GOLDCORP INC

Newmont shareholders approved the share issuance for the Goldcorp deal with more than 98% of votes cast, and a related increase in Newmont's authorized common stock with 76%. This removes the Newmont-side vote as an open item; closing is still expected in Q2 2019, subject to customary conditions and regulatory approvals. The release does not say whether Goldcorp's own April 4 vote has passed or the deal has closed, so Goldcorp holders' shares are unchanged for now.

business combination

Mexico's competition regulator (COFECE) cleared Newmont's pending acquisition of Goldcorp. Goldcorp's shareholder meeting is April 4, 2019 (proxy deadline 9:00am PT April 2), its board unanimously recommends voting for the arrangement, and Goldcorp says Newmont could complete the deal as of April 18, 2019 after a positive vote. The deal is still not approved or closed, so shareholders' holdings are unchanged for now.

business combination

Goldcorp obtained an interim court order for its previously announced plan of arrangement under which Newmont would acquire all Goldcorp shares for 0.3280 of a Newmont share plus $0.02 cash per Goldcorp share, a deal valued at about $10 billion at announcement. The order lets Goldcorp hold its shareholder meeting on April 4, 2019; a final court order is still a closing condition, and closing is expected in the second quarter. This is a pending deal that would end the shareholders' Goldcorp holding if completed, but it has not yet been approved or closed.

business combination

Goldcorp received TSX approval to buy back up to 43,476,502 of its shares (5% of 869,530,053 outstanding at Oct 26, 2018) over twelve months from Oct 31, 2018, to Oct 30, 2019. Purchased shares will be cancelled; the number and timing of purchases is at the company's discretion. This is a new capital-return step alongside the dividend.

security holder rights change

Goldcorp reported reserves as of June 30, 2018: proven and probable gold of 52.8 million ounces, slightly down from 53.5 million a year earlier, as additions at operated mines (notably Musselwhite 2.3Moz and a first Silica Cap estimate at Cerro Negro, 5.0Moz) essentially replaced depletion. Measured and indicated resources fell from 37.1 to 35.2 million ounces and inferred from 20.0 to 17.5 million, mainly from conversion to reserves. The company says its 20/20/20 plan (20% reserve growth by 2021) remains on track, having added 2.8 million ounces since 2017. Cochenour reserves more than doubled to 0.33Moz. Cerro Negro's Eastern District initial development is expected in 2019. This updates the 53.5Moz figure and the earlier 60Moz-by-2021 target; the filing speaks of 20% growth and does not restate 60Moz.

drilling progress report

Goldcorp signed an Impacts and Benefits Agreement with three Ontario First Nations (Brunswick House, Chapleau Cree and Chapleau Ojibwe) for the Borden Gold project near Chapleau, which it plans as Canada's first all-electric underground mine. The agreement covers employment, training, contracting and a framework for regulatory permitting. A bulk sample of up to 30,000 tonnes is about to start, with the first sample expected by end of summer, and commercial operation is anticipated in 2019. This moves Borden, the project acquired through Probe in 2015, from a project with no stated timeline toward development.

regulatory community update

Goldcorp completed the sale of its Camino Rojo oxide project in Mexico to Orla Mining, after Mexican anti-trust approval. It received 31,860,141 Orla shares, about 19.88% of Orla, which it holds for investment. This closes the deal agreed June 21, 2017. The release does not mention the 2% royalty, the sulphide option or the director nomination right, and gives no cash amount.

asset acquisition disposition

Goldcorp reported its reserve and resource estimates as of June 30, 2017: proven and probable gold reserves rose 26% to 53.5 million ounces from 42.3 million a year earlier. The rise comes from 4.7 million ounces newly converted at Porcupine's Century project and 8.4 million ounces added from the Cerro Casale acquisition, net of sales such as Los Filos and Camino Rojo. The company says it is on track for 60 million ounces by 2021, following the 20 percent reserve-growth target set in Feb 2017. Century's pre-feasibility study shows a 14-year mine life and initial capex of US$950M to US$1,050M, with an optimized study due in H2 2018. Camino Rojo is removed from the estimates, and the sale is now expected to close in Q4 2017. Borden's 0.95 million ounces of reserves are now included in Porcupine, and Cochenour is expected to start production in 2019.

drilling progress report

Goldcorp said it has closed the transactions forming the 50/50 joint venture with Barrick in Chile's Maricunga District, together with its offer for Exeter Resource. The two companies will jointly control more than 20,000 hectares including the Cerro Casale and Caspiche deposits. This completes the deal announced March 28, 2017. The release does not give the closing cash amounts, the number of Goldcorp shares issued for Exeter, or a development plan; it only restates reserves and resources (Cerro Casale proven and probable 23.2 Moz gold, 5.8 Blb copper; Caspiche measured and indicated 23.0 Moz gold, 5.9 Blb copper, both on a 100% basis).

