EX-99.1 2 ex99_1.htm GOLDCORP CASH FLOW INCREASES 35% IN THE THIRD QUARTER; STRONG PRODUCTION INCREASE OF 11% AND CASH COST PERFORMANCE LEAD TO INCREASED 2009 GUIDANCE ex99_1.htm

Exhibit 99.1
 
 
 
graphic
Suite 3400 – 666 Burrard St.
Vancouver, BC, V6C 2X8
Tel: (604) 696-3000
Fax: (604) 696-3001
 
 

 
Toronto Stock Exchange: G
New York Stock Exchange: GG

GOLDCORP CASH FLOW INCREASES 35% IN THE THIRD QUARTER; STRONG
PRODUCTION INCREASE OF 11% AND CASH COST PERFORMANCE LEAD TO
INCREASED 2009 GUIDANCE

VANCOUVER, British Columbia, November 4, 2009 – Goldcorp Inc. (TSX: G, NYSE: GG) today reported gold production of 621,100 ounces for the third quarter at a total cash cost of $295 per ounce.  Adjusted net earnings1 in the third quarter were $140.6 million, or $0.19 per share, while reported net earnings totalled $114.2 million.
 
Third Quarter Highlights
 
 
·
Gold production increased by 11% over the 2008 third quarter, to 621,100 ounces.
 
 
·
Total cash costs2 for the quarter were $295 per ounce on a by-product basis, and $297 per ounce year to date.
 
 
·
Total cash costs2 on a co-product basis were $384 per ounce compared to $380 per ounce year to date.
 
 
·
Operating cash flows before changes in working capital3 totaled $321.1 million or $0.44 per share, a 35% increase over the third quarter of 2008.
 
 
·
Dividends paid amounted to $32.9 million.
 
 
·
Peñasquito concentrate production ramp-up on schedule; concentrate shipments commence.
 
 
·
Full-year gold production guidance revised upward; cash cost guidance also improves.
 
“Consistent with our 2009 theme of execution throughout our operations, Goldcorp’s gold production and cash costs were again very strong in the third quarter,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer.  “Red Lake experienced an outstanding quarter, driven by excellent results in the High Grade zone and continued productivity enhancements.  Also in Ontario, Porcupine’s quarterly gold production was its best in almost three years.   Marlin in Guatemala and Los Filos in Mexico were also important contributors to our quarterly results, with the Los Filos open pit operation achieving record quarterly gold production.  We saw continued success among our next
 

 
 

 

generation of growth drivers as well.  At Peñasquito, I am pleased to report that shipments of both lead and zinc concentrates began this week. Achieving this important milestone supports our continued confidence in the outlook for this world-class operation.    Also advancing impressively is the Cochenour project in the Red Lake camp.  Development will begin to accelerate, as a plan is now in place detailing the best way to access the deposit.  Cochenour is a key component of our development plans in the prolific Red Lake district, and upon completion it will be an important contributor to our growth profile at Red Lake for many years to come.”
 
“Our strong  performance through the first nine months of the year has led us to revise our production guidance, to approximately 2.4 million gold ounces at a total cash cost of approximately $300 per ounce on a by-product basis and less than $400 per ounce on a co-product basis. Gold prices have exhibited continued strength and sustainability above $1,000 per ounce, and with our production and cash costs trending positively, the stage is set for continued strength in cash flow and profitability through the end of the year and beyond.”
 
Financial Review
 
Gold sales in the third quarter compared to the third quarter of 2008, increased to 621,100 ounces at a total cash cost of $295 per ounce on a by-product basis, and $384 per ounce on a co-product basis.  On both a by-product and co-product basis, Goldcorp remains the lowest cost, highest margin senior gold producer in the industry. 
 
