-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R8SWvq0f5cAGHc/yuen1iwOi0UBF08Mc6ZyCDQ+OSmeOVNRlCVZGYjY192lZ5Mf3 VNOnmMPRm+7UNBh6Azg1/w== 0001047469-98-041209.txt : 19981118 0001047469-98-041209.hdr.sgml : 19981118 ACCESSION NUMBER: 0001047469-98-041209 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDCORP INC CENTRAL INDEX KEY: 0000919239 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 98770100 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-12970 FILM NUMBER: 98752342 BUSINESS ADDRESS: STREET 1: 145 KING ST WEST STREET 2: STE 2700 M5H 1J8 CITY: TORONTO ONTARIO CANA STATE: A6 BUSINESS PHONE: 4168650326 6-K 1 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 F O R M 6 - K [X] Pursuant to Rule 13a-16 or 15d-16 of the SECURITIES EXCHANGE ACT OF 1934 GOLDCORP INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) COMMISSION FILE NUMBER 1-12970 PROVINCE OF ONTARIO 98770100 ---------------------------- ------------------------------------ (State of other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) SUITE 2700, 145 KING STREET WEST TORONTO, ONTARIO, CANADA M5H 1J9 (416) 865-0326 (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20 - F [ ] Form 40-F [ X ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the commission pursuant to Rule 12g3-(b) under the SECURITIES EXCHANGE ACT OF 1934. Yes [ ] No [ X ] THIRD QUARTER REPORT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 ------------------------------------------ GOLDCORP INC. ------------------------------------------ GOLDCORP IS A NORTH AMERICAN BASED GOLD PRODUCER. GOLDCORP'S SHARES ARE LISTED ON THE TORONTO, NEW YORK AND MONTREAL STOCK EXCHANGES. ITS HEAD OFFICE IS LOCATED IN TORONTO, CANADA. - ------------------------------------------------------------------------------- MARKET FOR THE COMPANY'S CORPORATE OFFICE: COMMON SHARES: 145 King Street West The Toronto Stock Exchange and Suite 2700 Montreal Exchange (G.A & G.B) Toronto, Ontario New York Stock Exchange (GG.A & GG.B) Canada M5H 1J8 Options traded on the Trans Canada Telephone: (416) 865-0326 Options Facsimile: (416) 361-5741 Shares included in the TSE 200 Shareholder enquires: (800) 813-1412 and 300 indices (Canada and United States) Website: www.goldcorp.com Email: info@goldcorp.com PRINCIPAL REGISTRAR AND CO-REGISTRAR AND TRANSFER AGENT: TRANSFER AGENT: Montreal Trust Company of Canada The Bank of New York 151 Front Street West 101 Barclay Street Suite 800 New York, New York 10286 Toronto, Ontario Telephone: (212) 815-2450 Canada M5J 2N1 Facsimile: (212) 815-3201 Telephone: (416) 981-9500 Facsimile: (416) 981-9800 GOLDCORP INC. - ------------------------------------------------------------------------------- www.goldcorp.com Suite 2700 145 King Street West Toronto, Ontario Canada, M5H 1J8 Telephone (416) 865-0326 Facsimile (416) 361-5741 NEWS RELEASE Toronto, Canada November 10, 1998 GOLDCORP INC. 1998 THIRD QUARTER RESULTS -------------------------- (ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES DOLLARS, UNLESS OTHERWISE INDICATED.) OVERVIEW GOLD RED LAKE MINE DEVELOPMENT - - RESERVE INCREASE: independent reserve audit completed with Red Lake's High Grade ounces increasing by 47% to 1.89 million ounces with an average cut grade of 1.36 ounces per ton and an average uncut grade of 2.63 ounces per ton - - POSITIVE FEASIBILITY STUDY results announced on October 5, 1998 study results: capex $56 million; year 2000 production starts; 240,000 ounces per year; cash production cost of $88 per ounce; 17 month payback; internal rate of return of 49% WHARF MINE - - higher production, up 15% for the first 9 months to 88,128 ounces (30,061 ounces produced in the third quarter) - - lower cash production cost per ounce, down 20% for the first 9 months to $187 ($180 per ounce in the third quarter) INDUSTRIAL MINERALS - - performance below expectations due to weaker market conditions Goldcorp Inc. -- 1998 Third Quarter Results Page 2 - ------------------------------------------------------------------------------- FINANCIAL RESULTS
Three months ended Nine months ended September 30, September 30, 1998 1997 1998 1997 ------- ------- ------- ------- (IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AND PER OUNCE AMOUNTS) Revenues $ 14.6 $ 16.7 $ 44.4 $ 46.8 Earnings (loss) (0.4) 1.4 (1.3) (2.0) Earnings (loss) per share (fully diluted) (0.01) 0.02 (0.02) (0.03) Cash flow from operations 2.2 6.9 5.2 3.7 Cash flow from operations per share (fully diluted) 0.04 0.10 0.08 0.05 Gold sales (OUNCES) 29,200 29,500 86,096 75,900 Average realized gold price per ounce 289 325 294 336