joint venture update

Goldcorp completed the sale of its Los Filos mine in Mexico (100%-owned) to Leagold Mining. It received $250M cash, 34,635,091 Leagold shares (25.3%, falling to 22.9% after Leagold's second financing tranche), and a $29M short-term note due within 120 days or on Mexican competition approval of that tranche; it also kept tax receivables of about $100M. The CEO said the sale lets Goldcorp focus on its core camps.

asset acquisition disposition

Goldcorp agreed to buy all of Exeter Resource Corporation, whose main asset is the 100%-owned Caspiche project in Chile, for about C$247M on a fully diluted basis. Each Exeter share gets 0.12 of a Goldcorp share (valued at C$2.58), meaning roughly 10.6M new Goldcorp shares, so existing shareholders would be diluted by that amount. It needs 66⅔% approval of Exeter holders at a meeting by May 31, 2017, plus court and regulatory approvals, with closing expected by June 30, 2017; Exeter would owe an $8.65M termination fee in certain cases. The deal is not conditional on the Cerro Casale transactions, and it feeds the Barrick joint venture announced the same day.

business combination

Goldcorp agreed to form a 50/50 joint venture with Barrick combining the Cerro Casale and Caspiche gold projects in Chile's Maricunga belt, modelled on its NuevaUnión venture with Teck. Goldcorp would buy Kinross' 25% of Cerro Casale and its Quebrada Seca project for $260M cash up front, a royalty and further contingent payments, buy another 25% from Barrick mainly by funding Cerro Casale spending ($260M deferred obligation), and buy Exeter (and its Caspiche project) for about $185M in shares. Goldcorp must spend at least $60M in the first two years after closing and $80M in each later two-year period until the deferred obligation is met; no closing date is given in the visible text.

joint venture update

Goldcorp completed its purchase of Kaminak Gold, so it now owns 100% of Kaminak and its Coffee project in the Yukon. It issued 20,997,312 Goldcorp shares to former Kaminak holders, who now hold about 2.5% of the 853,398,240 Goldcorp shares outstanding (undiluted), so existing shareholders were diluted by that amount. This closes the deal announced May 12, 2016, ahead of the Aug 15 expected date, and the issued share count is stated here for the first time.

business combination

Goldcorp agreed to buy all of Kaminak Gold Corporation for about C$520 million, paying 0.10896 Goldcorp shares per Kaminak share (about 21.6 million new Goldcorp shares, C$2.62 per Kaminak share based on the May 11, 2016 close). Kaminak's key asset is the 100%-owned Coffee Gold project in the Yukon, with 3.0 million ounces indicated resources (including 2.2 million ounces probable reserves) and 2.2 million ounces inferred. It needs 66⅔% approval of Kaminak holders at a meeting by July 14, 2016, plus court and regulatory approvals; closing is expected by Aug 15, 2016, and holders of about 27.5% of Kaminak shares have agreed to vote in favour. Kaminak would owe Goldcorp a C$20.3 million termination fee in certain circumstances.

business combination

Goldcorp cut its annual dividend to $0.08 per share effective April 1, 2016 and will switch from monthly to quarterly payments starting June 2016, at US$0.02 per quarter (record dates June 16, Sept 15, Dec 15; payable June 24, Sept 23, Dec 23). Compared with the US$0.02 monthly rate being paid, this is a further cut, since US$0.02 a month would be $0.24 a year. It also adopted a dividend reinvestment plan, expected before the June 2016 payment, letting shareholders take dividends as new shares issued from treasury at a 3% discount to market price; participation is optional. The filing gives no reason for the cut.

dividend declaration

Goldcorp completed the purchase of New Gold's 30% of the El Morro copper-gold project in Chile, so it now owns 100%. It paid New Gold $90 million cash plus a 4% gold stream on future El Morro gold (New Gold pays $400 per ounce delivered for the first 217,000 ounces, then $400 plus a 1% annual adjustment from the first anniversary). Goldcorp also completed the deal with Teck to combine El Morro and Teck's Relincho into a 50/50 joint venture, interim name 'Project Corridor'. Both deals were announced Aug 27, 2015 and expected in Q4 2015, so they closed as planned; El Morro's gold reserves are restated at 8.92 million ounces (100% basis, Dec 31, 2014).