Adjusted net earnings1 totaled $140.6 million, or $0.19 per share, compared to $64.7 million or $0.09 per share, in the third quarter of 2008.  Adjusted net earnings primarily exclude the effect of a non-cash foreign exchange loss on revaluation of future income tax liabilities, but include the impact of non-cash stock option expenses, which amounted to approximately $0.02 per share for the quarter. Operating cash flow before non-cash working capital adjustments3 increased 35% to $321.1 million compared to $237.3 million in last year’s third quarter. Reported net earnings in the quarter were $114.2 million compared to net earnings of $297.2 million in the third quarter of 2008.
 
For the nine months ended September 30, 2009, revenues increased 7% to $1.9 billion, a result of increased realized gold prices and increased gold sales volumes.  On a by-product basis, total cash costs were $297 per ounce compared to a total cash cost of $298 per ounce in 2008. Total cash costs on a co-product basis were $380 per ounce year to date versus $409 per ounce in the 2008 period. 
 
For the first nine months of the year, adjusted net earnings1 totaled $405.5 million, or $0.55 per share, compared to $312.6 million, or $0.44 per share, in 2008.  Adjusted net earnings primarily exclude the
 

 
 

 

 
effect of a non-cash foreign exchange loss on revaluation of future income tax liabilities and transaction costs for issuance of convertible debt.  Adjusted net earnings for 2008 primarily exclude the effect of a non-cash foreign exchange gain on revaluation of future income tax liabilities, the first quarter gain on the sale of the Silver Wheaton shares, and an unrealized loss on securities.  Net earnings in the nine months ended September 30, 2009 were $173.5 million or $0.24 per share, compared to net earnings of $517.5 million, or $0.73 per share, in 2008. Cash flow from operations before working capital changes3 increased 24% to $872.6 million, or $1.19 per share, from $702.7 million, or $0.99 per share, in the nine months ended September 30, 2008.  
 
Operations Review
 
Goldcorp’s cornerstone asset delivered a strong performance in the third quarter.  Gold production at Red Lake totalled 178,800 ounces at a total cash cost of $255 per ounce compared to gold production of 160,100 ounces at a total cash cost of $297 in the third quarter of 2008. Exploration drilling from the 4199 drift is advancing well with three drills off the platform: two drilling the High Grade zone and one drilling targets in the high-potential Party Wall area.
 
Also in the Red Lake district, dewatering of the Cochenour shaft continued in the third quarter with completion expected during the first quarter of 2010.  The Company has completed a study to determine the best way to access and develop the Cochenour ore body.  The study indicates that the best method of developing the Cochenour/Bruce Channel deposit is to enlarge and upgrade the existing Cochenour shaft and construct a 5 kilometer high speed tram on the 5400 Level connecting to the Red Lake mine.  This will enable the Bruce Channel deposit ore to be hauled directly to the Red Lake mine and processed at the existing mill facility.  Preparatory work for the haulage drift project has commenced.
 
A 31% increase in gold production at Porcupine in Ontario over the 2008 third quarter highlights the strong pattern of sequential improvement over the last year.  Gold production at Porcupine totalled 90,600 ounces—its best performance in almost three years—while cash costs fell to $406 per ounce.  Grade continued to improve through mining in higher grade stopes and through the development of the new higher grade VAZ zone.
 
At Los Filos, gold production was 60,200 ounces, driven by its best performance yet in the open pit operations.  El Sauzal’s production of 45,500 ounces was in line with the forecast production decrease consistent with its declining mine life.  At San Dimas, higher grades in the Roberta, Robertita and Marina veins drove a strong improvement in production versus the prior year third quarter. Gold production was 27,500 ounces in the third quarter at a total cash cost of $313 per
 

 
 

 

ounce.  At the Marlin mine in Guatemala, quarterly gold and silver production increased both from the second quarter of 2009 and the year-ago quarter, with production of 68,800 ounces of gold and 1,083,200 ounces of silver. These production increases were largely attributable to process enhancements leading to both gold and silver recovery improvements.
 
