, mining operations in the last phase of the mine, the Trini pit, were suspended to address movement in the highwall slope. A geotechnical team, including third party experts, assessed the potential impact of the instability on the operations and concluded that the Trini Pit could no longer be safely mined as intended. Effective January 1, 2015 reclamation activities have commenced, six months earlier than anticipated, with the closure plan expected to take two years.

El Sauzal commenced the remediation process in June 2014 as part of the activities required to support the closure of the El Sauzal mine. The significant closure activities during 2014 included contouring of the dry-stacked tailings facility, sloping of overburden dumps and re-vegetation. Engineering designs continue on water management, diversion channels, and final dumps.

Gold production for 2014 of 37,700 ounces was 42,900 ounces, or 53%, lower than 2013 due to 40% lower ore milled, 16% lower grades, and 8% lower recoveries. The lower tonnes was due to the suspension of mine operations at the end of August 2014. The lower recoveries were attributable to the presence of silica encapsulation of gold in the ore produced.

All-in sustaining costs for 2014 were $1,666 per ounce and include by-product cash costs of $1,440 per ounce, which were $751 per ounce and $587 per ounce higher compared to 2013, respectively. The 82% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower gold production ($641 per ounce) and higher reclamation accretion expenses ($124 per ounce), partially offset a weaker Mexican peso ($14 per ounce).

GOLDCORP | 30

(in United States dollars, tabular amounts in millions, except where noted)

Marlin mine, Guatemala



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore milled	472,700			485,400			485,000			490,800			1,933,900			1,941,900
Average mill head grade (grams/tonne)
– Gold	3.15			2.88			2.98			3.41			3.11			3.33
– Silver	132			109			113			151			126			121
Average recovery rate
– Gold	97		%	97		%	97		%	96		%	97		%	96		%
– Silver	94		%	94		%	91		%	92		%	93		%	92		%
Produced (ounces)
– Gold	45,300			43,500			45,400			52,300			186,500			202,200
– Silver	1,836,000			1,584,400			1,658,000			2,216,700			7,295,100			7,045,100
– Gold Equivalent Ounces ⁽¹⁾	76,400			70,300			73,500			89,800			310,000			327,400
Sold (ounces)
– Gold	41,900			43,600			44,500			53,800			183,800			204,600
– Silver	1,699,900			1,579,600			1,626,500			2,301,200			7,207,200			7,081,000
Average realized price (per ounce)
– Gold	$	1,300		$	1,291		$	1,264		$	1,208		$	1,262		$	1,393
– Silver	$	20.62		$	19.78		$	18.64		$	16.60		$	18.71		$	22.82
Total cash costs – by-product (per ounce)⁽²⁾	$	277		$	525		$	478		$	273		$	384		$	195
Total cash costs – co-product (per ounce) ⁽²⁾	$	658		$	770		$	716		$	569		$	670		$	613
All-in sustaining costs (per ounce)	$	809		$	981		$	985		$	703		$	862		$	628
Mining cost per tonne	$	70.64		$	75.39		$	80.60		$	69.88		$	73.99		$	65.19
Milling cost per tonne	$	27.66		$	25.24		$	26.33		$	25.60		$	26.20		$	27.20
Financial Data
Revenues	$	89		$	88		$	87		$	103		$	367		$	447
Depreciation and depletion	$	35		$	36		$	38		$	48		$	157		$	142
Earnings (loss) from operations	$	5		$	(7	)	$	(3	)	$	(1	)	$	(6	)	$	94
Expenditures on mining interests	$	16		$	22		$	19		$	21		$	78		$	65

(1)

Gold equivalent ounces are calculated using the following assumptions: $1,300 per ounce of gold; by-product metal prices of $22.00 per ounce of silver; $3.00 per pound of copper; $0.90 per pound zinc; and $0.90 per pound of lead (2013 – $1,350; $24.00; $3.00; $0.85; and $0.80, respectively). By-product metals are converted to gold equivalent ounces by multiplying by-product metal production with the associated by-product metal price and dividing it by the gold price.

(2)

The calculation of total cash costs per ounce of gold is net of by-product silver sales revenues. If silver were treated as a co-product, average total cash costs at Marlin for the year ended December 31, 2014 would be $670 per ounce of gold and $11.39 per ounce of silver (2013 – $593 and $11.33, respectively). Production costs are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3). Using actual realized sales prices, the co-product total cash costs for the year ended December 31, 2014 would be $701 per ounce of gold and $10.62 per ounce of silver (2013 – $624 and $10.44, respectively).

Gold production for 2014 of 186,500 ounces was 15,700 ounces, or 8%, lower than 2013. Silver production of 7,295,100 ounces, was 250,000 ounces, or 4%, higher than 2013. The decrease in gold production was primarily due to 7% lower ore grades, partially offset by 1% higher recoveries. The increase in silver production was due to 4% higher ore grades and 1% higher recoveries. The gold and silver grades were consistent with the mine plan that included processing the remaining lower grade material from stockpiles. Recoveries for both gold and silver increased from 2013 due to ongoing O4E initiatives. With underground mining commencing in the Cochis area in December 2013 and continued advancement deeper underground during 2014, mining cost per tonne have increased. Further, exploration is underway to potentially extend the current mine life. During 2014, exploration expenditures were $16 million, of which $10 million was expensed and $6 million was capitalized.

All-in sustaining costs for 2014 were $862 per ounce and include by-product cash costs of $384 per ounce, which were $234 per ounce and $189 per ounce higher compared to 2013, respectively. The 37% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower gold production ($160 per ounce), lower by-product silver sales credits ($56 per ounce), and higher operating costs ($18 per ounce). The increase in operating costs was primarily attributable to an increase in labour and contractor costs resulting from increased contract hauling ($4 million).

GOLDCORP | 31

(in United States dollars, tabular amounts in millions, except where noted)

Gold and silver production for the fourth quarter of 2014 was 6,900 ounces, or 15%, and 558,700 ounces, or 34%, higher than the third quarter of 2014, respectively. The higher gold production was primarily attributable to 14% higher ore grades and higher tonnes milled, partially offset by lower recoveries, as planned. Silver production was higher due to 34% higher grades, higher recoveries and higher tonnes milled, as planned.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $282 per ounce and $205 per ounce lower than the third quarter of 2014, respectively. The 29% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($284 per ounce) and higher by-product silver sales credits ($29 per ounce), partially offset by higher operating costs ($25 per ounce) and higher reclamation accretion expenses ($6 per ounce). The increase in operating costs was due to increased consumable, labour, and contractor costs, partially offset by a decrease in maintenance costs ($1 million).

Marlin mine contained 0.31 million ounces of proven and probable gold reserves at December 31, 2014, compared to 0.65 million ounces at December 31, 2013, due primarily to mining depletion and a higher cut-off grade due to higher costs.

GOLDCORP | 32

(in United States dollars, tabular amounts in millions, except where noted)

Alumbrera mine, Argentina (Goldcorp’s interest – 37.5%)



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore mined	1,409,200			1,455,100			884,500			2,600,000			6,348,800			9,544,100
Tonnes of waste removed	4,504,600			4,568,200			3,466,500			3,370,900			15,910,200			20,682,600
Ratio of waste to ore	3.2			3.1			3.9			1.3			2.5			2.2
Tonnes of ore milled	3,324,400			3,492,300			2,964,100			3,526,200			13,307,000			14,014,000
Average mill head grade
– Gold (grams/tonne)	0.42			0.34			0.34			0.47			0.39			0.37
– Copper	0.39		%	0.33		%	0.32		%	0.39		%	0.36		%	0.37		%
Average recovery rate
– Gold	67		%	65		%	70		%	77		%	70		%	70		%
– Copper	77		%	74		%	79		%	90		%	80		%	79		%
Produced
– Gold (ounces)	30,300			25,300			22,800			41,700			120,100			117,500
– Copper (thousands of pounds)	21,500			19,300			16,800			27,200			84,800			90,600
– Gold Equivalent Ounces ⁽¹⁾	79,900			69,700			61,600			104,600			315,800			318,900
Sold
– Gold (ounces)	40,500			17,300			21,600			33,900			113,300			103,600
– Copper (thousands of pounds)	32,100			13,000			18,600			20,200			83,900			78,000
Average realized price
– Gold (per ounce)	$	1,293		$	1,287		$	1,223		$	1,189		$	1,248		$	1,365
– Copper (per pound)	$	3.09		$	3.39		$	2.98		$	2.82		$	3.05		$	3.15
Total cash costs – by-product (per ounce) ⁽²⁾	$	106		$	238		$	819		$	(282	)	$	145		$	(148	)
Total cash costs – co-product (per ounce) ⁽²⁾	$	784		$	910		$	1,006		$	512		$	781		$	849
All-in sustaining costs (per gold ounce)	$	433		$	1,050		$	1,404		$	89		$	609		$	565
Mining cost per tonne	$	3.53		$	3.45		$	4.36		$	3.76		$	3.73		$	2.99
Milling cost per tonne	$	5.72		$	6.07		$	7.28		$	5.69		$	6.15		$	6.31
Financial Data ⁽³⁾
Revenues	$	146		$	67		$	79		$	94		$	386		$	388
Depreciation and depletion	$	7		$	7		$	7		$	18		$	39		$	108
Earnings (loss) from operations ⁽⁴⁾	$	41		$	10		$	2		$	32		$	85		$	(350	)
Expenditures on mining interests	$	9		$	10		$	20		$	11		$	50		$	71

(1)

Gold equivalent ounces are calculated using the following assumptions: $1,300 per ounce of gold; by-product metal prices of $22.00 per ounce of silver; $3.00 per pound of copper; $0.90 per pound of zinc; and $0.90 per pound of lead (2013 – $1,350; $24.00; $3.00; $0.85; and $0.80, respectively). By-product metals are converted to gold equivalent ounces by multiplying by-product metal production with the associated by-product metal price and dividing it by the gold price.

(2)

The calculation of total cash costs per ounce of gold is net of by-product copper sales revenue. If copper were treated as a co-product, total cash costs for the year ended December 31, 2014 would be $781 per ounce of gold and $2.23 per pound of copper (2013 – $809 and $2.00, respectively). Production costs are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3). Using actual realized sales prices, the co-product total cash costs for the year ended December 31, 2014 would be $800 per ounce of gold and $2.24 per pound for copper (2013 – $794 and $2.07, respectively).

(3)

The Company’s 37.5% interest in Alumbrera is classified as an investment in associate and is accounted for using the equity method with the Company’s share of net earnings and net assets separately disclosed in the Consolidated Statements of Loss and Consolidated Balance Sheets, respectively. The financial data disclosed in the table represents the financial data of Alumbrera on a proportionate rather than equity basis.


(4)	During the year ended December 31, 2013, the Company recognized an impairment expense of $276 million before tax ($276 million, after tax) in respect of its investment in Alumbrera.

For the year ended December 31, 2014, the Company's equity earnings from Alumbrera were $30 million (year ended December 31, 2013 – equity loss of $295 million). The Company received $108 million of dividends from Alumbrera during the year ended December 31, 2014 (year ended December 31, 2013 – $108 million).

GOLDCORP | 33

(in United States dollars, tabular amounts in millions, except where noted)

Goldcorp’s share of Alumbrera’s gold and copper production for 2014 of 120,100 ounces and 84.8 million pounds was 2,600 ounces, or 2%, higher and 5.8 million pounds, or 6%, lower, respectively, than 2013. Gold production was comparable to the prior year as higher head grades from Phase 11 were offset by 5% lower tonnes milled. Lower copper production was due to 3% lower head grades and lower ore tonnes milled, partially offset by higher recoveries. Total material mined was 26% lower than 2013 primarily due to a geotechnical event in mid-August 2014 preventing access to the bottom pit and resulting in the suspension of mining activities for the remainder of the third quarter of 2014. One ramp was restored at the end of September 2014, re-establishing access to higher grade ore at the bottom of the pit. By October 4, 2014, access to the second ramp was also restored and full mine operations recommenced. Copper grades were lower than 2013 due to processing lower grade ore from the stockpile to supplement ore feed to mill during the third quarter of 2014.

All-in sustaining costs for 2014 were $609 per ounce and include by-product cash costs of $145 per ounce, which were $44 per ounce and $293 per ounce higher compared to 2013, respectively. The 8% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher operating costs ($1,081 per ounce), lower by-product copper sales credits ($219 per ounce), and higher reclamation accretion expenses ($80 per ounce), partially offset by a weaker Argentine Peso as a result of the devaluation in the first quarter of 2014 ($798 per ounce), higher gold production ($270 per ounce), and lower sustaining capital expenditures ($268 per ounce). The increase in operating costs was primarily attributable to the impact of in country inflation during 2014 which resulted in significant increases to labour, contractor, fuel, power, and consumables costs compared to 2013. The decrease in sustaining capital expenditures was primarily due to a decrease in capitalized stripping in 2014 ($30 million).

Goldcorp’s share of Alumbrera’s gold and copper production in the fourth quarter of 2014 was 18,900 ounces, or 83%, and 10.4 million pounds, or 62%, respectively, higher than the third quarter of 2014. Gold and copper production was higher due to higher head grades, ore tonnes milled, and recoveries. Total material mined was 37% higher than the third quarter of 2014 due to the geotechnical event in mid-August 2014 preventing access to the pit. Tonnes milled, recoveries, and grades were higher than prior quarter due to processing higher grade ore from Phase 11, which has better grindability and metallurgical recoveries.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $1,315 per ounce and $1,101 per ounce lower than the third quarter of 2014, respectively. The 94% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($1,509 per ounce), lower operating costs ($752 per ounce), and a weaker Argentine Peso ($24 per ounce), partially offset by lower by-product copper sales credits ($970 per ounce). The decrease in operating costs was primarily attributable to a decrease in maintenance costs ($8 million), YMAD royalties due to a $35 million decrease in dividends paid during the fourth quarter of 2014 ($7 million), power and fuel costs ($7 million), and labour and contractor costs ($4 million).

The provisional pricing impact of lower realized copper prices during the fourth quarter of 2014 was a negative $2 million.

In July 2014, Alumbrera terminated its option to acquire Yamana Gold Inc.'s 100% interest in the Agua Rica project in Argentina.

Goldcorp's share of Alumbrera mine's proven and probable gold reserves at December 31, 2014 was 0.55 million ounces, compared to 0.76 million ounces at December 31, 2013, due primarily to mining depletion and mine design re-optimization. No exploration is currently carried out at Alumbrera.