business combination

Goldcorp agreed to buy New Gold's 30% of the El Morro copper-gold project in Chile for $90 million cash at closing plus a 4% gold stream on future El Morro gold, with New Gold paying $400 per ounce delivered. That would give Goldcorp 100% of El Morro, which it then agreed with Teck to combine with Teck's Relincho project in a 50/50 joint venture. This resolves the open question of New Gold's 30% share in El Morro (the earlier context noted new studies under way and no funding total). Both deals are subject to customary closing conditions and are expected to close in Q4 2015; the filing states El Morro's proven and probable gold reserves at 8.92 million ounces (100% basis) at Dec 31, 2014.

business combination

Goldcorp declared its eighth monthly dividend of 2015 at US$0.02 per share, down from the US$0.05 paid in each of the first seven months, for holders of record August 20, 2015, payable August 28, 2015. This is a cut of the monthly payment; the filing gives no reason for it.

dividend declaration

Goldcorp raised its unsecured floating-rate credit facility from $2 billion to $3 billion and extended its term to June 10, 2020, on existing terms. This builds on the US$2.0B facility set up in November 2011, which was due in November 2016. It bears interest at LIBOR plus 120 points when drawn, based on a BBB+ rating, and is for liquidity and general corporate purposes. The filing does not say how much is currently drawn.

debt financing

Goldcorp declared commercial production at its Éléonore mine in Quebec's James Bay region, effective April 1, 2015, following first gold on October 1, 2014. It expects 290,000-330,000 ounces of gold from Éléonore in 2015, weighted to the second half, and full production between now and the first half of 2018. From April 1 the company will start booking revenue and mine operating costs from Éléonore in its earnings. This follows the earlier expectation that Éléonore would start producing in 2014.

production update

Goldcorp completed its acquisition of Probe Mines, announced Jan 19, 2015, so the Borden gold project near Chapleau, Ontario (indicated 1.6M oz, inferred 0.4M oz) is now Goldcorp's, ahead of the late-March timing expected. Probe holders were issued 13,264,133 new Goldcorp shares (fewer than the roughly 17 million estimated earlier, since Goldcorp already held about 15.7M Probe shares) plus 31,368,363 shares in a new exploration company, Probe Metals, funded with C$15 million cash. Goldcorp holds 6,177,846 Probe Metals shares (19.7%). The CEO described Borden as a possible new source of ore for the Porcupine mine and said exploration will advance immediately.

business combination

Goldcorp agreed to buy all of Probe Mines through a friendly plan of arrangement valued at about C$526 million. Probe holders (other than Goldcorp, which already holds 8.4M shares, 9.3%) get 0.1755 Goldcorp share each (about 17 million new Goldcorp shares, so some dilution for existing holders), plus an interest in a new exploration company and C$15 million in cash for that company. Probe's main asset is the Borden gold project in Ontario, about 160 km west of Goldcorp's Porcupine mine. It needs 66 2/3% of Probe votes and is expected to close in late March 2015; Probe owes a C$18.4 million termination fee under certain circumstances.

business combination

A Goldcorp subsidiary agreed to sell its 100% interest in the Wharf mine in Lead, South Dakota to Coeur Mining for $105 million in cash, subject to closing adjustments. The deal needs US antitrust approval and is expected to close by the end of Q1 2015; the CEO described it as focusing on core assets, continuing the asset-sale pattern seen with Marigold in 2014.

asset acquisition disposition

Goldcorp withdrew its Environmental Impact Study for the El Morro copper-gold project in Chile after the Chilean Supreme Court on October 7, 2014 issued a final ruling invalidating the October 2013 approval (RCA 232). This ends the effort to get the permit corrected that had been pending since construction was suspended in April 2012; the filing says a team has started new studies on a new development plan that meets Goldcorp's return criteria. It states El Morro's 70% share of reserves at Dec 31, 2013 as 6.73 million ounces of gold and 4.89 billion pounds of copper, but gives no timeline, cost or write-down.

regulatory community update

Goldcorp priced US$1.0 billion of senior unsecured notes: $550 million at 3.625% due June 9, 2021 and $450 million at 5.45% due June 9, 2044, expected to close June 9, 2014, with net proceeds of about US$988 million. It says the money is for repaying the $862.5 million convertible notes maturing August 2014 and the amounts drawn under its revolving credit facility in June 2014. This is the planned refinancing of the 2009 convertibles (which the 2013 notes issue had also named as a possible use), swapping them for longer-dated debt; closing is not yet confirmed.

debt financing

Goldcorp and Barrick completed the sale of the Marigold mine in Nevada to Silver Standard Resources, with $275 million total consideration paid at closing. Goldcorp was operator and 66.7% owner (Barrick 33.3%); the split of the price is not stated. This closes the Feb 2014 agreement, and the CEO called it part of focusing on core assets.