LIQUIDITY AND CAPITAL RESOURCES
As at As at September 30, December 31, 1998 1997 ------------ ------------ (IN MILLIONS OF U.S. DOLLARS) > Cash and short-term investments $ 9.7 $ 12.5 Marketable securities -book value 17.7 22.8 -market value 6.4 15.4 Working capital 20.6 29.9
For the nine months ended September 30, 1998, Goldcorp realized a pre-tax loss of $2.3 million on the sale of marketable securities ($1.3 million after-tax). For the nine months ended September 30, 1998, Goldcorp also recorded a further $4.6 million decline in the market value of the marketable securities. These holdings remain as available sources of additional capital for future mine expansion and joint venture opportunities. Ongoing capital and deferred exploration and development expenditures during the first three quarters of 1998 were $11.2 million. The remaining budgeted expenditures of approximately $5.6 million for the fourth quarter of 1998 are expected to be financed by existing working capital and internally generated cash flows. Goldcorp Inc. -- 1998 Third Quarter Results Page 3 - ------------------------------------------------------------------------------- RED LAKE MINE FEASIBILITY STUDY RESULTS A positive feasibility study has been completed on the High Grade Zone at Goldcorp's Red Lake Mine by Watts, Griffis and McOuat and Goldcorp staff. Mine startup is contemplated 18 months from the date development begins. The economics of the project are very robust. Based on a gold price of $300 per ounce and a recovery rate of 83%, the project has a payback period of 17 months with an internal rate of return of 49%. The total capital cost for the project is $56.2 million. The cash production cost over the 6.5 year mine life is $88 per ounce and the total operating cost is $137 per ounce. The mining rate of only 600 tons per day yields an average annual production of 240,000 ounces of gold. In addition, 35,000 ounces per year is expected to be recovered upon installation of a refractory treatment process. The capital expenditures of $56.2 million consist of: $23.8 million for underground development, $15.5 million for process plant, $3.4 million for surface facilities, $8.2 million for overhead and construction management and $5.3 million for contingency. The schedule of expenditures is $4.4 million in 1998, $51.1 million in 1999 and $0.7 million in 2000. The underground operation will primarily employ the cut and fill mining method which allows for extensive grade control and minimum dilution. Other methods will be investigated during mine development. The new processing plant will include the major pieces of equipment purchased from the recently closed Contact Lake Mine along with additional new equipment required to complete the Red Lake Mine's milling circuit. Metallurgical testwork was conducted by Lakefield Research. The refractory gold concentrate in the flotation circuit will be stockpiled on site for future treatment. We believe that attractive debt financing can be arranged given the project's very short payback, Goldcorp's debt-free balance sheet and its multiple sources of cash flow. Discussions with potential lenders for the financing at the Red Lake Mine development are underway. NEW EXPLORATION TARGETS Drilling continued at the new exploration targets that have been identified on the east side of the mine property. The targets are located some 1,000 to 1,400 feet east of any previous mining activity. To date, exploration drilling from surface and from underground has encountered mineralization in several areas contained within a vertical distance of 5,000 feet. Presently, the best assay grade was 1.28 ounces per ton over 6.2 feet. This suggests that higher grade potential may exist. Exploration continues in this area. Goldcorp Inc. -- 1998 Third Quarter Results Page 4 - ------------------------------------------------------------------------------- WHARF MINE PRODUCTION STATISTICS
Three months ended Nine months ended September 30, September 30, 1998 1997 1998 1997 ------- -------- -------- -------- Tons of ore mined (000S) 1,340 1,387 3,350 3,395 Tons of waste removed (000S) 1,888 1,688 5,428 4,238 Ratio of waste to ore 1.41:1 1.22:1 1.62:1 1.25:1 Tons of ore processed (000S) 1,144 1,281 3,230 3,335 Average grade of gold processed (OUNCES PER TON) 0.033 0.029 0.032 0.030 Gold production (OUNCES) 30,061 28,362 88,128 76,792 Operating cost per ounce Cash production cost $ 180 $ 228 $ 187 $ 235 Royalties and severance taxes 19 20 20 18 Non-cash costs 13 91 11 88 ------- -------- -------- -------- Total operating cost $ 212 $ 339 $ 218 $ 341 ------- -------- -------- -------- Percentage decrease in total operating cost per ounce 37% 36% ------- --------