GOLDCORP | 34

(in United States dollars, tabular amounts in millions, except where noted)

Pueblo Viejo mine, Dominican Republic (Goldcorp’s interest – 40%)



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore mined	2,541,800			2,008,600			1,599,700			955,600			7,105,700			4,492,000
Tonnes of waste removed	867,000			1,492,000			2,002,900			2,568,800			6,930,700			1,635,700
Ratio of waste to ore	0.34			0.74			1.25			2.69			0.98			0.36
Tonnes of ore processed	653,900			650,200			655,600			725,200			2,684,900			1,771,700
Average grade (grams/tonne)
– Gold	5.52			5.47			5.72			5.42			5.53			6.14
– Silver	29.0			28.6			33.9			35.0			31.7			42.4
Average recovery rate
– Gold	92		%	94		%	93		%	93		%	93		%	93		%
– Silver	58		%	66		%	49		%	55		%	57		%	37		%
Produced
– Gold (ounces)	106,200			107,100			112,200			117,900			443,400			325,200
– Silver (ounces)	349,100			392,800			354,800			445,100			1,541,800			833,600
– Gold Equivalent Ounces ⁽¹⁾	112,100			113,700			118,200			125,500			469,500			340,000
Sold
– Gold (ounces)	115,100			105,600			111,400			98,300			430,400			296,400
– Silver (ounces)	379,400			365,100			388,600			375,600			1,508,700			715,800
Average realized price
– Gold (per ounce)	$	1,287		$	1,286		$	1,280		$	1,215		$	1,268		$	1,397
– Silver (per ounce)	$	20.65		$	19.50		$	20.12		$	16.74		$	19.26		$	23.87
Total cash costs – by-product (per ounce) ⁽²⁾	$	493		$	438		$	438		$	477		$	462		$	534
Total cash costs – co-product (per ounce) ⁽²⁾	$	532		$	478		$	481		$	509		$	500		$	549
All-in sustaining costs (per gold ounce)	$	628		$	618		$	559		$	630		$	608		$	750
Mining cost per tonne	$	2.64		$	2.38		$	3.55		$	3.01		$	2.90		$	4.41
Milling cost per tonne	$	55.41		$	56.23		$	61.68		$	59.80		$	58.32		$	77.76
Financial Data ⁽³⁾
Revenues	$	156		$	143		$	150		$	126		$	575		$	431
Depreciation and depletion	$	25		$	28		$	29		$	24		$	106		$	51
Earnings from operations	$	66		$	71		$	60		$	45		$	242		$	205
Expenditures on mining interests	$	12		$	16		$	12		$	14		$	54		$	98

(1)

Gold equivalent ounces are calculated using the following assumptions: $1,300 per ounce of gold; by-product metal prices of $22.00 per ounce of silver; $3.00 per pound of copper; $0.90 per pound of zinc; and $0.90 per pound of lead (2013 – $1,350; $24.00; $3.00; $0.85; and $0.80, respectively). By-product metals are converted to gold equivalent ounces by multiplying by-product metal production with the associated by-product metal price and dividing it by the gold price.

(2)

The calculation of total cash costs per ounce of gold is net of by-product silver sales revenue. If silver were treated as a co-product, total cash costs for the year ended December 31, 2014 would be $500 per ounce of gold and $8.30 per ounce of silver (2013 – $566 and $10.62, respectively). Production costs are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3). Using actual realized sales prices, the co-product total cash costs for the year ended December 31, 2014 would be $503 per ounce of gold and $7.60 per ounce of silver (2013 – $568 and $9.71, respectively).

(3)

The Company’s 40% interest in Pueblo Viejo is classified as an investment in associate and is accounted for using the equity method with the Company’s share of net earnings and net assets separately disclosed in the Consolidated Statements of Loss and Consolidated Balance Sheets, respectively. The financial data disclosed in the table represents the financial data of Pueblo Viejo on a proportionate rather than equity basis.

For the year ended December 31, 2014, the Company's equity earnings from Pueblo Viejo were $91 million (year ended December 31, 2013 – equity loss of $66 million). The increase in equity earnings was primarily a result of the $183 million charge recognized during the year ended December 31, 2013 as a result of the amendments to the Special Lease Agreement with the Dominican Republic reached in the third quarter of 2014.

GOLDCORP | 35

(in United States dollars, tabular amounts in millions, except where noted)

Pueblo Viejo achieved record gold and silver production in 2014. Goldcorp's share of Pueblo Viejo's gold and silver production for 2014 of 443,400 ounces and 1,541,800 ounces was 118,200 ounces, or 36%, and 708,200 ounces, or 85%, respectively, higher than 2013. Gold production was higher due to 52% higher tonnes processed partially offset by 10% lower gold head grades. Silver production was higher due to higher tonnes processed and 54% higher silver recoveries, partially offset by 25% lower silver head grades. Tonnes processed were higher due to completion of the autoclave modifications in the second half of 2013 that provided less downtime and the autoclaves reaching name plate capacity during the third quarter of 2014. Head grades for both gold and silver were lower due to depletion of the high grade stockpile and processing of the lower grade sulfur stockpile built up during construction, which is consistent with the mine plan. The higher silver recoveries resulted from modifications to the heat exchangers in autoclaves 150 and 250 that increased lime boil temperatures.

All-in sustaining costs for 2014 were $608 per ounce and include by-product cash costs of $462 per ounce, which were $142 per ounce and $72 per ounce lower compared to 2013, respectively. The 19% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($252 per ounce), lower sustaining capital expenditures ($20 per ounce), and higher by-product silver sales credits ($11 per ounce), partially offset by higher operating costs ($122 per ounce) and higher reclamation accretion expenses ($19 per ounce). The increase in operating costs was primarily attributable to higher maintenance costs as a result of the autoclave and mill work performed during 2014 ($13 million), consumable costs ($13 million), labour and contractor costs ($13 million), and site and fuel costs ($11 million).

Goldcorp´s share of Pueblo Viejo´s gold and silver production for the fourth quarter of 2014 was 5,700 ounces, or 5%, and 90,300 ounces, or 25%, respectively, higher than the third quarter of 2014. Gold production was higher due to 11% higher tonnes processed, partially offset by 5% lower gold head grades. Silver production was higher due to 12% higher recoveries, 3% higher head grades, and higher tonnes processed. Silver recoveries were higher in the fourth quarter of 2014 following completion of the repairs to the lime boil tanks that were off line during the third quarter of 2014 due to scaling issues.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $71 per ounce and $39 per ounce higher than the third quarter of 2014, respectively. The 13% increase in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to lower gold sales volume ($85 per ounce), higher sustaining capital expenditures ($27 per ounce), and lower by-product silver sales credits ($6 per ounce), partially offset by lower operating costs ($35 per ounce) and lower reclamation accretion expenses ($12 per ounce).

In October 2014, Pueblo Viejo Dominicana Corporation ("PVDC") received a copy of an action filed in an administrative court in the Dominican Republic by Rafael Guillen Beltre (the “Petitioner”), who claims to be affiliated with the Dominican Christian Peace Organization. The Government of the Dominican Republic has also been notified of the action. The action alleges that environmental contamination in the vicinity of the Pueblo Viejo mine has caused illness and affected water quality in violation of the Petitioner’s fundamental rights under the Dominican Constitution and other laws. The primary relief sought in the action, which is styled as an “Amparo” remedy, is the suspension of operations at the Pueblo Viejo mine as well as other mining projects in the area until an investigation into the alleged environmental contamination has been completed by the relevant governmental authorities. On November 24, 2014, the Administrative Court granted PVDC's motion to remand the matter to a trial court in the Municipality of Cotuí ("Trial Court") on procedural grounds. On January 27, 2015, the Trial Court granted PVDC's motion to suspend action pending receipt of the litigation file from the Administrative Court. No amounts have been recorded for any potential liability or asset impairment arising from this matter, as PVDC cannot reasonably predict any potential losses.

Goldcorp's share of proven and probable gold reserves at Pueblo Viejo mine at December 31, 2014 were 6.21 million ounces, compared to 6.46 million ounces at December 31, 2013.

GOLDCORP | 36

(in United States dollars, tabular amounts in millions, except where noted)

PROJECTS REVIEW

Cerro Negro Project, Argentina

The Cerro Negro project is a high grade vein system located in the Province of Santa Cruz, Argentina. The land position comprises 215 square kilometres with numerous discoveries of high grade gold and silver veins. As of December 31, 2014, Cerro Negro contained 5.26 million ounces of proven and probable gold reserves compared to 5.74 million ounce at December 31, 2013, due to higher cut-off grades resulting from higher costs.

Following first gold on July 25, 2014, commercial production of Cerro Negro was declared on January 1, 2015 at an initial capital cost of approximately $1.7 billion. Ore feed was introduced at the process plant on July 15, 2014 resulting in 2014 gold production of 152,100 ounces with the mill successfully operating for extended periods of time at the designed rate of 4,000 tonnes per day. Gold production is expected to be between 425,000 and 475,000 ounces in 2015.

Infrastructure and Construction

Overall EPCM was completed during 2014, with construction continuing on certain facilities and infrastructure not considered critical to the achievement of commercial production. Key activities in 2014 included:


•	Construction of processing facility complete;


•	Construction of the high voltage power line and the ET Aike Substation, which connects the Cerro Negro Substation to the national grid, completed, and commissioning by Transpa, the Argentine power transportation authority, complete;


•	Construction of the Cerro Negro Substation complete. Energization of the Cerro Negro and ET Aike Substations and permanent power from the national grid achieved on February 2, 2015, following completion of commissioning by Transpa;


•	Completion of commissioning of the tailings line, tailings storage facility, and water recovery system; and


•	The 18 km haul road and the Primary Crusher Station and Delivery System were turned over to the operations team.

Ore Processing

With ore processing commencing on July 15, 2014 and first gold produced on July 25, 2014, Cerro Negro achieved production of 152,100 ounces of gold during 2014. Tonnes processed consisted of ore available from the stockpiles built during development and production mining at Eureka.



Processing Data	Q3		Q4		Total 2014
Tonnes of ore milled	84,900		290,300		375,200
Average mill head grade (grams/tonne)
– Gold	12.48		15.15		14.54
– Silver	272.5		288.7		285.0
Average recovery rate
– Gold	88	%	92	%	91	%
– Silver	55	%	71	%	67	%
Produced (ounces) ⁽¹⁾
– Gold	19,000		133,100		152,100
– Silver	233,700		1,929,800		2,163,500
Sold (ounces) ⁽¹⁾
– Gold	—		36,900		36,900
– Silver	—		495,100		495,100
Average realized price (per ounce)
– Gold	—		1,204		1,204
– Silver	—		16.33		16.33
Financial Data
Sales revenues credited to mining interests ⁽¹⁾	—		53		53

GOLDCORP | 37

(in United States dollars, tabular amounts in millions, except where noted)


(1)	Production represents pre-commerical production ounces with costs incurred, net of proceeds from sales during the fourth quarter of 2014, credited against capitalized project costs.

Mine Development

In January 2014, the underground mine began transitioning from contractor development mining to in-house mining and development. Although this transition temporarily reduced development metres, once completed in the second quarter of 2014, productivity improved significantly through the remainder of 2014.

Production mining at Eureka continued through 2014, while production mining at Mariana Central is expected to commence in the first quarter of 2015 from the first high grade stopes. The small surface mining operation started in the fourth quarter of 2013 as a supplement to underground ore production continued during 2014 with surface diamond drilling expanding the potential for this surface mining to continue to provide mill ore tonnes. Total mined tonnes, grades, and inventory levels of all ore stockpiles were as follows:



	Three Months Ended
Cerro Negro Production and Surface Stockpile	December 31 2014	September 30 2014	June 30 2014	March 31 2014	December 31 2013	Cumulative Project to date	Tonnes of ore milled at December 31, 2014	Surface Stockpile at December 31, 2014
Tonnes	156,000	93,100	121,900	125,200	127,500	781,100	375,200	405,900
Average grade (grams/tonne)
– Gold	8.12	9.28	7.39	8.27	8.24	9.05	14.54	5.31
– Silver	146.5	168.7	105.1	132.7	146.7	162.0	285.0	84.3

Total underground development at Eureka and Mariana Central during 2014 was 8,316 metres, 8% higher compared to 7,702 metres in 2013 as a result of the transition from contractor development mining to in-house mining and development. At Mariana Norte, development remained suspended during 2014 due to mine sequencing and labour availability. A training program for new miners is underway and development is expected to resume in late 2015. Development activity during 2014 was as follows:



	Three Months Ended
Development Area (Metres)	December 31 2014	September 30 2014	June 30 2014	March 31 2014	December 31 2013	Cumulative Project to date
Eureka	1,422	1,194	1,355	626	966	16,714
Mariana Central	1,054	1,137	1,053	475	684	6,289
Mariana Norte	—	—	—	—	9	1,224
Total	2,476	2,331	2,408	1,101	1,659	24,227

Exploration

Exploration activity was suspended in the third quarter of 2013 and remained suspended through the third quarter of 2014. Surface resource confirmation drilling, intended to support future development at Bajo Negro and Vein Zone, resumed in the fourth quarter of 2014.

Capital Expenditures

At December 31, 2014, total project expenditures and future commitments were $1,670 million, excluding exploration, of which $1,650 million is spent and $20 million is committed. Capital expenditures, including deposits on mining interests and net of capitalized interest, for the three months ended December 31, 2014 were $106 million (twelve months ended December 31, 2014 – $538 million).

GOLDCORP | 38

(in United States dollars, tabular amounts in millions, except where noted)

Éléonore Project, Canada

The Éléonore project is located in the northeast corner of the Opinaca Reservoir in the James Bay region of Quebec, Canada. The Éléonore deposit is a major gold discovery in a relatively unexplored area, located in the core of what Goldcorp believes to be a promising new gold district. Proven and probable gold reserves at Éléonore at December 31, 2014 were 4.98 million ounces compared to 4.03 million ounces at December 31, 2013. The 2014 exploration program ended successfully with the transfer of 0.98 million ounces to reserves from inferred resources. Gold production from Éléonore, following ramp up to full production (currently expected to be the first half of 2018), is expected to be between 500,000 and 600,000 ounces per year.

Ore feed was introduced at the process plant on September 22, 2014 and first gold was produced from the gravity circuit on October 1, 2014. Commercial production is now expected late in the first quarter of 2015 due to design issues during ramp-up. The initial project capital estimate at Éléonore has been revised to a range between $2.0 billion and $2.1 billion from $1.9 billion primarily due to the delay of commercial production by approximately three months to late in the first quarter of 2015.