asset acquisition disposition

Goldcorp said it is still doing due diligence at Osisko's Malartic mine and will decide its position and update shareholders after analysing the findings; it is also analysing an alternate scheme proposed between Osisko and several other parties. It extended its offer to 5:00 p.m. EDT on April 15, 2014 on unchanged terms. This is a more cautious tone than the original offer, but the filing does not say Goldcorp will withdraw.

business combination

Goldcorp sold its remaining 31,151,200 Primero Mining shares in a secondary offering at C$7.20 each, for gross proceeds of about C$224 million, and no longer owns any Primero shares. This ends the stake that followed the earlier San Dimas sale to Primero and the Oct 2012 partial sale; Primero got no proceeds. Whether the Northgate-Primero arrangement (46.7M Northgate shares to Goldcorp) still matters is not addressed in the filing.

asset acquisition disposition

Goldcorp and Barrick agreed to sell the Marigold mine in Nevada to Silver Standard Resources for a total of $275 million cash, subject to closing adjustments. Goldcorp is operator and 66.7% owner (Barrick 33.3%), so it receives a share of the price (the split is not stated); closing is expected in April 2014. This resolves the earlier open question about Marigold only once it closes, and continues the company's stated portfolio-focus strategy.

asset acquisition disposition

Goldcorp said it intends to make an offer for all Osisko Mining shares, valued at about C$2.6 billion: 0.146 of a Goldcorp share plus C$2.26 cash per Osisko share (C$5.95 at Goldcorp's C$25.29 close on Jan 10, 2014). Osisko is the company whose 10.1% stake Goldcorp sold in Feb 2011; the offer needs 66 2/3% acceptance and regulatory approvals, would not need a Goldcorp shareholder vote, and the cash part is to be funded by a new $1.25 billion Scotiabank term facility, about $620 million cash on hand and an undrawn $2 billion facility.

business combination

Goldcorp priced a US$1.5 billion sale of senior unsecured notes: US$0.5 billion at 2.125% due March 15, 2018 and US$1.0 billion at 3.70% due March 15, 2023, expected to close March 20, 2013. Net proceeds of about US$1.48 billion are meant for repaying the US$862.5 million convertible notes due August 2014, capital expenditures, capital investments or working capital. This is the first use of the repayment route for the 2009 convertible notes; the filing does not say how much goes to each purpose.

debt financing

Barrick, the operator, declared commercial production at Pueblo Viejo in the Dominican Republic, the 60/40 Barrick/Goldcorp joint venture. This follows the May 2011 tailings-damage delay to start-up. Goldcorp forecasts its 40% share of 2013 gold production at 330,000 to 435,000 ounces, and 415,000 to 450,000 ounces a year over the first full five years. No capex or cost figures are given.

production update

Goldcorp raised its annual dividend by 11% and declared its first 2013 monthly dividend of US$0.05 per share, for holders of record January 17, 2013, payable January 25, 2013. This lifts the monthly payment from the US$0.045 paid throughout 2012; the release says the dividend is up 233% since 2009.

dividend declaration

On April 27, 2012 the Supreme Court of Chile suspended the March 2011 environmental permit for El Morro (70% Goldcorp, 30% New Gold) until the environmental regulator (SEA) corrects deficiencies the Antofagasta appeals court identified. This follows the February 2012 appeals ruling, which Goldcorp had said would not stop development unless confirmed; it has now taken effect as a suspension. El Morro immediately halted all field work under the permit, while detailed engineering and design continue. The filing says the actions and time needed cannot be determined until the SEA says how it will proceed, and it expects further consultation with the farming community that requested the review. No cost or schedule figures are given.

regulatory community update

Goldcorp furnished an independent technical report (dated March 16, 2012, by Roscoe Postle Associates) on Pueblo Viejo, the Dominican Republic project owned 60% by Barrick and 40% by Goldcorp, supporting reserve and resource figures as of December 31, 2011. The visible text describes a 24,000 tonne-per-day operation with two open pits (Moore and Monte Negro) and an 18-year mine life; the reserve, resource, capital cost and schedule figures are in the truncated part and are not stated here, so this does not show whether the 2011 tailings-damage start-up and capex concerns are resolved.

resource reserve update

Goldcorp disclosed that an appeals court in Antofagasta, Chile ruled on February 16, 2012 in favour of a local farming community challenging the March 2011 environmental approval for El Morro, the Chilean copper-gold project Goldcorp operates and has held 70% of since February 2010. The ruling has no effect unless the Chilean Supreme Court confirms it; the Chilean regulator and the El Morro company have both appealed, and the company says it will keep developing the project until an order declares the approval void. Goldcorp says the ruling is unrelated to the Ontario litigation between Barrick, Xstrata Copper Chile, Datawave Sciences (New Gold entities) and Goldcorp, which this filing names for the first time in the context seen. It also refers to a February 15, 2012 press release on El Morro that is not seen here.

