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DENVER GOLD FORUM
SEPTEMBER 11, 2012
Forward Looking Statements
This presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp Inc. (“Goldcorp”). Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and other risks of the mining industry, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” in Goldcorp’s annual information form for the year ended December 31, 2011 available at www.sedar.com. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
2
All amounts are in U.S. dollars, unless otherwise stated.
Consistent Strategic Focus
3
TOGETHER, CREATING
SUSTAINABLE VALUE
Growth Leader
Low Cost Producer
Outstanding Balance
Sheet
Responsible Mining
Practices
Low Political
Risk
PUEBLO VIEJO (2012)
CERRO NEGRO (2013)
COCHENOUR (2014)
ÉLÉONORE (2014)
Robust Development Pipeline
4
MARLIN (2006)
LOS FILOS (2008)
PEÑASQUITO (2010)
CAMINO ROJO (2014)
NOCHE BUENA
CERRO BLANCO
AGUA RICA
El MORRO U/G
PEÑASQUITO UG
S C O P I N G
F E A S I B I L I T Y
P R O D U C T I O N
C O N S T R U C T I O N
S C O P I N G
F E A S I B I L I T Y
P R O D U C T I O N
C O N S T R U C T I O N
EL MORRO
RED LAKE / PORCUPINE / MUSSELWHITE / EL SAUZAL / ALUMBRERA / MARIGOLD / WHARF
(US$) as at June 30, 2012
BALANCE SHEET
Financial Position - Excellent Liquidity
5
1 Includes money market instruments, non-GAAP measure 2 Moody’s: Baa2; S&P: BBB+; Fitch: BBB
INVESTMENT
GRADE
BALANCE
SHEET2
CASH & CASH
EQUIVALENTS1
AVAILABLE DEBT
FACILITY - UNDRAWN
CONVERTIBLE SENIOR
NOTES - DUE 2014
$1.2 B
$2.0 B
$862.5 M
~$3.2 B LIQUIDITY
(as at June 30, 2012)
Low Exposure to Capital Inflation
6
LOW CAPITAL COST / OZ OF <$170
SPENT COMMITTED OUTSTANDING
$2.4 B
$0.5 B $2.0 B
Capital Spending for Projects Contributing
to 5-Year Growth Profile
* Contributing to 5-year growth: Pueblo Viejo, Cerro Negro, Éléonore, Cochenour and Camino Rojo
Sector Leading Cash Margins
7
$163 $305 $295 $274 $223 $310
$540
$563 $683 $966
$1,349 $1,342
2007 2008 2009 2010 2011 YTD - Q2
By-Product Cash Costs Cash Margin
$703
$868 $978
$1,240
$1,572 $1,652
($ per oz)
Strong Cash Flow Growth (12E – 15E)
8
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Kinross Agnico Barrick Newmont Newcrest* Yamana Goldcorp
69% $2.86 - $4.84
14% $6.56 - $7.49 9%
$5.82 - $6.35
9% $3.77 - $4.10
-5% $1.30 - $1.23
Source: Bloomberg Consensus (as of August 29, 2012)
Dollar figures are cash flow per share estimates 2012 – 2015
*Newcrest data uses June year end
31% $2.23 - $2.91
34% $1.49 - $2.00
Significant Return of Capital to Shareholders
9
21% 19%
17% 16%
14% 12%
18%
13% 12% 13% 12%
10%
Newmont Goldcorp Yamana Newcrest Barrick Kinross
2012E 2013E
DIVIDEND AS % OF OPERATING CASH FLOW
Source: Bloomberg consensus (as of August 29, 2012) Company reports
Quality Gold Reserve Growth
10
2007 2008 2009 2010 2011
2012 Exploration Budget Increased to $226M (Thousands of ounces)
43,400
46,300
48,800
60,060
64,700
Q2 2012 Highlights
11
Q2 2012
Revenues $1,113 M
Gold Production 578,600 oz
Cash Costs $/oz – By-Product
– Co-Product
$370
$619
Adjusted Net Earnings $332 M
Operating Cash Flow1 $520 M
1Cash flow before changes in working capital
2012 Guidance
12
20121
Updated Guidance
Gold Production (koz) 2,350 - 2,450
- Red Lake (koz) 460 - 510
- Peñasquito 370 - 390
Cash Costs $/oz – By-product
– Co-product
$310 - $340
$625 - $650
Capital Expenditures $2.7 B
Exploration Expenditures $226 M
Tax Rate 28%
1 2012 price assumptions: Au=$1600/oz, Ag=$34/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb
Focus in Low Risk Jurisdictions
13
CANADA
ARGENTINA
DOMINICAN REPUBLIC
MEXICO
GUATEMALA
USA
Operating Mines
Development Projects
CHILE
Canada
43%
US
5%
Mexico
34%
Guatemala
9%
Dominican Republic
3% Argentina
6%
2012E GOLD PRODUCTION
DOMINICAN REPUBLIC
Pueblo Viejo - Dominican Republic
14
New Source of Gold Production
*Goldcorp interest (%)
40
• First gold production achieved
• 2012E gold production of between