Engineering and Construction

Overall EPCM surface construction was completed in October 2014 resulting in the completion of the EPCM service contracts in the fourth quarter of 2014. Certain activities pertaining to technical site support on remaining construction and completion of corrective work on deficiencies identified will occur in 2015. Key activities in 2014 included:


•	Completed construction of the processing plant;


•	Completed the tailings management facility and the pumping station;


•	Completed construction of administration building, garage, warehouse, and site services;


•	Completed commissioning of the Industrial Water Treatment Plant to its design capacity of 26,000 cubic metres per day;


•	Completed construction of the 25 kV electrical lines; and


•	Resumed construction of the permanent cafeteria and commenced construction of the services and recreational infrastructure for completion in the first quarter of 2015.

Exploration

Exploration activities during 2014 focused on the transfer from resources to reserves in the lower portion of the deposit (below 650 metres) and exploring lateral extension at that depth. A total of 79,697 metres of diamond drilling was completed in 2014, all from underground.

Exploration drilling from underground will continue in 2015 targeting the center of the lower mine and the Southern portion of the ore body to transfer resources to reserves.

Mine Development

Mine development is on track to support commercial production. Key activities during 2014 included:


•	Production shaft reached a depth of 1,106 metres:


•	Exploration ramp reached a depth of 865 metres;


•	Production of ore from two main production horizons;


•	Ore stockpile on surface of 337,000 tonnes; and


•	Project to date completed over 25 kilometres of lateral development.

Ore Processing

With ore processing commencing on September 22, 2014 and first gold produced from the gravity circuit on October 1, 2014, 18,300 ounces were produced during the fourth quarter of 2014 from 169,800 tonnes milled at an average grade and recovery of 4.20 grams/tonne and 88%, respectively. Gold production for the fourth quarter of 2014 represents pre-commerical production ounces with costs incurred, net of proceeds from the sale of the 18,300 ounces, credited against capitalized project costs. Production was lower than anticipated during the fourth quarter of 2014 due to ramp-up issues with the tailings filter press system. Resolution of these minor design and operating issues with the tailings filter press system are expected in the first quarter of 2015.

GOLDCORP | 39

(in United States dollars, tabular amounts in millions, except where noted)

Capital Expenditures

As of December 31, 2014, total project expenditures since January 1, 2011, net of investment tax credits and capitalized interest, were $1,994 million, $1,976 million of which was spent and $18 million of which was committed. Capital expenditures and capitalized exploration, excluding capitalized interest and investment tax credits, during the three months ended December 31, 2014, amounted to $162 million and $3 million, respectively ($687 million and $13 million, respectively, for the year ended December 31, 2014).

Cochenour Project, Canada

The Cochenour Project combines the existing workings of the historic Cochenour mine with the Bruce Channel gold discovery. The Cochenour/Bruce Channel deposit is located down dip from the historic Cochenour mine. The initial capital cost of Cochenour remains unchanged at $496 million. Following successful exploration and assessment of the zone, Goldcorp is targeting gold production to be between 225,000 and 250,000 ounces per year. Based on drilling in 2014, inferred resources have increased 0.2 million ounces from 3.25 million ounces at December 31, 2013 to 3.45 million ounces as of December 31, 2014.

Exploration

Exploration and delineation drilling continued to ramp up with eleven drills on site resulting in 76,883 metres drilled during 2014 with a focus on pre-production drilling to optimize the placement of capital development. Results to date are consistent with expectations. In 2015, drilling will commence in the upper level and accelerate into the deeper portions of the Cochenour deposit.

Mine Development

The shaft development was completed during the first quarter of 2014. As at December 31, 2014, development of the decline to the 3990-foot level was 59% complete. The permanent fresh air fan and heater house construction was substantially completed and pre-commissioning was successfully conducted in December 2014.

Development of the haulage drift, which will connect Red Lake’s underground mine with Cochenour, was completed during the third quarter of 2014. Development of the main Incline Ramp (5320L Ramp) commenced during 2014 and is 100% complete to the next sublevel. The Egress Raise development is 100% complete which established the first connection between the Campbell and Cochenour mines. The integration team continues to work on several short-term studies including geotechnical assessments, backfill, and material handling studies, focusing on infrastructure rationalization and placement. The project remains on track to commence test stoping in the third quarter of 2015, concurrent with intensive exploration drilling.

Capital Expenditures

At December 31, 2014, total project expenditures since January 1, 2011, excluding investment tax credits, are $414 million, $409 million of which is spent and $5 million of which is committed. Capital expenditures excluding investment tax credits, during the three months ended December 31, 2014 amounted to $26 million (twelve months ended December 31, 2014 – $104 million). Total project expenditures have been included in total expenditures on mining interests in Red Lake.

El Morro Project, Chile (Goldcorp’s interest – 70%)

El Morro is a gold/copper project in northern Chile. El Morro contained 6.24 million ounces (Goldcorp’s share) of proven and probable gold reserves at December 31, 2014. Located in the Atacama region of Chile approximately 80 kilometres east of the city of Vallenar and at an altitude of 4,000 metres, El Morro comprises a large, 36-square kilometre land package with significant potential for organic growth through further exploration. Two principal zones of gold-copper mineralization have been identified to date – the El Morro and La Fortuna zones – and the Company has identified several additional targets as part of its regional exploration efforts.

In October 2013, the environmental authority of the Atacama Region approved the Environmental Impact Study (“EIS”) submitted by Goldcorp-El Morro. The decision resulted in a new Environmental Assessment Resolution issued in October 2013 (“RCA 232”).

RCA 232 was challenged before the Court of Appeals of Copiapo by Comunidad Agrícola Los Huasco Altinos (“CAHA”), other Diaguita indigenous communities, and several farmers from the Huasco valley. On April 28, 2014, the Court of Appeals issued a ruling rejecting all actions. The ruling was appealed by CAHA and the other Diaguita communities to the Supreme Court. On October 7, 2014, the Supreme Court issued a final ruling revoking the decision of the Court of Appeals thereby invaliding RCA 232.

On November 12, 2014, Goldcorp-El Morro elected to withdraw the EIS and on November 26, 2014, the environmental authority issued Exempted Resolution N° 271 closing the environmental assessment process. The Company has commenced new studies to determine an optimal development plan for El Morro that meets the Company's investment return criteria. The Company remains committed to continued productive interaction and engagement with the adjacent communities and regional authorities.

GOLDCORP | 40

(in United States dollars, tabular amounts in millions, except where noted)

At December 31, 2014, total project expenditures were $249 million. Capital expenditures, excluding capitalized interest, during the three months ended December 31, 2014 were $7 million (twelve months ended December 31, 2014 – $18 million).

Camino Rojo Project, Mexico

The Camino Rojo project is located approximately 50 kilometres southeast of Goldcorp’s Peñasquito mine with a 3,389 square kilometre land position. At December 31, 2014, gold mineral reserves consist of 1.85 million ounces of oxide material, indicated gold mineral resources consists of 6.20 million ounces and inferred gold mineral resources consists of 2.17 million ounces.

Drilling continued during the fourth quarter of 2014 to enhance and expand the resource with approximately 94,000 metres of drilling completed at December 17, 2014. Metallurgical testing of sulphide, transition, and oxide zones continues, and waste rock drainage studies for waste material are in process. The pit stability geotechnical program that commenced in June 2014 and the evaluation of other exploration targets continued during the fourth quarter of 2014.

The Company completed a Concept Study in December 2014 and will continue metallurgical testing and pre-feasibility level engineering in 2015. The ongoing pre-feasibility study work will focus on evaluating the project as a supplemental ore source to the existing Peñasquito facility, in addition to a small, stand-alone oxide heap leach plant. This approach has the potential to generate the highest rate of return given the significantly lower capital costs versus building a separate processing facility at Camino Rojo. The pre-feasibility study is expected to be completed in 2016.

At December 30, 2014, total project expenditures were $145 million. Capital expenditures, excluding capitalized interest, during the three months ended December 30, 2014 amounted to $32 million (twelve months ended December 30, 2014 – $61 million).

DISCONTINUED OPERATION

Wharf mine, United States



Operating Data	Q1			Q2			Q3			Q4			Total 2014			Total 2013
Tonnes of ore mined	751,100			1,015,800			1,105,600			929,000			3,801,500			2,115,100
Tonnes of ore processed	751,100			975,000			1,082,900			1,002,600			3,811,600			3,158,400
Average grade processed (grams/tonne)	0.82			0.72			0.73			0.82			0.77			0.72
Average recovery rate	80		%	80		%	80		%	80		%	80		%	80		%
Gold (ounces)
– Produced	15,000			15,000			16,200			25,900			72,100			56,200
– Sold	13,400			15,500			14,400			26,800			70,100			55,500
Average realized gold price (per ounce)	$	1,285		$	1,298		$	1,291		$	1,195		$	1,254		$	1,383
Total cash costs – by-product (per ounce) ⁽¹⁾	$	751		$	711		$	845		$	772		$	770		$	924
All-in sustaining costs (per ounce)	$	856		$	804		$	1,028		$	832		$	870		$	1,165
Mining cost per tonne	$	2.98		$	2.97		$	2.93		$	6.66		$	3.50		$	3.19
Processing cost per tonne	$	1.76		$	1.33		$	1.57		$	2.12		$	1.69		$	1.78
Financial Data
Revenues	$	20		$	22		$	20		$	32		$	94		$	78
Depreciation and depletion	$	1		$	1		$	1		$	2		$	5		$	4
Earnings from operations	$	6		$	9		$	5		$	8		$	28		$	22
Expenditures on mining interests	$	1		$	1		$	1		$	1		$	4		$	11

(1)

The calculation of total cash costs per ounce of gold is net of by-product silver sales revenues of $6 million for the year ended December 31, 2014 (year ended December 31, 2013 – $1 million). If silver were treated as a co-product, average total cash costs at Wharf for the year ended December 31, 2014 would be $800 per ounce of gold and $13.26 per ounce of silver. Production costs are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices (see page 3). Using actual realized sales prices, the co-product total cash costs for the year ended December 31, 2014 would be $803 per ounce gold and $12.65 per ounce of silver.

GOLDCORP | 41

(in United States dollars, tabular amounts in millions, except where noted)

Gold production for 2014 of 72,100 ounces was 15,900 ounces, or 28%, higher than 2013 as a result of 21% higher tonnes processed due to O4E initiatives at the crusher plant and 7% higher grades in 2014. Grades and ore tonnes mined were in line with the mine plan as production was sourced from expansion into the Golden Reward Harmony pit and the American Eagle pit during 2014.

All-in sustaining costs for 2014 were $870 per ounce and include by-product cash costs of $770 per ounce, which were $295 per ounce and $154 per ounce lower compared to 2013, respectively. The 25% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($247 per ounce), lower sustaining capital expenditure ($95 per ounce), and higher by-product silver sales credits ($68 per ounce), partially offset by higher operating costs ($115 per ounce). The increase in operating costs was primarily attributable to labour and contractor costs associated with an increase in equipment requirements for mining the Golden Reward Harmony pit ($4 million) and an increase in consumables costs ($1 million). The decrease in sustaining capital expenditures was primarily attributable to the construction of the highway relocation project completed in 2013.

Gold production for the fourth quarter of 2014 was 9,700 ounces, or 60%, higher than the third quarter of 2014. The 12% higher grades, partially offset by 7% lower tonnes processed were in accordance with plan and supported by the draw down of the heap leach pads during the fourth quarter of 2014.

All-in sustaining costs for the fourth quarter of 2014, including by-product cash costs, were $196 per ounce and $73 per ounce lower than the third quarter of 2014, respectively. The 19% decrease in all-in sustaining costs (inclusive of the by-product cash cost impacts) was due to higher gold production ($358 per ounce) and lower sustaining capital expenditures ($41 per ounce), partially offset by higher operating costs ($112 per ounce) and lower by-product silver sales credits ($91 per ounce). The increase in operating costs was primarily attributable to higher contractor costs associated with the operation of portable crushers ($2 million) and higher consumables costs ($1 million). The decrease in sustaining capital expenditures was primarily attributable to the completion of the water treatment plant during the third quarter of 2014 which is used to reduce nitrates in the process cycle.

On January 12, 2015, the Company announced that it had entered into a definitive stock purchase agreement whereby it will sell its 100% interest in Wharf in Lead, South Dakota to Coeur Mining, Inc. Under the terms of the agreement, the Company will receive total consideration of $105 million in cash, subject to certain closing adjustments. The transaction is expected to close on February 20, 2015. The sale of Wharf reflects the Company's ongoing strategy to focus on a portfolio of core assets. At December 31, 2014, the sale of Wharf was considered highly probable, therefore, Wharf met the asset held for sale and discontinued operation criteria. Accordingly, the results of Wharf have been presented as a discontinued operation.

GOLDCORP | 42

(in United States dollars, tabular amounts in millions, except where noted)

NON-GAAP FINANCIAL PERFORMANCE MEASURES

The Company has included certain non-GAAP performance measures throughout this document. These performance measures are employed by the Company to measure its operating and economic performance internally and to assist in business decision-making as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors and other stakeholders also use this information to evaluate the Company’s operating and economic performance; however, these non-GAAP performance measures do not have any standardized meaning. Accordingly, these performance measures 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. The Company’s primary business is gold production and its future development and current operations focus are on maximizing returns from gold production, with other metal production being incidental to the gold production process. As a result, the Company's non-GAAP performance measures are disclosed on a per gold ounce basis.

The Company calculates its non-GAAP performance measures on an attributable basis. Attributable performance measures include the Company’s mining operations and projects, and the Company’s share of Alumbrera and Pueblo Viejo. The Company believes that disclosing certain performance measures on an attributable basis is a more relevant measurement of the Company’s operating and economic performance, and reflects the Company’s view of its core mining operations.

TOTAL CASH COSTS (BY-PRODUCT) PER GOLD OUNCE

By-product cash costs incorporate Goldcorp’s share of all production costs, adjusted for changes in estimates in reclamation and closure costs at the Company’s closed mines which are non-cash in nature, and include Goldcorp’s share of by-product credits, and treatment and refining charges included within revenue. Additionally, cash costs are adjusted for realized gains and losses arising on the Company’s commodity and foreign currency contracts which the Company enters into to mitigate its exposure to fluctuations in by-product metal prices, heating oil prices and foreign exchange rates, which may impact the Company’s operating costs.