regulatory community update

Santa Cruz provincial authorities approved the amended Environmental Impact Assessment for Cerro Negro, the Argentine project gained with Andean in December 2010. This resolves the permit step flagged in April 2011 and allows a plant increased from 1,850 to 4,000 tonnes per day and mining of three vein deposits (Eureka, Mariana Central, Mariana Norte). Goldcorp says full construction will advance immediately and Mariana Central and Norte development will now start; it cites roughly 550,000 oz/yr over the first five full years and gold production beginning in 2013.

regulatory community update

Goldcorp's board raised the annual dividend 32% to US$0.54 per share, effective immediately, so the monthly payment to holders of record December 16, 2011 becomes US$0.045 (up from US$0.034). The company calls it the third dividend increase in 13 months, continuing the October 2010 doubling and the February 2011 increase.

dividend declaration

Goldcorp signed a new US$2.0 billion unsecured, floating-rate credit facility with a syndicate of 15 lenders, replacing its existing US$1.5 billion facility. Amounts drawn must be financed or repaid by November 23, 2016, and the stated uses are growth opportunities and general corporate purposes. The filing does not say how much, if any, is drawn.

debt financing

Goldcorp, Xstrata Copper and Yamana finalised a four-year option for the Alumbrera joint venture (Xstrata 50%, Goldcorp 37.5%, Yamana 12.5%) to buy Yamana's 100% of the Agua Rica project in Argentina, about 35 km from the Alumbrera mine, for cumulative payments by Goldcorp and Xstrata of $110 million. Goldcorp and Xstrata paid Yamana $20 million on signing, on top of $10 million paid earlier; if the option is exercised, Yamana would receive $150 million, a further $50 million at commercial production, and the remaining $80 million of option payments. A Fluor-run feasibility study is due in early 2013, with construction possibly starting in 2013 subject to approvals. The filing does not state Goldcorp's individual share of the payments.

joint venture update

Goldcorp said it supports Northgate Minerals' proposed acquisition of Primero Mining (the company that bought San Dimas from Goldcorp in 2010) and will vote its 35.5% Primero stake in favour. If the deal completes, Goldcorp gets 46.7 million Northgate shares, about 11% of Northgate, in place of its Primero shares. The filing does not give a value or closing date.

business combination

Barrick, the 60% owner and operator of Pueblo Viejo (Goldcorp holds 40%), told Goldcorp that heavy rain (217 mm in 48 hours) damaged the project's tailings facility, which is under construction and holds only rainwater and runoff. No injuries are reported and most site staff were evacuated as a precaution. The event is expected to affect the start-up schedule (production had been expected in Q1 2012) and possibly the pre-production capital budget of $3.3-$3.5 billion (100% basis); the damage assessment is ongoing and no revised figures are given.

joint venture update

Goldcorp released the updated feasibility study for Cerro Negro (Argentina, acquired with Andean in December 2010). It plans 4,000 tonnes/day, about 550,000 oz/yr of gold over the first 5 years at cash costs under $200/oz, a roughly 12-year mine life, first gold in mid-2013 and total capital of about $750M (including $130M in 2011). Proven and probable gold reserves rise 100% to 4.3M oz, adding 2.2M oz to Goldcorp's total of 62.3M oz, plus 36.2M oz of silver. This delivers the feasibility update due end of Q1 2011 and builds on the February 9 resource news; the 2011 exploration budget is about $19M with 10 rigs. Mariana Central and Norte declines depend on permits expected in Q4 2011, and an update to the Environmental Impact Assessment will be presented to authorities.

resource reserve update

Goldcorp's board raised the annual dividend 11% to a stated $0.40 per share, payable at $0.0333 a month to holders of record March 17, 2011. The company says the increase is driven by growing cash flows from rising gold production and a strong metals market. This is the second increase in five months after the October 2010 doubling, and the figures were corrected in the next filing.

dividend declaration

Goldcorp sold its 10.1% stake in Osisko Mining (about 38.6 million shares) in an underwritten block trade at C$13.75 per share, and expects cash proceeds of about C$530 million. The CEO says the money will fund its existing project pipeline and cites over $1 billion in cash and forecast 2011 cash flows of nearly $2.5 billion at current metal prices. This continues the 2010 pattern of selling non-core holdings (Escobal, San Dimas, Terrane); the Osisko stake was not listed in earlier context.

asset acquisition disposition

Goldcorp announced that the scheme with Andean Resources has been implemented and it now owns all Andean shares. Cash cheques and Goldcorp share certificates have been sent to Andean holders, and the new Goldcorp shares begin trading on the TSX and NYSE on December 30, 2010. This completes the roughly C$3.6 billion deal announced in September; the filing does not state the number of shares issued or cash paid, so the dilution to existing shareholders is not quantified here.