68,000 to 85,000 ounces
• $350 million* capital budget for 2012
• Annual output 415,000 to 450,000
ounces per year* in first five years
• Life of mine +25 years
Cerro Negro - Argentina
• High grade vein system
• Outstanding reserve growth potential
• Santa Cruz mining province
Updated feasibility study results:
• 550 koz Au annually (1st 5 years)
• <$300/oz cash costs (1st 5 years)
• Initial capital $800M
• First production late-2013
15
Developing our Next
Cornerstone Mine
Cerro Negro
Alumbrera
El Morro
Cerro Negro - Argentina
• Eureka decline advanced to 1,812 M
Ore stockpile of ~12,010 tonnes at expected grades of 10.32 g/t Au and 213 g/t Ag
• Mariana Central & Mariana Norte declines underway
• Construction & development activities advancing:
Plant construction
• Equipment & material imports progressing well
• Strong exploration results continue
16
Construction on Schedule
Éléonore - Canada
• Development plan:
Upper/lower mine concept; 7 ktpd
Mine life ~15 years
+600,000 oz Au
Cash costs: <$400/oz
• Final EIA approval received
• Cree collaboration agreement
17
Pure Gold in a Safe Jurisdiction Red Lake
Cochenour
Musselwhite
Porcupine
Éléonore
Éléonore - Canada
• Exploration shaft past 701 metres
• Exploration ramp extended over 1,500
metres
• Underground drilling commenced
• Plant construction to commence Q3’12
• Foundations for production shaft
completed and structural steel erection
activities commenced
Full face shaft sinking expected in Dec.
2012
18
Advancing Construction
Cerro Negro
Alumbrera
El Morro
El Morro - Chile
19
Next Generation Project
Goldcorp interest (%)
70
• Large, under-explored land position
• Jan. 2012 feasibility study update:
First production: 2017
+210,000 Au1; +200Mlb Cu1
By-product cash costs: ($700)/oz2
Capital cost $3.9B
17-year mine life
• Assessing effect of Supreme Court
decision
1 LOM Average annual production (70%)
2 Price Assumptions: Au - $1200/oz; Cu - $2.75/lb
Red Lake
Cochenour
Musselwhite
Porcupine
Éléonore
Cochenour - Canada
• Shaft widening advancing
• Haulage drift 51% complete
• Construction underway
• Exploration advancing with 2 drills from
surface and 2 from haulage drift
• Development plan update underway
20
Key Growth Driver
in Red Lake District
Red Lake
21
Haulage drift
Rahill - Bonanza
Bruce Channel Discovery
Western
Discovery
Zone
East West
Drift location at end of 2012 Current drift location
Red Lake - Canada
• Robust, low cost gold production
• 2012 gold production forecast
460,000 - 510,000 ounces
• 2012 exploration budget $44M
Focus on High Grade Zone extension
• Long term gold production forecast
under review
22
Cornerstone Asset Red Lake
Cochenour
Musselwhite
Porcupine
Éléonore
23
Historic Deep Intercept* 4.31 oz/4.8’
Current 4699 Ramp Development
Drill Bay #22
57L
52L
47L
1.08oz/4.8’
2.42oz/4.5’
1.83oz/3.5’
0.87oz/10.0’
1.64oz/3.5’
Drilling supports continuation of HGZ at depth
4.65oz/1.0’ *
7.31oz/2.0’ *
0.41oz/1.2’
0.15oz/1.7’
0.58oz/3.2’
New Intercept* 17.24/2.5’
3.87oz/6.6’
2.86oz/12.3’
Drift in progress
2.44oz/21.8’
0.43oz/6.6’
*Note some intercepts may appear to intersect lower elevation than they actually are due to oblique view
New Zone Identified
Red Lake - High Grade Zone Drilling
0.48oz/12.0’
0.49oz/6.0’
3.32oz/1.5’
1.142oz/4.3’
1.39oz/7.7’
0.59oz/7.6’
Peñasquito
Los Filos
El Sauzal
Peñasquito - Mexico
• 2012 gold production forecast
370,000 - 390,000 ounces
• Supplemental feed system
commissioned
• Focus on efficiencies & cost
reductions
• Largest cash flow generator in 2012
• 22-year mine life
24
Mexico’s Largest Gold Producer
Peñasquito - Exploration Success
• Camino Rojo
Over 77,000 metres drilled in 2011
Testing oxide & sulphide expansion
Feasibility study due Q3’12
• Noche Buena
Resource expansion drilling continues
In-fill drilling on higher grade
mineralization trends
Feasibility study due Q3’12
25
Advancing District Projects
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Why Gold?