In addition to conventional measures, the Company assesses this per ounce measure in a manner that isolates the impacts of gold production volumes, the by-product credits, and operating costs fluctuations such that the non-controllable and controllable variability is independently addressed. The Company uses total cash costs, by product and co-product, per gold ounce, to monitor its operating performance internally, including operating cash costs, as well as in its assessment of potential development projects and acquisition targets. The Company believes these measures provide investors and analysts with useful information about the Company’s underlying cash costs of operations and the impact of by-product credits on the Company’s cost structure and is a relevant metric used to understand the Company’s operating profitability and ability to generate cash flow. When deriving the production costs associated with an ounce of gold, the Company includes by-product credits as the Company considers that the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing the Company’s management and other stakeholders to assess the net costs of gold production.

The Company reports total cash costs on a gold ounces sold 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 Gold Institute, which ceased operations in 2002, was a non-regulatory body and represented a global group of suppliers of gold and gold products. The production cost standard developed by the Gold Institute remains the generally accepted standard of reporting cash costs of production by gold mining companies.

GOLDCORP | 43

(in United States dollars, tabular amounts in millions, except where noted)

The following table provides a reconciliation of total cash costs (by-product) per ounce to the consolidated financial statements:



Year ended December 31	2014			2013
Continuing operations
Production costs per consolidated financial statements ⁽¹⁾	$	2,079		$	1,939
Non-cash reclamation and closure cost obligations	(72		)	25
Treatment and refining charges on concentrate sales	179			135
Realized losses (gains) on foreign currency, heating oil and commodity contracts	9			(23		)
Other	(2		)	(5		)
Consolidated total cash costs	2,193			2,071
Alumbrera and Pueblo Viejo total cash costs	515			431
Goldcorp’s share of total cash costs	2,708			2,502
Goldcorp's share of by-product silver, copper, lead and zinc sales	(1,338		)	(1,215		)
Goldcorp’s share of total cash costs (by-product)	$	1,370		$	1,287
Divided by ounces of Goldcorp’s share of gold sold	2,580,800			2,434,000
Goldcorp’s share of total cash costs (by-product) per gold ounce ⁽²⁾	$	531		$	529
Including discontinued operations
Goldcorp's share of total cash costs (by-product) from continuing operations	$	1,370		$	1,287
Total cash costs – Wharf	54			52
Total cash costs – Marigold	24			98
Goldcorp's share of total cash costs (by-product) including discontinued operations	$	1,448		$	1,437
Divided by ounces of Goldcorp's share of gold sold	2,672,800			2,597,200
Goldcorp’s share of total cash costs (by-product) per gold ounce ⁽²⁾	$	542		$	553



Three months ended	December 31 2014			September 30 2014			December 31 2013
Continuing operations
Production costs per consolidated financial statements ⁽¹⁾	$	582		$	516		$	470
Non-cash reclamation and closure cost obligations	(56		)	—			25
Treatment and refining charges on concentrate sales	40			46			42
Realized losses (gains) on foreign currency, heating oil and commodity contracts	8			(1		)	(2		)
Other	1			2			(1		)
Consolidated total cash costs	575			563			534
Alumbrera and Pueblo Viejo total cash costs	103			133			107
Goldcorp’s share of total cash costs	678			696			641
Goldcorp's share of by-product silver, copper, lead and zinc sales	(282		)	(326		)	(341		)
Goldcorp’s share of total cash costs (by-product)	$	396		$	370		$	300
Divided by ounces of Goldcorp’s share of gold sold	681,100			627,000			687,200
Goldcorp’s share of total cash costs (by-product) per gold ounce ⁽²⁾	$	582		$	590		$	437
Including discontinued operations
Goldcorp's share of total cash costs (by-product) from continuing operations	$	396		$	370		$	300
Total cash costs – Wharf	21			13			12
Total cash costs – Marigold	—			—			27
Goldcorp's share of total cash costs (by-product) including discontinued operations	$	417		$	383		$	339
Divided by ounces of Goldcorp's share of gold sold	707,900			641,400			725,700
Goldcorp’s share of total cash costs (by-product) per gold ounce ⁽²⁾	$	589		$	597		$	467

GOLDCORP | 44

(in United States dollars, tabular amounts in millions, except where noted)


(1)	$13 million and $60 million in royalties are included in production costs for the three months and year ended December 31, 2014, respectively (year ended December 31, 2013 – $52 million; three months ended September 30, 2014 – $17 million; three months ended December 31, 2013 – $15 million).

(2)

If silver, lead and zinc for Peñasquito, silver for Marlin and Pueblo Viejo, and copper for Alumbrera were treated as co-products, Goldcorp's share of total co-product cash costs from continuing operations for the year ended December 31, 2014, would be $661 per ounce of gold, $10.88 per ounce of silver, $2.23 per pound of copper, $0.78 per pound of zinc, and $0.95 per pound of lead (2013 – $672 per ounce of gold, $13.26 per ounce of silver, $2.00 per pound of copper, $0.70 per pound of zinc, and $0.78 per pound of lead). Goldcorp's share of total co-product cash costs including discontinued operations for the year ended December 31, 2014, would be $668 per ounce of gold, $10.88 per ounce of silver, $2.23 per pound of copper, $0.78 per pound of zinc, and $0.95 per pound of lead (2013 – $687 per ounce of gold, $13.26 per ounce of silver, $2.00 per pound of copper, $0.70 per pound of zinc, and $0.78 per pound of lead).

NON-GAAP MEASURE – ALL-IN SUSTAINING COSTS PER GOLD OUNCE

All-in sustaining costs include total production cash costs incurred at the Company’s mining operations, which forms the basis of the Company’s by-product cash costs. Additionally, the Company includes sustaining capital expenditures, corporate administrative expense, exploration and evaluation costs, and reclamation cost accretion and amortization. The measure seeks to reflect the full cost of gold production from current operations, therefore new project capital is not included. Certain other cash expenditures, including tax payments, dividends and financing costs are also not included.

The Company believes that this measure represents the total costs of producing gold from current operations, and provides the Company and other stakeholders of the Company with additional information of the Company’s operational performance and ability to generate cash flows. All-in sustaining costs, as a key performance measure, allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows. This information provides management with the ability to more actively manage capital programs and to make more prudent capital investment decisions.

The Company reports all-in sustaining costs on a gold ounces sold basis. This performance measure was adopted as a result of an initiative undertaken within the gold mining industry; however, this performance measure has no standardized meaning and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The Company follows the guidance note released by the World Gold Council, which became effective January 1, 2014. The World Gold Council is a non-regulatory market development organization for the gold industry whose members comprise global senior gold mining companies.

The following table provides a reconciliation of all-in sustaining costs per ounce to the consolidated financial statements:



Year ended December 31	2014		2013
Continuing operations
Total cash costs (by-product)	$	1,370	$	1,287
Corporate administration	247		236
Exploration and evaluation costs	41		45
Reclamation cost accretion and amortization	60		29
Sustaining capital expenditures	731		856
All-in sustaining costs	2,449		2,453
Divided by ounces of Goldcorp's share of gold sold	2,580,800		2,434,000
All-in sustaining costs per gold ounce	$	949	$	1,008
Including discontinued operations
All-in sustaining costs from continuing operations	$	2,449	2,453
All-in sustaining costs – Wharf	61		64
All-in sustaining costs – Marigold	26		162
All-in sustaining costs – including discontinued operations	2,536		2,679
Divided by ounces of Goldcorp's share of gold sold	2,672,800		2,597,200
All-in sustaining costs per gold ounce – including discontinued operations	$	949	$	1,031

GOLDCORP | 45

(in United States dollars, tabular amounts in millions, except where noted)



Three months ended	December 31 2014		September 30 2014		December 31 2013
Continuing operations
Total cash costs (by-product)	$	396	$	370	$	300
Corporate administration	59		63		47
Exploration and evaluation costs	12		12		11
Reclamation cost accretion and amortization	13		15		9
Sustaining capital expenditures	230		209		176
Other	—		—		(4		)
All-in sustaining costs	$	710	$	669	$	539
Divided by ounces of Goldcorp's share of gold sold	681,100		627,000		687,200
All-in sustaining costs per gold ounce	$	1,043	$	1,067	$	784
Including discontinued operations
All-in sustaining costs from continuing operations	$	710	$	669	$	539
All-in sustaining costs – Wharf	23		15		15
All-in sustaining costs – Marigold	—		—		34
All-in sustaining costs – including discontinued operations	733		684		588
Divided by ounces of Goldcorp's share of gold sold	707,900		641,400		725,700
All-in sustaining costs per gold ounce – including discontinued operations	$	1,035	$	1,066	$	810

Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s projects and certain expenditures at the Company’s operating sites which are deemed expansionary in nature. This definition includes, but is not limited to, capitalized stripping costs at open pit mines and underground mine development. The following table reconciles sustaining capital expenditures to the Company’s total capital expenditures for continuing operations:



Year ended December 31	2014		2013
Expenditures on mining interests and deposits per consolidated financial statements	$	2,021	$	2,177
Expenditures on mining interests by Alumbrera and Pueblo Viejo ⁽¹⁾	105		119
Goldcorp’s share of expenditures on mining interests and deposits	$	2,126	$	2,296
Sustaining capital expenditures	$	731	$	856
Project capital expenditures	1,395		1,440
	$	2,126	$	2,296



Three months ended	December 31 2014		September 30 2014		December 31 2013
Expenditures on mining interests and deposits per consolidated financial statements	$	507	$	498	$	585
Expenditures on mining interests by Alumbrera and Pueblo Viejo ⁽¹⁾	26		32		—
Goldcorp’s share of expenditures on mining interests and deposits	$	533	$	530	$	585
Sustaining capital expenditures	$	230	$	209	$	176
Project capital expenditures	303		321		409
	$	533	$	530	$	585


(1)	Expenditures on mining interests by Alumbrera and Pueblo Viejo represent mining interest expenditures, net of additional funding investments, which are included in expenditures on mining interests per the consolidated financial statements.

GOLDCORP | 46

(in United States dollars, tabular amounts in millions, except where noted)

NON-GAAP MEASURE – ADJUSTED NET EARNINGS

Adjusted net earnings excludes gains/losses and other costs incurred for acquisitions and disposals of mining interests, impairment charges, unrealized and non-cash realized gains/losses on financial instruments, foreign exchange impacts on deferred income tax and foreign exchange arising on working capital at certain of the Company’s capital projects, as well as significant non-cash, non-recurring items. The Company also excludes the net earnings (losses) from the Company’s equity investments in Primero and Tahoe. The Company excludes these items from net loss to provide a measure which allows the Company and investors to evaluate the operating results of the underlying core operations of the Company and its ability to generate liquidity through operating cash flow to fund working capital requirements, future capital expenditures and service outstanding debt. The Company’s adjusted net earnings does include the Company’s equity share of net earnings from Alumbrera and Pueblo Viejo as the Company considers these operations to comprise part of the Company’s core mining portfolio and to be significant contributors to the Company’s financial results.

The following table provides a reconciliation of adjusted net earnings to the consolidated financial statements:



Year ended December 31	2014			2013
Continuing operations
Net loss from continuing operations attributable to shareholders of Goldcorp Inc.	$	(2,170	)	$	(2,657	)
Revisions in estimates and liabilities incurred on reclamation and closure cost obligations at the Company's inactive and closed sites, net of tax	50			(17		)
Share of net (earnings) losses of associates, net of tax	(26		)	29
Pueblo Viejo SLA amendment	—			157
Impairment of mining interests, net of tax	2,313			2,315
(Gains) losses on available-for-sale securities, net of tax	(15		)	28
Losses (gains) on derivatives, net of tax	26			(60		)
(Gain) loss on disposition of mining interests, net of tax	(18		)	8
Unrealized losses on foreign exchange translation of deferred income tax assets and liabilities	272			133
Initial recognition impact of Mexican mining tax reform	—			504
Foreign exchange losses on capital projects	29			51
Deferred income tax impact on Guatemalan tax election and other	7			109
Total adjusted net earnings	$	468		$	600
Weighted average shares outstanding (000’s)	813,206			812,040
Adjusted net earnings from continuing operations per share	$	0.58		$	0.74
Including discontinued operations
Total adjusted net earnings from continuing operations	$	468		$	600
Net earnings (loss) from discontinued operation attributable to shareholders of Goldcorp Inc.	9			(52		)
Loss on disposition, net of tax – Marigold	21			—
Impairment, net of tax – Marigold	—			86
Total adjusted net earnings including discontinued operations	$	498		$	634
Weighted average shares outstanding (000’s)	813,206			812,040
Adjusted net earnings per share including discontinued operations	$	0.61		$	0.78

GOLDCORP | 47

(in United States dollars, tabular amounts in millions, except where noted)



Three months ended	December 31 2014			September 30 2014			December 31 2013
Continuing operations
Net loss from continuing operations attributable to shareholders of Goldcorp Inc.	$	(2,403	)	$	(48	)	$	(1,001	)
Revisions in estimates and liabilities incurred on reclamation and closure cost obligations at the Company's inactive and closed sites, net of tax	39			—			(17		)
Share of net (earnings) losses of associates, net of tax	(6		)	(3		)	18
Pueblo Viejo SLA Amendment	—			—			(4		)
Impairment of mining interests, net of tax	2,300			13			357
(Gains) losses on available-for-sale securities, net of tax	(7		)	(5		)	13
Losses on derivatives, net of tax	19			14			—
Gain on disposition of mining interests, net of tax	—			—			8
Initial recognition impact of Mexican mining tax reform	—			—			504
Unrealized losses on foreign exchange translation of deferred income tax assets and liabilities	105			85			67
Foreign exchange (gains) losses on capital projects	(2		)	6			17
Deferred income tax impact on Guatemalan tax election and other	3			4			114
Total adjusted net earnings	$	48		$	66		$	76
Weighted average shares outstanding (000’s)	813,792			813,572			812,217
Adjusted net earnings from continuing operations per share	$	0.06		$	0.08		$	0.09
Including discontinued operations
Total adjusted net earnings from continuing operations	$	48		$	66		$	76
Net earnings (loss) from discontinued operations attributable to shareholders of Goldcorp Inc.	7			4			(88		)
Impairment, net of tax – Marigold	—			—			86
Total adjusted net earnings including discontinued operations	$	55		$	70		$	74
Weighted average shares outstanding (000’s)	813,792			813,572			812,217
Adjusted net earnings per share including discontinued operations	$	0.07		$	0.09		$	0.09

GOLDCORP | 48

(in United States dollars, tabular amounts in millions, except where noted)

ADJUSTED OPERATING CASH FLOWS AND FREE CASH FLOWS

Adjusted operating cash flows comprises Goldcorp’s share of operating cash flows before working capital changes. Free cash flows comprises Goldcorp’s share of net cash provided by operating activities and includes the Company’s share of expenditures on mining interests and deposits on mining interests expenditures. 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 operate without reliance on additional external funding or use of available cash.