business combination

Santa Cruz province approved the Environmental Impact Assessment for Cerro Negro, the key permit that lets Goldcorp start mine construction right after ownership transfers on December 30, 2010. A feasibility study update, due end of Q1 2011, is analysing doubling mill capacity to about 4,000 tonnes per day, and initial production is still targeted for 2013. This is a step forward on the pending Andean acquisition.

regulatory community update

The Federal Court of Australia approved the scheme under which Goldcorp will acquire all of Andean Resources, and the scheme is now effective, after what the company calls overwhelming support from Andean shareholders. Election record date is December 16 and implementation, with payment to Andean holders, is set for December 30, 2010. A new Cerro Negro resource update is due early February 2011 and a new feasibility study by end of Q1 2011, with initial production targeted for 2013. This advances the pending Andean deal toward closing.

business combination

Goldcorp's board raised the annual dividend 100% to $0.36 per share, paid as $0.03 per month starting with holders of record on November 12, 2010. This replaces the $0.015 monthly rate paid in earlier years. The CEO links the increase to financial strength and the plan for 50% production growth over five years.

dividend declaration

Goldcorp reported Q3 2010 results: gold production of 596,200 oz, revenue of $885.8 million (up 28% from Q3 2009), reported net earnings of $466.5 million (versus $114.2 million), adjusted net earnings of $231.5 million ($0.31 per share) and record operating cash flow before working capital changes of $470.6 million. It reaffirmed 2010 guidance of about 2.55 million oz of gold, with cash costs expected below prior guidance. It also doubled the dividend to $0.36 a year ($0.03 a month), and says available liquidity is about $2.2 billion (cash plus undrawn credit facility). It now expects the Andean acquisition to complete in December 2010, and says the San Dimas and Terrane sales are completed.

dividend declaration

Goldcorp completed the sale of its Terrane Metals stake (the Mt. Milligan copper-gold holding) to Thompson Creek Metals, the deal agreed July 15. It received C$240.5 million cash and 13.9 million Thompson Creek shares (about 8%), on the terms announced in July. The CEO says the cash will go toward developing its core gold projects.

asset acquisition disposition

Goldcorp declared commercial production at the Peñasquito mine in Zacatecas, Mexico, the project whose construction was nearing completion in the January 2010 release. It says a 30-day average throughput is above 70,000 tonnes a day, full design capacity of 130,000 tonnes a day is on schedule for early 2011, and it is on track for 2010 gold guidance of 180,000 ounces. Over a 23-year mine life it expects average annual output of 500,000 oz gold, 28 million oz silver, 450 million lb zinc and 200 million lb lead.

production update

Goldcorp agreed to buy Andean Resources, owner of the Cerro Negro gold project in Santa Cruz, Argentina, for about C$3.6 billion. Each Andean share can be swapped for 0.14 Goldcorp shares or C$6.50 cash, with total cash capped at C$1 billion and the rest paid in Goldcorp shares, so Goldcorp shareholders face dilution. Closing is expected in late 2010 or early 2011, subject to Andean shareholder votes, and Andean owes Goldcorp a termination fee of 1% in certain cases. Cerro Negro has indicated resources of 2.54 million oz gold; this is a new, large acquisition and Argentina is a new country for the company.

business combination

Goldcorp completed the sale of the San Dimas mine to Primero Mining (formerly Mala Noche Resources), the deal agreed June 2. It received 31,151,200 Primero shares (about 36%), $216 million cash, a $60 million 12-month 3% convertible note and a $50 million 5-year 6% note. Compared with the June terms ($275 million cash, $175 million shares, about 30%), the cash is lower and the new $60 million convertible note replaces part of it; any Primero over-allotment proceeds (up to C$45 million) go to Goldcorp against that note. This resolves the pending San Dimas sale and leaves Goldcorp a large Primero shareholder.

asset acquisition disposition

Goldcorp agreed to vote its Terrane Metals holdings (58% of the company, via 240 million preferred and 27.3 million common shares) in favour of Thompson Creek Metals buying Terrane. On completion Goldcorp is to receive C$240.5 million in cash and 13.9 million Thompson Creek shares (about 8%). The CEO says the cash will go toward developing its core gold projects. Terrane's main project is Mt. Milligan, a copper-gold project; this is a new sale of a stake Goldcorp already held, and completion is not yet confirmed.