The Wharf Mine has continued to improve its operating performance, reducing the cash production cost per ounce by 20% to $187. Gold production target for 1998 is 105,000 ounces at a cash production cost of $190 per ounce and a total operating cost of $225 per ounce. COCHENOUR MINE Exploration on the 100% owned and former producing Cochenour Mine began in the third quarter. Anomalous gold values were returned from diamond drilling, with the best results being 3.78 ounces of gold per ton over 2 feet and 0.59 ounces of gold per ton over 1 foot. Geological work is continuing on the property. INDUSTRIAL MINERAL OPERATIONS -- SASKATCHEWAN MINERALS AND HAVELOCK LIME
Three months ended Nine months ended September 30, September 30, 1998 1997 1998 1997 ----- ----- ------ ------ (IN MILLIONS OF U.S. DOLLARS) Revenues $ 6.1 $ 6.9 $ 19.0 $ 21.1 Operating profit 1.8 1.3 5.5 5.9 Operating cash flow 2.1 1.7 6.5 6.9
Goldcorp Inc. -- 1998 Third Quarter Results Page 5 - ------------------------------------------------------------------------------- Sodium sulphate sales at Saskatchewan Minerals were lower than expected during the nine months ended September 30, 1998. Worldwide oversupply of sodium sulphate has driven the prices down. These conditions are expected to continue at least for the balance of 1998. Negotiations with the union have resulted in a favourable outcome with votes on October 22 and 23, 1998 ratifying the proposed two-year contract. BOARD OF DIRECTORS Ian Delaney, a long standing director of the Company retired in September. We wish to acknowledge his valued contribution to our corporate growth. FORWARD-LOOKING STATEMENTS This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States SECURITIES EXCHANGE ACT OF 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Goldcorp Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Goldcorp expectations are disclosed under the heading "Risk Factors" and elsewhere in Goldcorp documents filed from time to time with the Toronto Stock Exchange, The United States Securities and Exchange Commission and other regulatory authorities. FINANCIAL INFORMATION Attached are the Consolidated Financial Statements of Goldcorp Inc. for the three and nine months ended September 30, 1998. For further information, please contact: Rolando C. Francisco President (416) 865-0326 email: info@goldcorp.com website: www.goldcorp.com Stock Symbols: TSE, ME ("G.A"; "G.B") NYSE ("GG.A"; "GG.B") -30- Goldcorp Inc. -- 1998 Third Quarter Results Page 6 - ------------------------------------------------------------------------------- GOLDCORP INC. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) CONSOLIDATED BALANCE SHEETS (IN THOUSANDS OF UNITED STATES DOLLARS)
As at As at September 30, December 31, 1998 1997 ------------- ------------ ASSETS CURRENT ASSETS Cash and short-term investments $ 9,651 $ 12,473 Gold bullion inventory 393 100 Accounts receivable 5,905 7,285 Marketable securities 6,385 15,445 Inventories 5,970 8,102 Deferred income taxes 5,255 3,382 Prepaid expenses 463 1,507 -------- -------- 34,022 48,294 MINING INTERESTS, NET 77,934 68,378 DEPOSITS FOR RECLAMATION COSTS 2,043 3,135 OTHER ASSETS 453 2,941 -------- -------- $114,452 $122,748 -------- -------- -------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 10,605 $ 14,602 Taxes payable 2,812 3,785 -------- -------- 13,417 18,387 -------- -------- PROVISION FOR RECLAMATION COSTS AND OTHER LIABILITIES 6,180 6,466 -------- -------- DEFERRED INCOME TAXES 12,036 10,890 -------- -------- SHAREHOLDERS' EQUITY Capital stock 84,541 81,734 Contributed surplus 5,472 5,472 Cumulative translation adjustment (5,873) (201) Deficit (1,321) -- -------- -------- 82,819 87,005 -------- -------- $114,452 $122,748 -------- -------- -------- --------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS. Goldcorp Inc. -- 1998 Third Quarter Results Page 7 - ------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