The following table provides a reconciliation of Goldcorp’s share of adjusted operating cash flows to net cash provided by operating activities per the consolidated financial statements:



Year ended December 31	2014			2013
Net cash provided by operating activities of continuing operations	$	982		$	886
Change in working capital	206			513
Dividends from associates	(108		)	(108		)
Adjusted operating cash flows provided by Alumbrera and Pueblo Viejo	282			236
Goldcorp’s share of adjusted operating cash flows	$	1,362		$	1,527
Including discontinued operations
Adjusted operating cash flows – Wharf	29			24
Adjusted operating cash flows – Marigold	2			50
Goldcorp’s share of adjusted operating cash flows including discontinued operations	$	1,393		$	1,601



Three months ended	December 31 2014			September 30 2014			December 31 2013
Net cash provided by operating activities of continuing operations	$	265		$	188		$	296
Change in working capital	(6		)	186			70
Dividends from associates	(1		)	(38		)	(37		)
Adjusted operating cash flows provided by Alumbrera and Pueblo Viejo	71			56			99
Goldcorp’s share of adjusted operating cash flows	$	329		$	392		$	428
Including discontinued operations
Adjusted operating cash flows – Wharf	8			7			4
Adjusted operating cash flows – Marigold	—			—			7
Goldcorp’s share of adjusted operating cash flows including discontinued operations	$	337		$	399		$	439

GOLDCORP | 49

(in United States dollars, tabular amounts in millions, except where noted)

The following table provides a reconciliation of Goldcorp’s share of free cash flows to net cash provided by operating activities per the consolidated financial statements:



Year ended December 31	2014			2013
Net cash provided by operating activities of continuing operations	$	982		$	886
Dividends from associates	(108		)	(108		)
Expenditures on mining interests	(1,882		)	(1,982		)
Deposits on mining interests expenditures	(139		)	(195		)
Interest paid	(101		)	(23		)
Consolidated free cash flows	(1,248		)	(1,422		)
Free cash flows provided by Alumbrera and Pueblo Viejo	220			51
Goldcorp’s share of free cash flows	$	(1,028	)	$	(1,371	)
Including discontinued operations
Free cash flows – Wharf	25			9
Free cash flows – Marigold	—			(13		)
Goldcorp’s share of free cash flows including discontinued operations	$	(1,003	)	$	(1,375	)



Three months ended	December 31 2014			September 30 2014			December 31 2013
Net cash provided by operating activities of continuing operations	$	265		$	188		$	296
Dividends from associates	(1		)	(38		)	(37		)
Expenditures on mining interests	(473		)	(448		)	(553		)
Deposits on mining interests expenditures	(34		)	(50		)	(32		)
Interest paid	(33		)	(40		)	—
Consolidated free cash flows	(276		)	(388		)	(326		)
Free cash flows provided (used) by Alumbrera and Pueblo Viejo	27			31			(28		)
Goldcorp’s share of free cash flows	$	(249	)	$	(357	)	$	(354	)
Including discontinued operations
Free cash flows – Wharf	8			2			(4		)
Free cash flows – Marigold	—			—			7
Goldcorp’s share of free cash flows including discontinued operations	$	(241	)	$	(355	)	$	(351	)

GOLDCORP | 50

(in United States dollars, tabular amounts in millions, except where noted)

COMMITMENTS

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following table summarizes the remaining contractual maturities of the Company’s financial liabilities and operating and capital commitments:



	At December 31, 2014										At December 31, 2013
	Within 1 year		2 to 3 years		4 to 5 years		Over 5 years		Total		Total
Accounts payable and accrued liabilities⁽¹⁾	$	1,016	$	—	$	—	$	—	$	1,016	$	829
Current and non-current derivative liabilities ⁽²⁾	48		1		—		—		49		56
Debt repayments (principal portion)	154		970		500		2,000		3,624		2,565
Interest payments on debt	178		202		168		761		1,309		417
Capital expenditure commitments ⁽³⁾	318		34		—		—		352		522
Reclamation and closure cost obligations ⁽⁴⁾	66		48		84		1,629		1,827		1,847
Minimum rental and lease payments	11		8		10		45		74		40
Other	166		32		11		46		255		124
	$	1,957	$	1,295	$	773	$	4,481	$	8,506	$	6,400


(1)	Excludes accrued interest on the Company's debt which is disclosed separately in the above table.


(2)	Excludes conversion feature of the Convertible Notes.


(3)	Contractual commitments are defined as agreements that are enforceable and legally binding. Certain of the contractual commitments may contain cancellation clauses; however, the Company discloses the contractual maturities of the Company's operating and capital commitments based on management's intent to fulfill the contract.


(4)	The Company's reclamation and closure cost obligations were $695 million at December 31, 2014, an increase of $166 million from prior year primarily due to a $202 million revision in estimates and obligations incurred at the Company's continuing operations of which $130 million was capitalized and $72 million was expensed.

At December 31, 2014, the Company had letters of credit outstanding, surety bonds and secured deposits, including amounts related to discontinued operations, in the amount of $460 million (December 31, 2013 – $430 million).

In addition, certain of the mining properties in which the Company has interests are subject to royalty arrangements based on their net smelter returns (NSRs), modified NSRs, net profits interest ("NPI") and/or net earnings. Royalties are expensed at the time of sale of gold and other metals. For the year ended December 31, 2014, royalties included in production costs amounted to $60 million (2013 – $52 million). At December 31, 2014, the significant royalty arrangements of the Company were as follows:



Producing mining properties:
Musselwhite	1 – 5% of NPI
Peñasquito	2% of NSR and 0.5% of gross income on sale of gold and silver ⁽¹⁾
Los Filos	0.5% of gross income on sale of gold and silver ⁽¹⁾
El Sauzal	0.5% of gross income on sale of gold and silver ⁽¹⁾
Marlin ⁽²⁾	5% of NSR
Marigold ⁽³⁾	5 – 10% of NSR
Alumbrera	3% of modified NSR plus 20% YMAD royalty
Pueblo Viejo	3.2% of NSR
Development projects:
Éléonore	2.2 – 3.5% of NSR
Cerro Negro	3 – 4% of modified NSR and 1% of net earnings
El Morro	2% of NSR


(1)	Effective January 1, 2014.


(2)	On November 28, 2014, the Guatemalan government passed legislation increasing the royalties paid on the production of precious metals in Guatemala to 10% of NSR effective January 1, 2015.

GOLDCORP | 51

(in United States dollars, tabular amounts in millions, except where noted)


(3)	Marigold was classified as a discontinued operation during the year ended December 31, 2014. As a result, the royalty expense for the years ended December 31, 2014 and 2013 exclude the royalty expenses incurred at Marigold.

FINANCIAL INSTRUMENTS RISK EXPOSURE

The Company manages its exposure to financial risks, including credit risk, liquidity risk, currency risk, interest rate risk and price risk, in accordance with its Financial Risk Management Policy. The Company’s Board of Directors oversees management’s risk management practices by setting trading parameters and reporting requirements. The Financial Risk Management Policy provides a framework for the Company to manage the risks it is exposed to in various markets and to protect itself against adverse price movements. All transactions undertaken are to support the Company’s ongoing business. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.

The following describes the types of risks that the Company is exposed to, and its objectives and policies for managing those risk exposures:


(i)	Credit risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. Credit risk is primarily associated with trade receivables; however, it also arises on cash and cash equivalents, money market investments, derivative assets and other receivables. To mitigate exposure to credit risk on financial assets, the Company has established policies to limit the concentration of credit risk, to ensure counterparties demonstrate minimum acceptable credit worthiness and to ensure liquidity of available funds.

The Company closely monitors its financial assets and does not have any significant concentration of credit risk. The Company sells its products exclusively to large international financial institutions and other organizations with strong credit ratings. The historical level of customer defaults is negligible and, as a result, the credit risk associated with trade receivables at December 31, 2014 is considered to be negligible. The Company invests its cash and cash equivalents and money market investments in highly-rated corporations and government issuances in accordance with its Short-term Investment Policy and the credit risk associated with its investments is considered to be low. Foreign currency, heating oil and commodity contracts are entered into with large international financial institutions with strong credit ratings.

The Company’s maximum exposure to credit risk is as follows:



	At December 31 2014		At December 31 2013
Cash and cash equivalents	$	482	$	625
Accounts receivable arising from sales of metal concentrates	187		254
Other current and non-current receivables	62		60
Money market investments	53		—
Current and non-current derivative asset	17		42
Current and non-current notes receivable	—		28
Accrued interest receivable	49		24
	$	850	$	1,033


(ii)	Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company has in place a rigorous planning, budgeting and forecasting process to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis, its expansionary plans and its dividend distributions. The Company ensures that sufficient committed loan facilities exist to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents and money market investments.

During the year ended December 31, 2014, the Company generated operating cash flows from continuing operations, one of the Company's main sources of liquidity, of $982 million (2013 – $886 million). At December 31, 2014, Goldcorp held cash and cash equivalents of $482 million (December 31, 2013 – $625 million) and money market investments of $53 million (December 31, 2013 – $nil). At December 31, 2014, the Company had working capital of $691 million (December 31, 2013 – $341 million), $26 million of which represents the Company's net assets held for sale (December 31, 2013 – $183 million), which the Company defines as current assets less current liabilities.

In addition to operating cash flows from continuing operations, the Company enters into capital transactions to fund its expansionary plans and development projects. During the year ended December 31, 2014, the Company issued the $1.0 billion Notes, which were partially used to

GOLDCORP | 52

(in United States dollars, tabular amounts in millions, except where noted)

repay the Convertible Notes, which matured on August 1, 2014. In addition, in October 2014, the Company, through its wholly-owned subsidiary, Oroplata S.A., entered into a 15-month 1.6 billion Argentine Peso loan facility and a 27-month 425 million Argentine Peso loan facility, both with third parties in Argentina. The facilities bear interest at Badlar, the average interest rate paid on short term deposits over 1 million pesos, plus a floating margin including 3.5%.

During the year ended December 31, 2014, the Company extended, under the same terms and conditions, the terms of the $2.0 billion revolving credit facility to July 18, 2019 and the 469 million Argentine peso credit facility to June 11, 2015. At December 31, 2014, the undrawn balance of the $2.0 billion revolving credit facility was $1.16 billion.

At December 31, 2014, the Company continued to guarantee its portion of the $1.035 billion (Goldcorp’s share – $414 million) in project financing for Pueblo Viejo. During the year ended December 31, 2014, $102 million (2013 – $45 million) was repaid (Goldcorp's share – $41 million (2013 – $18 million)) resulting in an outstanding balance of the credit facility of $888 million (Goldcorp's share – $355 million) at December 31, 2014. On February 17, 2015, Pueblo Viejo achieved certain operational and technical milestones required for the credit facility to become non-recourse to the Company and Barrick. As a result, the guarantees provided by the Company and Barrick, in proportion to their ownership interest in Pueblo Viejo, were terminated as of February 17, 2015.

In the opinion of management, the working capital at December 31, 2014, together with the future cash flows from operations and available funding facilities is sufficient to support the Company’s commitments. At December 31, 2014, the Company had $1,695 million (December 31, 2013 – $2,625 million) of readily available liquidity, which included its cash and cash equivalents, money market investments and the undrawn portion of the $2.0 billion revolving credit facility. At December 31, 2014, the Company's capital commitments over the next twelve months amounted to $318 million. The Company’s total planned capital expenditures for 2015 are $1.2 to $1.4 billion. Significant capital expenditures in 2015 include approximately $236 million at Cerro Negro, $219 million at Peñasquito, $114 million at Éléonore, $119 million at Red Lake, and $95 million at Cochenour.

For the periods beyond 2015, the Company’s cash flows from operations and available funding under the Company’s loan and credit facilities are expected to sufficiently support further expansions and growth. Éléonore and Cerro Negro will be the main driver of the Company’s gold production growth expected in the next five years, with significant contributions from Peñasquito, Red Lake, and Pueblo Viejo.


(iii)	Market risk

Currency risk

Currency risk is the risk that the fair values or future cash flows of the Company’s financial instruments will fluctuate because of changes in foreign exchange rates. Exchange rate fluctuations may affect the costs that the Company incurs in its operations. Gold, silver, copper, lead and zinc are sold in US dollars and the Company’s costs are incurred principally in US dollars, Canadian dollars, Mexican pesos, Argentinean pesos, Guatemalan quetzals and Chilean pesos. The depreciation of foreign currencies against the US dollar can decrease the cost of metal production and capital expenditures in US dollar terms. The Company also holds cash and cash equivalents that are denominated in foreign currencies which are subject to currency risk. Accounts receivable and other current and non-current assets denominated in foreign currencies relate to goods and services taxes, income taxes, value-added taxes and insurance receivables. The Company is further exposed to currency risk through non-monetary assets and liabilities of entities whose taxable profit or tax loss are denominated in foreign currencies. Changes in exchange rates give rise to temporary differences resulting in a deferred tax liability or asset with the resulting deferred tax charged or credited to income tax expense. At December 31, 2014, the Company had $4.9 billion of deferred income tax liabilities, of which $4.5 billion arose primarily from the acquisitions of Placer Dome Inc.’s assets and Glamis in 2006, and Camino Rojo and Cerro Negro in 2010 and which are denominated in foreign currencies.

GOLDCORP | 53

(in United States dollars, tabular amounts in millions, except where noted)

The Company is exposed to currency risk through the following financial assets and liabilities, income taxes receivables (payables) and deferred income tax assets and liabilities denominated in foreign currencies:



At December 31, 2014	Cash and cash equivalents		Accounts receivable and other current and non-current assets		Accounts payable and accrued liabilities and non-current liabilities			Income taxes receivable (payable), current and non-current			Deferred income tax liabilities
Canadian dollar	$	14	$	49	$	(357	)	$	26		$	(979	)
Mexican peso	23		150		(222		)	108			(2,858		)
Argentine peso	1		222		(393		)	(3		)	(574		)
Guatemalan quetzal	1		6		(36		)	6			(107		)
Chilean peso	1		11		(8		)	—			—
	$	40	$	438	$	(1,016	)	$	137		$	(4,518	)
At December 31, 2013
Canadian dollar	$	13	$	75	$	(328	)	$	18		$	(954	)
Mexican peso	25		134		(180		)	138			(2,860		)
Argentine peso	18		165		(162		)	2			(1,237		)
Guatemalan quetzal	3		7		(41		)	(3		)	(103		)
Chilean peso	3		12		(6		)	—			—
	$	62	$	393	$	(717	)	$	155		$	(5,154	)

During the year ended December 31, 2014, the Company recognized a net foreign exchange loss of $22 million (2013 – $43 million). Based on the Company’s net exposures (other than those relating to taxes) at December 31, 2014, a 10% depreciation or appreciation of applicable foreign currencies against the US dollar would have resulted in an approximate $43 million increase or decrease in the Company’s after-tax net loss, respectively.