business combination

Goldcorp responded to Guatemala's government agreeing to start an administrative process in response to a request from the Inter-American Commission on Human Rights to suspend the Marlin mine. Goldcorp says the government's own studies found no evidence of water contamination or linked disease, that the mine continues to operate, and that it expects normal operations to continue during the process. An IACHR mission is to visit Guatemala in July. This is a new risk to Marlin (1,900 employees); no suspension order is reported.

regulatory community update

Goldcorp completed the sale of the Escobal silver deposit to Tahoe Resources, announced May 3, on the expected date. It received 43,686,667 Tahoe shares, representing 40% of Tahoe on a fully diluted basis, and $253 million in cash. If the IPO underwriters' over-allotment option is used, Goldcorp gets more shares to keep 40% and part of the cash is repaid, but cash cannot fall below $230 million. Goldcorp says it has no present intention to buy more Tahoe securities beyond its right to maintain its percentage while it holds at least 20%, and will review the holding on an ongoing basis.

asset acquisition disposition

Goldcorp subsidiaries signed a binding letter agreement to sell the San Dimas gold-silver mine in Mexico to Mala Noche Resources for $500 million: $275 million cash, $175 million of Mala Noche shares (about 30% ownership expected) and a $50 million five-year promissory note at 6%. San Dimas made 113,000 oz of gold and 5.1 million oz of silver in 2009. Silver Wheaton has agreed to amend its existing silver purchase deal, which Mala Noche assumes, with Goldcorp still delivering an extra 1.5 million oz a year for about $4.00 per ounce during the first four years. Closing is expected around July 30, 2010 and depends on Mala Noche's equity financing. The CEO says the proceeds will fund growth without diluting shareholders, following the Escobal sale.

asset acquisition disposition

Goldcorp subsidiaries agreed to sell the Escobal silver deposit in Guatemala (the discovery highlighted in earlier drilling reports) to Tahoe Resources, a private company headed by former Goldcorp CEO Kevin McArthur. Goldcorp is to receive total consideration of $505 million: Tahoe shares giving it 40% of Tahoe after Tahoe's proposed IPO in Canada, plus at least $230 million in cash depending on the IPO's final results. Closing is expected on or about June 8, 2010 and depends on the IPO completing. Goldcorp could appoint three Tahoe directors and keep its 40% while above 20%.

asset acquisition disposition

Goldcorp completed the purchase of the 70% interest in El Morro announced January 7. It lent US$463 million to a New Gold subsidiary to buy the stake from Xstrata, a Goldcorp subsidiary then acquired that interest, and Goldcorp transferred US$50 million to New Gold. El Morro is now 70% Goldcorp and 30% New Gold, and Goldcorp is operator. The shareholders agreement was amended so Goldcorp will advance 100% of New Gold's share of development and construction funding through commercial production, as interest-bearing loans repaid from New Gold's share of production. This resolves the pending deal and adds a funding commitment beyond the initial outlay; the filing does not give the total.

business combination

Goldcorp signed a binding agreement with New Gold to get the 70% interest in the El Morro copper-gold project in Chile that Xstrata Copper Chile holds. Goldcorp will advance US$463 million to New Gold so a New Gold subsidiary can exercise its right of first refusal, then buy that subsidiary and pay New Gold US$50 million in cash on closing. Goldcorp would hold 70% and New Gold 30%, with closing expected within 15 business days of the sale agreement. The filing states 100%-basis reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper, and calls this a re-entry into Chile; it adds a new copper-gold project to the existing portfolio.

business combination

Goldcorp matched Penmont's competing bid for Canplats, now offering C$4.40 per share: C$4.20 in cash plus shares of a new exploration company with notional value C$0.20 per share. This replaces the earlier share-based terms from Nov 16 with a cash-heavy offer, so the deal is likely to cost more cash and fewer new Goldcorp shares (an inference; the filing doesn't restate the share count). Canplats must now sign the amended agreement and recommend it, and the Penmont proposal lapses with no fee payable. Closing has not been confirmed.

business combination

Canplats told Goldcorp that Minera Penmont had proposed buying Canplats for C$4.20 cash per share plus shares of a new exploration company, and Canplats' board judged it a 'Superior Proposal' versus Goldcorp's Nov 16 deal. Goldcorp has five business days to match and is considering its position. This puts the Canplats acquisition announced Nov 16 at risk of being lost or costing more.

business combination

Goldcorp agreed to buy Canplats Resources through a plan of arrangement for about C$238 million. Each Canplats share gets 0.074 of a Goldcorp share plus an interest in a new exploration company, worth C$3.60 per share combined based on the Nov 13, 2009 Goldcorp close. It adds the Camino Rojo project, about 50 km southeast of the Peñasquito mine, with reported measured and indicated resources of 3,445,000 ounces of gold and 60,708,000 ounces of silver. About 4.3 million new Goldcorp shares would be issued (subject to adjustment), closing is expected in January 2010, and it needs a 66 2/3% Canplats securityholder vote. Canplats would owe Goldcorp a C$7.2 million termination fee in certain circumstances. Note the CEO is now named as Chuck Jeannes.