Project Update
 
Positive exploration drilling continued at Éléonore in Quebec.  Strong assay results in the deep mineralized zone to the north continued to support ongoing work on an internal prefeasibility study planned for the end of 2009.  The study is evaluating the best options for accessing the deep high grade in the north while simultaneously ramping up gold production from the Roberto Zone.  Environmental and social impact assessment work is continuing.
 
In the Dominican Republic, development of the Pueblo Viejo project continued to track on budget and on schedule for initial gold production in the fourth quarter of 2011.  Construction of the autoclave and related structures is now well advanced, and the mills have now arrived in the Dominican Republic.  Goldcorp’s 40% share of gold production in the first five full years of the mine’s life is expected to average approximately 400,000 ounces at total cash costs of between $275 and $300 per ounce.  Goldcorp’s share of proven and probable gold reserves at Pueblo Viejo amounts to nearly 9 million ounces.
 
Peñasquito Update
 
Since achieving mechanical completion during the third quarter, full commissioning of the first sulphide process line (Line 1) has steadily advanced at Peñasquito.  On November 2nd, the Company began dispatching the first lead and zinc concentrates from the mine site.  The initial lead concentrate shipments are being sold to Industrias Peñoles’ Met-Mex subsidiary in Torreon, Mexico, while initial zinc concentrates are being trucked to the port of Manzanillo in preparation for shipment to Korea Zinc Co. Ltd.  Preliminary metals grades, recoveries and concentrate quality have met or exceeded expectations.
 
Construction of the second sulphide process line (Line 2) is well underway and progressing toward planned start-up in the third quarter of 2010.  Completion of construction of the high pressure grinding rolls circuit is expected in the fourth quarter of 2010, allowing for a ramp-up to the mill’s full 130,000 tonnes per day capacity in early 2011.  For the latest photographs from the site, please visit www.goldcorp.com and click on Operations/Peñasquito.

 
 

 

Mining activities continue to provide sulphide ore for the start-up of the Line 1 plant with rates in excess of 500,000 tonnes per day.  Initial pre-stripping has uncovered more sulphide ore than was modeled, and the resulting ore stockpile has added a significant degree of ore feed flexibility. At September 30, 2009, 6.2 million tonnes of ore were stockpiled and an additional 2 million tonnes were exposed in the pit and available for mining.
 
“The rate of progress we continue to make at Peñasquito remains consistent with our ramp-up schedule,” added Jeannes.  “The team there continues to exceed our expectations as the transition from project to world-class mine remains well on track.  This ongoing success supports our expectation that Peñasquito will contribute to our five-year 50% growth profile just as we anticipated.  Upon completion of the updated Peñasquito mine plan, the data will be integrated into our 2010 corporate budget and specific full-year expectations disclosed in January 2010.”
 
Corporate Social Responsibility Update
 
During the third quarter, Marlin mine in Guatemala became Goldcorp’s third gold mine to be fully certified under the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold.    Marlin’s achievement makes it the first mine in Central America to be so certified, following Marigold mine as the first-ever gold mining operation to be certified and El Sauzal as the first-ever mine in Mexico to be certified.  Goldcorp is an industry leader in its commitment to the safe handling and use of cyanide in applicable mining operations.
 
2009 Outlook
 
In light of continued strength in production at many of its key gold mines, the Company today revised operating guidance for the 2009 year.  Gold production guidance has been increased from 2.3 million ounces to approximately 2.4 million ounces.  Guidance on total cash costs has also changed in light of the Company’s stronger operating performance.  Total cash costs for 2009 are now expected to be approximately $300 per ounce of gold on a by-product basis compared to previous guidance of $365 per ounce.  On a co-product basis, total cash costs are now expected to be less than $400 per ounce compared to previous guidance of $400 per ounce.  Price assumptions used in the calculation of these new estimates for the fourth quarter are $15 silver, $2.75 copper, $75 per barrel oil, and US Dollar exchange rates of $1.10 Canadian Dollars and $12.50 Mexican pesos.
 