During the year ended December 31, 2014, the Company recognized a net foreign exchange loss of $288 million in income tax expense on income taxes receivable/(payable) and deferred taxes (2013 – $135 million). Based on the Company’s net exposures relating to taxes at December 31, 2014, a 10% depreciation or appreciation of applicable foreign currencies against the US dollar would have resulted in an approximate $243 million decrease or increase in the Company’s after-tax net loss, respectively.

During the year ended December 31, 2014, and in accordance with its Financial Risk Management Policy, the Company entered into Canadian dollar and Mexican peso forward and option contracts to purchase and sell the respective foreign currencies at pre-determined US dollar amounts. These contracts were entered into to normalize operating, corporate and capital expenses incurred by the Company’s foreign operations as expressed in US dollar terms.

Interest rate risk

Interest rate risk is the risk that the fair values and future cash flows of the Company's financial instruments will fluctuate because of changes in market interest rates. The Company is exposed to interest rate cash flow risk primarily on its outstanding debt subject to floating rates of interest, its share of the Pueblo Viejo project financing, its cash and cash equivalents, and interest-bearing receivables. The Company is exposed to interest rate fair value risk primarily on its debt subject to fix rates of interest. The Company monitors its exposure to interest rates and is comfortable with its exposures given its mix of fixed-and floating-rate debt, with 70% of total debt at December 31, 2014 subject to fixed rates, and the relatively low rate on its US dollar debt which comprised 92% of total debt at December 31, 2014. The weighted-average interest rate paid by the Company during the year ended December 31, 2014 on its US dollar and Argentine peso debt subject to floating rates of interest was 1.4% and 26.5%, respectively (2013 – nil and 18.9%, respectively). The average interest rate earned by the Company during the year ended December 31, 2014 on its cash and cash equivalents was 0.15% (2013 – 0.18%). A 10% increase or decrease in the interest earned from financial institutions on deposits held would result in a nominal increase or decrease in the Company’s after-tax net loss.

There has been no significant change in the Company’s exposure to interest rate risk, with the exception of the increase in the Company's exposure to Badlar, the average interest rate paid on short-term deposits over 1 million Argentine pesos, associated with the 1.6 billion Argentine peso and 425 million Argentine peso facilities entered into during the year ended December 31, 2014. There has been no change to its objectives and policies for managing these risks during the year ended December 31, 2014.

GOLDCORP | 54

(in United States dollars, tabular amounts in millions, except where noted)

Price risk

Price risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market prices. During the year ended December 31, 2014 the Company updated its Financial Risk Management Policy to allow for hedging of metal sales volumes beyond the current term of twenty-seven months to thirty-six months. There has been no significant change to the Company’s exposure to price risk during the year ended December 31, 2014.

The Company has a policy not to hedge gold sales. In accordance with the Company’s Financial Risk Management Policy, the Company may hedge up to 50%, 30%, and 10% of its by-product base metal sales volume over the next twelve months, subsequent thirteen to twenty-four months, and subsequent twenty-five to thirty-six months, respectively, to manage its exposure to fluctuations in base metal prices.

The costs relating to the Company’s production, development and exploration activities vary depending on the market prices of certain mining consumables including diesel fuel and electricity. A 10% increase or decrease in diesel fuel market prices would result in an $18 million decrease or increase in the Company’s after-tax net loss. As and when it is determined to be favourable, the Company will execute hedges on its exposure to diesel fuel prices in Canada. At December 31, 2014, the Company has entered into heating oil contracts to manage its exposure to fuel prices. Electricity is regionally priced in Ontario and Quebec, Canada and Mexico and semi-regulated by the provincial and federal governments, respectively. The regulation of electricity prices reduces the risk of price fluctuation and the Company therefore does not contemplate entering into contracts to hedge against such risk.

The Company holds certain investments in available-for-sale equity securities which are measured at fair value, being the closing share price of each equity security, at the balance sheet date. The Company is exposed to changes in share prices which would result in gains and losses being recognized in other comprehensive income.

CAPITAL RESOURCES

The capital of the Company consists of items included in shareholders’ equity and debt, net of cash and cash equivalents and money market investments as follows:



	At December 31 2014			At December 31 2013
Shareholders’ equity	$	16,960		$	19,545
Debt	3,592			2,507
	20,552			22,052
Less: Cash and cash equivalents	(482		)	(625		)
Money market investments	(53		)	—
	$	20,017		$	21,427

The Company manages its capital structure and makes adjustments in light of changes in its economic environment and the risk characteristics of the Company’s assets. To effectively manage the entity’s capital requirements, the Company has in place a rigorous planning, budgeting and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient committed loan facilities to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents and money market investments.

At December 31, 2014, the Company expects its capital resources and projected future cash flows from operations to support its normal operating requirements on an ongoing basis, and planned development and exploration of its mineral properties and other expansionary plans. At December 31, 2014, there was no externally imposed capital requirement to which the Company is subject and with which the Company has not complied.

During the year ended December 31, 2014, the Company invested a total of $2,103 million in mining interests, including discontinued operations, of which 66% related to capital projects, including $687 million at Éléonore, $524 million at Cerro Negro, and $76 million at Cochenour. The remaining 44% was related to capital expenditures at the Company’s operating sites, primarily $259 million at Peñasquito, $157 million at Red Lake, $80 million at Porcupine, $78 million at Marlin, $51 million at Los Filos, and $44 million at Musselwhite.

As at February 18, 2015, there were 814 million common shares of the Company issued and outstanding and 16 million stock options outstanding which are exchangeable into common shares at exercise prices ranging between C$19.23 per share to C$48.72 per share.

Dividends which were declared and paid during the year ended December 31, 2014 totalled $488 million (2013 – $486 million).

GOLDCORP | 55

(in United States dollars, tabular amounts in millions, except where noted)

OTHER RISKS AND UNCERTAINTIES

Foreign Operations

In 2014, the majority of the Company’s foreign operations were conducted in Mexico, Guatemala, Argentina, the Dominican Republic, Chile and the United States, and as such the Company’s operations are exposed to various levels of political, economic and other risks and uncertainties. These risks and uncertainties vary from country to country and include, but are not limited to, terrorism; hostage taking; military repression; expropriation; extreme fluctuations in currency exchange rates; high rates of inflation; labour unrest; the risks of war or civil unrest; renegotiation or nullification of existing concessions, licenses, permits and contracts; ability of governments to unilaterally alter agreements; government imposed supply laws, including laws establishing, among other things, profit margins, production quotas, maximum and minimum price levels and the ability to confiscate merchandise in certain circumstances; surface land access issues; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political conditions, currency controls and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

Changes, if any, in mining or investment policies or shifts in political attitude in Canada, Mexico, Guatemala, Argentina, the Dominican Republic, Chile and the United States may adversely affect the Company’s operations or profitability. Operations may be affected in varying degrees by government regulations with respect to, but not limited to, restrictions on production, price controls, export controls, import restrictions, such as restrictions applicable to, among other things, equipment, services and supplies, currency remittance, income taxes, expropriation of property, foreign investment, maintenance of claims, environmental legislation, land use, surface land access, land claims of local people, water use and mine safety.

Failure to comply strictly with applicable laws, regulations and local practices relating to mineral right applications and tenure, environmental requirements, land and water use, could result in loss, reduction or expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners with carried or other interests. The occurrence of these various factors and uncertainties related to the economic and political risks of operating in foreign jurisdictions cannot be accurately predicted and could have a material adverse effect on the Company’s operations or profitability. In addition to internal controls, systems and processes, the Company mitigates these risks by building positive, sustainable relationships with local communities, vendors, and local, regional, and federal governments, maintaining ongoing and transparent communication with stakeholders, a commitment to sustainability, and best practices in corporate governance.

Government Regulation

The mining, processing, development and mineral exploration activities of the Company are subject to various laws governing prospecting, development, production, taxes, labour standards and occupational health, mine safety, toxic substances, land use, water use, land claims of local people and other matters. No assurance can be given that new rules and regulations will not be enacted or that existing rules and regulations will not be applied in a manner which could have an adverse effect on the Company’s financial position and results of operations.

Mexico


i.	Ejido Land Claims

Article 27 of the Mexican Constitution and subsequent legislation established the “ejido” and communal landholding as forms of land tenure in Mexico. There are 22 ejido communities in the vicinity of the Company’s Mexican mining operations and ejido lands cover all of the lands used by the Company for its current mining operations at its Peñasquito, Los Filos and El Sauzal mines. The Company enters into temporary occupation agreements ranging from five to 30 years with the ejido communities which allow the Company to use the surface of the lands for its mining operations. In Mexico, mining rights that are covered under a concession do not include direct ownership or possession rights over the surface, or surface access, and at any particular time the Company may be involved in negotiations with various ejido communities to enter into new temporary occupation agreements or amend existing agreements. Failure to reach agreement may cause delays to operations and projects, and on occasion, lead to legal disputes.

Argentina


i.	Province of Santa Cruz, Argentina

Issued in 2013, Law 3318 created a new form of tax in Argentina's Province of Santa Cruz for mining companies. The tax is levied on 1% of the value of mine reserves reported in feasibility studies and financial statements inclusive of variations resulting from ongoing exploitation. Regulations issued in the third quarter of 2013 require that the tax is calculated on “measured” reserves and the Company has interpreted this to mean “proven” reserves. The Province has disputed the Company's interpretation but has not provided further clarification on the definition of "measured" reserves, and the outcome is not clear at this time. The Company filed a legal claim disputing the constitutionality of the tax with the National Supreme Court of Argentina which has accepted jurisdiction of the matter. The Company continues to pay the required tax installments under protest for the years ended December 31, 2014 and 2013.

GOLDCORP | 56

(in United States dollars, tabular amounts in millions, except where noted)


ii.	Argentine 10% Withholding Tax

On September 23, 2013, Argentina’s federal Income Tax Statute was amended to include a 10% income tax withholding on dividend distributions by Argentine corporations and branch profit distributions by foreign corporations. It is the Company's position that the withholding tax violates tax stability rights provided to mining projects by Mining Investment Law No. 24,196 (“MIL”). Mining projects subject to MIL would generally pay the new withholding tax under protest and request a refund or tax credit for the excess of the overall tax burden. The Company believes that both Alumbrera and Oroplata S.A. are subject to the MIL, and accordingly should be entitled to a refund or tax credit for withholding taxes paid under the new law. Alumbrera has agreed to pay the withholding tax on dividends paid in 2014 and to be paid in 2015 under protest and the Company has accrued $19 million included in net (loss) earnings of associates for earned but undistributed profits with regards to its 37.5% interest in Alumbrera.


iii.	Government Controls

The Argentine government has continued to use price, foreign exchange, and import controls in response to unfavourable domestic economic trends (e.g. lower growth rates, higher inflation rates and capital flight). In particular, the government has implemented and tightened control over capital flows and foreign exchange, including informal restrictions on dividend, interest, and service payments abroad and limitations on the ability of individuals and businesses to convert Argentine pesos into US dollars or other hard currencies. These measures, which are intended to curtail the outflow of hard currency and protect Argentina’s international currency reserves, may adversely affect the Company’s ability to convert dividends paid by current operations or revenues generated by future operations into hard currency and to distribute those revenues to offshore shareholders. Maintaining operating revenues in Argentine pesos could also expose the Company to the risks of peso devaluation and high domestic inflation.

On September 17, 2014, the Argentine government enacted a law which seeks to protect consumers, stem job losses and ensure a steady supply of goods. The new law gives the government broad discretionary powers to control the economy and business decisions of private enterprise. The scope of the legislation is wide and covers all “economic activities” involving goods and services which may satisfy the welfare of the Argentines. It is possible that the new law could extend to the mining industry.

Environmental Regulation

The Company’s operations are subject to environmental regulation in the various jurisdictions in which it operates. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set out limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner which will likely require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company’s financial position and results of operations.

Government approvals and permits are currently, and may in the future be, required in connection with the Company’s operations. To the extent such approvals are required and not obtained, the Company may be curtailed or prohibited from continuing its mining operations or from proceeding with planned exploration or development of mineral properties.

Cost risk

The Company is exposed to industry wide cost pressures on capital and operating expenditures. The increasing costs seen in the Company’s global operations increases the risk relating to the profitability of its operations and the economic returns on its exploration and development stage projects. The Company continues to enter into certain hedging strategies to mitigate certain currency and fuel cost exposures and continues to implement cost management strategies to mitigate this risk.

Other Risks

For further information regarding the Company’s operational risks, please refer to the section entitled “Description of the Business – Risk Factors” in the Annual Information Form for the year ended December 31, 2013, available at www.sedar.com and to the Company’s Annual Information Form for the year ended December 31, 2014 to be filed on SEDAR.

BASIS OF PREPARATION

The Company’s consolidated financial statements have been prepared in accordance with IFRS as issued by the IASB, effective as of December 31, 2014. IFRS comprises IFRSs, International Accounting Standards (“IASs”), and interpretations issued by the IFRS Interpretations Committee (“IFRICs”) and the former Standing Interpretations Committee (“SICs”). The Company’s significant accounting policies are described in note 3 of the Company's consolidated financial statements for the year ended December 31, 2014.

GOLDCORP | 57

(in United States dollars, tabular amounts in millions, except where noted)

CRITICAL JUDGEMENTS AND ESTIMATES

The Company’s management makes judgements in its process of applying the Company’s accounting policies in the preparation of its consolidated financial statements. In addition, the preparation of the financial data requires that the Company’s management make assumptions and estimates of the impacts of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

Management has made the following critical judgements and estimates:

Critical Judgments in Applying Accounting Policies

The critical judgements that the Company’s management has made in the process of applying the Company’s accounting policies, apart from those involving estimations, that have the most significant effect on the amounts recognized in the Company’s consolidated financial statements are as follows:


(a)	Operating levels intended by management

Prior to a mine being capable of operating at levels intended by management, costs incurred are capitalized as part of the costs of the related mining properties and proceeds from mineral sales are offset against costs capitalized. Depletion of capitalized costs for mining properties begins when the mine is capable of operating at levels intended by management. Management considers several factors in determining when a mining property is capable of operating at levels intended by management.