business combination

Goldcorp closed its private sale of US$862.5 million of 2.00% convertible senior notes due 2014, including the full over-allotment. Net proceeds are about US$839.9 million, of which about US$330.0 million is intended to repay its revolving term credit facility and the rest is for general purposes including capital expenditures. On conversion Goldcorp may pay in cash or a mix of cash and shares instead of shares, so dilution is possible but not certain. This completes the offering announced June 1 and closes the open thread on closing and over-allotment; the filing says the repayment is intended, not yet done.

debt financing

Goldcorp priced the US$750 million convertible senior notes due August 1, 2014, with closing expected around June 5, 2009 and a further US$112.5 million available if the over-allotment option is used. The notes pay 2% interest and convert at about US$47.98 per share (20.8407 shares per US$1,000), roughly 130% of the June 1 NYSE closing price. Net proceeds are about US$730.3 million (about US$839.9 million if the option is fully used), of which about US$330 million will repay the revolving credit facility and the rest goes to general purposes including capital expenditures. On conversion Goldcorp may pay in shares, cash or a mix, so dilution is possible but not certain. This confirms the plan announced earlier the same day.

debt financing

Goldcorp announced plans for a private offering of about US$750 million of convertible senior notes due 2014, with a 30-day option for initial purchasers to buy up to US$112.5 million more. The notes would be convertible into Goldcorp shares at a premium to the market price, and Goldcorp says it will use the net proceeds to repay its revolving term credit facility, with the rest for general corporate purposes including capital expenditures. This is the first sign in these filings of a revolving credit facility being drawn, and conversion could add shares for existing holders.

debt financing

Goldcorp agreed on July 31, 2008 to buy Gold Eagle Mines Ltd. through a friendly plan of arrangement, in a deal worth about C$1.5 billion for 100% of Gold Eagle's fully diluted shares. Gold Eagle's main asset is the Bruce Channel gold discovery next to Goldcorp's Red Lake mine, so this extends the Red Lake holdings. Gold Eagle holders get C$6.80 cash plus 0.146 Goldcorp shares per share (assuming full pro-ration), with elections for all cash or all shares, subject to pro-ration; cash is capped at C$691 million and shares at 14.8 million, so existing Goldcorp holders face some dilution. Closing is expected in September 2008, subject to a 66 2/3% Gold Eagle shareholder vote; holders of about 10.5% of Gold Eagle have agreed to vote in favour, Goldcorp already owns 4.7%, and Gold Eagle owes a C$44 million termination fee in certain circumstances.

business combination

Goldcorp poured its first gold at the Peñasquito project in Zacatecas, Mexico, with nearly two million tonnes of ore stacked on the heap leach pads and recovery rates meeting or exceeding expectations. The company says construction is on schedule and on budget, and that once commercial production is reached the mine is expected to produce over 400,000 oz of gold and 30 million oz of silver a year over a 19-year life. This is one of the projects the February 2008 Silver Wheaton proceeds were meant to help fund.

production update

Goldcorp completed the sale, through a wholly-owned subsidiary, of 108,000,000 Silver Wheaton Corp. shares at C$14.50 each, for gross proceeds of C$1,566,000,000. The CEO calls it the final element of an initiative to simplify the business, and the company says the proceeds will help fund about US$3.9 billion of capital spending over five years (Peñasquito, Éléonore, Cerro Blanco and sustaining capex) and an expected 50% rise in gold production. Pueblo Viejo (Barrick 60%, Goldcorp 40%) is not included in that figure and remains under feasibility review.

asset acquisition disposition

Goldcorp signed a binding agreement with Kinross Gold to buy Kinross' 49% share of the Porcupine mines and 32% share of the Musselwhite mine in Ontario. In exchange Kinross gets Goldcorp's 50% stake in the La Coipa silver-gold mine in Chile plus US$200 million in cash. This gives Goldcorp full ownership of the two Ontario mines, in which it acquired operating interests (51% Porcupine, 68% Musselwhite) on May 12, 2006, and it gives up its La Coipa interest. Closing is expected within 60 days, subject to customary conditions; both boards have approved.

business combination

Goldcorp filed a technical report dated November 17, 2006 on its Red Lake Gold Mines property in northern Ontario, covering the Red Lake and Campbell complexes. The excerpt shown is mostly the table of contents; it points to reserve and resource statements (Red Lake as of December 31, 2005, Campbell to September 2006), but the actual figures are not in the text provided.

resource reserve update