This release should be read in conjunction with Goldcorp’s third quarter 2009 unaudited MD&A report on the Company's website, www.goldcorp.com, in the “Investors” section under “Financials”.
 

 
 

 
 
A conference call will be held on November 5, 2009 at 10:00 a.m. (PDT) to discuss the third quarter results. Participants may join the call by dialing toll free 888-300-0053 or 647-427-3420 for calls from outside Canada and the US.  A recorded playback of the call can be accessed after the event until December 5, 2009 by dialing 800-642-1687 or 706-645-9291 for calls outside Canada and the US.  Passcode: 34518604.  A live and archived audio webcast will also be available at www.goldcorp.com.
 
Goldcorp is the lowest-cost and fastest growing multi-million ounce gold producer with operations throughout the Americas.  Its gold production remains 100% unhedged.

 
(1)
Adjusted net earnings is a non-GAAP measure. 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 34 of the 2009 third quarter MD&A for a reconciliation of adjusted earnings to reported net earnings.
 
 
(2)
The Company has included a non-GAAP performance measure, total cash cost per gold ounce, throughout this document. The Company reports total cash costs on a sales basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. The Company follows the recommendations of the Gold Institute standard. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, 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 33 of the 2009 third quarter MD&A for a reconciliation of total cash costs to reported operating expenses.
 
 
 
(3)
Operating cash flows before working capital changes and operating cash flows before working capital changes per share are non-GAAP measures which the Company believes provides a better indicator of the Company's ability to generate cash flow from its mining operations. Cash provided by operating activities reported in accordance with GAAP was $341.9 million and $903.7 million, respectively for the three months and nine months ended September 30, 2009.
 
Cautionary Note Regarding Forward-Looking Statements
 
This press release contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp Inc. (“Goldcorp”). Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage.  Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”,  “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.  Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and other risks of the mining industry, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” in Goldcorp’s annual information form for the year ended December 31, 2008 available at www.sedar.com.  Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may

 
 

 

be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements.  Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

CONTACT INFORMATION:

Jeff Wilhoit
Vice President, Investor Relations
(604) 696-3074
Fax: (604) 696-3001
Email: info@goldcorp.com
Website: www.goldcorp.com

FINANCIAL STATEMENTS TO FOLLOW

 
 

 

           
(in millions of United States dollars, except per share and per ounce amounts)
           
     
Three Months Ended
 
     
September 30
 
     
2009
   
2008
 
               
Gold produced (ounces)
    621,100       557,400  
Gold sold (ounces)
    601,500       550,500  
Copper produced (thousands of pounds)
    22,700       28,600  
Copper sold (thousands of pounds)
    24,300       26,400  
Silver produced (ounces)
    2,975,000       2,267,600  
Silver sold (ounces)
    2,386,900       1,722,000  
Average realized gold  price (per ounce)
  $ 968     $ 865  
Average London spot gold price (per ounce)
  $ 960     $ 872  
Average realized copper  price (per pound)
  $ 3.63     $ 2.48  
Average London spot copper price (per pound)
  $ 2.65     $ 3.49  
Average realized silver  price (per ounce)
  $ 9.30     $ 7.64  
Average London spot silver price (per ounce)
  $ 14.69     $ 15.09  
Total cash costs – by-product (per gold ounce)
  $ 295     $ 346  
Total cash costs – co-product (per gold ounce)
  $ 384     $ 398  
                   
Production Data:
                 
Red Lake gold mines :
Tonnes of ore milled
    194,400       198,800  
 
Average mill head grade (grams per tonne)
    30       26  
 
Gold ounces produced
    178,800       160,100  
 
Total cash cost per ounce – by product
  $ 255     $ 297  
Porcupine mine :
Tonnes of ore milled
    1,013,900       921,700  
 
Average mill head grade (grams per tonne)
    2.90       2.64  
 
Gold ounces produced
    90,600       69,000  
 
Total cash cost per ounce – by product
  $ 406     $ 583  
Musselwhite mine :
Tonnes of ore milled
    291,800       316,600  
 