The Company determined that the Cerro Negro mine was capable of operating at levels intended by management effective January 1, 2015. The Company determined that the Pueblo Viejo mine, in which the Company holds a 40% equity interest, was capable of operating at levels intended by management effective January 1, 2013.


(b)	Economic recoverability and probability of future economic benefits of exploration, evaluation and development costs

Management has determined that exploratory drilling, evaluation, development and related costs incurred which have been capitalized are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefit including geologic and metallurgic information, history of conversion of mineral deposits to proven and probable reserves, scoping and feasibility studies, accessible facilities, existing permits and life of mine plans.


(c)	Functional currency

The functional currency for each of the Company’s subsidiaries and investments in associates, is the currency of the primary economic environment in which the entity operates. The Company has determined the functional currency of each entity is the US dollar. Determination of functional currency may involve certain judgements to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary economic environment.


(d)	Asset held for sale

The Company applies judgment to determine whether an asset or disposal group is available for immediate sale in its present condition and that its sale is highly probable and therefore should be classified as held for sale at the balance sheet date. Conditions that support a highly probable sale include the following: an appropriate level of management is committed to a plan to sell the asset or disposal group, an active program to locate a buyer and complete the plan has been initiated, the asset or disposal group has been actively marketed for sale at a price that is reasonable in relation to its current fair value, and the sale of the asset or disposal group is expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale. At December 31, 2014 and 2013, the Company concluded that the assets and liabilities of Wharf and Marigold, respectively, met the criteria for classification as held for sale. Accordingly, the group of assets and liabilities were presented separately under current assets and current liabilities, respectively, and measured at the lower of its carrying amount and fair value less costs of disposal ("FVLCD"), Wharf being carrying amount and Marigold being FVLCD. The assets of Wharf and Marigold ceased to be depreciated while they were classified as held for sale.

GOLDCORP | 58

(in United States dollars, tabular amounts in millions, except where noted)

Key Sources of Estimation Uncertainty

The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company’s assets and liabilities are as follows:


(a)	Impairment of mining interests and goodwill

The Company considers both external and internal sources of information in assessing whether there are any indications that mining interests and goodwill are impaired. External sources of information the Company considers include changes in the market, economic and legal environment in which the Company operates that are not within its control and affect the recoverable amount of mining interests and goodwill. Internal sources of information the Company considers include the manner in which mining properties and plant and equipment are being used or are expected to be used and indications of economic performance of the assets. In assessing whether there is objective evidence that the Company’s mining interests represented by its investments in associates are impaired, the Company’s management considers observable data including the carrying amounts of the investees’ net assets as compared to their market capitalization.

In determining the recoverable amounts of the Company’s mining interests and goodwill, the Company makes estimates of the discounted future after-tax cash flows expected to be derived from the Company’s mining properties, costs to sell the mining properties and the appropriate discount rate. The projected cash flows are significantly affected by changes in assumptions related to metal selling prices, future capital expenditures, changes in the amount of recoverable reserves, resources, and exploration potential, production cost estimates, discount rates and exchange rates.

Continued access to the estimated recoverable reserves, resources and exploration potential of the Company’s mining interests and goodwill is a key assumption in determining their recoverable amounts. The ability to maintain existing or obtain necessary mining concessions, surface rights title, and water concessions is integral to the access of the reserves, resources and exploration potential. A mining concession gives its holder the right to carry out mining activities in the area covered by that concession and take ownership of any minerals found, but it does not always grant surface access rights. In some jurisdictions surface access rights must be separately negotiated with the owner of the surface lands and in the event of a dispute or failed negotiations, administrative legal process may be available. In other jurisdictions, surface access rights may be granted along with mining rights. Water concessions provides its holder the right to specified levels of water usage and are granted based on water availability in the source area.

Reductions in metal price forecasts, increases in estimated future costs of production, increases in estimated future capital expenditures, reductions in the amount of recoverable reserves, resources, and exploration potential, and/or the impact of adverse current economic conditions can result in a write-down of the carrying amounts of the Company’s mining interests and/or goodwill.

During the year ended December 31, 2014, the Company recognized an impairment expense of $2,313 million, net of tax, (2013 – $2,401 million, including discontinued operation), and $2,999 million before tax (2013 – $3,073 million before tax including discontinued operation), in respect of the carrying amounts of certain mining interests. The $2,999 million (2013 – $3,073 million) of impairment expense recognized included $975 million (2013 – $283 million) of impairment charges for goodwill.

At December 31, 2014, the carrying amounts of the Company’s mining interests and goodwill were $24,545 million and $479 million, respectively (December 31, 2013 – $25,138 million and $1,454 million, respectively).


(b)	Heap leach ore inventories and mine operating costs

In determining mine operating costs recognized in the Consolidated Statements of Loss, the Company’s management makes estimates of quantities of ore stacked on leach pads and in process and the recoverable gold in this material to determine the average costs of finished goods sold during the period. Changes in these estimates can result in a change in mine operating costs of future periods and carrying amounts of inventories. At December 31, 2014, the carrying amounts of inventories amounted to $1,021 million (December 31, 2013 – $868 million).


(c)	Heap leach ore inventory net realizable value

In determining the net realizable value of work-in-process, heap leach ore, and stockpiled ore, the Company estimates future metal selling prices, production forecasts, realized grades and recoveries, timing of processing, and future costs to convert the inventories into saleable form. Reductions in metal price forecasts, increases in estimated future costs to convert, reductions in the amount of recoverable ounces, and a delay in timing of processing can result in a write-down of the carrying amounts of the Company’s work-in-process, heap leach ore, and stockpiled ore inventory. During the year ended December 31, 2014, the Company recognized an impairment expense of $96 million on its non-current stockpiled ore and heap leach as a result of the carrying amount of certain inventory exceeding net realizable value

GOLDCORP | 59

(in United States dollars, tabular amounts in millions, except where noted)

(2013 – $nil). Of the $96 million of impairment, $72 million and $24 million was recorded as production costs and depreciation and depletion in the Consolidated Statements of Loss, respectively.


(d)	Estimated recoverable ounces

The carrying amounts of the Company’s mining properties are depleted based on recoverable ounces contained in proven and probable reserves and a portion of resources. The Company includes a portion of resources where it is considered probable that those resources will be economically extracted. Changes to estimates of recoverable ounces and depletable costs including changes resulting from revisions to the Company’s mine plans and changes in metal price forecasts can result in a change to future depletion rates.


(e)	Deferred stripping costs

In determining whether stripping costs incurred during the production phase of a mining property relate to reserves and resources that will be mined in a future period and therefore should be capitalized, the Company makes estimates of the stripping activity over the life of the component of reserves and resources which have been made accessible. Changes in estimated strip ratios can result in a change to the future capitalization of stripping costs incurred. At December 31, 2014, the carrying amount of stripping costs capitalized and included in mining properties was $109 million (December 31, 2013 – $42 million).


(f)	Income taxes

In assessing the probability of realizing income tax assets recognized, management makes estimates related to expectations of future taxable income, applicable tax opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. Forecasted cash flows from operations are based on life of mine projections internally developed and reviewed by management. Weight is attached to tax planning opportunities that are within the Company’s control, and are feasible and implementable without significant obstacles. The likelihood that tax positions taken will be sustained upon examination by applicable tax authorities is assessed based on individual facts and circumstances of the relevant tax position evaluated in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that materially affect the amounts of income tax assets recognized. At the end of each reporting period, the Company reassesses unrecognized income tax assets.


(g)	Estimated reclamation and closure costs

The Company’s provision for reclamation and closure cost obligations represents management’s best estimate of the present value of the future cash outflows required to settle the liability which reflects estimates of future costs, inflation, movements in foreign exchange rates, assumptions of risks associated with the future cash outflows and assumptions of probabilities of alternative estimates of future cash outflows, and the applicable risk-free interest rates for discounting those future cash outflows. Significant judgements and estimates are required in forming assumptions of future activities, future cash outflows and the timing of those cash outflows. These assumptions are formed based on environmental and regulatory requirements or the Company’s environmental policies which may give rise to constructive obligations. The Company’s assumptions are reviewed at the end of each reporting period and adjusted to reflect management’s current best estimate and changes in any of the above factors can result in a change to the provision recognized by the Company. At December 31, 2014, the Company’s total provision for reclamation and closure cost obligations was $695 million (December 31, 2013 – $529 million). The undiscounted value of these obligations is $1,827 million (December 31, 2013 – $1,847 million) (note 24).

For the purpose of calculating the present value of the provision for reclamation and closure cost obligations, the Company discounts the estimated future cash outflows using the risk-free interest rate applicable to the future cash outflows, which is the appropriate US Treasury risk-free rate which reflects the reclamation lifecycle estimated for all sites, including operating and inactive mines and development projects. For those sites with a greater than 100-year reclamation lifecycle, a long-term risk-free rate is applied.

For the year ended December 31, 2014, the Company applied a 30-year risk-free rate of 3% (2013 – 4%) to all sites with the exception of those sites with a reclamation lifecycle of greater than 100 years where a 5.0% (2013 – 5.9%) risk-free rate was applied, which resulted in a weighted average discount rate of 4.2% (2013 – 5.3%).

Changes to reclamation and closure cost obligations are recorded with a corresponding change to the carrying amounts of the related mining properties (for operating mines and development projects) and as production costs (for inactive and closed mines) for the period. Adjustments to the carrying amounts of related mining properties can result in a change to future depletion expense.

GOLDCORP | 60

(in United States dollars, tabular amounts in millions, except where noted)


(h)	Contingencies

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters are outstanding from time to time. While the outcome of these matters is uncertain, based upon the information currently available, the Company does not believe that these matters in aggregate will have a material adverse effect on its consolidated financial position or results of operations. In the event that management’s estimate of the future resolution of these matters changes, the Company will recognize the effects of the changes in its consolidated financial statements on the date such changes occur.

(i)

Federal criminal charges were filed against the agrarian judge who presided at the trial of first instance which started in 2009 and several members of a prior Cerro Gordo Ejido leadership committee who originally approved the land use agreement. The Attorney General has issued an “assurance measure” protecting the status of the disputed lands pending conclusion of the related criminal investigation. With the assurance measure, Minera Peñasquito has sole custody of the disputed lands. The Company has filed with the office of the SEDATU the required documents to expropriate the disputed lands. In addition, the Company will continue to employ all legal means at its disposal to ensure continuity of operations and to protect the Company’s mineral concession rights consistent with Mexican law. Operations at the Peñasquito Mine have not been impacted. However, in the event constitutional claims by the State of Zacatecas, Ejido Cedros, Ejido Mazapil and transportation union are ultimately rejected, and the assurance measure is removed, Ejido Cerro Gordo would, absent any other intervening event, be entitled to possession of the disputed lands. Should this occur, Peñasquito Mine operations would be adversely impacted, and in such circumstances, the ultimate resolution of this matter is not determinable at this time. Settlement discussions facilitated by the Mexican federal government commenced in June 2014 and progress continues towards a mutually beneficial resolution of the dispute.

(ii)

In 2012, the Mexican government amended the Federal labour law regarding subcontracting arrangements to prevent using service companies to avoid labour and tax obligations. The Company currently operates in Mexico using these subcontracting arrangements as is the common practice. The amendments also provided clarification on certain regulatory requirements associated with an employer’s obligation to compensate employees with appropriate statutory profit sharing within Mexico. The Company has determined that it is probable that no additional obligation for statutory profit sharing payments is required to be recorded in the Company’s consolidated financial statements as at and for the years ended December 31, 2014, other than what is presently recorded.

CHANGES IN ACCOUNTING POLICIES

Application of new and revised accounting standards

The Company has applied the following new interpretation and amendments to existing IFRSs in its consolidated financial statements:

Levies imposed by governments

IFRIC 21 – Levies (“IFRIC 21”), an interpretation of IAS 37 – Provisions, Contingent Liabilities and Contingent Assets ("IAS 37"), clarifies that the obligating event, as defined by IAS 37, that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy. The Company has applied IFRIC 21 on a retrospective basis in compliance with the transitional requirements of IFRIC 21. The application of IFRIC 21 did not result in any adjustments to the Company's consolidated financial statements.

GOLDCORP | 61

(in United States dollars, tabular amounts in millions, except where noted)

Other Amendments

The IASB made certain amendments to the following IFRSs effective January 1, 2014:

•IFRS 10 – Consolidated Financial Statements;

•IFRS 12 – Disclosure of Interests in Other Entities;

•IAS 27 – Separate Financial Statements;

•IAS 32 – Financial Instruments: Presentation;

•IAS 36 – Impairment of Assets; and

•IAS 39 – Financial Instruments: Recognition and Measurement.

The amendments did not have an impact on the Company's consolidated financial statements.

CHANGES IN ACCOUNTING STANDARDS NOT YET EFFECTIVE

Revenue recognition

In May 2014, the IASB issued IFRS 15 – Revenue from Contracts with Customers ("IFRS 15") which supersedes IAS 11 – Construction Contracts; IAS 18 – Revenue; IFRIC 13 – Customer Loyalty Programmes; IFRIC 15 – Agreements for the Construction of Real Estate; IFRIC 18 – Transfers of Assets from Customers; and SIC 31 – Revenue – Barter Transactions involving Advertising Services. IFRS 15 establishes a single five-step model framework for determining the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The standard is effective for annual periods beginning on or after January 1, 2017, with early adoption permitted. The Company is currently evaluating the impact the final standard is expected to have on its consolidated financial statements.

Financial instruments

In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments ("IFRS 9") to replace IAS 39 – Financial Instruments: Recognition and Measurement. IFRS 9 provides a revised model for recognition and measurement of financial instruments and a single, forward-looking 'expected loss' impairment model. IFRS 9 also includes a substantially reformed approach to hedge accounting. The standard is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Company is currently evaluating the impact the final standard is expected to have on its consolidated financial statements.

Annual improvements

In December 2013, the IASB issued the Annual Improvements 2010-2012 and 2011-2013 cycles, effective for annual periods beginning on or after July 1, 2014. In September 2014, the IASB issued the Annual Improvements 2012-2014 cycle, effective for annual periods beginning on or after July 1, 2016. These Annual Improvements made necessary but non-urgent amendments to existing IFRSs. These amendments are not expected to have a significant impact on the Company's consolidated financial statements.

OUTLOOK UPDATE

For 2015, the Company expects to produce between 3.3 and 3.6 million ounces of gold and estimates that all-in sustaining costs will be between $875 and $950 per ounce. Cash costs are expected to decrease from 2014 levels primarily due to the contribution of the two low-cost mines entering commercial production in the first quarter of 2015, Cerro Negro and Éléonore, and continued efforts to enhance productivity and cost efficiencies through the Company’s O4E program.

