Goldcorp Reports First Quarter Results; Annual Guidance Reconfirmed

April 30, 2015

(All amounts in $US unless stated otherwise)

VANCOUVER, April 30, 2015 – GOLDCORP INC. (TSX: G, NYSE: GG) today reported sales¹ of 827,500 gold ounces resulting in adjusted operating cash flow^1,3 of $366 million for the first quarter of 2015, compared to adjusted operating cash flow of $281 million for the first quarter of 2014.  Adjusted quarterly revenues¹ were $1.27 billion, generating adjusted net earnings^1,2 of $12 million, or $0.01 per share, compared to adjusted net earnings of $209 million, or $0.26 per share, for the first quarter of 2014.  Reported net loss for the quarter was $87 million, or ($0.11) per share, compared to net earnings of $98 million, or $0.12 per share, for the first quarter of 2014.

First Quarter 2015 Highlights

• Quarterly gold sales of 827,500 ounces; gold production¹ of 724,800 ounces.
• Adjusted revenues of $1.27 billion.
• All-in sustaining costs^1,4 of $885 per ounce.
• Adjusted net earnings of $12 million, or $0.01 per share.
• Adjusted operating cash flow of $366 million.
• Dividends paid of $122 million.
• Declared commercial production at Cerro Negro on January 1, 2015 and at Éléonore on April 1, 2015.
• Completed acquisition of Probe Mines on March 13, 2015.
• Completed sale of Wharf on February 20, 2015.
• Minera Peñasquito reached a settlement agreement with Cerro Gordo Ejido.

“We are pleased to begin 2015 with strong cash flow performance,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer.  “Our primary focus in 2015 is on safely executing our plans and forecasts. Delivering on those expectations, coupled with significantly lower capital spending compared to prior years, positions Goldcorp for a sustained period of strong cash flow.   This financial strength provides Goldcorp the flexibility to fund the next generation of growth projects.  Growing gold reserves is also a key priority in 2015, and positive exploration results at many of our operations, including Cerro Negro in Argentina and the HG Young discovery at Red Lake, support the potential for success in this objective.”

Financial Review

First quarter gold sales were 827,500 ounces on production of 724,800 ounces, compared to sales of 684,000 ounces on production of 679,900 ounces in the first quarter of 2014. First quarter gold sales included 115,200 ounces produced at Cerro Negro in 2014.  Silver production totaled 8.5 million ounces compared to 9.6 million ounces in the prior year’s first quarter.  All-in sustaining costs were $885 per ounce of gold in the first quarter of 2015 compared to $840 per ounce in the first quarter of 2014.

Adjusted revenues for the quarter totaled $1.27 billion and the reported net loss for the quarter was $87 million, or ($0.11) per share, compared to net earnings of $98 million, or $0.12 per share, for the first quarter of 2014. Adjusted net earnings for the first quarter totaled $12 million, or $0.01 per share, compared to $209 million, or $0.26 per share, for the first quarter of 2014.  The decrease in adjusted net earnings was a result of lower realized margin⁵ on gold sales, higher depreciation and depletion expense and a higher effective tax rate.  Adjusted net earnings for the first quarter of 2015 exclude the unrealized losses from the foreign exchange translation of deferred income tax assets and liabilities in the amount of $122 million, or $0.15 per share, unrealized losses on derivatives (net of tax) in the amount of $18 million, or $0.02 per share and the gain on the disposition of Wharf (net of tax) of $49 million, or $0.06 per share.  Adjusted net earnings include the impact of non-cash stock-based compensation expenses which amounted to approximately $15 million, or $0.02 per share, for the quarter.  Adjusted operating cash flow was $366 million, compared to $281 million for last year’s first quarter.

Canada

At Éléonore in Quebec, first quarter gold production totaled 32,500 ounces.  Revenues from the sale of gold and mine operating costs will be recognized in the consolidated statement of earnings effective April 1, 2015, the date commercial production was declared.   Gold production for the first quarter was impacted by a ramp-up issue related to the tailings filter press system.  The process plant was also shut down for 13 days in March to repair ice damage to equipment and ensure compliance with water effluent standards.  Both issues were successfully resolved during the quarter and did not affect mine development activities which continued to progress.  Mining of ore took place from two of the four main production horizons during the quarter, with the ore stockpile on surface increasing to 335,000 tonnes at the end of the first quarter. Scoop and rock breaker tele-remote operations training is now underway and continues to progress.

In addition, work to date has demonstrated that the Éléonore Crown Pillar can be mined earlier than anticipated to further enhance the production profile and return on capital employed.  A pre-feasibility study is underway  Major activities include trade-off studies between pit/underground mining, determining the dike location, permitting and stakeholder engagement efforts.  The completion of the pre-feasibility study is expected by the end of 2015.

At Red Lake in Ontario, gold production for the first quarter was 107,400 ounces at an all-in sustaining cost of $799 per ounce.   Higher mined grades were offset by lower tonnage from the Campbell Complex where remnant mining is being phased out during 2015.  Exploration efforts remain focused on the HG Young discovery.  Rehabilitation of nearby underground headings in the Campbell Complex has been completed, enabling further mine development and drilling to commence from underground.  Drilling also continued during the first quarter of 2015 on a number of other underground exploration projects at Red Lake including the High Grade Zone.

At the Cochenour project at Red Lake, the development decline was 82% complete at the end of the first quarter.  Processing of mill feed from the first stopes at Cochenour remains on track for the third quarter of 2015.  Exploration drilling continues to ramp up with twelve drills on site and results to date are consistent with expectations. Drilling commenced in the upper levels during the first quarter with two drills operating and several more platforms ready for new drills.  Drilling is expected to commence in the second quarter in the hanging wall of the deposit to assess the deeper portions of the Cochenour deposit.

At Porcupine in Ontario, gold production for the first quarter was 56,000 ounces at an all-in sustaining cost of $1,175 per ounce.   Production decreased over the prior quarter due to lower grades and lower tonnage, primarily due to cold weather conditions which impacted stockpile and mill operations.  The Hoyle Deep project continued to progress successfully toward expected completion in the first quarter of 2016.  Over-burden and pre-stripping activities continued at the Hollinger project with approximately 1.3 million tonnes on the Environmental Control Berm at the end of the quarter.  Upon expected completion of the berm in the third quarter of 2015, mining operations are expected to commence 24 hours a day.  The closing of the Probe Mines acquisition and its primary asset the Borden Gold project in mid-March is expected to provide a new source of low-cost, high quality gold production for Porcupine, thereby leveraging the important investments already made in people, infrastructure and stakeholder partnerships.

Read More: http://www.goldcorp.com/English/Investor-Resources/News/News-Details/2015/Goldcorp-Reports-First-Quarter-Results-Annual-Guidance-Reconfirmed/default.aspx

NT3