Average mill head grade (grams per tonne)
    5.51       5.60  
 
Gold ounces produced
    49,800       52,300  
 
Total cash cost per ounce – by product
  $ 737     $ 597  
San Dimas mine :
Tonnes of ore milled
    170,800       161,300  
 
Average mill head grade (grams per tonne) - gold
    5.13       3.78  
 
Average mill head grade (grams per tonne) - silver
    237       234  
 
Gold ounces produced
    27,500       19,000  
 
Silver ounces produced
    1,231,800       1,132,600  
 
Total cash cost per ounce – by product
  $ 313     $ 436  
 
Total cash cost per ounce – co product
  $ 313     $ 436  
Los Filos mine :
Tonnes of ore mined
    6,040,000       5,361,300  
 
Tonnes of waste removed
    7,062,100       5,694,900  
 
Tonnes of ore processed
    6,135,200       5,429,300  
 
Average grade processed (grams per tonne)
    0.63       0.61  
 
Gold ounces produced
    60,200       47,400  
 
Total cash cost per ounce – by product
    455       391  

 
 

 
 
Summarized Financial and Operational Highlights (continued)
           
(in millions of United States dollars, except per share and per ounce amounts)
           
     
Three Months Ended
 
     
September 30
 
     
2009
   
2008
 
Production Data:
             
El Sauzal mine :
Tonnes of ore mined
    586,400       630,200  
 
Tonnes of waste removed
    1,110,100       990,800  
 
Tonnes of ore milled
    530,600       524,400  
 
Average mill head grade (grams per tonne)
    2.86       4.75  
 
Gold ounces produced
    45,500       76,200  
 
Total cash cost per ounce – by product
  $ 220     $ 147  
Marlin mine :
Tonnes of ore milled
    536,300       387,700  
 
Average mill head grade (grams per tonne) - gold
    4.29       4.86  
 
Average mill head grade (grams per tonne) - silver
    92       98  
 
Gold ounces produced
    68,800       51,000  
 
Silver ounces produced
    1,083,200       699,600  
 
Total cash cost per ounce – by product
  $ 185     $ 304  
 
Total cash cost per ounce – co product
  $ 347     $ 400  
Alumbrera  mine :
Tonnes of ore mined
    2,301,800       3,960,500  
 
Tonnes of waste removed
    5,491,700       6,562,100  
 
Tonned of ore milled
    3,424,100       3,361,900  
 
Average mill head grade (grams per tonne) - gold
    0.39       0.44  
 
Average mill head grade (%) - copper
    0.38       0.46  
 
Gold ounces produced
    29,500       34,400  
 
Copper (thousands of pounds) produced
    22,700       28,600  
 
Total cash cost per ounce – by product
  $ (823 )   $ (112 )
 
Total cash cost per ounce – co product
  $ 475     $ 511  
Marigold mine :
Tonnes of ore mined
    2,624,200       1,514,500  
 
Tonnes of waste removed
    4,261,400       3,435,400  
 
Tonnes of ore processed
    2,624,200       1,514,500  
 
Average grade processed (grams per tonne)
    0.64       0.57  
 
Gold ounces produced
    29,900       21,800  
 
Total cash per ounce – by product
  $ 542     $ 693  
Wharf mine :
Tonnes of ore mined
    681,900       824,800  
 
Tonnes of ore processed
    804,500       906,500  
 
Average grade processed (grams per tonne)
    0.87       0.72  
 
Gold ounces produced
    17,300       15,900  
 
Total cash per ounce – by product
  $ 665     $ 408  
                   
Financial Data:
                 
Cash flow from operating activities (before changes in non-cash working capital)
  $ 321.1     $ 237.3  
Net earnings
  $ 114.2     $ 297.2  
Earnings per share - basic
  $ 0.16     $ 0.42  
Adjusted net earnings per share - basic
  $ 0.19     $ 0.09  
Weighted average number of shares outstanding (000’s)
    731,815       713,718  