Assumptions used to forecast total cash costs for 2015 include: $18.00 per ounce of silver; $3.00 per pound of copper; $1.00 per pound of zinc; $0.95 per pound of lead; and the Canadian dollar and Mexican peso at 1.14 and 14.00, respectively, to the US dollar.

Capital expenditures for 2015 are forecasted to decrease approximately 40% from 2014, to between $1.2 and $1.4 billion. Significant capital expenditures in 2015 include approximately $236 million at Cerro Negro, $219 million at Peñasquito, $114 million at Éléonore and $95 million at Cochenour. Exploration expenditures in 2015 are expected to amount to approximately $170 million, of which approximately one third is expected to be expensed. The Company’s primary focus will remain on the replacement of reserves mined during 2015 and on extending existing gold zones at each of its mines and projects. Corporate administration expense, excluding share-based compensation, is forecast at $185 million for 2015. Depreciation, depletion, and amortization expense is expected to be approximately $390 per gold ounce sold. The Company expects its overall effective tax rate to be approximately 35% in 2015.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company’s management, with the participation of its President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures. Based upon the results of that evaluation, the Company’s President and Chief Executive Officer and Executive Vice President and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported, within the appropriate time periods and is accumulated and communicated to management, including the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

The Company’s management, with the participation of its President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision of the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, the Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. The Company’s internal control over financial reporting includes policies and procedures that:


•	pertain to the maintenance of records that accurately and fairly reflect, in reasonable detail, the transactions and dispositions of assets of the Company;


•	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS and that the Company’s receipts and expenditures are made only in accordance with authorizations of management and the Company’s Directors; and


•	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements.

There has been no change in the Company’s internal control over financial reporting during the year ended December 31, 2014 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations of Controls and Procedures

The Company’s management, including the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, believes that any disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

GOLDCORP | 62

(in United States dollars, tabular amounts in millions, except where noted)

GOLDCORP INC.

GOLD AND SILVER RESERVES AND RESOURCES SUMMARY TABLE

As of December 31, 2014



Reserves	Contained Gold (Moz)	Contained Silver (Moz)
Proven	18.7	440.5
Probable	30.9	348.1
Proven & Probable	49.6	788.5

Resources
Measured	6.0	136.1
Indicated	30.2	474.0
Measured & Indicated	36.2	610.1
Inferred	24.0	85.7



GOLDCORP INC PROVEN AND PROBABLE RESERVES ^(1)(4)(5) As of December 31, 2014 Based on attributable ounces
GOLD		Mt	Au g/t	Moz
Peñasquito Mill	Mexico	546.98	0.55	9.70
Los Filos	Mexico	247.19	0.85	6.77
El Morro (70.0%)	Chile	419.34	0.46	6.24
Pueblo Viejo (40.0%)	Dominican Republic	58.35	3.31	6.21
Cerro Negro	Argentina	16.87	9.70	5.26
Éléonore	Canada	24.57	6.30	4.97
Porcupine	Canada	57.94	1.60	2.98
Red Lake	Canada	6.42	9.96	2.06
Camino Rojo	Mexico	84.52	0.68	1.85
Musselwhite	Canada	7.61	6.79	1.66
Peñasquito Heap Leach	Mexico	89.74	0.29	0.85
Alumbrera (37.5%)	Argentina	56.25	0.31	0.55
Marlin	Guatemala	1.85	5.26	0.31
Dee (40.0%)	United States	1.14	4.40	0.16
TOTAL GOLD				49.58

GOLDCORP | 63

(in United States dollars, tabular amounts in millions, except where noted)



SILVER		Mt	Ag g/t	Moz
Peñasquito Mill	Mexico	546.98	30.12	529.65
Peñasquito Heap Leach	Mexico	89.74	28.25	81.52
Los Filos	Mexico	247.19	5.17	41.11
Cerro Negro	Argentina	16.87	80.43	43.63
Pueblo Viejo (40.0%)	Dominican Republic	58.35	20.73	38.89
Camino Rojo	Mexico	84.52	13.80	37.49
Marlin	Guatemala	1.85	269.44	16.00
Dee (40.0%)	United States	1.14	6.62	0.24
TOTAL SILVER				788.53
COPPER		Mt	% Cu	Mlbs
El Morro (70.0%)	Chile	419.34	0.49	4,552
Alumbrera (37.5%)	Argentina	56.25	0.33	406
Pueblo Viejo (40.0%)	Dominican Republic	58.35	0.11	142
TOTAL COPPER				5,100
LEAD		Mt	% Pb	Mlbs
Peñasquito Mill	Mexico	546.98	0.31	3,757
TOTAL LEAD				3,757
ZINC		Mt	% Zn	Mlbs
Peñasquito Mill	Mexico	546.98	0.75	9,081
TOTAL ZINC				9,081



GOLDCORP INC MEASURED AND INDICATED RESOURCES ^{(1)(2)(3)(4)(6)} As of December 31, 2014 Based on attributable ounces
GOLD		Mt	Au g/t	Moz
Porcupine	Canada	168.31	1.41	7.61
Camino Rojo	Mexico	221.41	0.87	6.20
Peñasquito Mill	Mexico	504.75	0.28	4.50
Pueblo Viejo (40.0%)	Dominican Republic	49.83	2.62	4.20
Los Filos	Mexico	123.70	1.04	4.13
Red Lake	Canada	4.11	17.74	2.34
Cerro Blanco	Guatemala	2.52	15.64	1.27
Éléonore	Canada	5.19	6.34	1.06
Noche Buena	Mexico	71.75	0.42	0.96
Dee (40.0%)	United States	20.47	1.30	0.86
El Morro (70.0%)	Chile	64.65	0.41	0.85
Peñasquito Heap Leach	Mexico	116.69	0.21	0.77
Cerro Negro	Argentina	3.80	5.32	0.65
San Nicolas (21.0%)	Mexico	19.26	0.46	0.28
El Sauzal	Mexico	2.86	2.29	0.21

GOLDCORP | 64

(in United States dollars, tabular amounts in millions, except where noted)



GOLDCORP INC MEASURED AND INDICATED RESOURCES ^{(1)(2)(3)(4)(6)} As of December 31, 2014 Based on attributable ounces
Musselwhite	Canada	0.98	5.62	0.18
Marlin	Guatemala	0.62	4.29	0.09
TOTAL GOLD				36.15
SILVER		Mt	Ag g/t	Moz
Peñasquito Mill	Mexico	504.75	22.77	369.57
Peñasquito Heap Leach	Mexico	116.69	17.18	64.45
Camino Rojo	Mexico	221.41	7.37	52.46
Noche Buena	Mexico	71.75	14.06	32.44
Los Filos	Mexico	123.70	7.77	30.91
Pueblo Viejo (40.0%)	Dominican Republic	49.83	15.26	24.45
San Nicolas (21.0%)	Mexico	19.26	26.70	16.53
Cerro Blanco	Guatemala	2.52	72.00	5.83
Cerro Negro	Argentina	3.80	45.81	5.59
Dee (40.0%)	United States	20.47	6.67	4.39
Marlin	Guatemala	0.62	174.12	3.47
TOTAL SILVER				610.11
COPPER		Mt	% Cu	Mlbs
El Morro (70.0%)	Chile	64.65	0.42	597
San Nicolas (21.0%)	Mexico	19.26	1.24	527
Pueblo Viejo (40.0%)	Dominican Republic	49.83	0.08	93
TOTAL COPPER				1,216
LEAD		Mt	% Pb	Mlbs
Peñasquito Mill	Mexico	504.75	0.22	2,395
Camino Rojo	Mexico	221.41	0.08	388
TOTAL LEAD				2,784
ZINC		Mt	% Zn	Mlbs
Peñasquito Mill	Mexico	504.75	0.48	5,379
Camino Rojo	Mexico	221.41	0.25	1,224
San Nicolas (21.0%)	Mexico	19.26	1.68	713
TOTAL ZINC				7,316

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(in United States dollars, tabular amounts in millions, except where noted)



GOLDCORP INC INFERRED RESOURCES ^{(1)(2)(3)(4)(6)} As of December 31, 2014 Based on attributable ounces
GOLD		Mt	Au g/t	Moz
Los Filos	Mexico	175.86	0.82	4.64
El Morro (70.0%)	Chile	474.65	0.30	4.52
Cochenour	Canada	9.30	11.55	3.45
Éléonore	Canada	12.09	7.19	2.80
Camino Rojo	Mexico	86.14	0.78	2.17
Red Lake	Canada	3.00	19.58	1.89
Porcupine	Canada	16.92	2.87	1.56
Musselwhite	Canada	7.02	5.61	1.27
Cerro Blanco	Guatemala	1.35	15.44	0.67
Cerro Negro	Argentina	1.54	6.44	0.32
Noche Buena	Mexico	17.67	0.42	0.24
Peñasquito Heap Leach	Mexico	24.44	0.19	0.15
Pueblo Viejo (40.0%)	Dominican Republic	1.33	2.51	0.11
Peñasquito Mill	Mexico	17.47	0.13	0.08
Dee (40.0%)	United States	3.87	0.68	0.08
Marlin	Guatemala	0.09	7.17	0.02
San Nicolas (21.0%)	Mexico	2.28	0.26	0.02
El Sauzal	Mexico	0.04	1.33	—
TOTAL GOLD				23.97
SILVER		Mt	Ag g/t	Moz
Los Filos	Mexico	175.86	6.31	35.67
Camino Rojo	Mexico	86.14	4.43	12.28
Peñasquito Mill	Mexico	17.47	19.46	10.93
Peñasquito Heap Leach	Mexico	24.44	13.72	10.78
Noche Buena	Mexico	17.67	13.92	7.91
Cerro Blanco	Guatemala	1.35	59.60	2.59
Cerro Negro	Argentina	1.54	37.64	1.86
San Nicolas (21.0%)	Mexico	2.28	17.40	1.27
Marlin	Guatemala	0.09	358.29	1.08
Pueblo Viejo (40.0%)	Dominican Republic	1.33	21.22	0.91
Dee (40.0%)	United States	3.87	3.46	0.43
TOTAL SILVER				85.70
COPPER		Mt	% Cu	Mlbs
El Morro (70.0%)	Chile	474.65	0.35	3,633
San Nicolas (21.0%)	Mexico	2.28	1.24	62
Pueblo Viejo (40.0%)	Dominican Republic	1.33	0.02	1
TOTAL COPPER				3,696

GOLDCORP | 66

(in United States dollars, tabular amounts in millions, except where noted)



GOLDCORP INC INFERRED RESOURCES ^{(1)(2)(3)(4)(6)} As of December 31, 2014 Based on attributable ounces
LEAD		Mt	% Pb	Mlbs
Peñasquito Mill	Mexico	17.47	0.24	93
Camino Rojo	Mexico	86.14	0.03	51
TOTAL LEAD				143
ZINC		Mt	% Zn	Mlbs
Camino Rojo	Mexico	86.14	0.17	315
Peñasquito Mill	Mexico	17.47	0.48	186
San Nicolas (21.0%)	Mexico	2.28	0.97	49
TOTAL ZINC				550

*Numbers may not add up due to rounding



Goldcorp December 31, 2014 Reserve and Resource Reporting Notes:

1	All Mineral Reserves and Mineral Resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the AusIMM JORC equivalent.
2	All Mineral Resources are reported exclusive of Mineral Reserves.
3	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
4	Reserves and Resources are reported as of December 31, 2014, with the following conditions or exceptions:
	(i) (ii) (iii)	Reserves and Resources for Pueblo Viejo are as per information provided by Barrick Gold Corporation. Reserves and Resources for Dee are as per information provided by Barrick Gold Corporation. Resources for San Nicolas are as per information provided by Teck Resources Limited (2012 Study).
5	Mineral Reserves are estimated using appropriate recovery rates and US$ commodity prices of $1,300 per ounce of gold, $22 per ounce of silver, $3.00 per pound of copper, $0.90 per pound of lead, and $0.90 per pound of zinc, unless otherwise noted below:
	(i)	Alumbrera	$1,332/oz gold and $3.17/lb copper
	(ii)	Pueblo Viejo, Dee	$1,100/oz gold, $17/oz silver, $3.00/lb copper
6	Mineral Resources are estimated using US$ commodity prices of $1,500 per ounce of gold, $24 per ounce of silver, $3.50 per pound of copper, $1.00 per pound of lead, and $1.00 per pound of zinc, unless otherwise noted below;
	(i)	Pueblo Viejo, Dee	$1,400/oz gold, $19/oz silver, $3.50/lb copper
	(ii)	San Nicolas	$1,275/oz gold, $22.50/oz silver, $2.75/lb copper, $1.00/lb zinc
	(iii)	Éléonore	$1,300/oz gold

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources:

These tables use the terms “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 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.

Scientific and technical information contained in this MD&A was reviewed and approved by Gil Lawson, P.Eng., Vice-President, Geology and Mine Planning for Goldcorp, and a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

GOLDCORP | 67

(in United States dollars, tabular amounts in millions, except where noted)

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report 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. 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”, “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 be taken”, “occur” or “be achieved” or the negative connotation thereof.

Forward-looking statements are made based upon certain assumptions and other important 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, 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 price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks, litigation risks, regulatory restrictions (including environmental regulatory restrictions and liability), activities by governmental authorities (including changes in taxation), 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 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 the integration of acquisitions; risks related to international operations, including economical 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; environmental risks; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; mine development and operating risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; risks related to indebtedness and the service of such indebtedness, 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, 2013 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. 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 our operating environment. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

CAUTIONARY NOTE REGARDING RESERVES AND RESOURCES

Scientific and technical information contained in this MD&A were reviewed and approved by Gil Lawson, P.Eng., Vice President, Geology and Mine Planning for Goldcorp, and a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). All mineral reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101, or the AusIMM JORC equivalent. All mineral resources are reported exclusive of mineral reserves and mineral resources which are not mineral reserves do not have demonstrated economic viability. Information on data verification performed on the mineral properties mentioned in this MD&A that are considered to be material mineral properties to the Company are contained in Goldcorp’s Annual Information Form for the year ended December 31, 2013 and the current technical report for those properties, all available at www.sedar.com.

GOLDCORP | 68

(in United States dollars, tabular amounts in millions, except where noted)

Cautionary Note to United States investors concerning estimates of measured, indicated and inferred resources: United States investors are advised that while the terms “measured”, “indicated” and “inferred” resources 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 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.

GOLDCORP | 69