26
428%
Central bank
buying
Flat mine
supply
Stable
investment
demand
Safe
haven/
asset class
Inflation
hedge
Currency
protection
Growing
physical
demand
China
factor
Continued
debasement of
international
currencies
increase over 2002
Aug
2002
Source: Bloomberg data Aug. 29/02 – Aug. 29/12
Gold Price ($)
Goldcorp Advantage
27
SUPERIOR INVESTMENT PROPOSITION
GROWTH LEADER
LOW COST PRODUCER
OUTSTANDING
BALANCE SHEET
LOW POLITICAL RISK
RESPONSIBLE
MINING PRACTICES
Appendix A - 2012 Sensitivities
28
Base Price Change
Increments CFPS
($/share)
By Product Cash Costs
($/oz)
FCF ($mm)
Gold Price ($/oz) $1,600 $100 $0.23 $2 $186
Silver Price ($/oz) $34.00 $2.00 $0.05 $23 $41
Copper Price ($/lb) $3.50 $0.50 $0.03 $14 $25
Zinc Price ($/lb) $0.90 $0.10 $0.03 $16 $28
Lead Price ($/lb) $0.90 $0.10 $0.02 $8 $15
Canadian Dollars 1.00 10% $0.04 $17 $118
Mexican Peso 13.00 10% $0.04 $17 $41
Diesel ($/barrel) $95.00 10% $0.01 $6 $12
Electricity ($/kWh) $0.08 10% $0.02 $9 $16
38%
19% 5%
6%
9%
10%
1% 2%
6% 4%
CANADA / USA
12%
14%
8%
12%
9%
18%
2%
6%
4%
15%
MEXICO
18%
8%
7%
14% 13%
16%
1%
6%
4%
13%
CSA
Appendix B - Operating Costs Breakdown
29
22%
14%
7%
10% 10%
15%
2%
5%
4%
11% CONSOLIDATED
Labour Contractors Fuel Costs Power Maintenance Parts Consumables Tires Explosives Site Costs Others
Endnotes
30
1. Goldcorp has included non-GAAP performance measures, total cash costs, by-product and co-product, per gold ounce, throughout this presentation. Total cash costs are defined as cost of sales divided by ounces of gold and silver sold or pounds of copper sold. The calculation of total cash costs per ounce of gold is net of by-product sales revenue (by-product copper revenues for Alumbrera; by-product silver revenues for Marlin at market silver prices; by-product lead, zinc and 75% of the silver for Peñasquito at market silver prices and 25% of the silver for Peñasquito at $3.90 per silver ounce sold to Silver Wheaton). 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. 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, 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 by-product copper, silver, lead and zinc sales revenues from production cash costs.
Production costs in 2012 are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metals prices of $1,600 per ounce of gold, $34 per ounce of silver, $3.50 per pound of copper, $0.90 per pound of lead and $0.90 per pound of zinc, rather than realized sales prices.
2. All Mineral Reserves and Mineral Resources have been calculated as at December 31, 2011 in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the AusIMM JORC equivalent. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Goldcorp’s Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. Calculations have been prepared by employees of Goldcorp, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Maryse Belanger, Vice President, Technical Services. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. Varying cut-off grades have been used depending on the mine and type of ore contained in the reserves. Goldcorp’s normal data verification procedures have been employed in connection with the calculations. For a breakdown of Reserves and Resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Goldcorp’s Reserves and Resources, see Goldcorp’s Annual information Form/ Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.
3. Goldcorp’s exploration programs are designed and conducted under the supervision of Charlie Ronkos, Senior Vice-President, Exploration of Goldcorp. For information on geology, exploration activities generally, and drilling and analysis procedures on Goldcorp’s material properties, see Goldcorp’s Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.
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