Three months ended Nine months ended September 30, September 30, 1998 1997 1998 1997 ------- ------- ------- ------- Revenues Gold bullion $ 8,455 $ 9,748 $25,377 $25,637 Industrial minerals 6,094 6,957 18,984 21,116 ------- ------- ------- ------- 14,549 16,705 44,361 46,753 ------- ------- ------- ------- Expenses Operating 10,303 14,762 34,532 38,998 Corporate administration 885 866 2,503 2,727 Depreciation and depletion 818 3,071 2,300 7,934 Exploration 1,436 61 1,618 148 ------- ------- ------- ------- 13,442 18,760 40,953 49,807 ------- ------- ------- ------- Earnings (loss) from operations 1,107 (2,055) 3,408 (3,054) ------- ------- ------- ------- Other income (expense) Interest and other income 250 398 1,658 1,556 Gain (loss) on marketable securities 54 (1,024) (2,280) 3,098 Decrease (increase) in provision for decline in marketable securities (1,916) 3,666 (4,601) (952) Interest expense Long-term debt (7) (158) Other (5) (13) ------- ------- ------- ------- (1,612) 3,028 (5,223) 3,531 ------- ------- ------- ------- Earnings (loss) before taxes (505) 973 (1,815) 477 Income and mining taxes (recovery) (92) (470) (494) 2,435 ------- ------- ------- ------- Earnings (loss) for the period $ (413) $ 1,443 $(1,321) $(1,958) ------- ------- ------- ------- Earnings (loss) per share Basic $ (0.01) $ 0.02 $ (0.02) $ (0.03) ------- ------- ------- ------- Fully diluted $ (0.01) $ 0.02 $ (0.02) $ (0.03) ------- ------- ------- ------- Weighted average number of shares outstanding (000s) Basic 68,932 68,365 68,856 68,348 ------- ------- ------- ------- Fully diluted 75,221 73,291 74,986 73,001 ------- ------- ------- -------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS. Goldcorp Inc. -- 1998 Third Quarter Results Page 8 - ------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS OF UNITED STATES DOLLARS)
Three months ended Nine months ended September 30, September 30, 1998 1997 1998 1997 ------- ------- -------- -------- Cash provided by (used in) Operating activities Earnings (loss) for the period $ (413) $ 1,443 $ (1,321) $ (1,958) Items not affecting cash Depreciation, depletion and amortization 818 3,053 2,300 8,194 Loss (gain) on marketable securities, net of tax provision (31) 567 1,263 (1,716) Increase (decrease) in provision for decline in marketable securities 1,916 (3,666) 4,601 952 Deferred income taxes (1,045) 1,079 (244) 2,700 Other (365) 114 (1,349) 39 ------- ------- -------- -------- 880 2,590 5,250 8,211 Change in non-cash operating working capital 1,370 4,263 (10) (4,553) ------- ------- -------- -------- Net cash provided by operating activities 2,250 6,853 5,240 3,658 ------- ------- -------- -------- Investing activities Mining interests (2,559) (4,403) (11,228) (12,684) Purchases of marketable securities (2,334) (7,293) (3,885) (12,397) Proceeds from sale of marketable securities 2,134 3,981 5,808 23,610 Purchases of other assets (29) Acquisition of remaining Wilanour Resources Limited shares outstanding (2,636) Taxes paid on sale of marketable securities, prior year 7 (2,143) Decrease in deposits for reclamation costs 97 1,092 74 ------- ------- -------- -------- Net cash used in investing activities (2,759) (7,611) (10,849) (3,569) ------- ------- -------- -------- Financing activities Repayment of long-term debt (1,452) (7,110) Shares issued to acquire remaining Wilanour Resources Limited shares outstanding 2,636 Issue of capital stock, net 75 132 171 278 ------- ------- -------- -------- Net cash provided by (used in) financing activities 75 (1,320) 2,807 (6,832) ------- ------- -------- -------- Effect of exchange rate changes on cash 21 25 (20) (43) ------- ------- -------- -------- Decrease in cash and short-term investments (413) (2,053) (2,822) (6,786) Cash and short-term investments at beginning of period 10,064 25,274 12,473 30,007 ------- ------- -------- -------- Cash and short-term investments at end of period $ 9,651 $23,221 $ 9,651 $ 23,221 ------- ------- -------- --------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS. Goldcorp Inc. -- 1998 Third Quarter Results Page 9 - ------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL The accompanying unaudited consolidated financial statements should be read in conjunction with the notes to the Company's audited consolidated financial statements for the year ended December 31, 1997. The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the respective interim periods presented. 2. ACQUISITION OF WILANOUR RESOURCES LIMITED On February 19, 1998, the Company completed the acquisition of the remaining 57% of Wilanour Resources Limited that it did not already own, for 520,441 Class A shares and 520,441 Class A Warrants of the Company. The Class A Warrants expire on June 30,1999 and have an exercise price of C$7.25 per Goldcorp share. SIGNATURE Pursuant to the requirements of the SECURITIES EXCHANGE ACT OF 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GOLDCORP INC. By /s/Rolando C. Francisco Rolando C. Francisco President (Duly Authorized Officer and Principal Financial Officer) Date: November 11, 1998 -----END PRIVACY-ENHANCED MESSAGE-----