 

 
 

 

Consolidated Statements of Earnings
 
(US dollars in millions, except for share and per share amounts – Unaudited)
 
   
Three Months Ended
September 30
   
Nine Months Ended
September 30
 
   
2009
   
2008
   
2009
   
2008
 
Revenues
  $ 691.9     $ 552.2     $ 1,945.3     $ 1,810.6  
Operating expenses
    303.4       279.1       865.5       856.5  
Depreciation and depletion
    130.7       122.8       384.8       353.9  
Earnings from mine operations
    257.8       150.3       695.0       600.2  
Corporate administration (1)
    31.2       33.5       96.7       100.0  
Exploration
    8.7       17.4       23.3       45.2  
Earnings from operations
    217.9       99.4       575.0       455.0  
Other income (expenses)
                               
Interest and other income (expenses)
    (0.6 )     8.8       (5.6 )     27.6  
Interest expense and finance fees
    (12.5 )     (0.9 )     (37.0 )     (7.1 )
Share of income of equity investee
    -       -       -       3.9  
Gain (loss) on foreign exchange
    (28.1 )     253.7       (237.7 )     95.9  
Gain (loss) on non-hedge derivatives, net
    (0.4 )     15.9       9.3       (16.4 )
Gain (loss) on securities, net
    5.2       (23.5 )     5.6       (25.0 )
Gain on disposition of Silver Wheaton shares
    -       -       -       292.5  
Dilution gains (loss)
    -       0.5       (0.7 )     1.9  
      (36.4 )     254.5       (266.1 )     373.3  
Earnings before taxes and non-controlling interests
    181.5       353.9       308.9       828.3  
Income and mining taxes
    (67.9 )     (57.2 )     (136.5 )     (302.4 )
Non-controlling interests
    0.6       0.5       1.1       (8.4 )
Net earnings
  $ 114.2     $ 297.2     $ 173.5     $ 517.5  
(1)Stock based compensation expense (non-cash item) included in corporate administration
  $ 12.7     $ 11.0     $ 34.6     $ 30.7  
Net earnings per share
                               
Basic
  $ 0.16     $ 0.42     $ 0.24     $ 0.73  
Diluted
  $ 0.16     $ 0.42     $ 0.24     $ 0.72  
Weighted average number of shares outstanding (000’s)
                               
Basic
    731,815       713,718       730,709       710,936  
Diluted
    735,808       717,913       734,066       715,415  
 
 
 

 

Consolidated Balance Sheets
 
 (US dollars in millions – Unaudited)
 
   
September 30
2009
   
December 31 2008
 
Assets
           
Cash and cash equivalents
  $ 785.3     $ 262.3  
Marketable securities
    17.0       10.1  
Accounts receivable
    209.0       178.6  
Income and mining taxes receivable
    50.7       15.6  
Future income and mining taxes
    4.5       3.3  
Inventories and stockpiled ore
    294.4       226.2  
Other
    67.9       66.2  
Current assets
    1,428.8       762.3  
Mining interests
    17,776.3       17,062.5  
Deposits on mining interest expenditures
    168.0       229.3  
Goodwill
    761.8       761.8  
Stockpiled ore
    93.5       92.6  
Investments
    369.7       71.9  
Other
    26.2       28.4  
    $ 20,624.3     $ 19,008.8  
Liabilities
               
Accounts payable and accrued liabilities
  $ 347.0     $ 294.0  
Income and mining taxes payable
    203.2       -  
Future income and mining taxes
    74.5       181.5  
Current portion of long-term debt
    15.4       -  
Current liabilities
    640.1       475.5  
Income and mining taxes payable
    10.4       28.0  
Future income and mining taxes
    3,497.2       3,203.9  
Long-term debt
    712.2       5.3  
Reclamation and closure cost obligations
    274.1       273.1  
Other
    25.4       12.7  
      5,159.4       3,998.5  
Non-controlling interests
    49.7       51.2  
Shareholders’ Equity
               
Common shares, share purchase warrants, stock options and convertible senior notes
    12,878.4       12,625.2  
Retained earnings
    2,311.8       2,237.0  
Accumulated other comprehensive income
    225.0       96.9  
      2,536.8       2,333.9  
      15,415.2       14,959.1  
    $ 20,624.3     $ 19,008.8  
 

 

 
 

 

Consolidated Statements of Cash Flows
 
 (US dollars in millions – Unaudited)
 
   
Three Months Ended
September 30
   
Nine Months Ended
September 30
 
   
2009
   
2008
   
2009
   
2008
 
Operating Activities
                       
Net earnings
  $ 114.2     $ 297.2     $ 173.5     $ 517.5  
Reclamation expenditures
    (8.2 )     (6.5 )     (18.9 )     (15.0 )
Items not affecting cash
                               
Depreciation and depletion
    130.7       122.8       384.8       353.9  
Accretion on convertible senior notes
    6.8       -       8.8       -  
Stock based compensation expense
    12.7       11.0       34.6       30.7  
Share of income of equity investee
    -       -       -       (3.9 )
Unrealized loss (gain) on non-hedge derivatives
    4.0       (22.5 )     (2.8 )     (8.8 )
Loss (gain) on securities, net
    (5.2 )     0.6       (5.6 )     1.6  
Gain on disposition of Silver Wheaton shares
    -       -       -       (292.5 )
Dilution loss (gains)
    -       (0.5 )     0.7       (1.9 )
Future income and mining taxes
    48.5       52.5       56.0       178.9  
Non-controlling interests
    (0.6 )     (0.5 )     (1.1 )     8.4  
Transaction costs on convertible senior notes expensed
    -       -       18.6       -  
Unrealized loss (gain) on foreign exchange and other
    18.2       (216.8 )     224.0       (66.2 )
Change in non-cash working capital
    20.8       (20.2 )     31.1       (84.6 )
   Cash provided by operating activities
    341.9       217.1       903.7       618.1  
Investing Activities
                               
Acquisition of Gold Eagle, net of cash acquired
    -       (553.0 )     -       (553.0 )
Expenditures on mining interests
    (277.8 )     (291.6 )     (798.0 )     (739.2 )
Deposits on mining interest expenditures
    (54.1 )     (47.3 )     (239.7 )     (222.0 )
Proceeds from disposition of Silver Wheaton shares, net
    -       -       -       1,505.1  
Purchase of securities
    (88.0 )     (20.4 )     (155.7 )     (20.4 )
Proceeds from sale of securities
    -       0.2       -       0.2  
Other
    -       1.0       1.6       (2.6 )
   Cash used in investing activities
    (419.9 )     (911.1 )     (1,191.8 )     (31.9 )
Financing Activities
                               
Debt borrowings
    1.8       156.1       1,330.9       156.1  
Debt repayments
    -       (150.0 )     (460.0 )     (795.0 )
Transaction costs on convertible senior notes
    -       -       (22.8 )     -  
Common shares issued, net
    28.8       14.9       61.0       94.7  
Shares issued by subsidiaries to non-controlling interests
    -       3.8       -       3.8  
Dividends paid to common shareholders
    (32.9 )     (32.1 )     (98.7 )     (96.0 )
   Cash provided by (used in) financing activities
    (2.3 )     (7.3 )     810.4       (636.4 )
Effect of exchange rate changes on cash and cash equivalents
    (0.4 )     (5.6 )     0.7       (6.7 )
Increase (decrease) in cash and cash equivalents
    (80.7 )     (706.9 )     523.0       (56.9 )
Cash and cash equivalents, beginning of period
    866.0       1,160.8       262.3       510.8  
Cash and cash equivalents, end of period
  $ 785.3     $ 453.9     $ 785.3     $ 453.9